PJSC MMC Norilsk Nickel has entered into a transaction to buy copper concentrate from the state Rostec Corporation with an estimated volume of 1.5 million tons, containing base and precious metals. The transaction value will be approximately 67.5 billion rubles.
The Board of Directors of the company approved of the purchase of this concentrate taking into consideration the fact that this transaction passed the internal rate of return hurdle applied to commercial projects.
In 2016 the Russian government transferred the copper concentrate held in safekeeping in the Norilsk Industrial Area (currently, the Polar Division of Nornickel) since the 1980s as a lump-sum property contribution from the Russian Federation to Rostec.
Nornickel is planning to process this copper concentrate at its own production facilities into refined products and sell them through the company’s distribution network over the course of next several years. The volumes of refined metal that the company is expecting to extract from this concentrate were already included in the metal production forecasts published for the years 2017-2018. The consideration will be paid to Rostec in several approximately equal tranches within four years as far as the concentrate will be processed and refined products sold by the company. (Nornickel/Ukrainian metal)