Nornickel invests $1.3 bln in safety after fine hits H1 profit

Nornickel, which had three industrial accidents within seven weeks in the middle of this year and gave up most of its profit for the first half due to a record environmental fine, announced this week that it would invest $1.3 billion in safety improvements in Siberia.

Despite a 7% increase in revenues in the first half, Nornickel saw its profit drop by 98.5% compared with the first six months of 2019 as a result of the outstanding $2.1-billion fine. It reported a profit of $45 million for the first half of this year, compared with $3 billion a year earlier.
While Nornickel is challenging that Russian government fine, it has set aside reserves to cover it, which resulted in the accounting charge.
The fine relates only to the first and most serious of three Nornickel accidents in Siberia, between late May and early July.

A 21,163-tonne oil leak on May 29 at a Nornickel subsidiary, Norilsk-Taimyr Energy Company (NTEC),...

Published

Orla O'Sullivan

October 02, 2020

05:00 GMT

New York