Moscow — PJSC MMC Norilsk Nickel the world’s largest of palladium and high-grade nickel and a major producer of platinum and copper, reports today that Russian Platinum has notified the Company of its decision to terminate the negotiations regarding Arctic Palladium JV and to proceed with the development of the Chernogorskoye Deposit and the southern part of the Norilsk-1 Deposit on its own. This decision owes to UC RUSAL, one of Nornickel’s shareholders, not issuing due corporate approvals to Nornickel to participate in the proposed joint venture.
The Company’s management has commenced reshaping its partnership with Russian Platinum considering means to support the projects of Russian Platinum and its potential partners. In particular, Nornickel has entered into discussions with Russian Platinum over provision of certain services and resources, which will be required for these projects as well as a potential off-take at market terms of the products to be produced from the Chernogorskoye and the southern part of Norilsk-1 deposits. Although less attractive for Nornickel, this format of cooperation should still facilitate an increase of supply of platinum group metals (PGMs) in a long-term perspective to the market running a structural deficit.
“Nornickel’s management has always considered and still does the Arctic Palladium as a promising Tier I asset able to meet the growing PGM demand. In spite of the current and, we hope, temporary turbulence in the commodity markets, we maintain a very positive view on palladium fundamentals, which should remain strong in a strategic perspective. Being a responsible palladium producer and the market leader we intend to develop a long-term operating and commercial partnership with Russian Platinum,” said Sergey Dubovitsky, Vice President for Strategy and Strategic Projects at Nornickel.