Nickel

Russian platinum and Norilsk Nickel prepare memorandum with Norilsk

Norilsk’s Head Oleg Kurilov has held a meeting with representatives of Russian platinum of Musa Bazhaev and Norilsk Nicekl, by results of which it was decided to prepare a memorandum of understanding of the three parties, a source, who is familiar with the negotiations, stated to the agency Prime.
In particular, the issue of land allocation to Chernogoskoya ore mining company (ChGRK, a part of Russian platinum) for the construction of infrastructure, which is necessary for the Chernogorskoye deposit development, was discussed.

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Nickel export is down

Crude nickel exports from Russia made up 152.3 thousand tons over the first eight months of 2013. It is by 9.3% less than the same period last year. It is was reported by the Federal Customs Service. Nickel sales made up $2.435 billion in monetary terms (down 15.4%).

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Norilsk Nickel places $1 billion of eurobonds

Norilsk Nickel has placed 7-year Eurobonds for $1 billion at 5.55% per annum, a source in banking circles reported. “Yesterday, the oversubscription was double, and today the demand before the order book was closed exceeded $6 billion,” – a source, who is familiar with the placement process, said.
“This is interesting and not expensive security. They managed to place bonds at the lower limit – 5.55% - due to the high demand,” – the source added.

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In the first 9 months of 2013, Russia decreased production of almost all non-ferrous metal

In January-September of 2013, Russia decreased the production of primary aluminium by 11.4% and nickel by 4.5% as compared with the same period of the last year, the Russian Statistics Service reports.

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Zinc and nickel production in Chelyabinsk region is up

Chelyabinskstat reports that the industrial production volume in Chelyabinsk region went down in January-September 2013 against the same period last year. Metallurgical production and the output of finished metal products are down by 2.2%. However, zinc production is up by 2.7%, nickel – by 25.8%.

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In January – September, Russia exported ferrous and non-ferrous metals via the Netherlands for $5 billion

Under the customs statistics, in January – September, Russia transshipped 1.56 million tons (-6%) of ferrous and non-ferrous metals (FEACN Groups of the Codes 72 – 76)  via the Netherlands for over $6 billion (+2%). By price, transshipment nearly reached the final result of 2011, but physically it does not exceed 70% of the level of 2011. The export supplies of the Russian metal producers shared 95% in the structure of the cargoes transshipment.
Translated by Nadezhda Poltoratskaya       

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Norilsk Nickel created a new way of nickel production

The specialists of the technology and ecological safety management of the Kola GMK (affiliate of Norilsk Nickel) together with the staff of the Institute Gipronickel have created a new way of nickel production from crude ore.
It is based on the leaching method with oxygen and chlorine supply. The iron in the crude passes into residual portions, while the copper, in terms of sulphide product, is removed from nickel-cobalt containing leaching solution, which undergoes cleaning from other impurities later. The clean hydrate of nickel and cobalt are processed into commercial metals at a cell plant.

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Rolled copper production oriented to internal consumption

Copper cathodes production in Russia is factually shared between Norilsk Nickel, UGMK and Russian Copper Company; in 2012 it was less than 1 million tons, Y. Raikov, the CEO of Tsvetmetobrabotka says at the Second All-Russian Conference “Copper, brass, bronze: the tendencies of production and consumption”.
In 2012, copper wire production was 724,000 tons, and exports were 384,000 tons. Rolled copper and copper alloys production was 70,000 tons.

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Norilsk Nickel Board of Directors will discuss Eurobonds placement

On October 8th 2013, Norilsk Nickel Board of Directors will discuss a Eurobonds placement at the ordinary session. The agenda includes agreement of the transaction for the attraction of one or several loans by the company from its subsidiary MMC Finance Limited financed by the funds raised in issuing and placement of Eurobonds.
In April 2013, Norilsk Nickel placed Eurobonds for a total sum of $750 million. The coupon rate was 4.375%. The Eurobonds repayment period was April 30 2018. The securities are issued by MMC Finance Limited. Since April 30 2013 the Eurobonds are included to the official list and introduced for trading at the main site of the Irish SE.

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Norilsk Nickel: 5 lean years, focus on incomes

The new strategy of Norilsk Nickel, published on October 4th, has finally got past the investment superfluity and princely gestures on the increase of the production.
In the next five years, Norilsk Nickel plans minimal growth of metal production, stably modest investments in the amount of $2 billion every year and full withdrawal from foreign and non-core assets.
“Our improved strategy will allow the company to be on firm ground in any market conditions,” – the General Director and co-owner of Norilsk Nickel, Vladimir Potanin stated, presenting the strategy to investors.
 
How it was and how it is now
 
The former development strategy intended the diversification into the power industry and coal, a rich assortment of foreign assets, full vertical integration and inactive geological exploration. The new plan of Norilsk Nickel is a renunciation of the vertical integration, the focus on the first-class mining assets in Russia and the development of geological exploration as a certain efficient business. At the same time, the management is sure that the new model will ensure confidence in Norilsk Nickel for the next 20 years.
Earlier the company emphasized the volumes of commercial metal, and now it focuses on mining. On the assumption of its capabilities, plans on concentrate production will be formed – taking into account the market situation it will be supplied to the market or will be used in their own production.
The return of capital will become the main criteria for choice of investment projects. The strategy intends that all industrial assets of the company must correspond to criteria of the first-class ones by 2015. Norilsk Nickel finds assets first-class if they are large-scale, to give income in the amount of over $1 billion, have the EBITDA profitability in the amount of over 40% and if their lifespan is over 20 years.
The company plans to present update of the strategy every year. The next one is scheduled for the second quarter of 2014.

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