GMK Noril'skiy nikel' : KOLA MMC TO UPGRADE ITS TRANSPORTATION AND LOGISTICS SCHEME ON THE BACK OF INCREASED OUTPUT

Kola MMC, part of the Nornickel Group, has embarked on the first stage of the railroad construction at its Monchegorsk site to address an increase in metal production.

According to the refining flowchart, the railway transport is used to deliver feedstock (converter matte from Nikel and Norilsk) to the site, transport semi-products obtained at different production stages among the shops, and ship end-products to consumers.

In 2013, Nornickel adopted a new development strategy aimed at minimising the Сompany's environmental impact and reducing operating expenses. In line with these goals, the Company reconfigured its production capacities to maximise cost advantages from their operation. The reconfiguration includes production upgrade.

- 'A large-scale upgrade is now at full swing. To date, Kola MMC has boosted its nickel output by half, while Monchegorsk site producing up to 165 ktpa of metal has become the world's largest nickel refining facility,' commented Igor Lisitskiy, Deputy CEO for Reconstruction at Kola MMC. 'To ensure seamless logistics and transportation on-site, we developed a project to construct new railroads.'

Stage 1 includes laying of new tracks on the built-up territory of four sites spanning 9,600 sq m, with a total track length to reach 1,300 m. Track panels will be laid in parallel to the existing track, and railroad switches will be installed to manage the traffic. On top of that, the project provides for the construction of two level crossings. The project's total funding is RUB 27 m.