Norilsk to Focus on Tier 1 Assets, Quality of Investment Governance and
MOSCOW, September 12, 2013
MOSCOW, September 12, 2013 /PRNewswire/ --
Norilsk Nickel Board of Direc to rs approves key principles of the Company's
On September 12, 2013 MMC Norilsk Nickel's Board of Directors approved the key
principles of its new strategy, which will be presented to the investment
community in Q4 2013.
(Logo: http://photos.prnewswire.com/prnh/20130912/638887 )
The new strategy aims to realize the full potential of Norilsk Nickel's unique
resource base in the Taimyr Peninsula, increase Company's operational
efficiency and make a step change in the quality of its investment and capital
As a key part of Company's new strategy, Norilsk will focus on Tier 1 assets
with the main priority being given to its Polar Division that has a world
class proven and potential resource base. A number of operational initiatives
will be realized in the Company's Kola Division in 2014 to bring it to a level
of sustainable profitability. Additionally, the Company plans to complete the
strategic review and monetize its non-Tier 1 international and non-core
Alongside with fulfilling sustainable development objectives, the new strategy
will direct the new investments towards projects with high return on capital
(ROIC) and comprehensive project risk assessment and monitoring systems. ROIC
is to become a major performance indicator to key members of Norilsk'
management team and executives.
Cost-efficient ore mining based on the existing infrastructure of the Polar
Division, accelerated upgrading of enrichment capacities in Polar and
optimization of the metallurgical assets are also a major component of the new
Building exploration as a globally competitive business unit focused on
profitable growth in key areas where the Company operates (Norilsk, Kola and
Zabaykalsky Krai) is another important objective of new strategy.
Norilsk Nickel will also examine options for raising the profile and role of
its PGM business and copper within the framework of its existing asset
"We believe that the new strategy will ensure global competitiveness of
Norilsk Nickel for years ahead. Our joint vision for the business is clearly
manifested by the support of the Board of Directors. Increasing capital and
investment discipline, enhanced operational efficiency and clear
organizational focus on realizing the full potential of our Tier 1 assets -
those are the key strategic priorities that will allow us to reach ambitious
goals that have been set for the Company," said Vladimir Potanin, CEO of MMC
ABOUT MMC NORILSK NICKEL:
MMC Norilsk Nickel, a company incorporated under the laws of the Russian
Federation, is the largest diversified mining and metals company in Russia,
the world's largest producer of nickel and palladium and one of the world's
largest producers of platinum, rhodium, copper and cobalt. In addition to
this, MMC Norilsk Nickel produces a large number of other by-products,
including gold, silver, tellurium, selenium, iridium and ruthenium.
The key production units of the Company's group in Russia are at the Polar and
Kola Peninsulas. MMC Norilsk Nickel international assets include operations in
Finland, Australia, Botswana and South Africa.
MMC Norilsk Nickel's shares are traded on the Moscow Exchange. ADR's on the
Company's shares are traded on the other the counter market in the US and on
the London and Berlin stock exchanges.
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