MNOD.L Regulatory News (MNOD)

PRESS RELEASE

Public Joint Stock Company «Mining and Metallurgical Company «NORILSK NICKEL» (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")

INDEPENDENT ASSESSMENT OF THE CAUSES OF THE FUEL SPILL INCIDENT PRESENTED TO THE BOARD OF DIRECTORS

Moscow, November 26, 2020 - Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces today that ERM, a global consultant appointed to provide independent environmental advisory support to Nornickel's Environmental Task Team, which comprises of 5 independent directors and is led by the Chairman of the Board of Directors, presented to the Board its report assessing the root causes and contributing factors affecting the fuel spill incident in Norilsk on May 29, 2020 and containing recommendations on preventing such incidents in the future. A summary of this report can be found here.

The ERM report had previously been reviewed by the Nornickel's Environmental Task Team.  Yesterday the Board itself discussed the ERM findings and recommendations with ERM. These would now be considered carefully by the Board and management and a plan to implement the recommendations would be drawn up. 

Gareth Penny, Chairman of the Board of Nornickel commented on the ERM report: "I would like to thank ERM for its insightful report and important recommendations. This has been produced under difficult and challenging circumstances. It was important that a globally recognised and respected firm such as ERM has undertaken an independent review of events and the clean-up efforts by the company. Important progress has been made, but with much that must still be achieved. Nornickel remains fully committed to making the necessary progress in environmental affairs to ensure its operations adhered to world-class standards."

Sergey Dyachenko, First Vice President and Chief Operating Officer of Nornickel, said: "Regardless of the causes of the incident, the company takes responsibility for the full clean-up. ERM's findings confirmed that the new climate change risks are emerging and we should improve our risk management in order to mitigate them more efficiently. We have launched a comprehensive review of our environmental risk management. A number of new corporate governance instruments have already been introduced, including Risk Management Committee chaired by the company's President. In terms of physical risks, we are upgrading our permafrost monitoring service and designing a foundations monitoring system. The monitoring project includes satellite imaging, monitoring of supporting piles and soil temperature by means of confirmative geological drilling, installation of strain gauges and temperature sensors, and an upgrade of the Polar Division's Diagnostic Centre and the permafrost laboratory. Overall, our capital investments towards an improvement of the industrial safety of infrastructure in Norilsk is budgeted at 100 billion roubles. We remain firmly committed to do all that is necessary to minimise the risks of environmental impact. We also reiterate our commitment to fully rehabilitate the area impacted by the diesel fuel spill incident."

ABOUT THE COMPANY

MMC Norilsk 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 Group are 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, ADRs are traded over the counter in the US and on the London, Berlin and Frankfurt Stock Exchanges.

About ERM:

ERM is a leading global sustainability consulting firm providing environmental, health, safety, risk consulting and related services. It employs more than 5,500 people in over 40 countries. ERM has a specialist mining division and has worked with most of the top 20 mining companies in the world delivering innovative advice and solutions to help them manage their environmental and overall sustainability challenges.

Media Relations:     Investor Relations:

Phone: +7 (495) 785 58 00    Phone: +7 (495) 786 83 20

Email: pr@nornik.ru     Email: ir@nornik.ru