Metalloinvest, a major global producer and supplier of iron ore and steel products, and Baikal Mining Company, which holds the largest copper reserves in Russia, are at the core of USM’s investments in the metals and mining sector. Both businesses are wholly owned by USM.

    Metalloinvest is at the forefront of the global metals and mining industry and holds the second-largest iron ore reserve base in the world, amounting to c.14.2 billion tonnes. It is the merchant hot briquetted iron (HBI) market leader and the second-biggest manufacturer of pellets globally. Metalloinvest is the largest mining company in Russia and the CIS and one of the top regional high quality steel manufacturers. Its main production assets are located in the European part of the country and the Urals.

  • Metalloinvest operates two integrated divisions. The mining segment comprises Lebedinsky GOK and Mikhailovsky GOK, and the steel segment incorporates OEMK, Ural Steel and Ural Scrap Company.

  • Lebedinsky GOK is the number one plant for mining and beneficiation of iron ore in Russia. It is the country’s only HBI manufacturer. In 2017, Metalloinvest launched its third hot briquetted iron production facility (HBI-3 Plant). It has a design capacity of 1.8 million tonnes of HBI per year, which will increase Metalloinvest’s HBI annual production capabilities to 4.5 million tonnes. The plant will reinforce Metalloinvest’s leading position on the global merchant HBI market, of which the company currently has a share of over 40%. Mikhailovsky GOK is the second-largest iron ore extraction, processing and pellet production facility in Russia, next best to Lebedinsky GOK. Metalloinvest recently launched a new pellet plant at Mikhailovsky GOK, enabling the company to increase pellet output capacity by 5 million tonnes to 27.6 million tonnes per year.

  • OEMK is one of the most modern fully-integrated steel mills in Russia. It employs advanced technology for the direct reduction of iron and electric arc furnace smelting. The unique properties of OEMK’s high quality steel have ensured stable demand in the local market and worldwide.

  • Ural Steel is a fully-integrated iron and steel works, including coke blast furnace, steelmaking and rolling manufacture. The majority of its output consists of merchant pig iron, pipe billets and strips, as well as bridge construction steel and heavy plates. The plant is a leader in niche product markets.

  • Ural Scrap Company purchases, processes and delivers ferrous scrap to Metalloinvest’s steel segment enterprises.

  • Metalloinvest is one of the major shareholders in Canada’s Nautilus Minerals, a business that specialises in commercial seafloor exploration, searching for substantial sulphide deposits, which are a potential source of copper, gold, zinc and silver ore with high metal content. It is developing the world’s first seafloor copper-gold project in the territorial waters of Papua New Guinea.


    Baikal Mining Company holds the largest copper reserves in Russia. It was established in 2008 to develop the Udokan copper deposit, one of the world’s biggest undeveloped sites, with reserves of c. 26.7 million tonnes. The company’s operations are located in the Kalar District of Russia’s Zabaikalye region.

  • The company plans to commence construction of mining infrastructure facilities at Udokan in 2019 and start commercial mining in 2021. The site is scheduled to reach its full design capacity in 2023, with an expected mine life of 40 years.

  • The project is connected to major ports and transport hubs in Russia’s Far East by the Baikal-Amur Railway, benefitting from geographic proximity to key copper consumers in China, Japan and South Korea.

  • Baikal Mining Company’s copper deposit development is viewed as a project of strategic importance. It is part of the Russian Metallurgical Industry Development Strategy until 2020 and the Social and Economic Development Strategy for the Far East and Baikal Region until 2025. It is also predicted to create 4.000 jobs at the company itself, as well as up to 20.000 positions in related sectors.