Strategy of sustainable growth GRI 2-6

A low-carbon pathway of the global economy and actions to curb rising average temperatures present unique opportunities for Nornickel to become a leading producer of green metals essential for the energy transition. In the long run, our rapid growth will be driven by increasing demand for our key products needed to improve energy efficiency of transportation and develop renewable energy.

We are aware that sustainable development is impossible without a holistic approach to managing natural resources that would respect the interests of all stakeholders. In particular, our customers set the bar high for our products as regards their compliance with the sustainability principles. Our success also depends on how effectively we cooperate with our shareholders, NGOs, local communities and other stakeholders. Thus, the ESG agenda is set to become the main driver and the cornerstone of Nornickel’s strategic initiatives and investment projects.

Our approved strategic priorities through 2030 include a dramatic environmental uplift in the regions of operation, capacity upgrade, construction of new capacities to build up production of key metals, and maintaining financial strength.

As regards the resource base, our strategy envisages stripping of new deposits within the existing license blocks, comprehensive development of deposits to mine all types of ores, large-scale upgrade of production capacities, and maximum utilisation and expansion of production capacity at existing mines, including output ramp-up as a result of the South Cluster development. This will help us considerably increase the output saleable products by 2030 and meet the growing demandFor more details on our strategic projects to increase and upgrade production, please see our Annual Report 2022..

Strategic plans to increase ore mining and metals production by 2030
Ore mining in the NID (mtpa)
Metals production (mtpa of Ni equivalent)

To reduce our environmental footprint, we carry on with our Sulphur Programme. After we finished its stage on the Kola Peninsula in 2021, sulphur dioxide emissions went down 90% in 2022 compared to the 2015 baseline. In 2023, the Company plans to complete the first stage at Nadezhda Metallurgical Plant in the Norilsk Industrial District, which will reduce emissions in the Polar Division by 45% vs 2015.

Strategy of sustainable growth

Sulphur Programme roadmap

Kola division

Cross-border SO2 emissions down in 2020 Vs the baseline year (2015).

Optimisation of smelting operations to cut SO2 emissions in the Russia-Norway border zone

Shutdown of the obsolete smelting shop in Nickel in December 2020

Reduction of SO2 emissions in Nickel and Zapolyarny

–50%Vs the baseline year (2015).

Total SO2 emissions at Kola MMC down Vs the baseline year (2015).

Full shutdown of the obsolete copper line at the refining shop on the Kola Peninsula

Metallurgical shop shut down on 20 March 2021

reduction of total SO2 emissions at the Kola Division

–90%Vs the baseline year (2015).
Norilsk division
Implementation 2023

Launch of Sulphur Programme 2.0 at Nadezhda Metallurgical Plant to recover furnace gases

reduction of SO2 emissions from the ramp-up to design capacity. Ramp-up to design capacity in 2024

–45%Vs the baseline year (2015).
Redesign and implementation 2027

Launch of Sulphur Programme 2.0 at Copper Plant to recover furnace and converter gases The period of programme implementation at Copper Plant is specified in accordance with Polar Division’s Environmental Performance Enhancement Programme (2020) subject to clause 6 of Appendix No. 8 to Russian Government Resolution No. 353 dated 12 March 2022.

reduction of SO2 emissions at the Norilsk Division after the ramp-up to design capacity

90%Vs the baseline year (2015).

On top of that, our plans include the modernisation of the energy infrastructure enabling adaptation to physical risks with a climate factor and better reliability of power supply to our production assets in the long run.

Power infrastructure modernisation through 2030

Programme objective:

modernise generating capacities and the grid infrastructure to replace the retiring equipment and grids, reduce physical risks and enhance long-term reliability.

Gas and gas condensate upstream and transportation

  • Upgrade of over 150 km of gas and condensate pipelines;
  • Ramp-up of gas well drilling at the Pelyatkinskoye deposit post 2028.

Water and heat supply networks

  • Replacement of 110 and 220 kV power lines (over 1,000 km);
  • Modernisation of water and heat supply networks.

Contribution to energy efficiency:

focus on enhancing performance of new CHP power units and an overall reduction of energy losses along the energy generation and transmission chain.

Heat and power plants

  • Construction of four power units at CHP-2 and five power units at CHP-3;
  • New more efficient fuel-saving equipment to minimise energy losses.

