The board of directors of PJSC «MMC «Norilsk Nickel», the leading global nickel and palladium producer, approved of the company’s budget for 2017.
In 2016, the company successfully completed all scheduled key investment projects including the development of high-IRR brownfield mining projects in the Polar division, the ramp-up of Skalisty mine, active construction phase of Bystrinsky project in Chita region, the shutdown of Nickel Plant, as well as projects related to the expansion of Talnakh concentrator capacity and Nadezhda smelter upgrade.
The 2017 budget is based on conservative commodity price assumptions and envisages capital investments into active development of highly profitable brownfield upstream projects in the Polar Division, further upgrade of refining capacities at the Kola division as well as important HSE initiatives. The company also plans to launch Bystrinsky project on time that is to boost Nornickel’s copper and gold output in 2018-2020.
The total capital expenditures for 2017 have been budgeted at $2 billion (including $450 million for Bystrinsky project). In accordance with the strategic priorities of the company, all commercial projects should deliver industry-leading returns on investments.
Nornickel’s CFO, Sergey Malyshev, commented, “The 2017 budget approved by the board of directors is well balanced and fully sufficient to fund our strategic investments even amidst volatile macro environment. In 2016, we have managed to control costs and deliver on our capital expenditures on time and on budget. The 2017 budget allows us to maintain our rational investment profile and further improve operating efficiency to generate high return on capital”. (Nornickel/Ukrainian metal)