Public Joint Stock Mining and Metallurgical Norilsk Nickel : Nornickel runs Arctic Region’s first import substitution forum

Invited by NornickelPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel" and its subsidiariesGo to the glossary, about 200 forum attendees from more than 100 largest tech companies of Russia, Kazakhstan and Belarus, as well as federal, regional and municipal government representatives, visited Norilsk. During the two-day forum, the participants discuss whether the domestic industry sector has sufficient capacities to meet the needs of Nornickel and Russia's other large businesses for supplies and equipment. A lot of attention was paid to government measures to support the business and incentives for entrepreneurs in the Arctic Region.

Nikolai Utkin greets forum participants

"Nornickel has been focusing on import substitution for quite a while, with some progress made already. However, the current situation spurs us to be even more active here. The CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossaryhas embarked on a ten-year investment programme and plans to spend over RUB 2 tn on assets development and modernisation. We seek to make sure that our plans are delivered right on time, which calls upon us to act jointly and consistently to find ways to successful import substitution, setting up new domestic production facilities and promoting high tech industry. I am certain that the experience and synergies we have gained will be helpful to other industries just as well," said Nikolay Utkin, Nornickel's Senior Vice President and Head of Norilsk Division, in his opening remarks.

Alexey Matushansky, Director of Strategic Development and Corporate Policy of the Ministry of Industry and Trade of the Russian Federation, emphasised that import substitution is a pressing matter for all Russian industrial companies and spoke about measures of government support to the eligible businesses.

He said that the Ministry of Industry and Trade will look into the list of equipment, components, materials and supplies to be compiled following the forum discussions, and help Russian machine builders in the relevant R&D, engineering and organisational efforts.

According to Evgeny Gavrilov, the Krasnoyarsk Territory's Vice Minister of Industry and Utilities, the arrangements necessary to make products substituting imports are also available at the regional level. As an example, he referred to the reverse engineering process stipulated by the federal law. Applications to use it are handled by the regional Agency of Technological Development.

Nornickel's representatives and forum attendees discussed development prospects in six areas, including mechanical technology, energy, automation and digitalisation, mining operations, self-propelled mining machinery, and transportation. Currently, the spending of Norilsk Division (the Company's largest industrial site) on maintenance and repair equipment and supplies amounts to RUB 66.5 bn a year. Imports account for just under a half of that (41%). The bulk of the imported equipment is used for concentration and in mines. Domestic manufacturers are very well positioned to take that niche by coming up with viable options for Nornickel, said Maxim Kotelnikov, Deputy Director for Industrial Assets at the Company's Polar Division.

The forum included work in groups on six themes

Nornickel has a good track record of cooperation with many Russian businesses. The forum helped to considerably extend the list of domestic suppliers. Over 30 letters of intent were signed during the two days of the event to formalise joint import substitution efforts of Nornickel and its potential suppliers.

Most of the manufacturers already know what domestic equivalents and solutions they will offer instead of imported ones to ensure consistent operational reliability of Nornickel'sindustrial assets. "We can offer a full cycle of tech research and are recognised as one of the best labs in the north-west of Russia," said Petr Savrasov, CEO of Novomek Engineering. "Our core operations used to be based in Kazakhstan, but today Novomek Engineering has a wonderful opportunity to showcase positive tech solutions that will definitely be of use to Nornickel."

"We design and make self-propelled vehicles that transport personnel and cargo, with a capacity of up to 2.5 t," said Eduard Mymrin, another participant of the forum, CEO of F-MotorSport. "The design is fully proprietary. Nornickel has stringent safety requirements, much higher than those of other mining companies, which is a kind of a challenge for us. Our company also strives for safety, reliability and efficiency, and our design is now being modified to meet the high requirements of Nornickel."

The forum was a unique experience for both Nornickel and the guests of Norilsk. Not only did they learn about the Company's needs and its supplier relationship principles, but also visited the key production assets - five mines, two metallurgical plants, and Talnakh Concentrator.