PJSC Norilsk Nickel Co. signed a social and economic agreement with Russia's Trans-Baikal region, under which the local government will support the mining company's investment projects.
The governor of the Trans-Baikal territory, Natalya Zhdanova, and Norilsk Nickel Vice President Elena Bezdenezhnykh closed the deal on the sidelines of the St. Petersburg International Economic Forum, the company said June 2.
Norilsk Nickel has significant investment projects in the far eastern region, including the polymetallic Bystrinsky mine and associated processing plant.
"Bystrinsky Field development is a key project included in the list of the Siberian Federal District's priority projects," Bezdenezhnykh said at the signing ceremony. "It enjoys full support of the regional authorities and was assigned the status of a regional investment project."
So far the company has sunk approximately 90 billion Russian rubles into the project, which includes the construction of production facilities and a 227-kilometer railway with a capacity of at least 4 million tonnes of cargo a year.
Once the plant is at capacity, it will make a sizable contribution to the regional budget, with tax payments amounting to as much as 4.68 billion rubles over the next five years.
In return for the regional authority's support, Norilsk Nickel will allocate at least 3.29 billion rubles to social projects by Jan. 1, 2027.
As of June 2, US$1 was equivalent to 56.68 Russian rubles.