Russian palladium producer Norilsk Nickel is being tipped for a series of mergers and acquisitions (M&A) amid a broader general trend in the country.

SUAL Holding president Brian Gilbertson, who has chaired pgm miner Incwala Resources as well as other roles in the industry, told Reuters that there would be "a stream of M&A activities over the next few decades".

Mr Gilbertson said the country's abundant natural resources would help propel some of its major firms forward, with many, including Norilsk, likely to look beyond their borders for expansion opportunities.

"Any Russian or CIS [Commonwealth of Independent States] company that wants to count among the global leaders will pursue both size and diversification," he said.

Alluding to the potential for his own firm to merge with fellow aluminium producer RUSAL, Mr Gilbertson also identified the potential for a match-up between Norilsk Nickel and diamond miner Alrosa.

He stressed that the government would have a key role to play in facilitating the industry's future, with the state also likely to be keen to exploit the resources at its disposal.

"Accommodating, indeed embracing, such government aspirations - possibly in state and private enterprise partnerships - will be an essential part of future Russian and CIS mergers and acquisitions," he said.

In January Norilsk announced details of an agreement with fellow metal miner Rio Tinto to explore areas of Siberia and eastern Russia, as the firm continues to seek new areas for overseas partnership.



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