16 Jun 2022 14:18

Nornickel maintaining all investment plans and project portfolio, but timeframe adjustments possible - executive

MOSCOW. June 16 (Interfax) - Nornickel is maintaining all investment plans and the project portfolio stipulated in the company's long-term development strategy, Sergey Dubovitsky, Senior Vice President for Strategy, Strategic Projects, Logistics & Procurement, told Interfax on the sidelines of the St. Petersburg International Economic Forum (SPIEF-2022).

At the same time, due to difficulties with access to imported equipment and logistical interruptions, there will be adjustments to the timing of projects, he said. The company is actively looking for analogues of Western components, primarily looking at import substitution.

"For most strategic projects, including the Sulphur program, we know what to do, we have an understanding of analogues [of imported equipment], but we need time to 'reassemble' these projects," he said.

Redesign may result in a change in capex guidelines, and the company is now calculating the final cost, but this will take months, the executive said. The company's capex guidance for 2022 will be clarified closer to the end of the year, he said.

Norilsk Nickel started the year with a capex estimate of $4 billion for 2022, 45% higher than in 2021. Capex was expected to peak at $4-4.5 billion a year in 2023-25.