Norilsk Nickel develops own cobalt production

Norilsk Nickel began to implement own cobalt production line construction project. As the result the Company shall create the only Russian industrial production line of highest grade cobalt electrolyte, world class high quality product.

At the moment, the main cobalt product of Cobalt Electrolysis Shop, OJSC MMC Kola (the subsidiary of the Company) is cobalt concentrate. This intermediary product is the raw material for further processing into commercial cobalt products, which are used in various industries.

Specialists of Gipronickel Institute, the scientific centre of MMC Norilsk Nickel, made calculations that prove the economic feasibility of establishing the Company’s own cobalt production line at Monchegorsk industrial area of Kola MMC.

The working capacity and efficiency of the project technical and technological solutions are confirmed by stable operation of cobalt recovery unit at Kola MMC where, starting from 2007, a small volume of cobalt electrolyte has been produced through state-of-the-art technology.

According to Sergey Selyandin, the General Director of Kola MMC, the new investment project is characteristic of impressive technical and economic indicators. The capital investment recoupment is expected to be done in the near future thanks to additional profit arising from the decrease of operational expenses and increase of the saleable products price.

Gipronickel Institute engineers are developing the related work documentation and Kola MMC specialists are finalizing the agreements for supply of the equipment.

The construction project is planned to end in 2014, and the total amount of project investments is expected to be around RUB 2 billion.

Cobalt is mainly used in special alloys and superalloys, chemical industry, production of accumulators, etc.

ABOUT MMC NORILSK NICKEL

MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.

The key production units of the Company’s group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, USA, Australia, Botswana and South Africa.

MMC Norilsk Nickel’s shares are traded at MICEX-RTS. ADR’s on the Company’s shares are traded on the other the counter market in the US and at the London and Berlin stock exchanges.