NORILSK NICKEL INVESTMENT PLANS20 Dec 2020 21:42
Transition to an active phase of the investment cycle
To implement the growth strategy and environmental projects, Nornickel has updated its long-term CAPEX plan and announced that the investment cycle would enter an active phase in 2021.
Total investments for the next 10 years are scheduled to exceed USD 27 bn, including approximately USD 5.5 bn earmarked for projects with a positive environmental impact. CAPEX in fuel and energy assets, including industrial safety initiatives, will amount to approximately USD 4 bn, which should facilitate an upgrade of over 60% of all Nornickel's energy infrastructure.
In order to efficiently execute on this ambitious strategy, Nornickel has transitioned to a division-based governance structure, whereby production assets are gaining greater investment flexibility without compromising the strategic and expert functions of the corporate centre. In addition, the Company is developing supporting infrastructure for the third party contractors and fly-in construction workers and expanding its pool of construction companies capable of operating in Norilsk, which should help to mitigate the challenges of a contractor labour force deficit.
Commenting on the updated strategic agenda, Nornickel's President Vladimir Potanin said,
"As global transition to 'green economy' will require more nickel, copper, palladium and platinum we are expanding our investments in environmentally friendly production growth. We also intend to be absolutely transparent and convenient to our customers by offering them new digital solutions. As an industry leader and a responsible miner Nornickel will continue to execute its strategy in a sustainable manner and respect the interests of all of its stakeholders".
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