Nornickel plans investments totaling 215 bln rubles in 2025
MOSCOW. Dec 13 (Interfax) - Norilsk Nickel plans overall investments totaling 215 billion rubles in 2025, the Russian mining and smelting giant said on Friday after the board of directors had reviewed next year's budget.
Company management expects to sell the entire metal production volumes in 2025 despite the complicated conditions on the metals markets, where a surplus in nickel is forecast, according to the press release.
"Amid a complex geopolitical environment and significant challenges, volatility in key markets, rising inflation, and the key interest rate, maintaining financial stability is reiterated as the key priority of Nornickel," the company said.
A year earlier, Norilsk Nickel approved a budget that included capex of about $3.6 billion. Later, the forecast was adjusted twice - to $3-3.2 billion and $3 billion - due to the depreciation of the ruble, optimization of settlements with contractors and increased efficiency when implementing investment projects, the company has said. Capex was $1 billion in H1 2024.
"Having financial stability set as a corporate priority while borrowing costs are running high, the company is pursuing a disciplined approach to making investment decisions relying on a systematic, pass-through risk-based prioritization of investments," the company said on December 13.
The key priorities include operational safety, mitigation of technological risks, and delivery on the company's strategy. The capital investments program also covers environmental and social commitments, as well as investments in supporting infrastructure, primarily energy and transportation.
"Our management team is committed to meet the established targets, maintain a strong credit profile, and support our investment appeal no matter which challenges we face," said Sergei Malyshev, the company's First Vice President and Chief Financial Officer.
Nornickel also said it planned salary indexation scheduled at or above the official inflation rate.
