Nornickel to Spin Off Bystrinsky Copper Mine
Nornickel's major shareholders, Interros, UC Rusal and Crispian Group, are proposing to allocate the entire Nornickel's stake in the Bystrinsky project, 50.01%, among all of its shareholders.
MOSCOW, March 30, 2021 (Newswire.com) - Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, has said that its major shareholders Interros, Rusal and Crispian have agreed to spin off GRK Bystrinskoe (a.k.a. the Bystrinsky project). Nornickel's major shareholders are proposing to allocate the entire Nornickel's stake in the Bystrinsky project, 50.01%, among all of its shareholders.
Vladimir Potanin, Nornickel's CEO, commented: "We welcome the decision of our major shareholders to support the spin-off of the Bystrinsky project. The management of Nornickel has done an outstanding job having built from scratch one of the leading mining assets in Russia, the largest greenfield project in the country's mining industry. Today the project has assembled an excellent management team; it has a strong potential for further development as it undoubtedly enjoys a very favorable geographic location close to the border with China, the world's largest consumer of copper. The project has its own and quite attractive investment story, which leads us to believe that its spin-off will create value for all our shareholders."
Norilsk Nickel holds 50.01% of shares in the Bystrinsky project, which includes Bystrinskoye ore deposit and Bystrinsky concentrator, and the Company's Board is expected to review the spin-off. The spin-off is subject to due regulatory and corporate approvals, including the approval by the General Meeting of shareholders of Nornickel, and is expected to take up approximately two years.
For information purposes only: Interros, UC Rusal and Crispian Group are beneficiary owners of PJSC Norilsk Nickel holding 34.6%, 27.8% and 4.7% of its shares, respectively. The Bystrinsky project (GRK Bystrinskoe), including Bystrinskoye ore deposit and Bystrinsky concentrator (Bystrinsky GOK), is owned by Nornickel (50.01%), CIS NRF Holdings (36.66%, representing the interests of Interros Group) и United Resources Limited (13.33%, HOPU Investments). GRK Bystrinskoe is a leading mining company in the Far East of Russia with the annual ore processing capacity of 10 mtpa. In 2020, the project produced 63kt of copper and 241koz of gold in concentrate, with a revenue of $1,004m and EBITDA of $717m.
About MMC "Norilsk Nickel," "Nornickel" or the "Company."
MMC Norilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of palladium, high-grade nickel, and a major producer of platinum and copper; it also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products. Nornickel shares are listed on the Moscow and Saint Petersburg Stock Exchanges; ADRs are traded over the counter in the U.S. and on the London, Berlin and Frankfurt Stock Exchanges.
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Source: MMC Norilsk Nickel