KRASNOYARSK COURT APPROVES SETTLEMENT BETWEEN NORNICKEL SUBSIDIARY AND FISHERIES AGENCY

PRESS RELEASE

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

KRASNOYARSK COURT APPROVES SETTLEMENT BETWEEN NORNICKEL SUBSIDIARY AND FISHERIES AGENCY

Moscow, July 22, 2022 PJSC MMC Norilsk Nickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces that the Krasnoyarsk Region Arbitration Court has approved a settlement agreement between the Yenisei Territory Administration of the Federal Fishery Agency (Rosrybolovstvo) and JSC Norilsk-Taimyr Energy Company (NTEC), a subsidiary of Norilsk Nickel.

NTEC agreed with the initiative proposed by Head of Rosrybolovstvo Ilya Shestakov in September 2021 to end the dispute via a settlement agreement. Under the terms of the agreement, NTEC will fully compensate the damages in kind to aquatic bioresources caused by the 2020 fuel spill. NTEC will release the fry of various valuable fish species such as sturgeon, muksun, whitefish and nelma, into the Norilsk-Pyasino water system during 2033-2050. Siberian sturgeon fry will be released into the Yenisei River annually starting from 2023 until 2033.

The ompany believes that compensation in kind is consistent with the goals of the soonest possible restoration of aquatic bioresources and improvement of the environmental situation in the Norilsk industrial district.

In addition, NTEC will finance scientific research by the Russian Federal Research Institute of Fisheries and Oceanography (VNIRO), which will assess aquatic bioresources and their habitat in 2023-2051 as a complementary support of the restoration programme.

Restoring aquatic bioresources is the final stage of the work by Nornickel to eliminate the consequences of the Norilsk fuel spill in 2020. The measures defined in the settlement agreement with the fisheries agency will deliver full restoration of aquatic bioresources and help maintain the resources at levels that ensure sustainable harvesting and biodiversity.

In order to guarantee timely and full compensation for the damage to the aquatic bioresources and taking into account the long time it takes to deliver the measures described in the settlement agreement, Nornickel provided a guarantee to the Yenisey Territorial Administration of the Federal Fisheries Agency to secure the fulfilment of obligations under the settlement agreement assumed by NTEK.

For reference:

On August 3, 2021, the Krasnoyarsk Region Arbitration Court accepted the claim of Rosrybolovstvo against Nornickel's subsidiary NTEC for a total amount of RUB 58.65 billion (approximately USD 804 million at the rouble-dollar spot rate) for the compensation of damages to aquatic bioresources caused by the spill at the emergency fuel reservoir of Norilsk's HPP-3 in 2020. On April 15, 2022, the court increased the claim by RUB 311 million.

ABOUT THE COMPANY

MMC Norilsk Nickel is a diversified mining and metallurgical company, the worlds 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 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.

MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRs are accepted for trading on the Saint-Petersburg Stock Exchange.

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