(Updates with latest spending number in second paragraph.)
Oct. 28 (Bloomberg) -- OAO GMK Norilsk Nickel, the largest producer of the metal, is studying Indonesian, African and Latin American projects under a $37.6 billion expansion to diversify from Russia and raise nickel output 68 percent through 2025.
The cost of the program was included in strategy documents presented to the board and obtained by Bloomberg News. Norilsk said in a statement yesterday that it would spend about $35 billion. Alisa Fialko, a spokeswoman for the company, was unable to give an official response to the presentation figures today.
Norilsk aims to boost nickel output to as much as 500,000 metric tons and more than double copper output to 1 million tons, the Russian mining company said today in a separate e- mailed statement. Production of platinum group metals and gold will expand to 190 tons, according to the presentation.
Overseas metals output should be equal to production at home, according to the documents. In Russia, Norilsk sees output gains of at least 19 percent for nickel, 49 percent for copper and 42 percent for platinum group metals, it said yesterday.
Norilsk plans to spend $22.7 billion on production, including $10.9 billion to expand its ore base, according to the presentation. About $15 billion will be used for infrastructure, the documents show, including $4 billion on gas projects, $2.1 billion on utilities and $3.2 billion on transport.
Norilsk is studying an Indonesian nickel and cobalt project in Sulawesi and copper deposit in Lombok, it said today. The company is also considering the Agua Rica and Los Azules copper deposits in Argentina, and the Pinares de Mayari and Nicaro nickel deposits in Cuba. Three copper projects in Peru and nickel and copper deposits in Botswana are being studied.
The program aims its boost Norilsk’s net revenue to $30 billion, net income to $10 billion and market value to a range of $140 billion to $250 billion, the company said.
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