Letter of intent signed by Norilsk Nickel and Republic of Indonesia’s Ministry of industry and trade at APEC summit

A work meeting between the General Director, Chairman of the Board of OJSC MMC Norilsk Nickel Vladimir Strzhalkovsky and President Susilo Bambang Yudhoyono of the Republic of Indonesia took place at APEC Business summit in Vladivostok on September, 8th. The parties discussed implementation of the Company’s future projects in Indonesia, including construction of a copper smelting complex with a capacity of 400 thousand ton per year, as well as possible development of copper-nickel deposits in the region.

The talks resulted in a Letter of Intent signed by OSCJ MMC Norilsk Nickel and the Ministry of Industry and Trade of the Republic of Indonesia, designated Basis of Technical Cooperation Concerning Investment Activities in Metallurgical Industry. The document serves as proof of the Company’s interest to invest in mining and metallurgical facilities located in Indonesia. The Ministry of Industry and Trade of the Republic of Indonesia welcomes the Company’s move and seeks to provide assistance in implementing Norilsk Nickel’s plans by among other things ensuring provision of raw materials for the copper smelting complex.
The issues encompassed awarding of tax preferences, including VAT benefits for imported equipment not produced in Indonesia, accelerated depreciation, tax holidays until the breakeven point as well as guarantees of raw materials supply.

Yudhoyono voiced support of Norilsk Nickel’s goals to implement promising projects in Indonesia and acknowledged possible benefits necessary for the Company.

The day before, on September 7th Vladimir Strzhalkovsky took part in talks with Indonesia’s Industry Minister Muhammed Suleiman Hidayat, which featured extensive discussion of prospects facing the construction of copper smelting complex and its specifications. The Minister stressed the weight placed on the project in Indonesia; he believes it to be another milestone in enforcing the Mining Law No.4 introduced in 2009 to expand processing of raw materials In Indonesia, laying the groundwork for steady supply of minerals for the future facilities.

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.