Russian metals producer Nornickel plans to restart one of the two furnaces at its Nadezhda Smelter in early August, Reuters reported.
The move comes after the completion of major repairs, which were delayed due to difficulties in sourcing equipment amidst Western sanctions.
The Rbs30bn ($340m) repairs involved replacing the smelting unit and required sophisticated equipment, which was previously sourced mainly from Western countries.
Although not directly sanctioned, the company has faced indirect effects as some Western companies have ceased dealings with it.
This has led to a strategic swing towards non-Western suppliers to maintain its production capabilities.
The Nadezhda Smelter is said to be a critical asset for Nornickel, contributing significantly to its refined nickel and palladium output.
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By GlobalData
The delay in repairs, initially postponed for two years, has been a setback for the company’s development plans.
Nornickel has not disclosed the identities of its new equipment suppliers.
In April this year, the London Metal Exchange (LME) announced a ban on Russian metal produced on or after 13 April 2024, in compliance with new sanctions from the US and UK.
This ban was imposed in response to Russia’s military actions in Ukraine and aims to cut off revenue streams from metal exports by Russian companies such as Rusal and Nornickel.
The US Treasury Department and the British Government have barred the LME and the Chicago Mercantile Exchange from accepting new production of key metals such as aluminum, copper and nickel from Russia.
In a press statement, the LME said: “Russian metal warrants issued on or after 13 April 2024 for metal produced before 13 April 2024 are still subject to restrictions that prevent UK LME Members and clients from cancelling or withdrawing the corresponding metal unless they are doing so for the account of a non-UK Client.”
