Norilsk Nickel, Russian Platinum to set up 250 bln rbl Taymyr JV
KRASNOYARSK, Feb 7 (PRIME) -- Metals producers Norilsk Nickel and Russian Platinum have signed a strategic partnership agreement to establish a joint venture by the end of 2018 to develop three fields on the Taymyr Peninsula, the companies said in a joint statement on Wednesday.
Investments in the project will amount to 250 billion rubles, Norilsk Nickel President Vladimir Potanin told President Vladimir Putin during the signing ceremony.
The joint ventureТs annual production capacity is projected at 70Ц100 tonnes of platinum group metals. УThe joint venture aims at becoming one of the worldТs largest producers of platinum group metals†(PGMs) with a target annual production volume of approximately 70Ц100 tonnes of PGMs,Ф the statement read.
Norilsk Nickel and Russian Platinum will hold the joint venture on a parity basis. Norilsk Nickel will contribute to it a license for the Maslovskoe deposit and Russian Platinum will contribute licenses for the South flank of the Norilsk-1 and Chernogorskoye deposits. Norilsk Nickel will also provide access to its power and transport infrastructure in the Norilsk industrial district, where the fields are located.
The companies will make a final investment decision on parameters and terms of the project upon completion of a feasibility study that is to be finished by the end of 2019. Implementation of the project may start in 2020. The joint venture will produce the first batch of metals in late 2023, Potanin said.
Russian Platinum President Musa Bazhayev said the companies plan to attract investments†to the project on a parity basis, with Norilsk Nickel investing its own funds on condition of repayment at the beginning.
Potanin also did not rule out that the joint venture may hold an initial public offering (IPO) as early as in five to seven years. УWe are considering various options. I think this is beyond the planning horizon of five to seven years.Ф
(57.2196 rubles Ц U.S. $1)