11 December 2002 00:56
Norilsk plans to consolidate
Norilsk Nickel, the Russian mining group that last month agreed to buy a US
rival, has no plans for further takeovers outside its home market.
Leonid Rozhetskin, deputy chairman, said yesterday: "We are not looking
for any acquisitions, but we will continue to consolidate gold assets in
Russia."
Mr Rozhetskin added that the group, which is one of the world's biggest
producers of base and precious metals, would focus on further reducing its
costs, boosting transparency and integrating this year's acquisitions.
Norilsk has high hopes for its deal with Stillwater Mining Company, a US
producer of palladium and platinum, in which it will acquire a 51 per cent
stake for a total consideration of Dollars 341m.
"The US is an extremely important market, but the history of palladium
supplies out of Russia is not a happy one," Mr Rozhetskin said.
Fears over the unreliability of Russian imports had led customers such as
motor vehicle manufacturers to reduce their dependence on palladium.
The deal with Stillwater, he said, would ease such concerns and allow Norilsk
to boost palladium exports to the US.
"We think (the transaction) will be positively received by US
consumers," Mr Rozhetskin said.
The deal still needs the approval of Stillwater's shareholders and
regulatory authorities, though Norilsk does not believe either will object to
the transaction.
This year the company also bought ZAO Polyus, Russia's largest gold
producer, in a bid to diversify its revenue streams.
Norilsk accounts for 20 per cent of global nickel production, 40 per cent of
of global palladium production and 24 per cent of the world's platinum
output.
It is also one of the largest businesses in Russia, where its activities
represent 1.9 per cent of gross domestic product and 2.8 per cent of
industrial output.
[FTI [The Financial Times]] |
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