Archive | Norilsk Nickel

London court backs Deripaska in battle of Russian tycoons – by Barbara Lewis and Polina Devitt (Reuters U.S. – June 27, 2018)

LONDON/MOSCOW (Reuters) – Russian tycoon Oleg Deripaska got a boost on Wednesday in a long-running battle for control of Norilsk Nickel when a high court judge ruled fellow investor Roman Abramovich did not have the right to sell shares in the miner to a third businessman.

Deripaska, who controls aluminum giant Rusal (0486.HK), wants to stop Abramovich from selling Norilsk Nickel (Nornickel) (GMKN.MM) shares to Russian businessman Vladimir Potanin, saying that would violate a 2012 shareholder agreement.

At London’s High Court, Judge Stephen Phillips ruled such a sale by Abramovich, the owner of England’s Chelsea soccer club, breached the terms of that shareholder pact. Continue Reading →

Britain yet to renew visa of Russian billionaire Abramovich: sources – by Polina Devitt (Reuters U.S. – May 20, 2018)

MOSCOW/LONDON (Reuters) – British authorities, whose relations with Moscow have been strained, are yet to renew Russian billionaire Roman Abramovich’s visa after it expired last month, two sources familiar with the matter told Reuters.

Abramovich, best known in Britain as the owner of Premier League soccer club Chelsea, is in the process of renewing his visa as part of a standard procedure, one of the sources said.

It is taking longer than usual but there is no indication that the visa will not be renewed as there is no refusal or negative feedback, he added. Millhouse, the company that manages Abramovich’s assets, declined to comment. Britain’s Home Office could not be reached for comment. Continue Reading →

Russian billionaires take boardroom battle to London High Court – by Barbara Lewis (Reuters Africa – May 14, 2018)

LONDON, May 14 (Reuters) – Russia tycoon Oleg Deripaska gave evidence in the London High Court on Monday in a case challenging the sale of shares in Norilsk Nickel (Nornickel) by soccer club owner Roman Abramovich.

Deripaska, making his first public appearance since being made a target of U.S. sanctions, wants to stop Abramovich selling Nornickel shares to another Russian billionaire Vladimir Potanin, saying it violates a 2012 shareholder deal.

The hearing, which is expected to last four days, is part of a long-running battle for control of the mining firm, one of the world’s biggest producers of nickel. Continue Reading →

Polluter Norilsk Nickel forced to clean up its act – by Henry Foy (Financial Times – April 30, 2018)

Miner plans $1bn plant to convert sulphur dioxide into gypsum to meet environmental rules

For the best part of 80 years, Russian miner Norilsk Nickel has been one of the world’s biggest metal producers, tapping vast reserves of nickel, copper and palladium in the country’s Arctic. But soon its future survival could depend on producing a vastly different product: gypsum.

Manufacturing the chalky mineral will not make money. The company admits that it does not even know what it will do with it. But come 2023, when it starts producing 5m tonnes a year, the superfluous piles of dusty aggregate will be worth billions of dollars.

That is because Nornickel, as the company is also known, is one of Russia’s biggest polluters, spewing some 1.67m tonnes of harmful sulphur dioxide each year into the air around the city of Norilsk. Continue Reading →

Russia Sanctions Spook Palladium Investors – by Joe Deaux (Bloomberg News – April 22, 2018)

Hedge funds just made an abrupt about face in the palladium market as U.S. sanctions against Russian titans spark concerns that the world’s largest producer of the metal will get caught in the cross hairs.

After the U.S. slapped penalties on United Co. Rusal, American officials have sent conflicting signals about whether fresh sanctions will be imposed on other companies owned by oligarchs, such as MMC Norilsk Nickel PJSC.

The miner controls about 40 percent of the world’s palladium market. The turmoil sent prices for the metal to a seven-week high, and money managers increased their wagers on a rally by the most since June. Continue Reading →

COLUMN-Sanctions fever grips nickel as market rethinks Russia risk – by Andy Home (Reuters U.S. – April 20, 2018)

LONDON, April 20 (Reuters) – Sanctions fever has spread to nickel. With Russian aluminium producer Rusal imploding in the wake of U.S. sanctions against its oligarch owner Oleg Deripaska, attention is now turning to the status of another Russian industrial powerhouse, Norilsk Nickel.

