Archive | Norilsk Nickel

Russian Metals Billionaires Hope for Peace as ‘Shoot Out’ Looms – by Jack Farchy and Yuliya Fedorinova (Bloomberg News – November 22, 2017)

https://www.bloomberg.com/

A shoot out is looming in Russian metals. That isn’t a reference to the industry’s blood-soaked history, but to a clause in a hard-won peace deal between two billionaire shareholders of MMC Norilsk Nickel PJSC, Russia’s largest miner.

The 2012 agreement between Oleg Deripaska’s United Co. Rusal and Vladimir Potanin’s Interros Holding Co. provides a mechanism by which one man can buy out the other’s stake in Nornickel. That mechanism is called a “shoot out,” and becomes possible after a five-year lock-up period expires on Dec. 10, according to a Rusal letter to shareholders published in 2014.

Potanin, one of Russia’s richest men with an $18 billion fortune, told Bloomberg he has no immediate plans to initiate the so-called shoot out — a forced auction where the loser must sell his stake to the winner. Continue Reading →

[Norilsk] Metals Billionaire to Win Whether Electric Cars Boom or Bust – by Yuliya Fedorinova (Bloomberg News – November 21, 2017)

https://www.bloomberg.com/

There are two major reasons mining billionaire Vladimir Potanin is within a hair’s breadth of regaining his ranking as Russia’s richest tycoon this year.

One is higher prices for nickel used in batteries as metals traders bet electric vehicles are the future of transportation. The other is a jump in palladium on wagers that gasoline cars will be here for a long time yet.

They’ve boosted the value of Potanin’s 30 percent in MMC Norilsk Nickel PJSC, the top miner of both metals, lifting his net worth 12 percent this year to $19 billion. They also show how Nornickel, as it’s known, will gain from auto-industry changes even if optimism on electric cars is overdone. Continue Reading →

Russia miner Nornickel sees capex rising by 2019-2020 – by Eric Onstad and Polina Devitt (Reuters U.S. – November 20, 2017)

https://www.reuters.com/

LONDON/MOSCOW (Reuters) – Russia’s Norilsk Nickel plans to increase capital expenditure to an average of $2.3 billion to $2.5 billion a year in 2019 and 2020 from about $2 billion in 2018 due to an environmental project and infrastructure modernization, it said on Monday.

Nornickel, part-owned by Russian businessman Vladimir Potanin and aluminum giant Rusal, is the world’s top palladium producer and second-largest nickel producer.

“In the next three years, we are budgeting for an increase in capital investments that will allow us not only to maintain metal production volumes, but also put a solid foundation under new perspective projects,” Potanin, also Nornickel’s president, told an Investor Day in London. Continue Reading →

Electric cars set world’s nickel miners on new course – by James Regan and Melanie Burton (Reuters U.S. – October 31, 2017)

http://www.reuters.com/

SYDNEY/MELBOURNE (Reuters) – Battery makers are increasingly turning to nickel to help power growing global electric car sales, but only half of the world’s producers of the metal are likely to benefit, mining analysts and executives say.

Lithium batteries containing nickel, which helps keep a charge over longer distances, are being installed in electric cars from Tesla’s top-of-the-line Model X to General Motors Co modestly-priced Chevy Bolt.

The battery boom promises a new and growing market for miners producing high-grade nickel products. However, half the world’s supply of the metal, comprised of so-called ferronickel and nickel pig iron grades, is unsuitable for battery production, according to analysts at UBS. Continue Reading →

LMEWEEK-Electric cars yet to turn cobalt market into gold mine – Nornickel – by Polina Devitt (Reuters U.K. – October 30, 2017)

https://uk.reuters.com/

MOSCOW, Oct 30 (Reuters) – Demand for cobalt used to make rechargeable batteries that power electric cars has not yet translated into a tighter market, according to Russia’s Norilsk Nickel, a major producer of the metal.

Materials used to make the batteries will be a key topic of discussion during LME Week, a gathering of the metal industry in London this week.

“The price is higher but there is no tense situation with cobalt supply now,” Anton Berlin, Nornickel’s head of strategic marketing, told Reuters in an interview. Continue Reading →

[Norilsk Nickel] Russia and Norway make progress on cross-border environmental problems – by Anna Kireeva (Bellona.org – October 9, 2017)

http://bellona.org/

Russian and Norwegian environmentalists and politicians gathering in the industrial town of Nikel to tote up advances in cross-border pollution for once had something positive to report: the joint efforts seems to be working.

The results of Russia’s Year of Ecology are so far mixed, but 2017 marks a quarter century since Russia and Norway started forging an often-brittle bond of environmental cooperation.

