Norilsk Nickel to restart mine processing plant in Australia

Due to unfavorable economic environment and worsening nickel market conditions in 2009, the Group’s Australian assets were placed on care and maintenance indefinitely, but based on the result of internal audit conducted in 2010, it was decided to re-launch production. Lake Johnston was launched as part of the fazed re-start project of some of the Company’s Australian assets. Currently the enterprise is carrying out reclamation works. Production start is scheduled for the first half of 2011.

Lake Johnston consists of the underground mine Maggie Hays and concentration plant located 3km from the deposit. The plant uses technology of sulphide flotation for ore processing.

Lake Johnston has geologic reserves of 146 000 tons of nickel and mineable reserves of 38 000 tons. Close to 1 million tons of ore can be mined annually, which transfers into 9500 tons of metal. Norilsk Nickel plans to increase existing reserves due to intense exploration program.

According to Vladimir Strzhalkovsky, “the launch of Lake Johnson forms the basis for development of the Company’s production capacities in Australia. Launching a number of Australian assets will eventually help the Company to strengthen its positions on the world’s base metal market”.