MOMENTUM
OF RENEWAL
Annual report
2022 | Nornickel |
CONTENT
ABOUT NORNICKEL | STRATEGIC REPORT | BUSINESS | |||
OVERVIEW | |||||
Company profile | 4 | Chairman's letter | 16 | Mineral resourse base | 52 |
Our History | 6 | President's Letter | 18 | Operational performance | 63 |
Performance highlights | 8 | Commodity markets | 22 | Logistics operations and product sales ... | 70 |
Investment highlights | 10 | Our Strategy | 42 | Energy assets | 75 |
Business model | 12 | Innovation and digital technology | 77 | ||
Financial performance (MD&A) | 90 |
ABOUT THE REPORT
SUSTAINABLE | CORPORATE | ||
DEVELOPMENT | GOVERNANCE | ||
Strategic approach | 106 | Chairman's letter | 166 |
HR management | 112 | Corporate governance structure | 167 |
Health and safety | 130 | General Meeting of Shareholders | 176 |
Environmental protection | Board of Directors | ||
and climate change | 140 | and Board committees | 178 |
Social strategy | 156 | Executive bodies | 199 |
Control system | 208 | ||
Remuneration | 216 | ||
Risk management system | 219 |
SHAREHOLDER | |
INFORMATION | |
Share capital | 238 |
Dividend policy | 242 |
Bonds and debt management | 245 |
Shareholder relations | 248 |
ADDITIONAL | |
INFORMATION | |
IFRS Financial statements | خ.... 252 |
Glossary | 332 |
Contacts | 336 |
We are pleased to present to you the Annual Report of MMC Norilsk Nickel and entities comprising the same group of companies (the "Group", "Nornickel", the "Company")
for the year ended 31 December 2022. The main controlled entities and PJSC MMC NORILSK NICKEL's interest in their capital are listed
in the 2022 consolidated financial statements in accordance with International Financial Reporting Standards (IFRS).
The Report discloses all aspects of Nornickel's operations in the context of sustainability. Nornickel has a unique resource base underpinning its strategy of production growth and operational excellence as well as its unprecedented environmental programme. This clean growth strategy not only lays out long- term ore production and capital investment targets but also sets out concrete action plans to reduce the Company's environmental footprint in its regions of operation.
This Annual Report was prepared by the Investor Relations Department, taking into account
the requirements and recommendations of:
-
the Bank of Russia's Regulations No. 714-p On Information Disclosure by Issuers
of Issue-Grade Securities, dated 27 March 2020 - the Bank of Russia's Letter No. 06-52/2463 On the Corporate Governance Code, dated 10 April 2014
- the Bank of Russia's Information Letter No. IN-06-28/49 On Recommendations
for Public Joint Stock Companies to Disclose Non-financial Information Related to Their Activities, dated 12 July 2021 - the Bank of Russia's Information Letter No. IN-06-28/96 On Recommendations for the Board of Directors of a Public Joint Stock Company to Consider ESG Factors and Sustainable Development Issues, dated 16 December 2021
- the Listing Rules of PJSC Moscow Exchange.
The Report discloses financial metrics based on the Group's IFRS consolidated financial statements for 2022 audited by Kept in accordance with International Standards on Auditing.
Interactive | Sustainability | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
version | Report | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of the Annual | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Report | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Human Rights | Responsible Supply | |
Report | Chain Report | |
PRE-APPROVED by the Board of Directors | ACCURACY OF INFORMATION IS CONFIRMED |
(Minutes No. GMK/18 -pr-sd dated 28 April 2023) | by the Audit Commission |
(Opinion dated 26 April 2023) |
VLADIMIR POTANIN | SERGEY MALYSHEV |
President, Chairman | Senior Vice President - |
of the Management Board | Chief Financial Officer |
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ABOUT NORNICKEL
Nornickel is the leader in Russia's metals and mining industry and one of the world's largest metal producer.
The Company produces metals essential
for the development of a low-carbon economy and green transport.
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COMPANY PROFILE
Nornickel is the leader in Russia's metals and mining industry
and the largest palladium and high-grade nickel producer globally
as well as a leading producer of platinum and copper. The Company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, and tellurium.
The Group has more than 85 companies located in Russia and other countries. Major production assets include the Norilsk Division, Kola Division (including Kola MMC and Norilsk Nickel Harjavalta Oy nickel refinery in Finland) and also Trans-Baikal Division (including GRK Bystrinskoye, 50.01% owned by the Company).
10.8% | >78,000 | RUB 180,000 | >30 countries |
the Company's share | employees | average monthly salary | consume the Company's |
in Russia's metals production | at the Company | products | |
The Company also operates a captive sales network and owns a wide range of R&D facilities, energy assets, river fleet, river and sea port terminals, a unique Arctic cargo sea fleet as well as a number of other auxiliary units.
