OREANDA-NEWS. June 15, 2007. Summarizing the results of its environmental actions in 2006, MMC Norilsk Nickel discloses its expenditures in nature preservation. Total cost of environmental measures undertaken by the Company in 2006 is 11% higher than in 2005 and exceeds RUB 7.5 bln (see table below), including RUB 1.710 bln invested in air protection.

Pursuant to the Environmental Policy approved by the Company's Management Board, the top priorities in the environment protection are as follows:
Gradual reduction of air pollutant emissions, including sulfur dioxide and solids;
Gradual reduction of wastewater discharge into rivers, lakes, etc.;
Development of waste disposal sites.

Environmental control improvement and reduction of air and water pollutants to comply with environmental laws and regulations are defined in the MMC Norilsk Nickel Production Development Strategy through 2015 (reconfirmed in its Strategy through 2020) as the long-term objectives of the Company operation.

As for air protection, the Company's key target is to reduce gradually its emissions of sulfur dioxide, which is the main air pollutant (over 97%).

Norilsk plants are located far away from other Russian industrial areas, and this makes the traditional process of sulphur utilization in the sulphuric acid production economically inefficient. Thus, finding a solution for the Company's problem becomes even more complicated and expensive.

The Company's Action Plan for the Gradual Reduction of Emissions through 2015 envisages the following steps: shut-down of sinter plant and smelters at the Nickel Plant, reconstruction of Nadezhda Metallurgical Plant, modernization and construction of new sulfur facilities at the Copper Plant and Nadezhda Metallurgical Plant, etc. As part of this plan implementation, two process lines at the Copper Plant were reconstructed in 2006 (lines No.1 and No.2 for the production of elementary sulfur from furnace off-gases), and a number of other projects were launched.

As a result of efforts aimed at reducing dust emissions at the Polar Division operations (i.e., Nickel and Copper Plants, Nadezhda Metallurgical Plant, Association of Ore Concentrators, etc.), solid emissions in 2006 were reduced by 12.9% as compared to 2005.

Total pollutant emissions by the Company's production plants decreased in 2006 by 1.2% as compared to 2005. Better sulfur capture from the Copper Plant's furnace gases allowed y-o-y reduction of sulfur dioxide emissions by 0.84%.

Air emissions control in the periods of adverse weather conditions

In order to control the level of emissions under adverse weather conditions (atmospheric inversion, still air etc.), the Company has developed a system of air quality monitoring for Norilsk Industrial Region. Other emission-reduction measures include limitation of production capacity and temporary shut-down of some metallurgical facilities (sinter machines, furnaces, converters, etc.). Depending on the extent of the adverse nature of weather conditions, three modes of emission reduction are used prior to complete shut-down: Mode I (15%-20% efficiency), Mode II (20%-40% efficiency), and Mode III (40%-60% efficiency).

Maximum sulfur dioxide concentrations fell in 2006 1.6 times as compared to 2005, 2.6 times as compared to 2004, and 3.5 times as compared to 2003.

2005-2006 average annual concentration of sulfur dioxide in the atmospheric air was in the range of maximum permitted levels (0.5 mg/Nm3) established for populated areas.

Other information on MMC Norilsk Nickel environmental actions in 2006 and 2007 plans is available on the corporate Website: www.nornik.ru/en/.