According to a source familiar with the matter, Russian metals giant Nornickel is planning a joint project to build a platinum group metals (PGMs) refinery in Bahrain.
Nornickel is the world’s largest producer of palladium and a major producer of platinum, accounting for 41% and 12% of global mine output respectively. Both metals are primarily used in vehicle exhaust systems to neutralize harmful emissions, while platinum also has applications in jewelry.
The source did not provide details on the timeline or production capacity of the planned refinery. However, Russian Deputy Prime Minister Alexander Novak confirmed that Nornickel plans to build a “platinum production plant” in Bahrain during talks between the King of Bahrain and Russian President Vladimir Putin in the Kremlin.
Nornickel has not been directly targeted by Western sanctions imposed on Russia since the invasion of Ukraine in 2022, but some Russian precious metals refineries that typically handle PGMs have been sanctioned. This has disrupted Nornickel’s logistics, trade flows, financial transactions, and access to imported equipment.
By establishing a refinery in Bahrain, Nornickel may be seeking to circumvent the impact of sanctions and diversify its production and sales strategy. Bahrain could provide an alternative location for Nornickel to process and export its platinum group metals.
Neither Nornickel nor the Bahraini government have provided further details on the planned refinery project. However, this announcement suggests Nornickel is exploring options to maintain its global market position in platinum and palladium production despite the challenges posed by the current geopolitical environment.