Nornickel (OTCMKTS:NILSY) announces plans to upgrade the company’s assets by investing several billion dollars in the course of a few years. It plans to increase its capital expenditure program by $5 billion.
Nornickel is a diversified metals and mining company operating worldwide. It extracts and refines ore and nonmetallic minerals and produces copper, platinum, cobalt, or sulfur, among others, and it is the world’s largest producer of high-quality nickel and palladium.
The company recently announced the expansion of its capital expenditure program by $5 billion compared to the previous estimate. The extra investment will go into upgrading the energy and production assets and in investments in response to the growing demand for green metals such as copper and cobalt.
Nornickel upgrades and extends its energy and production assets
The company operates complex metal deposits around the polar city of Norilsk, and part of the extra investments announced is designed for upgrading its facilities. Another part of the newly-announced investment goes to strengthening its logistics capacity in the Arctic to increase freight turnover in Arctic ports. The aim is to increase the freight turnover by 50%.
Moreover, the company plans a new processing plant in Norilsk, the extension of one metallurgical plant, as well as a new copper production plant.
All in all, the newly-announced investments are designed to bring the company closer to meeting its green policies and to increasing revenues in the years ahead. Nornickel is up 2.32% today in response to the company’s new investment plans.
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