OAO Severstal has announced its plans to invest $2bn to improve operating efficiency, overhaul its operational facilities and ensure that the company maintains industry-leading health and safety standards.

The company plans to invest $650m, a 53% increase from 2010, to update the production equipment across the division’s iron ore mills and coalmines, complete the Corkuta power station, explore the Putu iron ore deposit in Liberia and develop the gold mining assets and a coalmine at PBS Coals.

The company also plans to invest $465m in Severstal North America, which includes the construction and commission of new equipment.

The overall capital expenditure represents a 48% increase over investments in 2010.