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

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 informed RBC TV.

Nornickel, the world’s high 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 folks.

“When Norilsk Nickel (Nornickel) was privatised about 25% of shares had been owned by staff,” Potanin stated in an interview broadcast on Saturday. “I wish to get well this historic justice and guarantee that 25% of Nornickel’s shares are returned to the folks, 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 property and lock-up durations. He didn’t give additional particulars in regards to 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 concept of a $60 billion merger of Nornickel with Rusal as a method of mitigating attainable sanctions dangers, however on Saturday stated the concept had been postponed.

“I feel the concept continues to be fascinating, nonetheless alive, however we should 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 observe to run out on the finish of 2022.

The deal ended a battle between Interros and Rusal in 2012. There are not any talks to resume the deal, sources informed 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 purchasers attempting to “twist our arms”.

Nornickel has not been instantly focused by the Western sanctions imposed on Moscow because it despatched 1000’s of troops to Ukraine on Feb. 24.

“A few of our companions try to revise the phrases of present contracts of their favour, attempting to cut back the quantity of purchases for the upcoming interval, imposing on themselves a form of self-sanctions, shifting away from items of Russian origin as a lot as attainable,” the Potanin stated.

Within the first seven months of this yr, Europe accounted for the same old 50% of Nornickel’s gross sales and the USA about 20%, he added.

(Reporting by Polina Devitt, Anastasia Lyrchikova and Alexander MarrowEditing by Pravin Char and Helen Popper)