Norilsk Nickel International will suspend its Black Swan and Lake Jonston nickel operations

Norilsk Nickel International, a subsidiary of OJSC MMC Norilsk Nickel will suspend its Black Swan and Lake Johnston nickel operations (Western Australia), placing them under care and maintenance effective immediately.

This decision was taken on the grounds of a structural review and the Company’s resolution to place the Cawse and Waterloo projects under care and maintenance in November 2008.
Today’s announcement is largely the result of the prevailing economic climate and its impact on the nickel price.

These Western Australian assets are located in prime nickel producing regions and have the potential for further exploration; however market and other conditions have left the Australian business unsustainable given current metal prices.

In 2008, Black Swan and Lake Johnston nickel operations produced ca. 25,000 tn of nickel in concentrate.

The total workforce at these operations will be reduced by approximately 330 employees by March 2009. A small number of staff will be retained to manage the sites under care and maintenance.

The company is committed to providing full entitlements to those employees whose roles are now redundant and where possible, will assist in identifying alternative employment opportunities.