Norilsk Nickel Announces Output Increase Plans while Committing to Ease Environmental Impact

MOSCOW, Dec. 2, 2020 /PRNewswire/ -- In an opening speech of the MMC Norilsk Nickel Capital Markets Day, Vladimir Potanin, Company's President, announced a set of new initiatives, including doubling the production output, greater focus on support for regional development, the introduction of a digital ecosystem and other significant goals. Mr. Potanin also acknowledged the toll that the events of 2020 have taken on the Company and on the world, referring to the COVID-19 pandemic and the ensuing global economic crisis. The year has been a difficult one for the Company in operational terms as well, in light of a series of accidents, but Nornickel remains fully committed to resolving all related issues.

Nornickel holds Capital Markets Day – annual meetings with the investment community, during which the Company's management presents the main results of its work done throughout the year and outlines the main tasks and strategic priorities.

This years' Capital Markets Day was hallmarked by the announcement that Norilsk Nickel is to double output and introduce the Green Nickel programme to drastically decrease the Company's carbon footprint. The Company has confirmed its intentions to significantly increase investments in the integrated development of the mining base and processing facilities, which will boost metal production by more than 30% by 2030. The new programme foresees the closing of smelter facilities in the town of Nickel later this year and strong commitment to ESG standards.

Norilsk Nickel has also confirmed plans to increase capital expenditures in 2021 to up to US$3-3.4bn (RUR2.25trn) from a maximum of US$2bn (RUR1.5trn) this year. Over the next 10 years, the Company plans to invest more than US$27bn, of which US$5.5bn will be directed at the environment protection and another US$4bn at the development of the energy complex, including investments in industrial safety and labour protection, in the next 5 years. This includes an upgrade of about 60% of energy infrastructure facilities.

In addition to the systematic implementation of the Sulphur project, which aims to reduce sulphur dioxide emissions in the Polar Division by 10 times in 2025, Norilsk Nickel has announced plans to maintain its leadership position in terms of low carbon intensity per unit of production and to remain in the bottom quartile of the global metallurgy industry in terms of carbon dioxide emissions.

"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." – said the Company's President Vladimir Potanin.

The Company is also entering into partnership with IBM to join the Responsible Sourcing Blockchain Network (RSBN). The new digital ecosystem includes tokenisation of up to 20% of the Company's sales in 2021.

The Capital Markets Day event saw discussions focused on the global risks and challenges on the Company's strategic agenda. Among them were the lessons learned from the accidents that resulted in environmental damage. As a result, the Company's management has confirmed its commitment to the implementation of the environmental programme as the main goal of sustainable business development.

Norilsk Nickel will also be focusing on production growth and the formation of a new production cycle by strengthening the management team and forming a new risk management system. More importantly, greater attention will be devoted to supporting the development of the regions of operations against the backdrop of global challenges and economic recession.

MMC Norilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products. The production units of Norilsk Nickel Group are located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland and South Africa.

Shares of MMC Norilsk Nickel are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, its ADRs are traded over the counter in the US and on the London, Berlin and Frankfurt Stock Exchanges.

SOURCE MMC Norilsk Nickel