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

MOSCOW (Reuters) -Russian mining big Nornickel 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 advised RBC TV.

Nornickel, the world’s prime palladium and refined nickel producer, was one of many largest prizes within the post-Soviet carve-up of Russian business in Nineties, and it at present employs 72,000 individuals.

“When Norilsk Nickel (Nornickel) was privatised about 25% of shares had 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 individuals, together with staff.”

Potanin stated the change can be included in a 10-year programme referred to as “Digital Investor” that might start in 2023, and would contain digital monetary belongings and lock-up intervals. He didn’t give additional particulars concerning the plan or how the fairness holdings can 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 thought of a $60 billion merger of Nornickel with Rusal as a method of mitigating doable sanctions dangers, however on Saturday stated the thought had been postponed.

“I believe the thought continues to be attention-grabbing, 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 monitor to run out on the finish of 2022.

The deal ended a battle between Interros and Rusal in 2012. There aren’t any talks to resume the deal, sources advised Reuters earlier this month.

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

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

“A few of our companions try to revise the phrases of current contracts of their favour, making an attempt to cut back the amount of purchases for the upcoming interval, imposing on themselves a type of self-sanctions, transferring 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 standard 50% of Nornickel’s gross sales and the USA about 20%, he added.