June 02, 2017
Within the framework of the St Petersburg International Economic Forum (SPIEF 2017), Natalya Zhdanova, the Governor of the Trans-Baikal Territory, and Elena Bezdenezhnykh, Vice-President, State Secretary, Head of GR of Nornickel, signed a social and economic cooperation agreement.
Under the agreement, the government of the region will support Nornickel’s investment projects, particularly the Company’s key asset in the Trans-Baikal Territory – the Bystrinsky Mining and Processing Plant.ˆ
When the plant reaches the design capacity, it will improve significantly the Trans-Baikal Territory’s budget revenues. If the pricing environment is favourable, tax payments to the regional and local budgets may amount to RUB 4.68 bn in the next five years, and RUB 18.4 bn in the next ten years. Committed to high standards of social responsibility, Nornickel will also allocate at least RUB 3.29 bn by 1 January 2027 to the social projects of the Trans-Baikal Territory’s government and local authorities. The list of such social projects is to be approved annually. The Company will transfer funds to the Trans-Baikal Development Fund.
“Bystrinsky Field development is a key project included in the list of the Siberian Federal District’s priority projects. It enjoys full support of the regional authorities, and was assigned the status of a regional investment project. The project features its own resource base with a useful life of over 30 years, efficient logistics and a well-designed transport infrastructure,” said Elena Bezdenezhnykh at the signing ceremony.
The project investments total approximately RUB 90 bn. The Company has built production facilities (a concentrator, open-pit mines, tailings pit, etc.) and amenities, and the Borzya – Gazimursky Zavod railway of 227 km with the capacity of at least of 4 mtpa of cargo. The project has created 2,000 jobs, and approximately 1,500 jobs more will be outsourced to support the operation of the mining and processing plant.