Russian mining giant Nornickel is in discussions with China Copper to establish a new smelter in China, according to sources familiar with the matter. The proposed joint venture would involve relocating Nornickel’s entire copper smelting operations to China, where the majority of its copper is consumed.
This potential move would be significant for Russia, marking the first instance of a domestic plant being uprooted since the US and Britain imposed bans on metal exchanges accepting new aluminium, copper, and nickel produced by Russia.
It was revealed in April that Nornickel intended to shutter its Arctic facility and construct a new plant in China in partnership with an undisclosed entity. Executives from China Copper, a subsidiary of the world’s largest aluminium producer Chinalco, visited Moscow in June to explore the possibility of a joint venture. Details regarding the structure and investment of the venture are still being negotiated.
Possible locations for the new facility in China include Fangchenggang and Qinzhou in the Guangxi region, with Qingdao in Shandong province also under consideration. The plant is projected to have an annual copper production capacity of 450,000 tonnes, accounting for approximately 2% of the global mined copper supply.
The decision on the joint venture is expected to be made in the coming months, with the output likely to be directed towards the Chinese market. The move comes as a response to the restrictions imposed by the London Metal Exchange on Russian metal sales following the conflict in Ukraine.
Nornickel’s efforts to establish a new presence in China highlight the evolving dynamics of the global metals industry and the growing role of the Chinese market in shaping the future of copper production and consumption.
