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Russian mining majors to sink 580B rubles into Krasnoyarsk region

Russian mining giants PJSC Norilsk Nickel Co., En+ Group plc and SUEK LTD. have pledged to invest over 580 billion Russian rubles for the sustainable development of the Krasnoyarsk region in Russia, where they all hold significant assets. The miners signed a memorandum with the regional government following a meeting in Moscow on Dec. 12, according to a release posted on the Krasnoyarsk government website.

The funds will go toward responsible, ecological mining, as well as the development of industry, energy infrastructure and transport links in the remote Siberian region.

Norilsk Nickel will account for the bulk of the investment, channeling up to 267 billion rubles in mining, the development of infrastructure and social initiatives in the Krasnoyarsk region by 2020. Likewise, the company plans to invest a further 150 billion rubles in its Sulfur project by 2023 in a bid to improve air quality at its flagship operations in the city of Norilsk.

According to environmental group Bellona, Norilsk Nickel's sulfur dioxide emissions amount to around 1 million tonnes a year, but the company intends to slash this total by 75% before 2023.

"A further 267 billion rubles will be invested in mining, the development of industrial manufacturing, energy infrastructure, transport and social initiatives," company President Vladimir Potanin said in a statement.

In November, Norilsk Nickel said it will funnel US$800 million of CapEx into its environmental program between 2019 and 2020.

Oleg Deripaska, president of Russian aluminium producer En+, pledged 101.6 billion rubles for the "development of technology, infrastructure and social programs" in the region.

In addition, SUEK Chairman Andrey Melnichenko said the coal giant will contribute 25 billion rubles by 2020, a large portion of which will go toward lowering emissions of polluting substances and the implementation of an environmental program. SUEK subsidiary, Siberian Generating Co., will also spend up to 60 billion rubles on infrastructure projects between 2020 and 2025.

As of Dec. 11, US$1 was equivalent to 59.12 Russian rubles.