Deripaska is a 27.8 percent shareholder in Norilsk, while the oligarch behind the world’s number two nickel producer, Vladimir Potanin, is himself on a U.S. Treasury Department list of Russians deemed to be close to the Kremlin.

Fears that Norilsk might follow Rusal down the U.S. sanctions path have sent London nickel prices on an extraordinary rollercoaster ride. But this was a market primed for an explosive breakout, with all sorts of technical drivers kicking in once it started rallying. Continue Reading →

Major Russian polluter pledges to turn over a ‘green’ leaf on national television – by Anna Kireeva and Charles Digges ( – April 17, 2018)

In a wide ranging appearance on Russian national television, Vladimir Potanin, the president of Norilsk Nickel, a long-time, heavy-duty polluter, made the case that his company has turned over a new leaf, and hitched its future to producing “green” products in an environmentally friendly manner.

Potanin’s remarks were pitched first and foremost to car manufactures, who are themselves in the process of revamping their own production to account for tighter worldwide emissions standards and boosting their offerings of electric and hybrid vehicles.

But he also provided the first look at how the Siberian industrial giant plans to reel in its pollution – a clear nod to environmentalists who have long demanded that the company detail its approach to staunching harmful emissions. Continue Reading →

UPDATE 1-Nornickel exec says in talks with battery makers on investments, cooperation – by Tom Daly (Reuters U.S. – April 18, 2018)

SHANGHAI, April 18 (Reuters) – Russia’s Norilsk Nickel , or Nornickel, is in talks with battery makers over possible investment in its mining assets, but is also interested in downstream joint ventures in return, a company executive said on Wednesday.

“We might be interested in having some deeper cooperation, say on the battery side, and building a more complete value chain,” Anton Berlin told Reuters in an interview on the sidelines of a battery materials conference in Shanghai.

Nornickel is looking for “more than just an offtake (sales) agreement,” he said, adding that a downstream joint venture in China would be a possibility. Discussions are at an early stage however, and the company is “not in any rush,” he said. Continue Reading →

Palladium takes off on fears of US sanctions against Norilsk Nickel – by Brendan Ryan (MiningMx – April 16, 2018)

The palladium price has jumped during the past week over the possibility that the world’s top producer – MMC Norilsk Nickel which is listed on the London Stock Exchange – could be affected by the latest round of US sanctions imposed on Russia.

Norilsk is also the world’s second largest producer of nickel and fourth largest producer of platinum and rhodium which are mined as by-products from its huge mining operations in the Taimyr and Kola peninsulas in northern Russia. Norilsk is also a 50/50 partner with African Rainbow Minerals in the Nkomati nickel/platinum operation in Mpumalanga.

According to John Meyer of UK broker SP Angel, palladium is up 9% – to $986/oz from $975/oz last week – “on the back of supply concerns as the world’s top producer – Russia – faces fresh sanctions imposed by the US. Despite production not being directly hit by the sanctions, the market has been rattled by the inclusion of Russian magnate Oleg Deripaska on the trade blacklist.” Continue Reading →

The move to EVs will take time, but the shift in commodity demand will be ‘dramatic’ – Gareth Penny (Metal Bulletin – April 4, 2018)

In a comprehensive interview with Andrea Hotter in the April 2018 issue of Metal Market Magazine, Norilsk Nickel chairman Gareth Penny gave his predictions for electric and hybrid vehicle growth and how the company will move to maximize the value of its products.

As the electrification of the global economy continues to increase demand for the metals that Norilsk produces, particularly nickel and cobalt, Penny predicts a dramatic shift in commodity demand patterns.

“Like most of these things, the move to EVs will take longer than people think, but when the time arrives, it’ll be even more dramatic,” he says. Continue Reading →

Russian metals producers forge ahead – by Henry Foy (Financial Times – March 26, 2018)

The start of construction of blast furnace 3 at Severstal’s sprawling Cherepovets plant will signify more than just strong business optimism at the Russian steelmaker. It will feel like throwing off a decade-long hoodoo.

