Norilsk Nickel presented an update to its annual strategy

Norilsk Nickel, the world's largest producer of nickel and palladium, presented to the investment community a corporate strategy aimed at increasing the company's shares and strengthening its leadership in the industry.

The main directions of the strategic initiatives will be the modernization and reconfiguration of the production facilities of the concentration and smelting facilities. It is planned to complete the analysis of the mining project portfolio and determine the production forecast, taking into account the improvement in efficiency and $ 2 billion in capital expenditures per year. By the end of 2015, it is planned to sell foreign and non-core assets in the amount of $ 1 billion. It is also necessary to solve the problems of depleted mining assets and individual logistics enterprises. Confirmation of values ​​for dividend payments of at least 50 percent of EBITDA.

The corporate strategy adopted in 2013 in relation to assets and investment management has proven its viability in providing returns to Norilsk Nickel shareholders. Amid challenging commodity markets, Norilsk Nickel has achieved strong operating results and will receive $ 3.2 billion in cash from the sale of non-core and international assets, increasing working capital and reducing operating and administrative costs.

In the updated strategy, the company stated that the most important task over the next decade will be to unlock the potential of the Talnakh ore cluster, which contains reserves valued at 0.9 trillion. dollars and is considered the best polymetallic base in the world.

To achieve these goals, Norilsk Nickel has set the following priorities:
Environment, health and safety is a "first order" strategic priority. Improving health and safety performance and reducing environmental impact remains a priority for the company as it strives to make Norilsk a better city to live and work in. The company has confirmed its long-term target of more than fourfold reduction of sulfur dioxide emissions, in connection with which a sulfur capture facility will be built at the plant in 2016-2019.

An in-depth analysis of MMC's asset portfolio revealed a number of undercapitalized “legacy assets” that are inconsistent with the company's strategy. It is recommended to carry out internal restructuring, unbundling and full or partial sale by the end of the year 2015.

Another priority area will be the launch of Bystrinsky GOK, which is considered a first-class asset for the company. For these purposes, it plans to obtain interim and long-term financing from VTB Bank. In addition, negotiations are underway to attract investors.

The company said it remains committed to maintaining the industry's highest dividend yield for its shareholders. Norilsk Nickel has already paid out more than $ 7 billion in dividends for the 2013-14 period, providing excellent returns for its shareholders. The company confirms its goal to pay at least 50 percent of its annual EBITDA as dividends.