OREANDA-NEWS. On May 15, 2008 MMC Norilsk Nickel (Norilsk Nickel or the Company), the world’s largest producer of nickel and palladium and one of leaders in platinum and copper, applied for participation in the bid for the Udokan copper field in Zabaikalsky Territory, reported the press-centre of Russian Railways.

In accordance with initial bidding terms, Norilsk Nickel filed its formal application before the deadline fixed on May 14. The Company received a set of necessary geological data and proceeded to the development of technical and economic proposals (TEP) related to the intended use of mineral reserves in the licensed area.

According to General Director of MMC Norilsk Nickel Denis Morozov, by participating in the contest for one of the largest copper fields of the world the Company demonstrates its commitment to expanding the raw material base and contributing to the long-term growth of domestic copper production.

‘The scale of the Udokan project is commensurate with the corporate scope of MMC Norilsk Nickel. We leave open the possibility of inviting co-investors and partners to the joint deposit development if the Company wins in this contest’, - Denis Morozov added.

MMC Norilsk Nickel is the largest copper producer in Russia, with annual output about 400Kt and operations located in Norilsk and in the Kola Peninsula. In the framework of the state and private partnership the Company is developing a large-scale project encompassing five polymetallic ore deposits in the Zabaikalsky Territory. Extensive geologic experience of Norilsk Nickel specialists includes their work with the ores of so-called Mongol-Okhotsk copper-porphyry belt lying to the east of the Baikal Lake.

In addition to geological information received after applying for the bid, Norilsk Nickel possesses practical knowledge of copper feed processing, project engineering, construction and operation of mines, mills, smelters and refineries. The Company has already started drafting technical and economic proposals for the Udokan copper field development.

Udokan copper deposit is the largest in Russia and one of the largest in the world. Complex local ores consist of three ore types: sulphide (with oxidized copper content below 30%), mixed (with oxidized copper content from 30% to 70%), and oxide (with oxidized copper content above 70%). Recoverable ore reserves distribution: sulphide ore – 43%, mixed – 40%, oxide – 17%. Economic reserves include: ore – 1375,2 Mt, copper – 19,95 Mt (at average Cu content 1,56%), silver – 11900,6 t (at average Ag content 9,6 g/t).