Norilsk Nickel with APCO Worldwide

Overview

Norilsk Nickel, Russia’s largest mining company, was focused on broadening its business, particularly to the West. The company identified Stillwater Mining, a Montana-based and New York Stock Exchange-listed company that was the United States’ only producer of the ore palladium. If successful, Norilsk would become the first Russian company to own a majority share in a publicly traded company in the West. In addition, Stillwater was in severe financial difficulty and required an immediate capital injection to avoid permanently shutting mines and laying off thousands of workers.

Objective

A key objective was to partner with the company and its investment advisors, and create an overall positioning and message platform. APCO’s strategy was to present Norilsk’s business plan to policy makers and constituencies interested in the investment, and personalize the company by introducing executives to elected officials and stakeholders.

Tactics

APCO developed and implemented a government relations program to introduce Norilsk to decision makers in Washington, D.C., and Montana. Visits were scheduled enabling policy makers to meet Norilsk executives in charge of the investment. APCO also planned a visit to Montana for Norilsk executives to meet with mine neighbors, environmental groups, state legislators, the attorney general, congressional representatives, the governor and the media.

The campaign included a Capitol Hill strategy to ensure the Montana congressional delegation was kept up to date on all developments, why they were being carried out, and to provide them with the opportunity to make their views known. APCO also arranged meetings with local media, including the state’s largest newspaper.

Results

The deal, valued at $257 million, was approved by all government entities in time to save Stillwater. An independent board of directors was appointed to govern the new company, and the same management remained intact. Not only were 1,500 jobs preserved, but Montana’s largest taxpayer was saved from bankruptcy.

The success of this campaign resulted in relationships being built with various lawmakers and elected officials that would become extremely beneficial for positioning Norilsk for future potential operations in the United States.