Air management

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Russian mining giant Norilsk Nickel’s spending on social projects doubled in 2021 to $1 billion, the company said in its consolidated financial statements.

“Social spending doubled to just over $1 billion, primarily due to provisions related to agreements on social and economic development of the city of Norilsk and the Krasnoyarsk region,” Nornickel said in the communicated.

Social expenditure was planned for the reconstruction of housing and infrastructure in Norilsk.

According to the statement, the total budget for the planned city renovation until 2035 has reached 120 billion rubles.

Among other large social projects, Norilsk Nickel has a program of support for indigenous peoples of the North, for this program 17 million dollars will be allocated until 2025. In addition, the company continues the construction and development of projects of industrial, social and other infrastructure. , which are part of the agreement between the company and the government of Zabaykalsky Krai and 23 million dollars have been allocated for this purpose.

The agreement with the Murmansk regional government on socio-economic development and the construction of social infrastructure, as well as the agreement with the Krasnoyarsk government on investment support for a number of social projects and infrastructure through 2028 also allocated $26 million and $67 million, respectively. .

Nornickel expects social spending for 2022 to remain at the same level as the previous year. However, one-time contributions to the reconstruction of Norilsk are not taken into account.

Earlier, Sergei Dubovitsky, senior vice president of Nornickel, said that the company plans to invest 600 billion rubles in infrastructure development in the northern Krasnoyarsk region until 2030.

At the start, Nornickel presented plans for investing in programs for monitoring permafrost, improving air quality, modernizing production sites, following speeches by senior company officials.

“We have started deploying a permafrost monitoring system in Norilsk and are committed to a major renovation of our energy infrastructure and equipment upgrades. In addition to better managing climate change risks, we expect to achieve significant reductions in carbon dioxide emissions as energy losses decline and the efficiency of our power generation equipment should improve.

On the social side, we are engaged in a number of major programs, which aim to transform the city of Norilsk into a modern city with a high quality standard of living.

Over economic cycles, our basket of metals has shown its natural resilience to variations in the underlying demand for raw materials. Our course for the future is towards integration into the new green economy. Increased attention to the global climate agenda is increasing demand for our core metals and confirming our strategy to increase production. I believe transformational investments will result in greater value for Nornickel and its shareholders, combining industry-leading profitability and world-class ESG standards,” said Nornickel Chairman Vladimir Potanin.