Norilsk Nickel starts reducing the investment projects

Norilsk Nickel is going to pay large dividends and start reducing its investment projects. The company can postpone development of Bugdainskoye molybdenum deposit in Zabaikalye and save about $1.4 billion. The company explains the situation by bad conjuncture. Experts confirm that low prices of the main metals of Norilsk Nickel provide no freedom of investment and the low prices of molybdenum don’t make it possible to expect fast benefit from the project. Other investment plans of Norilsk Nickel will be corrected as well.

Norilsk Nickel postpones development of Bugdainskoye molybdenum deposit and construction of a mining and concentration complex there for five years, senior federal inspector of Zabaikalye Bair Zhamsuyev reported during the coordination council for the investment projects in the region. Deputy General Director of Norilsk Nickel Maksim Naumchenko explained the postponement by inefficiency of the project in current market conjuncture. “The price of molybdenum has reduced thrice since 2006 when the feasibility study for the mining and concentration complex had been prepared”, the top manager said.