Nornickel reports second oil spill, adding to company woes

MINING TECHNOLOGY | This latest oil spill follows the ongoing industrial disaster near Norilsk, which began on 29 May when a fuel storage tank at a Nornickel owned power plant failed, flooding rivers with over 20,000 tonnes of diesel oil.

A second spill

The new pipeline burst will add to Nornickel’s woes as they contest the damage estimate calculated by the Federal Service for Supervision of Natural Resources Management (Rosprirodnadzor). The regulator had requested that the Nornickel subsidiary responsible for the failed fuel tank pay “voluntary compensation” amounting to RUB147.5bn ($2.05bn) – around a third of Norilsk Nickel Group’s profits for last year. The company has disputed the extent of the environmental damage, which has been suggested could extend as far as the Arctic Ocean, and in June Nornickel estimated the clean-up cost to be RUB10.64bn ($150m).

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