Russia’s Norilsk Nickel has updated its long-term CAPEX program for 2021-2030, raising it by $6 billion to $35 billion, of which around $6 billion will be allocated to environmental projects, to be outlined in the updated corporate strategy as revised during Monday’s Capital Markets Day Presentation.
Another key component of the revised investment plan is an $8 billion investment in energy infrastructure, including accelerated modernization of renewable energy assets, high-voltage transmission lines as well as investment in renewable energy. invest in additional projects on natural gas production and transportation. Another $2 billion for the long-term investment plan is to supplement the maintenance and upgrade of existing assets (capital repairs and new equipment purchases).
“According to the new strategy, the company is entering a new investment phase including expansion of mining and processing operations, capital increase for repair, new environmental projects, etc. To properly implement the full plans. With this ambition, we will increase the number of employees to 14,000 employees between 2020 and 2024,” Nornickel’s Chief Financial Officer, Sergey Malyshev, said as he spoke at the event in Moscow.
The company has added nearly 600 million tons to proven and probable ore reserves through the implementation of its Technology Breakthrough 1.0 program, which uses state-of-the-art resource assessment and management tools. . Nornickel has raised its long-term strategic ambitions for metal production 2030+, targeting 25-35% growth in nickel volume, 50-60% in PGM and 25-35% in copper. .
The company also aims to capture a significant market share in the fast-growing battery segment through supply agreements and deeper integration into the European battery value chain, including by research and partnerships. work.
“Considering the upcoming investment cycle in 2022, we are planning to increase the salary for employees by about 20%, including increasing the salary index and increasing the bonus rate,” Malyshev said.
Nornickel announced ambitious expansion goals with several key growth projects including phase three of the Talnakh Concentrator in the Norilsk region, the new Norilsk Concentrator, the expansion of the Nadezhda Copper Smelter and a new copper production facility in Monchegorsk, all located in the extremely harsh Arctic environment.
The company will continue to support its team and employees, especially during a pandemic.
Nornickel’s President Vladimir Potanin said:
“The coronavirus pandemic is still far from over, but the world has clearly shown its ability to adapt to new and transformative realities in response to new threats and challenges. Nornickel, too. We’ve had a challenging year marked by prolonged COVID-related restrictions and some tragic industry incidents. We have already begun deploying a permafrost monitoring system in Norilsk and have committed to major renovations to our energy infrastructure and equipment upgrades. In addition to better managing the risks associated with climate change, we expect significant cuts in carbon dioxide emissions as energy losses will be reduced and the efficiency of our power generation equipment. I will be improved.
Socially, we have committed to a number of major programs aimed at transforming Norilsk into a modern city with a high standard of living. Over the course of the business cycles, our metal basket has shown its natural resilience to changes in underlying demand for commodities. Our forward process is towards integration into the new green economy. A heightened focus on the global climate agenda drives demand for our key metals and reaffirms our manufacturing growth strategy. I believe convertible investments will deliver greater value to Nornickel and its shareholders combining industry-leading profitability and leading ESG standards.”
