OREANDA-NEWS. November 28, 2012. Severstal (“Severstal”, “the Company”), one of the world’s leading vertically integrated steel and steel-related mining companies, hosted its Greenfields Day on Friday 23 November. During the event, the Company’s managers updated investment analysts on Severstal’s future strategies for the implementation of commodities projects, both domestically and internationally. The event was held in the wake of the Company’s Capital Markets Day in September which detailed Severstal’s development strategy, focused on the production of steel and provision of the required source materials. The Greenfields Day explained in detail to the market how the Company was planning to develop its assets for the production of iron ore and coking coal. It also outlined strategic options, subject to Severstal’s prudent financial and investment policies, both in the long run and in the current economic downturn.

Thomas Veraszto, Severstal’s Deputy CEO for Strategy and Corporate Development, said:

"During the Greenfields Day we gave a detailed description of our strategy in the mining sector. It was important for us to bring home to market experts a few key concepts. We retain our commitment to vertical integration as the most effective business model in terms of the Company’s long-term development, despite occasional price weakness on commodity markets. That said, our current project portfolio in the mining business may be updated with due regard for macroeconomic factors and, first and foremost, their impact on the Company’s performance. Further investments in those projects will depend on how they meet our financial criteria: debt load below 1.5 x net debt/EBITDA, EBITDA profitability above 20%, IRR and ROCE also above 20%. Finally, our approach to investment in and the development of such projects remains flexible and may involve, depending on market conditions, various options, including the establishment of partnership relations.”