Outokumpu of Finland and Norilsk Nickel (MMC) of Russia have signed letters of intent for an extensive co-operation concerning the construction of a new concentrator in Norilsk as well as an expansion of the current Talnah concentrator. Outokumpu estimates the value of these deliveries to be some USD 230-250 million. The final commercial agreements are expected to be signed in the middle of 2002. The new concentrator, to be located in Norilsk, Russia, will be able to process 10 million tonnes of nickel and copper ore annually. The plant will come on-stream at the end of 2004 at the latest. Outokumpu estimates the value of the deal to be USD 150 million. In addition, the parties signed a letter of intent on the expansion of the current Talnah concentrator. The expansion to be delivered by Outokumpu Mintec will raise the capacity of the concentrator by 8 million tonnes of ore per annum. When the project is completed the Talnah plant will be able to process 15 million tonnes of nickel and copper ores into concentrates annually. The expanded Talnah concentrator will come on stream by the end of 2003. Outokumpu’s preliminary estimate of the deal is some USD 80-100 million.