Retention of low-cost position

MAIN COST-REDUCTION PROGRAMMES

OPTIMISATION OF PRODUCTION FLOW AT WASHING PLANTS

Key developments in 2019

Installation of chamber filter press at Kuznetskaya washing plant provided the increasing of concentrate yield by 0.2%.

Launching of flotation at Abashevskaya washing plant provided increasing concentrate yield by 1.3%.

Improving of productivity of Raspadskaya washing plant through EBS efforts and by eliminating logistical bottlenecks (additional warehouses and shipment capacity).

REDUCTION OF LONG-WALL MOVE PERIOD

Key developments in 2019

Using of Pettito mules to reduce the long-wall removement period at Raspadskaya mine by 11 days.

Using of substitute mechanised complex JOY-1 at Erunakovskaya mine to reduce the long-wall removement period by 30 days.

OPTIMISATION OF EXPENSES FOR AUXILIARY MATERIALS AND INDUSTRIAL SERVICES

Key developments in 2019

Substitution of contractors at open-pit mining by improving productivity of own equipment fleet.

Optimising of usage rate of auxiliary materials at production processes and improving the share of recycling.

Reducing the costs of equipment repairs and technical services by controlling of the work of organisations, performing repairs, as well as by increasing the duration of daily scheduled preventative maintenance done in-house.

IMPROVEMENT OF DEVELOPMENT WORK RATE

Key developments in 2019

Improving the development work rate by 10% overall at the Group by upgrading the development equipment.