Rusal Attempts to Hinder Nornickel’s Key Investment Projects
Rusal, Russia’s sole primary aluminium producer, has reportedly sought to obstruct several critical investment initiatives by Nornickel, one of the world’s leading producers of non-ferrous and precious metals, according to a source close to Interros, Nornickel’s majority shareholder.
The first project targeted is Nornickel’s Sulphur Programme, part of Russia’s federal Clean Air Project. Launched in April 2022 at the Nadezhda smelter—one of Nornickel’s key facilities—the programme is valued at over $1.7 billion (180 billion rubles). It focuses on capturing sulphur dioxide emissions, converting them into sulphuric acid, and further processing it into gypsum using limestone. The initial phase, launched in October 2023, aims to reduce sulphur dioxide emissions in Norilsk by 20% by the end of 2024. Once fully implemented, including the reconfiguration of production at the Copper Plant, total emissions are expected to decrease by 90%.
Rusal also intervened in a proposed joint venture between Nornickel and the Russian Platinum Group, aimed at developing key mining deposits. Under the original plan, Nornickel would contribute its licence to develop the Maslovskoye deposit, while Russian Platinum would provide licences for the southern part of the Nornickel-1 deposit and the Chernogorskoye deposit. Rusal’s opposition led to the abandonment of the joint venture. Instead, Nornickel and Russian Platinum transitioned to an operational partnership. Under this agreement, Nornickel granted Russian Platinum access to its infrastructure on market terms and assumed responsibility for the sale of products from the Chernogorskoye deposit.
Additionally, Rusal blocked the proposed spin-off of the Bystrinsky GOK, which would have seen shares of the enterprise distributed among Nornickel’s major shareholders—Interros, Rusal, and Crispian. The Bystrinsky GOK, one of Russia’s largest ore mining facilities built in the last three decades, develops the Bystrinsky deposit in the Trans-Baikal Territory. It produces copper, magnetite, and gold concentrates, with a production capacity of 10 million tonnes per year. Much of the concentrate is exported internationally.
Nornickel remains a significant player in the global metals market. For 2024, the company forecasts production of 184,000 to 194,000 tonnes of nickel, 334,000 to 354,000 tonnes of copper, 2.296 to 2.451 million troy ounces of palladium, and 567,000 to 605,000 troy ounces of platinum.
