Nornickel, the world’s largest producer of nickel and palladium, is confirming its long-standing commitment to the prosperity of Norilsk and is reaffirming its stance with a significant financial contribution towards the social and economic development of Norilsk, world’s northmost city. This arrangement is being made by Nornickel in cooperation with the Russian Federal Government, the Krasnoyarsk Territory, and Norilsk city, and was announced on February 20, 2021.
Details About the Pledge
The agreement to this effect was signed by Alexei Chekunkov, Minister for Development of the Russian Far East and the Arctic; Aleksander Uss, the Governor of the Krasnoyarsk Territory, Dmitry Karasev, the Mayor of Norilsk, and Vladimir Potanin, CEO of Nornickel.
Yuri Trutnev, Deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District of Russian Federation oversaw the signing ceremony. Further details about the agreement have been published.
The first document details the responsibilities of all parties, and it is binding until 2024, and could potentially be extended to 2035. With regards to the development of Norilsk, there will be a joint effort by the city, the region, the Federal Government, and Nornickel.
The projects to be undertaken include renovation of housing, an overhaul of the city’s infrastructure, reconstruction and repair of social facilities. Residents of Norilsk and Dudinka in buildings that require renovations will be relocated to better accommodations by Nornickel.
The total amount for the project is billed at 120.1 billion roubles. This includes 81.3 billion roubles from Nornickel, 24 billion roubles from the federal budget, and 14.8 billion roubles from the consolidated budget of the Krasnoyarsk Territory. There are plans to include funding for the project in the Comprehensive Plan for Social and Economic Development of Norilsk up until 2035.
According to Aleksander Uss, Krasnoyarsk Territory Governor, this new agreement addresses some of the top issues for the residents of Norilsk, such as improvement of Norilsk environment and a dedicated effort to improve wellbeing and health condition of Norilsk citizens.
Another signed document outlines the joint proposal for the Comprehensive Plan of Social and Economic Development of Norilsk until 2035. Yuri Trutnev, the deputy Prime Minister and Presidential Envoy to the Far Eastern Federal District, commented: “The agreement is vital for the entire Norilsk region. Much work has to be done to put the city’s infrastructure in order to improve people’s living conditions. We consider this signed agreement to be a starting point. We have a lot of work to do with the company to ensure that the agreement improves people’s lives in the near future. It is necessary to improve people’s living conditions faster: we need to invest money from the state budget and will continue to appreciate the meaningful contributions from the company.”
About MMC “Norilsk Nickel,” “Nornickel” or the “Company.”
MMC Norilsk Nickel is a diversified mining and metallurgical company, the world’s largest producer of palladium, high-grade nickel, and a major producer of platinum and copper; it also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products. Nornickel shares are listed on the Moscow and Saint Petersburg Stock Exchanges; ADRs are traded over the counter in the U.S. and on the London, Berlin and Frankfurt Stock Exchanges.