Russia’s Nornickel Plans PGMs Refinery Construction in Bahrain, Sources Report

LONDON (Reuters) – Russian metals giant Nornickel is planning a joint venture to construct a platinum group metals (PGMs) refinery in Bahrain, as reported by a source familiar with the situation on Thursday.

Nornickel is recognized as the world’s leading producer of palladium and a significant player in platinum production, contributing 41% and 12% of global mine output, respectively. These metals are primarily utilized in vehicle exhaust systems to mitigate harmful emissions, and platinum also finds applications in the jewelry sector.

The source did not disclose any specific details regarding the project’s timeline or the refinery’s expected production capacity.

Earlier on Thursday, King Hamad bin Isa Al Khalifa of Bahrain engaged in discussions with Russian President Vladimir Putin at the Kremlin. Following the meeting, Russian Deputy Prime Minister Alexander Novak mentioned on state television that Nornickel intends to establish a "platinum production plant" in Bahrain, although he provided no further details. Nornickel has not offered any comments on the matter.

While Nornickel has not been directly affected by the Western sanctions imposed on Russia since the invasion of Ukraine in 2022, several Russian precious metals refineries, which often manage PGMs, have faced restrictions.

For instance, Britain imposed sanctions on Krastsvetmet, Russia’s largest state-owned refinery, in November, targeting the country’s gold industry.

The sanctions enacted over the past two years have disrupted Nornickel’s logistics, traditional trading pathways, financial transactions, and access to imported equipment. The company, which also produces nickel, has been adjusting its production and sales strategies to mitigate these impacts.