Norilsk Nickel postponed the construction of a factory and a smelter complex due to a shortage of components

Due to interruptions in the supply of components and equipment, Norilsk Nickel will be forced to postpone the construction of the new Norilsk Concentration Plant (NOF-2) and the third smelter complex at the Nadezhda Metallurgical Plant (NMT) for at least two years, said Sergey Stepanov, the company’s production director.

“A significant part of large projects, such as NOF-2 or the third smelting complex at the Nadezhda Metallurgical Plant, is being postponed for a couple of years for sure, since they require the replacement of equipment suppliers,” Mr. Stepanov told reporters (quoted by Interfax).

He added that another reason for the delay in the construction of NOF-2 is the difficulty with the availability of funding. “Now we need to evaluate in the current conditions what and when we will be able to finance,” Mr. Stepanov noted. Thus, the construction period of the factory is shifted to 2029, the director said. The deadline for the construction of the third NMT smelting unit is also shifted to 2029, Mr. Stepanov added.

According to him, the company intends to complete the Sulfur Project 2.0 phase this year, increase production at the Bear Creek and implement two or three more medium-sized projects. He noted that more than half of Norilsk Nickel’s programs for 2023 are not related to the supply of high-tech equipment. At the same time, the company expects to receive part of the contracted parts this year, because they have already been manufactured.

The head of Norilsk Nickel Vladimir Potanin in an interview with RBC spokethat due to the sanctions imposed against Russia after the start of the military operation, his company abandoned plans to enter other markets and was forced, in particular, to adjust the supply chains. At the same time, he recalled that no sanctions were imposed against Norilsk Nickel, but the company is still forced to adjust its strategy.

On the plans of Norilsk Nickel – in the publication “Kommersant” “Surplus weighs on nickel”.

Erdni Kagaltynov