Page 29 - BNE_magazine_12_2019 dec19

bne December 2019 Cover Story I 29
Norilsk Nickel plans to invest billions of dollars into increasing production and cutting emissions over the next 10 years to meet the anticipated dynamic changes in the market
Russia’s biggest metallurgical company Norilsk Nickel is ramping up investment to expand its production and dramatically cut its emissions over the next ten years as
the company rolls out a new strategy it says is designed to meet the realities of
a rapidly changing world that will add value to its stock.
And as a key element of these changes the company doesn't expect to change its generous dividend formula in the next four years and will stick to a deal struck with its significant minority shareholders that is due to run until the end of 2022 the company's vice president for strategic planning Sergey Dubovitsky said at a company investors' day.
"Current dividend payments are inviolable, as they are enshrined in the shareholder agreement valid until 2023," he said during a presentation of the company’s plans to invest in both production and the environment. “Investments in the environment, raw materials and metal production increase the sustainability and competitiveness of the company
and will lead to an increase in its value.”
The company came out to reassure investors following market speculation that it would be unable to maintain its current level of dividend payments due to increases in the capex programme to ramp up production and at the same time reduce its emissions by up to 90% over the next ten years.
As bne IntelliNews reported, analysts marked the company’s stock up by
a quarter in anticipation of soaring demand for nickel and PGM (platinum group metals) that are used in the production of electric vehicles (EVs) as the world scrambles to meet emissions reduction targets called for in the Paris Accords. Time is running out and CO2 levels are not falling quickly enough. European governments in particular are expected to introduce increasingly stringent emissions standards and actively encourage the switch to EVs.
However, analysts say that NorNickel doesn't have the capacity to meet this
www.bne.eu