Large-scale production upgrade and development of the mining base
Over the next three years, we will be going through a higher CAPEX stage which will allow us to both maintain stable production levels and lay a strong foundation for new high-potential projects.”Vladimir Potanin
In the mid-term, the investment programme will ensure a stable level of production
- Increased rich ore production at Skalistaya mine will preserve metal content in commercial ore on the current level.
- The resource base of the Talnakh Ore Cluster has a strong potential for further development. In 2018–2019, the Company will make decisions on expanding the production capacities at the Oktyabrskoye and Talnakhskoye Fields.
Achieving target financial indicators is one of the MMC’s key priorities
- Hot commissioning started in November 2017.
- Planned processing capacity post-2021 – 10 mt.
- Target metal output in concentrates:
- ~70–75 kt of copper,
- ~250–260 koz of gold,
- ~2,900 kt of magnetite concentrate.
- Life of the project – over 30 years.
More details on the project see in section.
Reconfiguration of the processing capacities
Creation of a nickel refining hub at Severonickel Plant
Works are underway to expand nickel refining capacities from 165 ktpa to 190 ktpa and to switch nickel electrolysis shop-2 to a new chlorine leaching technology.
Upgrade and ramp-up at Talnakh Concentrator
The capacity of Talnakh Concentrator increased from 7.5 mtpa in 2015 to 10.2 mtpa in 2018. Nickel content in nickel-pyrrhotite concentrate increased by more than 60%.
Upgrade of the flagship Nadezhda Metallurgical Plant
We have upgraded and ramped up smelting capacities of Nadezhda Metallurgical Plant, which has become the smelting hub for all nickel feedstock of Polar Division. Compared to 2014, the capacity grew by 26%.
As part of its strategy, Nornickel will allocate USD 1.1–1.2 bn to infrastructure renewal and upgrades during 2018–2020. The projects include a large-scale infrastructure renewal: renovation of worn out gas transportation and hydropower facilities, replacement of power units, and reconstruction of critical production assets, logistics infrastructure, and power grid facilities.
- Gradual replacement of six retiring power units with the total capacity of 550 MW
- Replacing the required resources, including construction of a new limestone quarry
- Replacing core types of equipment to enhance its overall performance
- Transition to new rock bolting systems to improve safety
- Reconstruction of critical facilities (airport, seaport, oil depot, warehouses, etc.)
Power and utilities
- Parts of the comprehensive programmes: power line replacement (30 km), gas distribution networks (111 km), drinking water supply to Dudinka, etc.
More on gas and power assets see in section.
Scheduled for replacement in 2018–2022 are: