Norilsk Nickel will open its doors to investors

Company will isolate its key assets, and is ready to attract partners to the rest of them.
In 2013, "Norilsk Nickel" has taken the strategy. The company decided to focus on "first-class assets," with revenues of more than $ 1 billion a year, EBITDA above 40% and inventory by more than 20 years. After that, "Norilsk Nickel" has sold almost all foreign assets. Now, the company adjusts strategy, told "Vedomosti" the president and co-owner of "Norilsk Nickel" Vladimir Potanin.

"Norilsk Nickel" will be divided into four clusters. The first will include key assets - in the vicinity of Norilsk Talnakh Concentrator (mines and enriches ore), Nadezhda Metallurgical (copper-nickel matte) and copper (copper cathodes) plants, "Severonikel" on the Kola Peninsula and Finland the Harjavalta (nickel cathodes). These companies - the "core" of Norilsk Nickel, "said Potanin. Now they account for 58% of its "Norilsk Nickel" ore. Metal production statistics are not disclosed.

All other assets are classified into three clusters. Each of them may appear a third-party partners or investors, promises Potanin.

So, in a separate cluster will be allocated Bystrinsky project in the Trans-Baikal Territory, Potanin said: "We have to call it yourself window into the Chinese market - it is located near, there are already Chinese partners." Bystrinskoye deposit contains reserves of copper, gold, silver and iron. Mining here has to be built by the end of the summer of 2017 "Norilsk Nickel" has sold 10.3% of the project to the Chinese Foundation Highland, another 3% who redeem in January 2017 In the future, you can hold an IPO Bystrinsky project on Asian markets, it expects to Potanin. The businessman does not exclude that in the future Bystrinsky project can be combined with the location in Chukotka Baimskim deposits of copper, gold and molybdenum.

This project belongs to the co-owners of Evraz and minority shareholders, "Norilsk Nickel" Roman Abramovich and Alexander Abramov. Stocks Baimskogo deposit will dorazvedat until the end of 2017 and will then clear the prospect of combining the two fields, says close to one of the shareholders of the project Bystrinsky people.

Combining Bystrinsky and Baimskogo projects discussed, but so far only at an early stage, the company's president said Abramov "Invest AG" Sergei Bratukhin. We believe in the long-term potential of copper and can see the value in creating a specialized copper company, he added. The representative of Millhouse Abramovich did not respond to questions "Vedomosti".

In the Southern cluster will include other assets, "Norilsk Nickel" in the Taimyr Peninsula. It is so named because its member companies - mine "Polar" quarry "Bear Creek" and Norilsk Processing Plant located south of the underlying assets. These assets Potanin calls a "gateway" for the development of a company-owned Maslovskoye polymetallic deposit and owned by "Russian platinum" Musa Bazhaev field south of "Norilsk-1". Ore from both could be enriched at the Norilsk concentrating mill and then melted down in the metal at the metallurgical enterprises of the company, said Potanin. Dialogue with "Russian platinum" is conducted, the businessman said.

The representative of the "Russian platinum" confirms negotiations with "Norilsk Nickel".

In the fourth cluster will include the remaining assets of Kola (except "Severonikel"). The company will focus on deliveries to Europe, said Potanin.

Allocation of assets in clusters - the question is not legal, and organizational and methodical, said Potanin. The logic in the decision to distribute the assets in clusters is, says the head of analytical department of the BCS Kirill Chuiko. "Norilsk Nickel" logically tends to focus on the development of the underlying assets in order to maximize profits and to attract investors for the realization of investment and risk sharing.

Share financial and operational risks to the realization of non-core investment - a normal practice in the world, said the asset manager of the Criminal Code "Capital" Dmitry Postolenko. First, it will allow management to focus on the management of key assets, and additional projects to implement the joint forces and with the assistance of third-party capital, he continues.

Polar Division - the main source of income for the "Norilsk Nickel", commented Director of Metallurgy and Mining Prosperity Capital Management Nick Sosnowski. The distribution of the remaining assets in clusters and attracting investors in them - a way to minimize risks and maximize profits. At the same time the company will have to prove to potential investors why they should invest in the "Norilsk Nickel" projects if the company itself did not dare to implement them yourself.