The total budget of Norilsk Nickel's programs to reduce air pollution is $ 3.6 billion, which is the largest environmental project in Russia. This was announced on Tuesday at Capital Markets Day, an event held online this year.
«On our Sulphur Programme, which consists of a variety of projects, we plan $3.6 billion between 2010 and 2030.
If you look at the broader environmental agenda, the capex on the E component of the ESG strategy is $5.5 billion and on other components - S and G - there is no aggregate number at the moment ...because planning is still in progress so the numbers will be calculated and budgeted in the future», Sergey Dubovitsky, Nornickel's head of strategy said.
Early Nornickel mining giant will invest more than USD 1.16 billion to preparing a comprehensive, five-year upgrade programme of the copper refining capacities. The production site is located about 250 kilometers from the border with Finland and 300 kilometers from the border with Norway. Also, Norilsk Nickel wants to develop a special program that will link environmental indicators with the work of the entire holding.
“In every aspect of our environmental strategy, there will be a roadmap of specific results assigned to specific departments and services of the company. We will translate these results into working language, as well as the various expected changes, events that must occur. All this will depend on time and time. Implementation or achievement of these events, changes, etc. Will form the basis for specific KPIs that will be tailored to specific functions of departments and services. Details of these KPIs are not currently available. The definition of these KPIs is still ongoing, "said Andrey Bougrov, vice president of the company for ecology and environment.
Based on these new programs, 60% of the company’s infrastructure will be totally renewed over the next 10 years.
This investment will allow to progress in three main dimensions, which are safety, energy efficiency and the reduction of carbon emission.
Bougrov added that there will be fundamental changes.
“The environmental projects that the company has started will fundamentally change the way the company does business. In 12 months it isn’t realizable, we’re talking about a much longer time frame. Environmental projects will cost $ 5.5 billion. This is a working assumption that we have for the period up to 2030, "he noted.
Earlier, Norilsk Nickel signed a letter of intent to establish a battery recycling cluster in Harjavalta, Finland, to serve the electric vehicle market in partnership with Fortum and BASF. This will successfully complete the “closed-loop” recycling cycle for critical metals present in used batteries.
“We continue to see hybrids have higher sales than battery-powered electric vehicles. From an engineering point of view and from a consumer point of view, hybrids can offer many benefits. It's a combination of two drive trains, which complicates things, but as a consumer, you really need traction when accelerating so you can get great performance from a hybrid without using an expensive battery, expensive combustion engine or infrastructure in terms of charging, you are less dependent. You can still use the car if the battery is low. We believe the environmental benefits are incredible. You get excellent fuel consumption and about five times less CO2 emissions, which is important for tackling climate change and moving towards a carbon-free economy. So we still think they have a very good position. This is what car companies mostly talk about when they say their production line will be dominated by hybrids, "said Anton Berlin, Vice President, Sales and Distribution of Norilsk Nickel