Nornickel and China Copper Discuss Joint Venture for New Smelter – Reuters
Nornickel is in talks with China Copper to establish a joint venture aimed at relocating the Copper Plant's smelting operations from Norilsk to China Reuters reported citing unnamed sources. This collaboration would involve building a new smelting facility in China.
As one of the world's leading producers of nickel, copper, platinum, and palladium, Nornickel produced 209,000 tons of nickel, 425,000 tons of copper, 2.7 million troy ounces of palladium, and 664,000 troy ounces of platinum in 2023. The Copper Plant, a key metallurgical facility for Nornickel, produces copper cathode from concentrates supplied by the Norilsk and Talnakh concentrators, with significant exports to China.
Vladimir Potanin, Nornickel's CEO, announced plans in April to transfer the copper smelting operations to China. Nornickel is now seeking a partner in China to construct a new smelting plant. China Copper, one of China's largest copper producers and a subsidiary of Aluminum Corporation of China, is a potential partner. The company is looking to secure copper supplies to offset losses from the closure of the Cobre Panama mine in 2023.
In June, representatives from China Copper visited Nornickel's headquarters to discuss the joint venture. They identified the Guangxi Zhuang Autonomous Region and Shandong Province as potential locations for the new plant, which is projected to have a capacity of 450,000 tons of copper annually.
This project positions the plant within the world's largest copper consumption market. In 2023, approximately half of the global copper production of 25 million tons was consumed by Chinese industry and construction. The new smelter would enable Nornickel to increase copper sales in China and boost revenues. Projections indicate that copper consumption could reach 20 million tons by 2030, driven by the growth of electric vehicles, power line development, and new power plant construction.
