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
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.