Severstal has appointed Sergey Gnilitsky as chief executive of its iron ore producing subsidiary Olcon effective from 15 February. Gnilitsky was previously Director of Mining Plant Management at Olcon.

“Sergey Gnilitsky’s significant expertise and operational experience at Olcon will underpin the continued development of the company,” says Severstal ceo Vadim Larin in a statement sent to Kallanish. “Olcon is today one of the best performing iron ore complexes in the industry.”

Olcon produces over 4 million tonnes/year of iron ore concentrate, with shipments mostly going to Severstal’s Cherepovets steelworks. The iron ore producer comprises the Olenegorsk mine, Kirovogorsky mine, Prof. Bauman mine, 15th Anniversary of October mine, Komsomolsky mine and Olenegorsk Underground mine.

Severstal recently said further oil price deterioration could put additional pressure on the Russian economy in 2016, with domestic steel demand in 2016 remaining low (see Kallanish 9 February). The firm’s consolidated steel product sales rose 4% on-year in 2015 to 10.82 million tonnes, while external iron ore sales (including pellets) rose 2% to 6.19mt.