Russian mining and steel group Metalloinvest plans to make public share offerings in Russia and Western capital markets in 2007-08, the company's general director Maxim Gubiev told the Vedomosti newspaper.

The newly formed holding company is currently establishing its structure, he says, but prior to the share flotation it is planned to bring all the group’s operations – Lebedinsky and Mikhailovsky iron ore plants, Ural Steel and Oskol electro-metallurgical works (OEMK) – under a unified share structure. The holding company's capitalisation is currently estimated at $12bn, but after the flotation, he says, it should increase.

Metalloinvest's raw materials division – LebGOK and MikhGOK – is currently exporting around 60% of its output, with MikhGOK selling to Russia and LebGOK exporting. Some 90% of the company's output is sold on quarterly and half-yearly contracts, but from next year annual contracts will be implemented, Gubiev says.

A new 4m t/y floatation plant will be installed at MikhGOK, whilst LebGOK's production of hot briquetted iron will be ramped up to 5m t/y of HBI with completion of the new HBI plant and construction of two additional plants. Metalloinvest considers HBI to have good prospects because the number of new electric arc furnaces being built around the world is mushrooming, Gubiev says.

Oskol is finalising plans to develop more downstream production, with European car manufacturers as the main target markets. Ural Steel, meanwhile, is in the midst of a major $450m upgrade of blast furnaces and plate mill, and is also considering building a new wide heavy plate mill to supply pipe-makers, he says.

Metalloinvest is also a favourite in the Ukrainian Kryviy Rih iron ore beneficiation plant (KGOKOR), as previously reported in Steel Business Briefing. This should produce 12m t/y of pellets once production begins.