Hydropower plants

  • Upgrade of all seven hydro turbines at Ust-Khantayskaya HPP completed;
  • Upgrade of Kureyskaya HPP aiming to increase the installed capacity and energy efficiency and to boost the capacity of low-carbon hydropower plants.

The Company is currently going through an active phase of its investment cycle. In 2022, our CAPEX was USD 4.2 bn, with USD 4.7 bn expected to be spent on key investment projects in 2023. In the next reporting year, we plan to review design solutions and update our investment programme for 2024–2030.


Gas and gas condensate upstream and transportation
Thermal power plants
Heating and water supply networks
Hydroelectric power plants
Gas transportation

Long-term trends supporting consumption growth for the metal basket. Our strategic projects GRI 2-6

Long trends of global development will have a positive impact on the worldwide demand for the majority of Nornickel’s metal basket. Our metals meet the needs in car manufacturing, electronics, electrical engineering, petrochemical and oil refining, power generation, construction, consumer goods, healthcare, and other global industries.

Nickel is the core metal for stainless steels used in multiple sectors – from mechanical engineering and construction to renewable energy. Together with cobalt, nickel is essential in producing electrochemical cells for the new and future generation batteries, which in turn play a vital role in developing electric transport.

Copper is critical for transitioning to the low-carbon economy as it is used in high-tech equipment, including that for making RES-based hardware. Over 70% of refined copper produced globally are used for manufacturing various cables and wires. By 2040, additional 10 mtpa of copper will be needed to meet the demandVs 2022..

At present, the automotive industry is the key consumer of platinum (40%) which goes to auto catalytic converters. Another important application area is jewellery which consumes around 25% of platinum. Platinum is also used in glass manufacturing to produce equipment (bushings) for making glass fibre and optical glass, and in electronics.

PGM are catalysts for the production of key chemicals. Platinum and iridium are part of catalysts used for green hydrogen production. Palladium enables transportation of hydrogen at long distances and its purification. Palladium, platinum and rhodium are used in manufacturing HEVs. Catalytic converters mainly for gasoline engines are the biggest palladium consumers (over 80%) in the mid term. This metal is used in catalytic converters to detoxify exhaust fumes. In most countries, such converters are legally required to be installed on all cars. Palladium is also used in electronics, dentistry, jewellery, chemicals and pharmaceuticals.

We analyse risks and opportunities related to global economic trends and assume that potential changes in demand for metals in some industries will be offset by its growth in others.

Key drivers affecting long-term demand for Nornickel’s key products

Ni Pd/Pt Cu
Growth of BEVs market share
Growing hybrid vehicle market
Growing fuel cell market and hydrogen economy
Growth of renewables / low carbon fuel in power generation
Storage and grid expansion to support growth in EVs
Net effect

Based on the study of trends across industries that are key consumers of Nornickel metals, we expect an increase in the long-term demand for nickel and copper and a neutral effect on PGM.

In 2022, Nornickel forecast changes in key metal demand based on three scenarios for the global economy and climate change For more details on our social and economic scenarios, please see the Climate Change and Energy Efficiency section. : “Rapid Transformation”, “Sustainable Palladium” and “Global Growth”. According to our estimates of prospective demand and supply, we can say that demand for our metals will grow and our strategy is resilient to changes in climate risk factors. The key expected risks are related to demand for palladium.

Potential revenue breakdown in 2030, %



Electrification of vehicles and implementation of electricity storage systems

Increased demand for stainless steel associated with the construction sector, use of renewable energy sources, urbanisation, and increased quality of life in the post-COVID period



Global infrastructure development programmes, mainly in the US and China


Electrification of vehicles, charging infrastructure development, increased generation of renewable energy



Higher number of vehicles across the world and growing real income of the population

Hybridisation of vehicles and a shrinking share of diesel cars

Introduction of palladium-based solutions for H2 storage, transportation and purification, and hydrogen system safety



Hydrogen energy and fuel cell cars



Using cobalt in batteries and rhodium in more eco-friendly cars with internal combustion engines

Long-term outlook for the metals market

Metal Market balance outlook Production (CAGR, %) Consumption (CAGR, %)
Ni Deficit
Cu Deficit
Pd Oversupply
Pt Deficit