Russian billionaire Alisher Usmanov's Metalloinvest Holding is in talks to increase its stake in Norilsk Nickel, the world's largest producer of nickel and palladium, in exchange for control of the undeveloped Udokan copper deposit, Kommersant reports Thursday.

 

Metalloinvest, one of Russia's largest iron ore producers, currently owns 4% of Norilsk. The amount by which Mr. Usmanov would increase his stake in exchange for the mine hasn't been set, the paper said, adding that talks have been ongoing since December. Spokespeople for Metalloinvest and Norilsk declined to comment.

 

The Udokan mine, located on the Chinese border in far eastern Russia, is one of the largest undeveloped copper deposits in the world.

 

Norilsk's recently settled a long-running shareholder dispute by having Russian tycoon Roman Abramovich buy a 5.86% stake in the company and agree to serve as a peacemaker between warring owners Vladimir Potanin and Oleg Deripaska. As part of the deal, Mr. Potanin's Interros Holding increased its share in Norilsk to 30.3%. Deripaska's United Co. Rusal Plc (0486.HK) also increased its share to 27.8%.