LONDON MMC Norilsk Nickel said its new resource strategy will focus on Tier 1 assets in the Taimyr Peninsula, as well as on improved capital expenditure discipline and return on investments.
Norilsk plans to concentrate its existing portfolio on copper and platinum group metals, and to prioritize its Polar divisions upstream assets.
The Moscow-based company is working to "maximize high-margin production using existing infrastructure" at the Polar division and develop the greenfield Skalisty nickel mine, which has a potential output of 2.4 million tonnes of ore per year.
Under the new strategy, which Norilsk unveiled last month (amm.com, Sept. 12), the company will work to turn around its Kola division with a target of bringing it to sustainable profitability by the end of next year.
The company estimates that capital expenses will average $2 billion per year between 2014 and 2018, and is aiming to reduce operating costs and working capital. Non-core and international assets will be put up for sale between 2014 and 2016, it said.
It will develop its exploration activities and plans to double its Polar divisions exploration budget.
The company also is launching a new strategic planning cycle, which will include regular annual strategy updates. The next update is scheduled to be released by May 2014.
A version of this article was first published by AMM sister publication Metal Bulletin.