RUSAL supports spin-off of Norilsk NickelТs Bystrinsky project - Metals & Mining - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

RUSAL supports spin-off of Norilsk NickelТs Bystrinsky project

MOSCOW, Mar 29 (PRIME) Ц The core shareholders of Russian metals giant Norilsk Nickel Ц aluminum giant UC RUSAL, Interros of tycoon Vladimir Potanin, and Crispian Ц have preliminarily agreed to spin off Norilsk NickelТs Bystrinsky project to the companyТs shareholders, RUSAL said in a statement late on March 26.

УRUSAL Е announces that a preliminary agreement has been reached between the main shareholders of MMC Norilsk Nickel, RUSAL, Interros and Crispian to submit to the Board of Directors of MMC the issue of spinning-off the Bystrinsky project in favor of all shareholders of Norilsk Nickel,Ф the statement read.

Norilsk Nickel owns 50.01% in the Bystrinsky project, which comprises the Bystrinskoye deposit and the Bystrinsky GOK mining and processing plant. The companyТs management is now working on a spin-off plan that it would submit to the board of directors, and the spin-off may take about two years taking into account the terms for obtaining of necessary permits and completion of corporate procedures, RUSAL said.

УThe possible Bystrinsky GOK spin-off is a logical continuation of the development of this project, which has significant potential. Its geographical location, its proximity to one of the largest sales markets, China, and the unique ore base make the option of an independent future of this asset the most profitable outcome for all shareholders of Norilsk Nickel. The market will also fairly assess the prospects of this project,Ф RUSAL Deputy CEO Maxim Poletayev said as quoted by the company.

Potanin said as quoted by the metals giant that the project has prospects for solo operations, it is a remote asset that has not been largely integrated into the production chain of Norilsk Nickel. The two companies have no significant synergies. The Bystrinsky project has its own investment story, therefore the spin-off may create additional value for all shareholders of Norilsk Nickel, Potanin said.

Other shareholders of the Bystrinsky project include CIS NRF Holdings, a subsidiary of Interros, with a 36.66% stake, and United Resources Limited, a subsidiary of HOPU Investments fund, with 13.33%. In 2020, the project produced 63,000 tonnes of copper and 241,000 ounces of gold in concentrates, and its revenue reached U.S. $1.004 billion.

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29.03.2021 08:50
 
 
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