Key strategic projects
South Cluster
Location: Norilsk Division, Norilsk industrial District, Krasnoyarsk Region
Project description: in 2017, the South Cluster was spun off as a separate legal entity Medvezhy Ruchey, a wholly-owned subsidiary of the Norilsk Division. The South Cluster includes the Norilsk-1 deposit with disseminated ore reserves of over 140 mln t, Zapolyarny Mine (open-pit and underground mining), Norilsk Concentrator, and two tailings storage facilities: No. 1 and Lebyazhye.
| Period | 2022 | 2023 | 2024 |
|---|---|---|---|
| Ore output, mln t | 2–3 | 3–4 | 5–6 |
Project implementation stages
2021
- Development striping completed
- Positive opinion of the Main Department of State Expertise (GGE) secured
- Tendering for the construction of major facilities completed
- Contracts for the construction of major facilities signed
2022–2023
- Plans to complete the construction of the open pit (Stages 2 and 3) and the underground mine (Stage 2)
2027 mining targets
Bystrinsky GOK
The Company owns 50.01% in GRK Bystrinskoye (Bystrinsky GOK).
Location: Gazimuro-Zavodsky District, Zabaykalsky Region
Project overview: Bystrinsky GOK is Nornickel’s greenfield project, which includes an open pit mine at the Bystrinskoye deposit, a mining and processing plant (GOK) with all associated infrastructure including a power line and the 227-km
| Item | 2021 | 2022П |
|---|---|---|
| Ore processing, mln t | 10.5 | 10.5 |
| Copper in concentrate, kt | 67.8 | 64-68 |
| Gold in concentrate, koz | 258 | 225–245 |
Concentrator capacity upgrades
TOF-3 project
Location: Talnakh Concentrator, Norilsk Division, Norilsk industrial District, Krasnoyarsk Region
Project overview: upgrade of Talnakh Concentrator (TOF) includes three stages:
- TOF-1 (completed in 2015): equipment upgrade, resulting in a 1% increase in nickel recovery
- TOF-2 (completed in 2018): new mills installed; the concentrator capacity increased to 10.2 Mtpa; the first stage of the tailings storage facility launched
- TOF-3 (under construction; scheduled for completion in 2023; ramp-up to design capacity by 2024): plans to increase capacity to 18 Mtpa (with a 4%–7% increase in recovery), build the second stage of the tailings storage facility, increase the capacity of ore products storage to 190 million m3. Investments into TOF-3 will total RUB 74.8 billion (more than USD 1 billion). In 2021, RUB 12.3 billion (USD 167 million) were spent, including investment in the construction of the tailing dump’s 2nd Stage
Main stages of the TOF-3 project
2021:
- A construction and installation contract with a general contractor and an equipment supply contract concluded
2022:
- Planned completion of the detailed design phase
- Conveyor equipment delivery
2023-2024:
- Planned delivery and installation of equipment
- Completion of construction and installation, startup and commissioning
NOF project
Location: Norilsk Concentrator, Norilsk Division, Norilsk Industrial District, Krasnoyarsk Region
Project overview: construction of a new concentrator to process disseminated ores with a throughput capacity of up to 18 Mtpa of ore to replace the existing Norilsk Concentrator. The new concentrator will meet all industrial safety requirements while ensuring uninterrupted operations. The construction is planned to be carried out in two stages and completed in
- Stage 1: startup of the first section with a capacity of 9 Mtpa of ore
- Stage 2: startup of the second section for the co-processing of disseminated ores from Talnakh and ores from the South Cluster and Maslovskoye deposit, with a total capacity of 9 Mtpa of ore
Main stages of the project
2021:
- Engineering surveys completed
2022–2023:
- Planned development of Main Technical Solutions and design documents
- Construction of a dormitory
- Procurement of equipment
Smelting capacity upgrades
Location: Nadezhda Metallurgical Plant, Norilsk Division, Norilsk Industrial District, Krasnoyarsk Region
Project overview: upgrade of smelting facilities at Nadezhda Metallurgical Plant to boost output and have spare capacity.
Nadezhda Metallurgical Plant facilities will be upgraded in three stages:
- Stage 1 (completed in 2016): flash smelting furnaces upgraded to boost output to 2.4 Mtpa
- Stage 2 (completed in 2021): output increased to 2.6 Mtpa
- Stage 3 (under construction, scheduled for completion by 2025) includes the construction of a third furnace with a capacity of 960 ktpa, to be integrated into the Sulphur Project 2.0 The Sulphur Project 2.0 includes gas capture, sulphur dioxide recovery and sulphuric acid production for subsequent neutralisation with limestone
- Investments into the furnace project will total RUB 105.5 billion (about USD 1.4 billion), including RUB 1.8 billion (USD 24 million) in 2021.
Project implementation stages
2021:
- Engineering and cost-estimate documentation completed
- Positive opinion of state environmental review secured
- Manufacturers of core equipment selected
- Plans to obtain a positive opinion of the Main Department of State Expertise
- Obtaining a construction permit
- Contractor selection and construction and installation phases
- Detailed design
- Equipment and material delivery
Refining capacity upgrades
Location: Kola Division, Monchegorsk, Murmansk Region
Project overview: a project to build a new copper refining facility including a new roasting, leaching and electrowinning line with a capacity of 150 ktpa of copper. Startup is scheduled for 2025, with investments in the project totalling about RUB 107 billion (USD 1.4 billion), including RUB 1.1 billion (USD 15 million) in 2021.
