I think we should keep an eye on a major producer of
nickle. If you remember, a long time ago we had a discussion
about Norilsk and the fact that they were suffering from
a need for capital. Production was being hurt by aging
equipment and the inability to replace, repair, expand.
Obviously the CEO reads this thread and realized that he
needed to find equity outside of Russia. That, it appears,
he has done or is doing. The surprising thing is the strong
endorsement the article gives tothe professionalism of
the management of Norilsk. Not that the competence should
be surprising--the Russians I know are certainly smart,
capable--but the fact that they can operate within a
system that constantly undermines every concept of good
business. Their infrastructure must be so important to
the GDP that they are a system unto themselves. Otherwise
how do they overcome the corruption inthe system? The
inefficiencies?
We've had dumping of resources for a number of years as
Russia has desperately scrambled for hard dollars. They've
been unloading everything--legally, illegally. The
people at the top of Norilsk must be tough, indeed, to
hold their system together, fend off commisars, crooks,
politicians, etc. etc. If they've done that and now can
obtain necessary financing in Europeand Asia, they'll
really be a power to be reckoned with in base metals. |
