Norilsk Nickel will dispute results of the tenders for the rights to develop two significant nickel deposits

MMC Norilsk Nickel has filed requests to Moscow Arbitration Court to invalidate the actions and resolutions of the Federal Agency on Mineral Resources and the commissions it formed to carry out the tenders for the rights to use areas of mineralization of federal significance (southern part of Norilsk-1 deposit and western section of Oktyabrskoe deposit).

The Company believes that the Federal Agency on Mineral Resources committed a large number of violations of the current legislation during organization and implementation of the tenders, including direct violation of the requirements of the Decrees of the Government of Russian Federation, which made a decision to carry out the tenders.

This way, for instance, the requirements concerning inclusion of a number of representatives of the authorized federal executive bodies were violated, the requirements concerning the need to account for the national security interests were ignored, as was the right of the local authorities to participate in resolution of the issues, related to observance of the social, economic and ecological interests of the local residents as to the use of natural resources, which eventually resulted in an unjustified decision being made by the tender commission.

The erroneous nature of conclusions of the tender commission regarding inconsistency of MMC Norilsk Nickel’s proposal with the requirements of tender documentation is confirmed not just by numerous findings of the experts, but also by the dissenting opinions of the individual members of the commissions as well as the official stances of the government bodies and local authorities

The Company hopes that the Government of Russian Federation will not approve the results of the tenders, carried out by the Federal Agency on Mineral Resources due to numerous violations of the current legislation and will make a decision to award the rights to use the areas of mineralization of federal significance, including the southern part of Norilsk-1 deposit and the western section of Oktyabrskoe deposit, through auction. This approach shall prove to be the most objective and complies with the budget’s financial interests to the greatest extent, which was noted on numerous occasions both by the Company and by Government representatives.

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 Taymyr 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.