Energy saving in 2024 brought MMK 1.2 billion roubles

The comprehensive work to improve the energy management system (EMS) and increase the energy efficiency of production processes at Magnitogorsk Iron and Steel Works (MMK) in 2024 yielded an economic effect of approximately RUB 1.2 billion.

Since 2016, the energy management system (EMS) has been a key tool in reducing energy costs at MMK. The EMS is strategically aligned with the Company's Energy Policy, which aims to minimise energy expenditures within production costs. An external audit of the system in September 2024 confirmed that the EMS meets the requirements of GOST R ISO 50001-2023, operating effectively across all key divisions: mining and processing, steelmaking, coke and chemical and rolling operations, as well as divisions of the Chief Power Engineer's Department.

'Improving energy efficiency is one of the priority areas of MMK Group's development. We endeavour to ensure the efficient use of energy resources at every workplace.The main mechanisms for improving energy efficiency at MMK include the development and implementation of rationalisation ideas, low-budget projects (baby-capex), and the provision of energy services. These measures contribute to reducing the Company's expenditure on fuel and energy resources, thereby minimising its environmental impact," stated Pavel Shilyaev, General Director of MMK.

In 2024, 1,107 energy efficiency ideas were recorded through the idea support block of the energy management platform, of which 553 were implemented with a planned annual economic effect of RUB 424.9 million. At the same time, 4 projects were implemented with a total effect of RUB 49.9 million. The fulfilment of obligations under energy service contracts for projects to modernise the lighting systems of the Chief Power Engineer's Department and process shops brought MMK RUB 268.6 million.

Implementing projects to reduce the cost of purchased electricity by regulating the volume of electricity generated by the Company's own power plants, repairing power equipment at the plants during the hours with minimum energy costs, and reducing electricity consumption at divisions during the hours with maximum energy costs, resulted in savings of RUB 442.6 million.

In 2024, the Company continued to develop a chatbot in Telegram created for employees to identify facts of irrational use of fuel and energy resources (FER) - leaks, drains, water coming to the surface, ice on pipelines, etc. Over the year, employees informed MMK's Energy Saving Technologies Centre about 173 such facts.The effect of registering losses and eliminating violations totalled about RUB 3.2 million.