Nornickel is the leader in Russia’s metals and mining industry, as well as the largest palladium and high-grade nickel producer and one of the largest producers of platinum and copper. Nornickel also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, and sulphur.
Nornickel Group’s business lines
the exploration, mining, and processing of minerals
the production and sale of non-ferrous and precious metals
The Group products are supplied to 37 countries worldwide and purchased by more than 400 partner companies.
Nornickel Group’s core businesses are vertically-integrated metals and mining operations. Since 2020, these businesses have been grouped into divisions, enabling accelerated decision-making and improved accountability of production site management.
The Polar Division and Bear Creek are located on the Taimyr Peninsula — Nornickel’s key resource base.
The Norilsk Division comprises a full production cycle: from ore mining and concentration to refining.
Kola MMC, Nornickel’s core nickel refining facility, is located on the Kola Peninsula.
Finland-based Norilsk Nickel Harjavalta processes the Company’s Russian feedstock and nickel-bearing raw materials sourced from third-party suppliers.
GRK Bystrinskoye is a mining and processing plant located in a remote area of the Gazimuro-Zavodsky District, the Zabaykalsky Region.
In 2020, the plant reached its design capacity. It is one of the largest greenfield projects in the industry.
Along with production enterprises, the Group operates a captive sales network, fuel and energy assets, transport assets, a range of R&D facilities, as well as a unique Arctic cargo fleet.
Nornickel’s business model is attractive thanks to a rich resource base with a high content of all key metals in the ore, and low cash cost vs peers.
Company securities are among the most liquid instruments in the Russian stock market and abroad. In Russia, MMC Norilsk Nickel shares are included on the First Level quotation list of the Moscow Exchange and are traded on the SPB Exchange. The Company’s American Depositary Receipts are traded on the US OTC market, as well as on the London, Berlin, and Frankfurt exchanges (OTC sections). The Company’s ADRs are included in the FTSE Russia IOB index of the London Stock Exchange.
In September 2020, Nornickel successfully placed its 5-year USD 500 million Eurobond offering with an annual coupon rate of 2.55%. In December 2020, Nornickel’s Global Palladium Fund issued its first tokens to put a number of contracts with major industrial partners onto the blockchain.
In 2020, the Company returned USD 4.2 billion to shareholders in dividends.
More details on Nornickel’s investment case
Strategy 2030: transition to a greener world
In 2021, Nornickel presented its sustainability strategy to 2030. The Company dramatically reviewed its approaches to environmental risk management, water stewardship, biodiversity restoration, and climate change, with clear targets set for each of these areas.
The holistic strategy aims to expand the environmental agenda and set new targets for greenhouse gas emissions:
Maintain absolute greenhouse gas emissions (Scope 1 and 2) from production enterprises no higher than 10 mln t of CO2 equivalent
Maintain GHG emissions (Scope 1 and 2) per tonne of Ni equivalent in the bottom quartile on the global GHG intensity curve for the metals and mining industry
Another key objective of the strategy is the ongoing Sulphur Project 2.0, aimed at driving a 10x cut in sulphur dioxide emissions in Norilsk by 2025, achieving net zero in the Russia—Norway border area, and securing a 7x drop in emissions at Kola MMC in 2021.
Environmental agenda progress
In December 2020, the smelting shop in Nikel, the Murmansk Region, was shut down. As a result, total sulphur dioxide emissions from Kola MMC’s operations decreased by more than 50% (from a 2015 baseline).
Nornickel compensated for the damage to the environment caused by a diesel fuel spill at CHPP-3 in the Kayerkan District of Norilsk on 29 May 2020. In August 2021, EMERCOM reported that the spill had been fully cleaned up.
In the summer of 2021, Nornickel’s Kola Division produced the first ever batch of carbon-neutral nickel in the history of the metals and mining industry. A set of corrective actions aimed at reducing greenhouse gas emissions at all stages of finished product manufacturing was implemented.
More details on the Sustainability Strategy to 2030
Nornickel is guided by its social mission and adheres to the principles of corporate social responsibility in building effective relationships with society as a whole, with local communities in the regions of operation, and with Company employees.
The Company is one of the most responsible employers in Russia. As at 2020-end, the average monthly salary of employees was USD 1,827, which is 2.5x higher than the average wage in Russia. A total of 72.8 thousand Group employees are insured as part of the VHI programme. Also, 13 thousand employees and their family members benefitted from our health improvement programme. In 2020, the Company allocated about RUB 12 billion to fight COVID-19.
In 2019, Forbes Russia lauded Nornickel as the most attractive employer in the country, and in 2021, the Randstad Employer Brand Research named Nornickel the most recognisable and attractive employer in the global metals and mining industry.
Nornickel also addresses its social agenda via initiatives aimed at promoting the sustainable development of its operating regions. In 2020, the Company signed a four-party agreement on the social and economic development of Norilsk. In 2021, Nornickel signed an agreement on partnership and collaboration with the Kola Sámi Association, and an addendum to its master agreement with the Association of Indigenous Peoples of Taimyr.
Support for sports and fitness
Nornickel is a partner of the International University Sports Federation (FISU), the Russian Olympic Committee, the Futsal Association of Russia, the Futsal to Polar Schools nationwide project, the Russian Ice Hockey Federation, the Night Hockey League, the World Legends Hockey League, the Russian Curling Federation, and the Arctic Curling Cup international tournament held annually in Dudinka. In addition, Nornickel owns CSKA, a professional basketball club, and the Norilsk Nickel futsal club. The Company opened the Ayka sports arena in Norilsk in 2020 and the Tula Arena in Tula in 2021.