OJSC MMC Norilsk Nickel

03/03/2021 | Press release | Distributed by Public on 03/03/2021 08:31

Nornickel will set a timeline to restore operations at mines and Norilsk concentrator

Moscow, March 3, 2021 - NornickelPublic Joint Stock Company 'Mining and Metallurgical Company 'Norilsk Nickel' and its subsidiariesGo to the glossary, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces the update on the progress of its efforts to restore normal operations at a number of production facilities in the Norilsk Division as well as to improve their industrial safety.

At the end of February, the company suspended operations at Oktyabrsky and Taimyrsky mines due to flooding from natural groundwater. On March 9, Nornickel's Management's board will consider the timeline for the full restoration of operations at both mines, as well as estimate an impact on production guidance.

'Nornickel has enough competence and expertise to deal with this problem, and the current efforts adequately deal with the situation,' said Nornickel's President Vladimir Potanin.

'As of today, we can say that this accident will have material consequences, that is, there will be certain production losses, but fortunately it does not impact people and the environment,' said Mr Potanin.

The company has also developed a programme of immediate repairs to both production lines of the Norilsk Concentrator. Nornickel is decommissioning all emergency sections of the factory. The disseminated ore processing line has been shut down for repairs, and in a few days, the company will suspend the copper line for an accelerated upgrade to eliminate the risk of any possible incidents. The company expects that the factory will be ready to resume operations after March 15. After that, subject to the results of an internal audit, as well as an inspection by the Federal Service for Environmental, Technological, and Nuclear Supervision (Rostekhnadzor), a decision will be made to resume operations.

'The restoration of the Norilsk Concentrator lines will be only be possible once its new management is fully confident that the factory is completely safe. I have set the goal to achieve full compliance with industrial safety requirements,' said Mr Potanin.

On February 20, an ore transfer point and adjacent walkway collapsed at the Norilsk Concentrator as structural reinforcement repairs were carried out. The incident took the lives of three companys employees; five were injured.

Nornickel takes occupational health and safety extremely seriously. Over the next five years, the company plans to spend around 100 billion roubles on the projects, which are expected to improve industrial safety.

MMCMining and Metallurgical CompanyGo to the glossaryNorilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products.

The production units of Norilsk Nickel GroupPublic Joint Stock Company 'Mining and Metallurgical Company 'Norilsk Nickel' and its subsidiariesGo to the glossaryare located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland and South Africa.

MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRAmerican Depositary Receipt; a security representing partial ownership in deposited securities of a foreign company certified by receipts issued by a US depositary bankGo to the glossarys are traded over the counter in the US and on the London, Berlin and Frankfurt Stock Exchanges.

3 March 2021