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Norilsk Nickel
Norilsk Nickel (Russian: ГМК «Норильский никель»), or Nornickel, is a Russian nickel and palladium mining and smelting company. Its largest operations are located in the Norilsk–Talnakh area near the Yenisei River in the north of Siberia. It also has holdings in Nikel, Zapolyarny, and Monchegorsk on the Kola Peninsula, in Harjavalta in western Finland, and in South Africa.
Headquartered in Moscow, Norilsk Nickel is the world's largest producer of refined nickel and the 11th largest copper producer.
The company is listed on MICEX-RTS. As of March 2021, its key shareholders were Vladimir Potanin's Olderfrey Holdings Ltd (34.59%) and Oleg Deripaska's Rusal (27.82%).
In December 2010, Norilsk Nickel made a share buyback offer for Rusal's 25% share in the company for $12 billion, but the offer was declined. In 2012, Potanin's Interros holding, Rusal, and Roman Abramovich signed a shareholder agreement on the size of dividend payouts to end a conflict over the matter, as well as issues around the company's broader strategy and management. The agreement expires on June 1, 2023, and the prospects of its extension or suspension are unclear. In March 2019, Abramovich sold a 1.7% stake in the company for $551 million, predominantly to British-based and Russian investors. Potanin and Deripaska's Rusal were blocked from purchasing any shares. In 2021, the company's revenue amounted to 856 billion rubles.
Mining began in the Norilsk area in the 1920s. The Soviet government established the Norilsk Combine in 1935 and passed control to the NKVD. In 1943, Norilsk produced 4,000 tonnes of refined nickel and in 1945 hit the target figure of 10,000 tonnes. The mining and metal production originally used forced labour from the Gulag system.
In 1993, after the fall of the Soviet Union, a joint-stock company called RAO Norilsk Nickel was created. Two years later, control over the deeply indebted company, which was bleeding cash at a rate of about $2 million a day against the background of falling nickel prices, was sold to a private company, Interros. By the end of privatization in 1997, the company had moved into the black, and workers were being paid. The current average pay exceeds $1,000 per month with an annual paid leave of two to three months. Nevertheless, the working and living conditions in Norilsk remain harsh, although they are improving as the company shuts down old factories that are the source of excessive pollution.
In July 2000, Norilsk Nickel joined forces with the St. Petersburg Research Institute of the Arctic and Antarctic (Russian: Арктический и антарктический научно-исследовательский институт), to investigate the potential use of decommissioned nuclear powered submarines, both from the United States and Russia, to transport materials along the Northern Sea Route (Russian: Северный морской путь (Севморпуть)). Overhaul and refit costs came to $72–80 million per submarine, which included modifying its ice-breaking bow to cut through ice up to 215 cm (85 in) thick in seawater and up to 150 cm (59 in) in the freshwater mouth of the Yenisei. Decommissioned Typhoon submarines were expected to transport up to 12,000 tonnes of supplies and nickel between Dudinka and either Murmansk or Arkhangelsk. In 2000, the Murmansk Shipping Company (MMP or MSCO) (Russian: Мурманское морское пароходство) provided icebreaker services at a charge of $11.35 per tonne of cargo. Three submarines - the project feasibility threshold - were scheduled for refit and overhaul between 2000 and 2003.
However, the stakeholders failed to reach an agreement as to who would conduct and cover the refit and overhaul of the submarines. Furthermore, money was not the only issue. Under the existing international agreements, decommissioned nuclear-powered submarines from the two countries' navies had to be dismantled. Should this obstacle be addressed, subsequent ownership of the refitted submarines also remained unclear: whether they would remain the assets of the Ministry of Defense or would be transferred to another governmental agency. One of the options suggested by Nornickel was to establish a joint transportation company that would lease the vessels.
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Norilsk Nickel
Norilsk Nickel (Russian: ГМК «Норильский никель»), or Nornickel, is a Russian nickel and palladium mining and smelting company. Its largest operations are located in the Norilsk–Talnakh area near the Yenisei River in the north of Siberia. It also has holdings in Nikel, Zapolyarny, and Monchegorsk on the Kola Peninsula, in Harjavalta in western Finland, and in South Africa.
Headquartered in Moscow, Norilsk Nickel is the world's largest producer of refined nickel and the 11th largest copper producer.
The company is listed on MICEX-RTS. As of March 2021, its key shareholders were Vladimir Potanin's Olderfrey Holdings Ltd (34.59%) and Oleg Deripaska's Rusal (27.82%).
In December 2010, Norilsk Nickel made a share buyback offer for Rusal's 25% share in the company for $12 billion, but the offer was declined. In 2012, Potanin's Interros holding, Rusal, and Roman Abramovich signed a shareholder agreement on the size of dividend payouts to end a conflict over the matter, as well as issues around the company's broader strategy and management. The agreement expires on June 1, 2023, and the prospects of its extension or suspension are unclear. In March 2019, Abramovich sold a 1.7% stake in the company for $551 million, predominantly to British-based and Russian investors. Potanin and Deripaska's Rusal were blocked from purchasing any shares. In 2021, the company's revenue amounted to 856 billion rubles.
Mining began in the Norilsk area in the 1920s. The Soviet government established the Norilsk Combine in 1935 and passed control to the NKVD. In 1943, Norilsk produced 4,000 tonnes of refined nickel and in 1945 hit the target figure of 10,000 tonnes. The mining and metal production originally used forced labour from the Gulag system.
In 1993, after the fall of the Soviet Union, a joint-stock company called RAO Norilsk Nickel was created. Two years later, control over the deeply indebted company, which was bleeding cash at a rate of about $2 million a day against the background of falling nickel prices, was sold to a private company, Interros. By the end of privatization in 1997, the company had moved into the black, and workers were being paid. The current average pay exceeds $1,000 per month with an annual paid leave of two to three months. Nevertheless, the working and living conditions in Norilsk remain harsh, although they are improving as the company shuts down old factories that are the source of excessive pollution.
In July 2000, Norilsk Nickel joined forces with the St. Petersburg Research Institute of the Arctic and Antarctic (Russian: Арктический и антарктический научно-исследовательский институт), to investigate the potential use of decommissioned nuclear powered submarines, both from the United States and Russia, to transport materials along the Northern Sea Route (Russian: Северный морской путь (Севморпуть)). Overhaul and refit costs came to $72–80 million per submarine, which included modifying its ice-breaking bow to cut through ice up to 215 cm (85 in) thick in seawater and up to 150 cm (59 in) in the freshwater mouth of the Yenisei. Decommissioned Typhoon submarines were expected to transport up to 12,000 tonnes of supplies and nickel between Dudinka and either Murmansk or Arkhangelsk. In 2000, the Murmansk Shipping Company (MMP or MSCO) (Russian: Мурманское морское пароходство) provided icebreaker services at a charge of $11.35 per tonne of cargo. Three submarines - the project feasibility threshold - were scheduled for refit and overhaul between 2000 and 2003.
However, the stakeholders failed to reach an agreement as to who would conduct and cover the refit and overhaul of the submarines. Furthermore, money was not the only issue. Under the existing international agreements, decommissioned nuclear-powered submarines from the two countries' navies had to be dismantled. Should this obstacle be addressed, subsequent ownership of the refitted submarines also remained unclear: whether they would remain the assets of the Ministry of Defense or would be transferred to another governmental agency. One of the options suggested by Nornickel was to establish a joint transportation company that would lease the vessels.