The event in Nikel – a company town to the Kola Mining and Metallurgy Company with a history of grievous pollution – was entitled “Days of Russian Norwegian near border cooperation,” and presented a best-foot-forward program that checked off several bilateral success stories. Continue Reading →

Monchegorsk has now the world’s largest nickel refining facility – by Thomas Nilsen (Barents Observer – September 28, 2017)

https://thebarentsobserver.com/en/

Kola GMK has boosted its nickel output by 50% after refining was moved from Norilsk in Siberia.

«A large-scale upgrade is now at full swing,» says Igor Lisitskiy, Deputy CEO for Reconstruction at Kola Mining Metallurgical Combine (Kola GMK) in a press-release.

According to Lisitskiy, the factory in Monchegorsk has become the world’s largest nickel refining facility. «Monchegorsk site produces up 165,000 tons of nickel per year,» he says.

Last winter, the old nickel refining plant in Norilsk on the Taymyr Peninsula was closed down and production moved to the Kola Peninsula. The factory in Monchegorsk now receives nickel matter from both the smelter in Nikel near Russia’s border to Norway and from the Nadezhda Metallurgical Plant in Norilsk. Continue Reading →

(Russia Mining) World’s Biggest Country Doesn’t Have to Go Far for Cheaper Labor – by Anna Andrianova and Yuliya Fedorinova (Bloomberg News – September 25, 2017)

https://www.bloomberg.com/

Just a seven-hour drive south of Moscow, Stary Oskol could be a world away when it comes to the costs of running a business. For Metalloinvest Holding Co., the bargain was too good to pass up.

Starting in July, Russia’s largest iron-ore producer is relocating some management personnel from the capital to the old mining center that’s perhaps best known as the home of the country’s most celebrated mixed-martial-arts fighter.

And once its new service hub there is up and running, the company expects to cut its expenses for operations such as bookkeeping and human resources by almost a third. Billionaire Alisher Usmanov’s Metalloinvest is the latest among a slew of major companies that are seizing on the discrepancies in pay and costs, queuing up for smaller towns left behind during the oil boom years of the past decade. Continue Reading →

How green are the batteries?: Electric car revolution boosts business for big Arctic air-polluter – by Thomas Nilsen (The Baren Observer – September 7, 2017)

https://thebarentsobserver.com/en/

Nornickel eyes sharp increase in demand for nickel and copper as tens of millions of electric cars hit the roads over the next few years. Nickel prices leap to new heights, increasing 36% over the last two months. Copper, another key metal for electric car batteries, has seen prices climb by nearly 20% since mid-summer.

That is very good news for Nornickel, one of the world’s largest suppliers of both nickel an copper. With factories on the Taymyr Peninsula and in the Murmansk region, the company’s directors are smiling all the way to the bank. And back. With workers’ salaries to be paid in rubles, and sales abroad in dollars, Nornickel is benefiting from Russia’s turbulent economy with low currency rate.

Nornickel now wants to expand sales to the electric car industry. Recently the company signed an agreement with BASF on possible supply of raw materials for future battery material production for lithium-ion batteries in Europe. Continue Reading →

Life In Norilsk, A Frozen Gulag Turned Mining Town – by Emmanuel Grynszpan (World Crunch.com – January 11, 2017)

https://www.worldcrunch.com/

NORILSK — The belly of Mother Russia is most fertile 1,000 meters underground and 300 kilometers north of the polar circle. Outside, the temperature can drop as low as -60 degrees Fahrenheit. But down below, it’s warm and moist. And the walls shine. The blocks that detach themselves as bulldozers strike the stone are loaded with precious and semi-precious metals: nickel, copper, palladium and platinum.

In the “Skalista” mine, in Norilsk, monstrous machines stride along a maze of tunnels that will soon reach 2,000 meters below ground level. The sound of the machines shaving off the walls is terrible. Danger is omnipresent. “The worst thing is the fires,” explains Ivan Grinchuk, lead engineer at the mining group Komsomolsky, an affiliate of Norilsk Nickel.

This year, at least four miners have lost their lives in accidents. “What can I say? That’s how mining is. It’s the same all over the world,” says Grinchuk, who’s been working in Norilsk for 20 years. “It was a lot worse in the 1960s,” he adds. Grinchuk says the accidents are often caused by drunk workers. “When that’s the case,” he explains, “their families don’t get any compensation payments.” Continue Reading →

Russia’s Nornickel in talks to supply materials for BASF’s battery plans (Reuters U.S. – June 27, 2017)

https://www.reuters.com/

Russia’s mining giant Norilsk Nickel (Nornickel) (GMKN.MM) is in talks with German chemicals firm BASF (BASFn.DE) to supply raw materials needed in the process for making lithium-ion batteries in Europe in the future, they said on Tuesday.

