Nornickel Plans PGMs Refinery in Bahrain — Reuters

Russian metals giant Nornickel is planning a joint project to construct a platinum group metals (PGMs) refinery in Bahrain, according to a source familiar with the matter who spoke to Reuters on Thursday. Nornickel is the world's largest producer of palladium and a major producer of platinum, accounting for 41% and 12% of global mine output, respectively. These metals are primarily used in vehicle exhaust systems to neutralize harmful engine emissions, with platinum also being a key material in the jewelry industry.

Details about the project's time frame and the refinery's production capacity were not provided by the source.

Earlier on Thursday, King Hamad bin Isa Al Khalifa of Bahrain met with Russian President Vladimir Putin in the Kremlin. Following the talks, Russian Deputy Prime Minister Alexander Novak mentioned on state TV that Nornickel plans to build "a platinum production plant" in Bahrain, although no further details were given. Nornickel has declined to comment on the matter.

Despite not being directly targeted by Western sanctions imposed on Moscow since Russia's invasion of Ukraine in 2022, Nornickel has faced significant logistical challenges. Some Russian precious metals refineries, which typically handle PGMs, have been sanctioned. For example, Britain's sanctions in November targeted Russia's largest state-owned refinery, Krastsvetmet.

The sanctions over the past two years have disrupted Nornickel's logistics, trade flows, money transfers, and purchases of imported equipment. In response, the company, which also produces nickel and copper, has been adjusting its production and sales strategies to mitigate the impact.