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"Norilsk Nickel" is ready to make the Chinese investments in the development of Trans-Baikal

Company «Norilsk Nickel», developing a new strategy, does not consider it possible to develop yourself and polymetallic Kultuminsky Lugokanskaya areas, taking into account the issues of return and the amount of reserves. In the same category and got Solonechenskoye antimony mine. But the personal management of the company has against the attraction of investments from China for the development of these deposits, reflecting, however, at the same time as the Chinese react to the disturbing factors. In mid-September by the «Norilsk Nickel» to foreign investors for the development of four projects Zabaykalskie deposits were provided. In particular, the development of polymetallic deposits Bystrinsky with assets of copper in 14 million tons, including iron and gold.; Kultuminsky polymetallic deposit containing 180,000 tons of ore, gold, silver, copper and iron; Lukoganskogo polymetallic ore deposit with assets of 230 000 tonnes, containing gold, silver and copper; Solonechenskoye antimony deposit containing 580,000 tons of ore.

Of these deposits only Bystrinsky object fit into the new strategy, developed by the «Norilsk Nickel» to focus on the first-class asset with an EBITDA not less than 40%, with the possibility of receiving an annual income of more than 1 billion. USD, with the provided more than 20 years of profitability. The development of this project provides for investment for 2014−2017 years at the level of 1.1 bn. USD, and the calculated annual production capacity should reach 10 million. Tons of ore in 2017. With regard to the other projects, the strategy is not caught, the company refuses to give further details.

Experts believe that these projects are theoretically able to arouse the interest of investors from China, however, excluding antimony, remaining reserves are not too large and if necessary, infrastructure investment will pay off long enough. And this despite the fact that to date, the copper market is quite stable, which prevents sudden changes in value in the foreseeable future. Investment in iron ore demand adjustments to the orientation of the product cost, located at a minimum of 2009. Perhaps ore costs will increase, but it is unlikely the market will recover quickly.

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