Norilsk Nickel has become the first mining company to enter the exchange-traded product (ETP) space with the launch of a four-strong metal ETC range.

The four ETCs, which offer exposure to gold, silver, platinum and palladium, are listed on the Deutsche Boerse with total expense ratios (TERs) ranging between 0.145% and 0.2%.

The ETCs, which track the spot prices of the respective commodities, will be managed by Global Palladium Fund (GBF) and issued by Ridgex.

They are:

  • GPF Physical Gold ETC (0IIA)
  • GPF Physical Silver ETC (0IIB)
  • GPF Physical Platinum ETC (0IIC)
  • GPF Physical Palladium ETC (0IID)

The firm is planning to list the suite on the London Stock Exchange (LSE) in due course with two further nickel and copper ETCs set to be launched.

Norilsk will hope this venture into asset management will help it move away from its reputation as one of the world’s most pollution-intensive mining companies.

Last year, the world’s largest producer of palladium and nickel was fined a record $2.1bn, which the firm is disputing in court, for causing a fuel spill in Siberia even drawing criticism from Russian President Vladimir Putin.

The firm has touted the ESG credentials of its ETCs, stating that all metals will be LBMA approved and sourced from producers and suppliers who support the UN’s Sustainable Development Goals.

Commenting on the launches, Anton Berlin, vice president, sales and distribution of Norilsk Nickel, said: “We expect significant growth in investor demand for access to metals over the next decade as economies undertake the energy transition and focus on meeting the challenge of global climate change.

“As a mining company, providing access to metals to a broader range of market participants helps improve market liquidity and price discovery.”

Alexander Stoyanov, CEO of GPF, added: “GPF is pleased to bring these physically-backed metal ETCs to market, giving investors the opportunity to invest in metals that are going to be crucial in the transition to a net-zero carbon economy.”