Nornickel to Relocate Copper Smelting Operations to China Amid Equipment Challenges

Nornickel is mulling a transfer of copper smelting operations from Norilsk to China. This strategic decision arises from mounting difficulties in modernizing facilities with Western equipment, influenced by the current geopolitical climate. Nornickel's president, Vladimir Potanin, in an Interfax interview, detailed that the joint venture with a Chinese partner aims to mitigate financial and logistical setbacks linked to Western sanctions, which have impeded the traditional routes for metal exports, particularly through channels like the London Metal Exchange which now refuses shipments of base metals from Russia. The transfer of operations will classify the smelted copper as Chinese goods, thereby reducing the sanction risks and easing transaction processes. Scheduled for completion by 2027, this move is expected to optimize environmental standards and incorporate advanced technological solutions available in China, benefiting both the production quality and operational sustainability.