Nornickel plans to raise employees’ stake in mining giant, says top shareholder

The emblem of Russia’s mining firm Norilsk Nickel (Nornickel) is seen through the St. Petersburg Worldwide Financial Discussion board (SPIEF) in Saint Petersburg, Russia June 15, 2022. REUTERS/Maxim Shemetov

MOSCOW, Sept 17 (Reuters) – Russian mining large Nornickel (GMKN.MM) plans to extend the fairness holdings of staff and different people to collectively comprise 25% of the corporate, up from 10% now, its largest shareholder Vladimir Potanin instructed RBC TV.

Nornickel, the world’s high palladium and refined nickel producer, was one of many greatest prizes within the post-Soviet carve-up of Russian trade in Nineties, and it presently employs 72,000 folks.

“When Norilsk Nickel (Nornickel) was privatised about 25% of shares have been owned by staff,” Potanin stated in an interview broadcast on Saturday. “I want to get well this historic justice and make it possible for 25% of Nornickel’s shares are returned to the folks, together with staff.”

Potanin stated the change could be included in a 10-year programme known as “Digital Investor” that may start in 2023, and would contain digital monetary belongings and lock-up durations. He didn’t give additional particulars concerning the plan or how the fairness holdings could be elevated.

Potanin’s holding, Interros, owns 36% of Nornickel.

Aluminium producer Rusal , which owns 26% of the corporate, didn’t instantly reply to a Reuters request for remark.

Potanin in July floated the concept of a $60 billion merger of Nornickel with Rusal as a method of mitigating doable sanctions dangers, however on Saturday stated the concept had been postponed.

“I believe the concept continues to be fascinating, nonetheless alive, however we must put it off till later, when our colleagues are prepared for talks on this,” Potanin stated.

He additionally stated a 10-year shareholder settlement defending Nornickel’s dividend payouts was on observe to run out on the finish of 2022.

The deal ended a battle between Interros and Rusal in 2012. There are not any talks to resume the deal, sources instructed Reuters earlier this month. learn extra

Potanin additionally stated Nornickel was getting ready to reorient itself extra in the direction of Asian markets, to protect towards any change within the West’s sanctions coverage or shoppers making an attempt to “twist our arms”.

Nornickel has not been straight focused by the Western sanctions imposed on Moscow because it despatched hundreds of troops to Ukraine on Feb. 24.

“A few of our companions are attempting to revise the phrases of present contracts of their favour, making an attempt to cut back the quantity of purchases for the upcoming interval, imposing on themselves a sort of self-sanctions, shifting away from items of Russian origin as a lot as doable,” the Potanin stated.

Within the first seven months of this yr, Europe accounted for the same old 50% of Nornickel’s gross sales and the USA about 20%, he added.

Reporting by Polina Devitt, Anastasia Lyrchikova and Alexander Marrow
Enhancing by Pravin Char and Helen Popper

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