Project implementation stages
2021:
- EP contracts for engineering, equipment supply and on-site services concluded
- Contracts for engineering surveys and dismantling concluded
2022:
- Plans to conclude C contracts for construction and installation
- Execution of EP contracts
Sulphur Project in the Norilsk Division
Location: Norilsk Division, Norilsk industrial District, Krasnoyarsk Region
Project overview: The Sulphur Project 2.0 in the Norilsk Division is the largest environmental project in Russia aimed at gradual reduction of sulphur dioxide emissions in the Norilsk Industrial District by 90% from a 2015 baseline. Investments in the project will total about USD
Nadezhda Metallurgical Plant
The project includes the construction of furnace gas recovery facilities, a sulphuric acid neutralisation line, and associated infrastructure, including a gypsum storage facility. The project provides for the recovery of gases from smelting operations, covering the smelting expansion (the third smelting complex project). The expected impact includes a reduction of total SO2 emissions from the Norilsk Division facilities by 45% in 2023 from a 2015 baseline. Total investment is RUB 98.8 billion, including RUB 32.2 billion (USD 438 million) in 2021.
PROJECT IMPLEMENTATION STAGES
2021:
- Construction and installation contracts concluded
- Four general contractors engaged, almost 2 thousand employees and over 232 items of machinery mobilised
- Core equipment contracted and is in the process of delivery
- Foundations laid, steel structures erected, building walls constructed, and gypsum storage dam built
- Transport corridor provided for the transportation of structures and equipment
- Installation of core equipment (ball mills, sulphuric acid tanks, wet electrostatic precipitators, cooling towers, mixing towers, and pipelines) commenced
2022:
- Plans for the startup and commissioning of the first stage
Copper Plant
The Sulphur Project 2.0 at Copper Plant includes several key projects.
Construction of a continuous converting complex and an acid neutralisation line. The expected impact includes a reduction of total SO2 emissions from the Norilsk Division facilities by 90% in 2025 from a 2015 baseline. Investment in the project will total RUB 53.7 billion, including RUB 0.96 billion (USD 13 million) in 2021.
Upgrades of existing and construction of new facilities at Copper Plant to recover SO2 from metallurgical furnace off-gases and produce sulphuric acid, with recovery in excess of 99.5%. In 2021, Main Technical Solutions were developed, engineering surveys completed, a construction contractor selected, an EP contract to supply core equipment and develop design documents signed, and the selection process for a construction contractor is underway. Investment in the project will total RUB 73 billion, including RUB 3.4 billion (USD 47 million) in 2021.
A KEY INITIATIVE WITHIN THE SULPHUR PROJECT 2.0 IS TO LAUNCH THE NEUTRALISATION OF SULPHURIC ACID PRODUCED AT COPPER PLANT AND STORING 4 MTPA OF THE RESULTING GYPSUM IN A GYPSUM STORAGE FACILITY.
To accomplish this, survey and engineering activities began in 2021, the Main Technical Solutions were developed, and public consultations were held. Investment in the project will total RUB 51 billion, including RUB 193 million (USD 3 million) in 2021.
Sulphur Project in the Kola Division
Location: Kola Division, Murmansk Region
Project overview: The Sulphur Project 2.0 in the Kola Division was completed in 2021. The copper refining facility in Monchegorsk was shut down in March 2021 and smelting shop in Nickel town was shut down in December 2020, reducing sulphur dioxide emissions from Kola MMC by 78% in 2021 compared to 2020 and 90% in 2021 compared to a 2015 baseline.
Energy infrastructure upgrades
Nornickel operates its own energy assets, which comprise four natural gas fields, three combined heat and power (CHP) plants (CHPP-1, CHPP-2, and CHPP-3), two hydropower plants (Ust-Khantayskaya HPP and Kureyskaya HPP), as well as gas pipelines and power lines. Electricity is generated from renewable (hydropower) and non-renewable (natural gas) sources.
Location: Norilsk Industrial District, Krasnoyarsk Region
Project description: investment in energy infrastructure to replace obsolete HPP turbines and CHPP units, and retrofit key elements of the gas transmission system and power lines. These initiatives will markedly extend the service life of our key infrastructure facilities, enhance the reliability of our energy and gas supply, increase the amount of renewable energy generated and provide for lower energy losses. Investments in energy assets planned for
Combined heat and power plants
- Replacement of generating units at CHPP-1, CHPP-2, and CHPP-3
(2022–2029) - Construction of two new units at CHPP-3 (scheduled for completion at the end of 2025)
Hydropower plants
- Upgrade of all seven hydropower units at the Ust-Khantayskaya HPP (completed in 2021)
- Upgrade of the Kureyskaya HPP to expand installed capacity, improve efficiency, and reduce emissions from CHP plants by increasing the share of hydropower generation
(2023–2030)
Gas production and transportation
- Construction of 70+ km of a new pipeline along the Pelyatkinskoye gas condensate
field – Messoyakhskoye gas field route (scheduled for completion at the end of 2025) - Upgrade of 150+ km of gas and gas-condensate pipelines (scheduled for completion at the end of 2028)
- Construction and commissioning of new wells at the Pelyatkinskoye gas condensate field (starting in 2025)
Utilities
- Accelerated replacement of 110-kV and 220-kV power lines (over 1,000 km)
- Upgrades of heating and water supply networks
