Nornickel shares 2017 performance results and future plans with Murmansk Region officials

On 26 January, the Governor’s Economic Council held an extended meeting that focused on NornickelPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary’s preliminary 2017 results and plans for the current year.

The meeting was chaired by Marina Kovtun, the Governor of the Murmansk Region, and attended by government officials, members of the Murmansk Regional Duma, and representatives of local business and scientific communities. Elena Bezdenezhnykh, the CompanyPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel"Go to the glossary’s Vice President, was the one to present on behalf of Nornickel.

Local authorities pay close attention to Nornickel, as it is one of the principal taxpayers and employers in the Kola Peninsula. For 2017, the Company is expected to contribute over RUB 8.3 bn in tax and non-tax payments to the region’s consolidated budget.

At present, Kola MMCMining and Metallurgical CompanyGo to the glossary (part of the Nornickel GroupPublic Joint Stock Company "Mining and Metallurgical Company "Norilsk Nickel” and its subsidiariesGo to the glossary) is the world’s largest nickel refining facility. This was made possible through the Company’s investments in the upgrade and refurbishment of its production and logistics capacities worth some RUB 25 bn. In addition, this is the only site in the country that produces electrolytic cobalt.

The Company’s operations are a major driver of the region’s social and economic development. It runs a number of investment projects in the Murmansk Region that span, among others, the social and environmental domains. For the Murmansk Region’s budget, these projects result in a positive effect of over RUB 1 bn annually.

In March 2017, Nornickel and the local government signed a cooperation agreement to carry out the Year of the Environment initiatives. The Company undertook to complete the largest environmental investment project in the region (disposal of salt effluent from nickel refining operations) that costs around RUB 1.7 bn, and provided RUB 7.65 m for the arrangement of nature trails, security and development of ecotourism in the nature park of the Rybachy and Sredny Peninsulas.

Elena Bezdenezhnykh emphasized Nornickel’s commitment to proceed with the environmental programme. In particular, the Company plans to introduce environmentally-friendly production technologies at Kola MMCKola Mining and Metallurgical CompanyGo to the glossary sites that will enable the smelting shop to halve its emissions after 2019.

Marina Kovtun expressed her gratitude to Nornickel, a reliable contributor to the region’s social and economic development, which proposed holding the meeting. “This meeting is notable not only thanks to the report of Nornickel’s top manager, but also because it is a catalyst for a dialogue that I hope will become regular,” said Ms Kovtun.

The Governor called on other large companies to follow Nornickel’s suit.

In December 2017, Ms Bezdenezhnykh presented Nornickel performance report and plans to the Legislative Assembly of the Krasnoyarsk Territory, and will also speak in front of the Legislative Assembly of the Trans-Baikal Territory in February 2018.

The Company’s open dialogue with the authorities is now set to be ongoing. It focuses on constructive and effective cooperation with the regions that are home to Nornickel’s Tier-1 production assets.