Norilsk Nickel: environmental protection activities of the Polar division in 2011

Norilsk Nickel announces the results of environmental protection activities carried out by the Company’s Polar Division in 2011.

In order to protect the environment, MMC Norilsk Nickel upgrades its existing production facilities, introduces new technologies and implements environmental protection projects. Between 2004 and 2011 MMC Norilsk Nickel allocated over RUB 90 bn. on dealing with ecological issues, which includes environmental protection capital expenditures and expenditures corresponding to refurbishment, modernization and servicing environmental protection equipment. Over RUB 16 bn. was allocated towards environmental protection in 2011.

In recent years, good progress was made with regards to reducing the volume of major pollutants discharged into the atmosphere.

Emissions produced by the Company’s Polar division in 2011 were 1.8% below maximum permitted levels. Sulfur dioxide and solid particle emissions were 1.4% and 23.3% below the cap respectively.

Solid particle emissions were reduced by 4.1%, compared to 2010, due to implementation of activities, concerning modernization and repairs of existing gas treatment units.

Reconstruction of gas treatment system of electric furnace No.4 at Nadezhda Metallurgical Plant (NMP) was completed in 2011 as part of the air quality improvement program. Currently, electric filter of the grate refrigerator of concrete production facility’s clinker line is being substituted for a new, more efficient bag filter, with filtering elements pulse-cleaning system.

In 2012, it is planned to carry out reconstruction of gas treatment systems of electric furnace No.2 at NMP, replacing existing equipment with more efficient items.

Over 20 activities were implemented 2011 in order to minimize adverse effects on the water bodies, including construction of 11 wastewater treatment units. Construction works on 4 objects are already completed. Implementation of these activities enables the Company to process approximately 4 mil. m3 of wastewater per annum, reducing the amount of discharged unprocessed wastewater by 12%. In 2011, wastewater production was reduced by 762 th. m3 per annum. It is planned to build 20 local purification units between 2012 and 2014, which will result in almost sixfold reduction of corresponding pollutant discharge volumes.

The Company is currently implementing a project aiming to utilize concentration dump tailings at the excavated areas of Talnah mines. In October, 2011, the 1st facility, utilizing Talnah Concentrator’s dump tailings at the Komsomolskiy mine started operating at full capacity, which will enable the Company to use approximately 250 th. m3 of concentration waste products per annum (or 220 th. tons per annum) to backfill the mine’s excavated areas. Changing the facility’s working schedule to ensure its operation 24 hours a day, will allow the Company to triple the amount of such waste material utilization.

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, 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.