Russia's MMC Norilsk Nickel PJSC is talking with a new Chinese partner about a copper processing deal that would enable it to shut down a heavily polluting plant in the Arctic city of Norilsk. Nornickel, as Russia's biggest miner is known, is talking with North Copper Co., according to people familiar with the matter, who asked not to be identified because the information is private. The plan will require North Copper to carry out some reconstruction and adjustments to its Houma facilities in Shanxi, which may take up to two years, the people said.

The Russian miner initially planned to build a new smelter in the Chinese port city of Fangchenggang, when it first proposed processing copper concentrate in China in early 2024. That plan was shelved after its partner pulled out at the end of last year following management changes. Nornickel and North Copper didn't respond to messages seeking comment. For Nornickel, moving the final stage of copper processing to China, where many of its main customers are now located, would help cut costs.

Technology sanctions imposed since Russia's invasion of Ukraine have restricted access to equipment from Europe, the US and Japan, making similar projects inside Russia far more expensive. The discussions with North Copper are primarily focused on adapting the Houma plant to handle Nornickel's copper concentrates, which have a higher nickel content than those typically processed in China, the people said. North Copper might need to install a separate furnace to recover a copper-nickel matte. That may take as long as two years, the people said. Nickel product will be shipped back to Russia. The technical configuration and other details are still being worked through, and no binding agreement has yet been signed, the people said.