Norilsk Nickel is interested in quickest possible development of Voronezh region deposits

Moscow, April 21, 2011 — OJSC MMCMining and Metallurgical CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossaryGo to the glossary Norilsk Nickel (hereinafter — MMC Norilsk Nickel or the Company) is interested in quickest possible development of copper-nickel deposits located in Voronezh Region.

Prospective Voronezh Region nickel areas are a part of state unallocated subsoil reserve fund. OJSC MMC Norilsk Nickel initiates public sales of these areas. Consultations are currently under way to decide whether it will be a tender or an auction.

In the past years MMC Norilsk Nickel invested its own financial means into evaluation of copper-nickel deposits of Voronezh Region nickel areas, determination of areas to be licensed (of primary interest in this aspect are Elansk and Elkinsk ore occurrences), and development of environmentally safe copper-nickel ore concentration technology.

In accordance with geological exploration program of OJSC MMC Norilsk Nickel, the total amount of the Company’s investment into geological exploration in Voronezh Region shall be RUB 2.7 billion. This figure includes the investment of RUB 1.2 billion into exploration of Elansk and Elkinsk ore occurrences.

Positive geological exploration results will make it possible to start building ore mining and processing plant at Elansk and Elkinsk ore occurrences. The product will be copper-nickel pellets and the annual ore production shall not be less that 2 million tons with possible expansion to 5 million tons in the future.

Metallurgical production in Voronezh Region is not planned. The consequent processing of sulfide concentrate (copper-nickel pellets) is expected to happen at metallurgical plants of MMC Norilsk Nickel in Murmansk Region, where new environmentally friendly final smelting technologies are being implemented at the moment. This approach ensures minimal negative impact of the deposit development on the environment.

Acting First Deputy General Director, Yuri Filippov: «At the moment we can not disclose detail information about the project as MMC Norilsk Nickel is not the only investor, which is interested in participation in the public sale of these licensed areas. Yet, this is a considerably large project and expenses for development of only Elansk and Elkinsk deposits are evaluated at more than RUB 50 billion. Participation of MMC Norilsk Nickel in development of Voronezh Region mineral resources shall provide for stable long-term operations of the Company. These are last major nickel deposits in Europe and they may considerably increase resource base of the Company and its production volumes. Implementation of this project will also positively affect social and economic situation in Voronezh Region by increasing tax revenues, contributing to development of transportation infrastructure, and creating around 4 thousand new jobs in the industry and around one thousand new jobs in the related market sectors».

ABOUT THE COMPANY
PJSC “MMC “NORILSK NICKEL” is a diversified mining and metallurgical company, the world’s largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. The company also produces gold, silver, iridium, selenium, ruthenium and tellurium.

The production units of “NORILSK NICKEL” GroupPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary include Polar Division, located at the Norilsk Industrial District on Taimyr Peninsula, and Kola Mining and Metallurgical Company located on the Kola Peninsula in Russia as well as Harjavalta nickel refinery in Finland.

PJSC “MMC “NORILSK NICKEL” shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges. PJSC “MMC “NORILSK NICKEL” ADRAmerican Depositary Receipt; a security representing partial ownership in deposited securities of a foreign company certified by receipts issued by a US depositary bankGo to the glossarys trade over the counter in the US and on the London and Berlin Stock Exchanges.

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