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Screening category and justification
The construction of a new electric arc furnace (EAF) and a continuous casting
machine (CCM) at PNTZ tube manufacturing plant is associated with a number of
potential Environmental, Health and Safety issues (EHS), which have been
assessed as part of an Environmental and Social Impact Assessment (ESIA) in
line with Bank’s Environmental Policy and Procedures. The new plant will
replace old and obsolete open hearth furnaces (OHFs) at the Chelyabinsk
facility and will therefore reduce the emission per ton of steel from by CHTPZ
Group. In 2006, an associated modernisation and restructuring project
(DTM#37255) was screened B/1 and an Environmental Audit was undertaken of both
the CHTZP and PNTZ tube manufacturing plants to assess historic liabilities
and current compliance, as well as an Environmental Analysis to assess the
modernisation plans in terms of meeting national and EU environmental
standards. An Environmental Social Action Plan (ESAP) was developed and agreed
as part of the modernisation and restructuring project in 2006.
Due diligence undertaken and outcomes
An Environmental, Social Impact Assessment was undertaken of the mini mill
Project by an independent international consultant. The Project has also been
subject to Russian EIA (OVOS) and a technical review was made of the project
by an international technical consultant. Members of the Bank’s Environment
Department visited the site as well as the German technology supplier as part
of the due diligence.
The environmental due diligence confirmed that the Project will have limited
environmental impacts and that state-of-the-art technology is to be employed.
The new mini mill will be located within the existing tube manufacturing plant
and within the existing sanitation zones. The new plant will be using
state-of-the-art pollution control technology and meet relevant EU and Russian
emission standards, notably as specified by the EU Integrated Pollution and
Prevention (“IPPC”) Directive BREF Note for the Steel Sector. PNTZ will
operate the new mini mill in compliance with Russian laws and regulations as
well as in accordance with EU environmental standards, including the IPPC
defined Best Available Technique’s (“BAT”) guidelines. An environmental
management system and continuous monitoring will be incorporated into
day-to-day operations of the mini mill plant as well as the CHTPZ Group.
Disclosure of information and consultation
The Project has been subject to a public consultation and a disclosure plan
(PCDP) has been developed to the satisfaction of the Bank. Disclosed materials
include:
1. 2007 ESIA Non Technical Summary in Russian and English
2. 2007 Environmental and Social Impact Statement, Main Report plus appendixes
in Russian and English
3. 2007 Public Consultation and Disclosure Plan (PCDP) in Russian and English
There is an Environmental Impact Assessment available for this project
The materials are available in hard copy at the following locations in Russia
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PNTZ PR Department, Torgovaya Street 1, Pervouralsk, 623112, Sverdlovsk
region, Tel. (34392) 5-87-69. Contact: Mrs Janna Olkhovikova, e-mail:
pntzpres@pntz.ru
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EBRD Regional Office Yekaterinburg; Office 413, 22 Karla Liebknekta Street,
620075 Yekaterinburg, Russia. Tel: +7 343 33 000 60; Fax: +7 343 33 000 62.
Contact: Artyom Sitnikov email: SitnikoA@ebrd.com
The EIA package and Executive Summary have also been released for public
review by the project sponsor on its website www.pntz.ru and released locally
in the following locations:
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Newspaper “Uralsky trubnik”, Gertsena str.,12 623112, Pervouralsk Contacts:
Sergey Pagnuev – chief editor; Victor Makarenko – executive secretary
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PNTZ Environmental Department, Torgovaya 1, Pevrovalsk, 623112, Sverldlovsk
Oblast Tel, (34392) 769-78. Contact Mr Viktor Kuznehov; e-mail:
VK_Kuznetsov@pntz.ru
Additionally the executive summary is available on the EBRD internet sites at
www.ebrd.com.
Monitoring and reporting
The Company will monitor the environmental impact of its operations in
accordance with national law and regulations. The Bank will evaluate the
project's compliance with the applicable environmental and social requirements
during the lifetime of the project by reviewing annual environmental reports
prepared for the project covering:
(i) ongoing performance of project-specific environmental, health and safety
activities as reflected in the results of periodic and quantitative sampling
and measuring programmes, and
(ii) the status of implementation of environmental mitigation and improvement
measures. The Bank’s representatives will also conduct periodic site
supervision visits when deemed appropriate.
The Bank will undertake monitoring of the Project, inclusive of site visits by
Bank staff as well as independent audits and an additional BAT Assessment of
the Project and CHTPZ facilities.
There is an Environmental Impact Assesment available for this project.
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