Gold producer Nordgold is looking beyond precious metals as it pursues a broader commodity portfolio. The company’s principal shareholder, Alexey Mordashov, has confirmed plans to diversify into copper and zinc mining and provided a timeline for the launch of new projects.
In an interview published on the Vmeste platform, Mordashov explained the rationale behind the strategy. Gold mining is a capital-intensive business, and the average life of a gold deposit is approximately twenty years. To maintain production levels, mining companies must continuously discover, develop, and commission new assets. This creates significant operational and financial risks that need to be balanced through diversification.
Several years ago, Nordgold began expanding its focus beyond gold. The company now holds assets related to zinc and copper, and the evaluation and development of these resources have become strategic priorities. Mordashov illustrated the benefits of diversification with a simple example: when steel prices decline, gold markets may remain strong, and vice versa. A broader portfolio allows mining companies to smooth commodity price cycles and improve long-term planning.
The choice of copper and zinc is driven by favorable long-term demand forecasts. Copper is expected to play a critical role in the energy transition, renewable power systems, and electric vehicle manufacturing. Zinc, meanwhile, remains essential for construction, infrastructure development, and corrosion-resistant steel products. According to Mordashov, Nordgold also possesses the technical expertise required to develop and operate projects involving these metals, making diversification a logical extension of the company’s capabilities.
The first tangible results of the strategy are expected to emerge within the next several years. The company currently plans to commission its zinc projects between 2031 and 2032. At the same time, Nordgold intends to continue expanding its resource base by acquiring new licenses and assets beyond the gold sector.
The strategy marks a significant shift in Nordgold’s corporate development. By investing in copper and zinc, the company aims to strengthen business resilience, reduce exposure to fluctuations in gold prices, and position itself for growth in markets supported by long-term industrial demand.
Source: Vmeste
Image: Nordgold
