By Paul Ploumis (ScrapMonster Author)
May 17, 2016 05:08:23 AM
SPOKANE (Scrap Monster): Norilsk Nickel has announced that it plans to make significant investment in development of its assets during the three-year period from 2016 to 2018. Talking on the sidelines of the company’s Strategy Day, Norilsk’s Vice-President for Strategic Planning Sergey Dubovitsky noted that around $6 billion will be invested until 2018, aimed at improving its environmental footprint.
Strategic cycle 2013-‘15
The investment during the strategic cycle 2013-’15 totaled $4.9 billion, significantly lower when compared with the investment of around $6.6 billion during 2010-’12. In 2013-’15, the company has successfully delivered an efficient business platform, thereby contributing significantly to its transformation as a world-class organization. The company released $3 billion of unproductive capital. The company outclassed its peers in terms of financial performance, despite challenging commodity market situation. Norilsk was one among the very few companies to report low leverage levels and high profitability levels.
During the next three years, the company will focus on modernization of downstream facilities and reconfiguration of nickel production and mining facilities. Around $1.9-$2.3 billion will be invested towards maintenance of existing facilities. Nearly $1.2-$1.4 billion will be invested in mining projects. In addition, nearly $500 million will be earmarked towards reconfiguration of nickel production. Apart from these another $500-$600 million will be invested towards reconstruction and modernization of other projects.
Norilsk Nickel announced that it will continue its efforts to achieve high standards of safety and cleanliness. International audit at its facilities indicates that the company’s HSE strategy implemented in 2014 has resulted in significant progress. The management aims to completely eliminate workforce fatalities in the upcoming years.
The company plans to complete the first phase of its environmental programme in 2016. The complete shutdown of the Nickel Plant is expected to take place in October this year. This is expected to reduce the overall sulphur dioxide emissions by 15%. The second phase of the environmental programme is also underway with preparations for the construction of Sulfur project. With this, the company targets 75% reduction in overall sulphur emissions. The Sulphur project design for Nadezhda plant has already received approval from the Russian regulatory body. The platform built over the past three years will be leveraged to ensure successful delivery of the company’s modernization agenda with major focus on improvement of environmental footprint, Norilsk stated.
About Norilsk Nickel
Norilsk Nickel is the world’s largest producer of nickel and palladium and one of the leading producers of platinum and copper. It also produces various by-products, such as cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulfur. Norilsk Nickel’s production facilities are located on three continents and in five countries: Russia, Australia, Botswana, Finland, and South Africa. The Group is involved in prospecting, exploration, extraction, refining and metallurgical processing of minerals, as well as in production, marketing and sale of base and precious metals.