OREANDA-NEWS. May 26, 2014. At the XVIII St. Petersburg International Economic Forum OJSC MMC Norilsk Nickel signed a targeted investment program agreement on accelerated shutdown of obsolete nickel production facilities in Norilsk with Federal and Regional government authorities.

Signatories of the document include Ministry of Economic Development of Russian Federations, Ministry of Industry and Trade of Russian Federation, Ministry of Natural Resources and Environment of Russian Federation, Government of Krasnoyarsk Region and Norilsk City Administration.

The document assumes accelerated implementation of OJSC MMC Norilsk Nickel’s investment program for shutdown of nickel production facilities, which are not subject to reconstruction, with a total cost of over RUB 11 bln. in 2014-2016. Targeted Nickel Plant (commissioned in 1942) shutdown investment program will be implemented simultaneously with the start of comprehensive technical refurbishment program at Norilsk production site, which assumes that OJSC MMC Norilsk Nickel’s investment shall total over RUB 70 bln.

The Government of Russian Federation, on its part, shall cancel export duties for unalloyed nickel, copper cathodes and cathode sections within the scope of new Russian industrial sector modernization course prior to the deadlines stipulated within the scope of obligations undertaken by Russian Federation as part of WTO joining procedure.  The economic effect resulting from early cancellation of export duties shall be fully directed towards implementation of the targeted investment program, elimination of corresponding ecological issues and organization of social events, the 2016 budget of which shall total RUB 4.0 bln.  

CEO and the Head of MMC Norilsk Nickel’s Management Board, Vladimir Potanin, in turn noted that “Dialogue between federal and regional government authorities and business community is crucial for improving competitiveness of the country. We made a decision to shut down old and polluting production facilities, located within the city limits of Norilsk, a long time ago and this is already reflected in our strategy. The agreement, however, will allow us to increase the rate at which we invest into this project and combined with modernization of our other production sites, it will allow us to maintain our production levels despite shut down of the plant. Additionally, it will contribute towards improving local ecological conditions, which should favorably affect social and economic environment of the region”.