Magnitogorsk Iron and Steel Works

History of Magnitogorsk mining

Historically, the centre of Russian iron production was focused in the Tula region. However, in the early part of the 18th century, a shift towards developing the industrial capabilities of the Urals occurred, resulting in more than a doubling of Russia's iron production. In 1828, a series of geological surveys began as part of an effort to determine the mineral make up of the Magnitnaya Mountain and create estimates of the possible amount of iron contained underneath it. By the latter part of the 19th century, a small town had been established and had grown to more than 10,000 residents. During this period, between 30,000 and 50,000 tons of raw iron were extracted annually in the area.

Establishment of MMK

In the 1870s, most Russian iron ore, steel, and pig iron was produced in Ukraine. In 1913, Ukraine, with its rich deposits and developed industry, accounted for 75% of iron ore production, compared to 21% in the Urals. While Ukraine remained the center of metal production, neighboring regions were significantly less developed. It was only after the October Revolution of 1917 that the effort to expand the steel industry came to the fore.

As part of Soviet leader Joseph Stalin's First Five-Year Plan, the government decided to sponsor a project to build the world's largest steel production complex. The Soviets initially planned the project, with the American-based Arthur McKee & Company brought in later to oversee its construction and assist in its planning. The plan to transform Magnitogorsk (which would become MMK) into an industrial complex was linked to the construction of the new city of Stalinsk, which had a large supply of coal.

To manage the Magnitogorsk construction, the trust "Magnitostroy" (Russian: Магнитострой) was established in January 1929.

While there were disagreements regarding the timetable and massive shortages of supplies, the project to build the complex began in 1929 with the influx of thousands of Soviet workers. The American contractors were critical of the project's handling and frustrated by its mismanagement, and as a result, the Soviets ended up designing a large proportion of the complex themselves. The failure to properly organize the construction efforts was partly due to the Soviet government's tight deadlines, which they deemed essential to meet their Five-Year Plan. Additionally, several key personnel were replaced due to political concerns over loyalty to the Communist Party.

Despite claims made by the advisors from Arthur McKee & Company that the facilities were not yet ready for use, the furnaces at MMK were put into action in 1932, and the first flow of molten pig iron was produced. Although the move to begin production pleased the Soviet leadership, the plant was forced to halt its production only a few days later as serious repairs to the furnaces were needed. By 1933, the plant was producing steel.

Metallurg Charity Foundation

One of the channels through which MMK's social investments are made is the Metallurg Charity Fund, which was founded in 1993. In 2016, the financial resources of the fund were €8.7 million.