First announced in 2008, only to be postponed and cancelled as the global financial crisis and then the 2014 commodity crash whipsawed across the industry’s balance sheets, the Rbs28bn ($500m) project is one of a number of capital expenditure projects by Russian metals and mining companies forging ahead with renewed confidence.

Despite the threat of new western sanctions against the country and US tariffs on aluminium and steel, Russian metal executives have a spring in their step, as commodity prices continue to rise, borrowing costs come down and painful debt restructurings and strategy shifts over the past five years begin to bear fruit.  Continue Reading →

London Brawl Between Pro-Putin Tycoons Tests Kremlin’s Patience – by Yuliya Fedorinova, Ilya Arkhipov and Irina Reznik (Bloomberg News – March 19, 2018)

They’re two of Russia’s most powerful tycoons, each with a reach that extends into Vladimir Putin’s inner sanctum, and now they’re fighting over one of the country’s most lucrative assets.

The dispute between the billionaires—Vladimir Potanin and Oleg Deripaska—runs from Arctic mines to the High Court in London. The legal proceedings provide a glimpse into the rules, written and not, that govern the vast fortunes that exist at the pleasure of the newly re-elected president.

As a British judge prepares to rule on small ownership changes that may have a big impact on Siberian metals titan Norilsk Nickel, initial signs from Kremlin insiders suggest one longtime Putin ally may have an edge over the other. Continue Reading →

The Oligarchs’ Feud That Will Affect Electric Cars – by Yuliya Fedorinova (Bloomberg News – March 5, 2018)

Russian billionaires are feuding over control of a giant natural-resource business that dates back to the Soviet era. So far, so Russia.

What makes the battle for MMC Norilsk Nickel PJSC more important than typical business maneuvering is that it will affect development of one of the largest deposits of nickel and cobalt, which are used in batteries for goods including iPads and Tesla cars.

1. Who is feuding?

Vladimir Potanin and Oleg Deripaska, the two billionaires battling for control of Nornickel (as the company is known), have opposing strategies for its future. Potanin, the company’s chief executive officer and the second-richest Russian, wants to expand the business and develop new deposits to maintain its position in the industry. Continue Reading →

Norilsk Nickel: At War with Itself – by Matthew Turner (Market Mogul – February 28, 2018)

Market Mogul

A long-standing spat between Rusal owner Oleg Deripaska and fellow metals magnate Vladimir Potanin over the ownership of nickel producer Norilsk, one of the world’s largest miners of nickel and palladium, is going into the next round.

Aluminium producer Rusal, which owns a 27.8% stake in Norilsk, has announced its readiness for a “shoot out” auction to determine whether it takes full control of Norilsk. The market is holding its breath as the conflicting parties are desperately searching for a resolution.

The latest chapter in this long-running corporate saga began when Potanin’s holding company Interros, which owns 30.4% shares in the company, made a move to acquire the 6.5% stake held by Roman Abramovich – shares that entered into Abramovich’s possession in 2012 as part of a “peace agreement” between Deripaska and Potanin to take the heat out of the tensions in the company. Continue Reading →

Russian billionaires risk ‘shootout’ in battle over nickel giant – by Polina Devitt (Reuters U.S. – February 26, 2018)

MOSCOW (Reuters) – Two of Russia’s richest men could trigger a complicated auction known as a “shootout”, in a bid to end their long-running battle for control of mining giant Norilsk Nickel (Nornickel).

After a five-year peace deal ended in December, the power struggle between two major Nornickel shareholders, Vladimir Potanin and Oleg Deripaska’s aluminum giant Rusal, resurfaced earlier this month.

Potanin offered to buy a stake owned by a third businessman, Roman Abramovich. Abramovich has a history of good relations with President Vladimir Putin. Sources say he was installed as a minority shareholder in 2012 by the Kremlin as part of the deal to keep the peace. The Kremlin has always denied this. Continue Reading →