PJSC MMC Norilsk Nickel struck a deal to buy copper concentrate from Rostec Corp., with a deal value of about 67.5 billion Russian rubles, payable in multiple tranches over the next four years.
The company on Dec. 27 said it will buy an estimated 1.5 million tonnes in concentrate that will be processed at its own facilities into refined base and precious metals. The volume was already included in the company's metal production guidance for 2017 and 2018.
The transaction passes the internal rate of return hurdle applied to commercial projects, the company noted.
Previously, Norilsk Nickel approved a budget of US$2 billion for 2017, including US$450 million for its Bystrinskoye copper-gold project in Russia.
As of Dec. 27, US$1 was equivalent to 60.74 Russian rubles.