Overview102–1102–2

Norilsk Nickel Group is Russia’s leading metals and mining company, the world’s largest producer of palladium and refined nickel, and one of the biggest producers of platinum, copper and cobalt. On top of that, the Group produces rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, and sulphur.

In 2018, the Company accounted for 0.7% of Russia’s GDP, 2.6% of the national industrial output, 11.4% of metals production, and 2.6% of Russia’s exports.

Nornickel is the largest industrial player in the Russian region of the Arctic, generating over 5.7% of its GDP. Around 60,000 of the Company’s employees permanently reside and work beyond the Arctic Circle.

For the purposes of the 2018 Sustainability Report (the “Report”), Norilsk Nickel Group shall refer to MMC Norilsk Nickel and the entirety of operations forming Norilsk Nickel Group. Unless otherwise specified or required by the context, the terms “Company”, “Group”, “Nornickel” or “the Group companies” shall mean Norilsk Nickel Group. Quantitative indicators for certain areas of sustainable development pertain to the Group’s specific operations in accordance with the Scope of Data Collection appendix.

Assets102–4

Production units of the Group are located in three countries — Russia, Finland and South Africa.³

Its core businesses are based in Russia and have a vertically integrated structure. Three main production sites in Russia are:

Polar Division of MMC Norilsk Nickel (“Polar Division”);
Kola Mining and Metallurgical Company (“Kola MMC”);
Bystrinsky Mining and Processing Plant (“Bystrinsky GOK”), which in 2018 started ramp-up towards the target parameters.

The Company’s Polar Division is located on the Taimyr Peninsula (Krasnoyarsk Territory) beyond the Arctic Circle. It is linked to other regions by inland waterways (the Yenisey River), marine transport (the Northern Sea Route) and air transport.

Kola MMC is located on the Kola Peninsula beyond the Arctic Circle. It is the leading industrial facility of the Murmansk Region and is completely integrated into the transport infrastructure of the Northwestern Federal District.

Bystrinsky GOK is located in the Gazimuro-Zavodsky District of the Trans-Baikal Territory and is linked to other regions by rail.

In Finland, Norilsk Nickel operates Norilsk Nickel Harjavalta (part of the Group), the country’s only nickel refining plant.

In South Africa, the Company owns 50% of Nkomati, a nickel mine developed jointly with African Rainbow Minerals.

MMC Norilsk Nickel runs a global network of representative and sales offices in Russia, China, the USA, and Switzerland.

In addition to geology, energy, logistics, and support businesses, the Group comprises Gipronickel Institute, an R&D facility based in St Petersburg with branches in Norilsk and Monchegorsk. In total, the Group counts over 80 companies.

Core companies and business units

Production

Polar Division
Kola MMC
GRK Bystrinskoe
Medvezhy Ruchey

Exploration

Norilskgeologiya
Vostokgeologiya
Intergeoproekt

Research and development

Gipronickel Institute

Fuel and energy

Taimyrenergo
Norilskgazprom
Arctic-Energo
Norilsk-Taimyr Energy Company
Taimyrgaz⁴
Norilsktransgaz
Norilskenergo (MMC Norilsk Nickel’s branch)

Transport and logistics

Polar Transport Division
Arkhangelsk Transport Division
Murmansk Transport Division
Krasnoyarsk Transport Division
Bystrinsky Transport Division
NordStar Airlines
Yenisey River Shipping Company
Norilsk Airport
Lesosibirsk Port
Krasnoyarsk River Port
Norilsk Avia

Support functions

Pechengastroy
Kolabyt
Norilsk Support Complex
Norilsk Support Complex
Polar Construction Company
Nornickel — Shared Services Centre
PSMK
Taimyr Fuel Company

Distribution and sales

NORMETIMPEX
Metal Trade Overseas AG
Norilsk Nickel Asia Ltd.
(Hong Kong)
Norilsk Nickel USA, Inc.
Norilsk Nickel Metals
Trading (Shanghai) Co., Ltd.

Foreign assets

Norilsk Nickel Harjavalta
Nkomati

MMC Norilsk Nickel’s Head Office

MMC Norilsk Nickel’s Head Office

Production chart

Key social and environmental projects

Krasnoyarsk Territory

REGION OVERVIEW

Area

2,366,800

km²

Population

2,876,360

people

Industry

Non-ferrous metallurgy
Mining
Solid fuel—based power and hydropower generation

Mineral resources

Key areas of cooperation with the Krasnoyarsk Territory

Economic

Cooperation on major investment projects in the Krasnoyarsk Territory
Heat and power supply to the communities and companies of the Norilsk Industrial District
Implementation of the Northern Supply Haul programme in the Arctic
Development of transport and the telecommunication infrastructure

Social

Improvement of the existing sports infrastructure and construction of new state-of-the-art facilities in the Krasnoyarsk Territory
Support for vocational and supplementary education
Implementation of the World of New Opportunities programme, supporting and promoting regional public initiatives
Construction of modern housing and utilities, city and village improvement initiatives

Environmental

Implementation of cutting-edge green technologies
Reclamation and landscaping of urban territories
Development of Taimyr’s specially protected natural areas
Organisation and backing of environmental campaigns

Nornickel’s performance in the Krasnoyarsk Territory

55.9

RUB bn

_{taxes and other payments}

54,286

people⁵

_headcount

104,241

RUB

_{average monthly salary}

2,480,681.7

RUB thousand

_{employee-related social expenses}