Moscow, September 10, 2020 — Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, notes the announcement of the Yenisei Interregional Department of the Federal Service for Supervision of Natural Resources (“Rosprirodnadzor”) that it filed today a claim with the Arbitration Court of the Krasnoyarsk region against Norilsk-Taymyr Energy Company (NTEC), a subsidiary of the Company, seeking compensation of damages caused to the environment in the amount of 147,784,627,500 Russian roubles (which is equivalent to approximately U.S.$1.94 billion) as a result of the diesel fuel spill incident on 29 May 2020 at Heat and Power Plant № 3 (HPP-3) in the Kayerkan neighborhood of the city of Norilsk.
We believe that Rosprirodnadzor’s decision to refer this matter to the court is premature because even though the river cleanup has been completed, the final amount of the collected diesel has not been assessed. The Company took an active part in the experts’ dialogue within the joint working group set up with Russia’s Ministry of Natural Resources. Our joint work should result in a comprehensive rehabilitation plan. We still believe that only after completion of the assessment and the expert review will we able to determine accurately the amount of fuel that was released into the water and soil, and thereby determine accurately the amount of environmental damage.
We are confident that the consideration of our case in court will allow us to obtain a fair assessment of the environmental impact of the incident taking into account the results of the cleanup campaign.