Operating assets | Energy |
Transport | R&D | Sales |
Metal Trade Overseas SA (Switzerland)
Gipronickel
Institute
Kola Division, including Norilsk Nickel Harjavalta Oy
Murmansk Transport Division
MMC Norilsk Nickel (Head office)
Norilsk Nickel Metals
Trading (Shanghai)
Co., Ltd (China) | NORMETIMPEX |
Norilsk Nickel Asia
Ltd (Hong Kong)
Norilsk Nickel USA
Inc. (USA)
Arkhangelsk Transport Division
Energy Division
Krasnoyarsk
Transport
Division
Polar Transport Division
Norilsk
Division
Trans-Baikal
Division
Bystrinsky Transport
Division (part
of the Trans-Baikal
Division)
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OUR HISTORY
In recent years, Nornickel has become the leader in Russia's metals
and mining industry, a reliable social partner and one of the world's largest producers of palladium and high-grade nickel.
IMPLEMENTING A NEW STRATEGY
ENVIRONMENTALLY GROWTH STRATEGY
2022
• | Nornickel fully delivered on its production programme, |
with CAPEX hitting a record USD 4.3 billion. | |
• | Nornickel pioneered the free, prior and informed consent |
(FPIC) procedure in Russia to discuss a relocation programme | |
with indigenous peoples, with FPIC obtained from Tukhard |
Construction of the Norilsk Metallurgical Plant was launched
in the Monchetundra.
The first batch of converter matte was produced. By late 1953, Norilsk Plant produced
35% of nickel,
12% of copper,
30% of cobalt, and
90% of platinum group metals (PGMs) of the Soviet Union's total output.
New deposits developed and new facilities put online
Major sulphide deposits of copper-nickel ores of the Talnakh deposit were discovered, giving a new lease on life to Norilsk Plant. The construction of mines
and the town of Talnakh started on the Taimyr Peninsula. The first batch of carbonyl nickel was produced at Severonickel Plant on the Kola Peninsula.
Komsomolsky, Oktyabrsky
and Taimyrsky Mines were launched; Talnakh Concentrator and Nadezhda Metallurgical Plant were commissioned. Severonickel Plant celebrated first production of electrolytic copper.
Company transformation
In 1993, the Company was transformed
into RJSC Norilsk Nickel and privatised. In 2001, the Company was restruc- tured, with shareholders of RJSC Norilsk Nickel exchanging 96.9% of their stock to shares
in PJSC MMC NORILSK NICKEL. The Company shares started trading on the RTS and MICEX stock exchanges, and first American Depositary Receipts (ADRs)
were issued in June.
Vladimir Potanin and his new management team took the helm of the Company. The Board of Directors adopted a new long-
term development strategy focused on world-class assets of the Polar Division and Kola MMC. Bystrinsky GOK, the largest green- field project in the Russian metals industry, was constructed from scratch
in the Zabaykalsky Territory. At that time, a programme was launched to improve the environmental situation across the Company's foot- print, including the shuttering of Nickel Plant in Norilsk, the launch of the Sulphur Project to drastically reduce sulphur dioxide emissions and the closure of obsolete metallurgical facilities in the Murmansk Region.
The Company announced a new investment cycle aimed at the comprehensive development of mining assets and the expansion of processing capacities
as well as the implementation of its environmentally friendly growth strategy that not only lays out long-term ore production and capital investment targets but also sets out concrete action plans to reduce the Company's environmental footprint in its regions
of operation.
NORNICKEL IN
residents. |
• Nornickel received equipment for the Sulphur Project |
and celebrated first production of limestone (23.5 thousand |
tonnes) from the Mokulayevskoye field. The mine will become |
the key producer of limestone for the Sulphur Project. |
• The Company launched two icebreakers, including a nuclear- |
powered one, enabling future expansion of transport capacity |
to cover the needs of the Taimyr Peninsula. |
• The Company launched an integrated control unit in Norilsk |
to monitor the condition of buildings and structures, which |
tracks the condition of permafrost soils. |
• In March, Nornickel sold NordStar Airlines. |
• Nornickel reached a settlement agreement with the Federal |
Agency for Fishery, stipulating that NTEC will ensure full |
in-kind compensation for accident-related damage to aquatic |
bioresources by releasing fry into the affected water bodies |
between 2023 to 2050. |
• Nornickel signed an agreement with RusHydro to purchase |
electricity generated from renewable sources to Trans-Baikal |
Division. Over the next three years, Bystrinsky GOK plans |
to switch all its external energy consumption to carbon- |
free sources leveraging similar contracts and thus unlock |
significant GHG emission reductions. |
1935-1959 | 1960-1992 | 1993-2012 | 2013-2020 | 2021-2030 |
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OJSC MMC Norilsk Nickel published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 10:11:48 UTC.