Growth based on Tier I assets in Russia
Strategic focus on unlocking the potential of Tier I assets, i.e. projects with an annual revenue of over USD 1 bn, EBITDA margin of 40% and mine life of reserves ratio of at least 20 years
Production growth based on the existing Tier I assets in Russia
Development of the Talnakh Ore Cluster
The calculations are made in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”)
Talnakh Ore Cluster: No. 1 in nickel and polymetallic ore reserves
New growth areas
Development of Bystrinsky Mining and Processing Plant (Chita project)
Capacity annual 10 mln t
Lower project risks through project financing and investments of strategic partners:
- The project received USD 0.8 bn of project financing from Sberbank for eight years;
- Investment agreement with Highland Fund (China) to sell a 13.33% stake in the Bystrinsky project for USD 100 mln;
- The sale of an up to 39.32% stake in the project to the consortium of investors approved by the Board of Directors.
Optional growth areas
Development of the Southern Cluster
Its perimeter includes:
- Zapolyarny Mine and Medvezhy Ruchey open pit (Norilsk-1 Field)
- Norilsk Concentrator
- Stockpiles of secondary resources
In 2016, Zapolyarny Mine output was 2 mln t, and the Company expects to increase it to 6 mtpa (4 mtpa by open pit mining and up to 2 mtpa by underground mining).