LONDON (Reuters) – Russian metals giant Nornickel is planning a joint project to build a platinum group metals (PGMs) refinery in Bahrain, a source familiar with the matter told Reuters on Thursday.
Nornickel is the world’s largest producer of palladium and a major producer of platinum, accounting for 41% and 12% of global mine production respectively. Both metals are mainly used in vehicle exhausts to neutralize harmful engine emissions, and platinum is also used in jewelry.
The source did not provide the time frame of the project or the refinery’s production capacity.
King Hamad bin Isa Al Khalifa of Bahrain held talks with Russian President Vladimir Putin at the Kremlin earlier on Thursday. Commenting on state television after the talks, Russian Deputy Prime Minister Alexander Novak said Nornickel plans to build “a platinum production plant” in Bahrain.
Novak did not provide additional details. Nornickel declined to comment.
Nornickel has not been directly targeted by Western sanctions imposed on Moscow since Russia attacked Ukraine in 2022, but some Russian precious metals refineries, which also typically process PGMs, have been.
For example, Britain imposed sanctions on Russia’s largest state refiner Krastsvetmet in November, as London targeted Russia’s gold industry.
The sanctions imposed on Moscow over the past two years have damaged Nornickel’s logistics, usual trade flows, cash transfers and purchases of imported equipment. The company, which also produces nickel and nickel, has reshuffled its production and sales strategy as it looks for ways to mitigate the damage.