The talks between BASF and Nornickel, the world’s second largest nickel producer and a major cobalt producer, highlight the burgeoning market for metals needed for lithium-ion batteries production as the car industry’s push towards electric vehicles gathers pace.

Nornickel and BASF said in a joint statement the talks covered “cooperation to set the foundation to supply battery cell producers for electric vehicles in Europe with regionally produced cathode materials.” Continue Reading →

Botswana Clash With Billionaires Could Tarnish Its Reputation As Resource Investor’s Paradise – by Kenneth Rapoza (Forbes Magazine – May 2, 2017)

https://www.forbes.com/

At first glance, there is simply no country like it in Africa. Within the continent, Botswana is considered to be the crème de la crème. It’s corruption perception score is better than every BRICS nation plus Mexico, according to Transparency International. It’s resource rich, known mainly for its diamond wealth, and has rolled out the red carpet for foreign firms with what seems like reliable, steady rule of law. This is the place to be.

Some say not so fast. Deloitte Botswana senior manager, Brian Watts, argues that appearance belies a true scale of graft. It is done by multiple actors all throughout the value chain. Watts estimates at least 5% loss due to fraud even in the private sector, in telcos.

Most cases are not disclosed to the public, Watts said during an event for whistleblowers back in March. In mainly state-controlled natural resources sector the stakes are much higher. Continue Reading →

[Norilsk, Russia] Global Lenses: Diverse political films tackle war, energy and the impact of history – by Daniel Glassman (Point Of View Magazine – April 26, 2017)

http://povmagazine.com/

Three new Canadian films take on contemporary global issues through radically different lenses. Stopping off in an Arctic Russian mining city, the ruins of Basra, Iraq and a massive thermonuclear reactor in Southern France, François Jacob’s A Moon of Nickel and Ice, Ann Shin’s My Enemy, My Brother and Mila Aung-Thwin and Van Royko’s Let There Be Light investigate the entangled issues of history, war, energy and ecology from the bottom up, through intense focuses on individuals and their stories.

Quebecois director Jacob makes his feature debut with A Moon of Nickel and Ice, a multi-faceted portrait of the Siberian nickelmining city of Norilsk. Three facts about Norilsk: It’s the world’s northernmost city with over 100,000 inhabitants; it’s one of the most polluted places in the world; and it’s a “closed city”—foreigners have been banned since 2001, and it was closed to most Russians as well during the Soviet era. Norilsk Nickel’s on-site smelting facility gives the gifts of acid rain, smog and fully 1% of the world’s sulfur dioxide emissions.

You may be wondering how they got 100,000 people to move there. Answer: they forced them. Yes, Norilsk was the site of a Soviet Gulag. Continue Reading →

UPDATE 1-Russia’s Nornickel says could miss 2017 output forecast by 3 pct (Reuters U.S. – April 27, 2017)

http://www.reuters.com/

Russia’s Norilsk Nickel (Nornickel) could miss its 2017 production forecast for nickel and platinum group metals (PGMs) by up to 3 percent after first-quarter output fell, it said on Thursday.

Nornickel, one of the world’s largest nickel and palladium producers, added its management was looking at ways to mitigate this risk and confirmed its previous 2017 production guidance.

This year Nornickel, part-owned by Russian tycoon Vladimir Potanin and aluminium giant Rusal, plans to produce from Russian feedstock 206,000-211,000 tonnes of nickel, 377,000-387,000 tonnes of copper, 2.6-2.7 million troy ounces of palladium and 581,000-645,000 ounces of platinum. Continue Reading →

The Kola Mining and Metallurgy Combine: Northwest Russia polluter posts impressive cuts in harmful emissions – by Anna Kireeva (Bellona.org – April 12, 2017)

http://bellona.org/

In a surprising development, the Kola Mining and Metallurgy Company –which for decades has stubbornly fouled air over Northwest Russia and Scandinavia – last year reduced its emissions of harmful sulfur dioxide by more than 20 percent.

The KMMC, a daughter company of the giant Norilsk Nickel, reported last week that its sulfur dioxide emissions for 2016 totaled 119,700 tons, which is 35,000 tons less than the previous year.

The new emissions figures seem to reverse a rise in the toxic heavy metal pollution that began in 2011. That year, the KMMC posted figures as high as 134,000 tons a year. They rose in subsequent years, plateauing at a towering 154,900 tons in 2015. Continue Reading →