Norilsk Nickel transport and logistics division performance in 2011

MMC Norilsk Nickel sums up the results of its transport and logistics division operation in 2011.

The transport and logistics department ensures forwarding of all Company’s cargo by water, railway, automotive, and aviation transport. In 2011, the total volume of cargo forwarded (all business units and departments of MMC Norilsk Nickel) was 2.8 million tons, including 1.1 million tons forwarded along Northern Sea Route and 1.7 million tons forwarded along Yenissei river.

The bulk of cargo transportation is done by the Company’s own cargo ships at the following main routes: Dudinka-Murmansk-Arkhangelsk and Dudinka/Murmansk-Hamburg-Rotterdam. Furthermore, in 2011 Zapolyarny diesel-electric propulsion ship completed Company’s second direct voyage with export metal products along eastern part of Northern Sea Route to Shanghai port.

In 2011, own container ships of the Company accomplished a total of 60 voyages, including five direct voyages to the European ports and one direct voyage to South East Asia.

In 2011, the Company continued to develop its transport and logistics assets in systematic and consistent fashion. Norilsk Nickel container ship was modernized and equipped with two state-of-the-art Liebherr ship cranes (cargo capacity – 45 tons), the total container capacity of the ships was increased by 68 regular 20-feet containers and by 27 refrigerator containers. The two ships with own ship cargo cranes shall provide for the improved rate of the Company’s metal products loading during anchorage throughout annual spring-summer Yenissei river flooding, before Dudinka port opens.

In September 2011 the new, sixth Company’s own reinforced ice class vessel (ARC 7 under RMRS classification) was commissioned. The Yenissei tanker can carry over 15 thousand tons of cargo, it is able to deliver fuel and petroleum products to Norilsk Industrial Area and take Pelyatkinsk gas condensate back to sale markets all-the-year-round. In Q4, 2011 Yenissei tanker completed two voyages and exported around 25 thousand tons of gas condensate.

In accordance with the established schedule, specialists of the Company continue to erect and develop MMC Norilsk Nickel transfer terminal in port of Murmansk. As of the end 2011, around RUB 996 million were invested into development of own terminal port infrastructure. The Company’s Murmansk Transport Department is included into the Register of Temporary Storage Warehouses and, therefore, is now ready for full cycle transport and logistic operations required for transshipment of equipment, machinery and other Company’s cargo imported. Temporary storage warehouse is a roofed storage area of 720 sq. m. and open storage of 2650 sq.m. It is equipped with all control and supervision means necessary for placement and storage of imported cargo during customs clearance.

In 2011 the Company started to operate new ISO 1SH containers (capacity – 30.48 tons), which are specifically purported for dangerous cargo forwarding. The design of these containers was developed for the Company’s icebreaker vessels with account for particular features of the Company’s cargo items. The container’s height is decreased two-fold in comparison with standard container’s height, and the cargo capacity is increased by 6.5 tons. Forwarding cargo in the containers shall make it possible to cut Company’s transportation costs by ensuring maximum load of cargo vessels. 1,500 ISO 1SH containers were commissioned in 2011.

ABOUT MMC NORILSK NICKEL

MMC Norilsk Nickel, a company incorporated under the laws of the Russian Federation, is the largest diversified mining and metals company in Russia, the world's largest producer of nickel and palladium and one of the world's largest producers of platinum, rhodium, copper and cobalt. In addition to this, MMC Norilsk Nickel produces a large number of other by-products, including gold, silver, tellurium, selenium, iridium and ruthenium.

The key production units of the Company’s group in Russia are at the Polar and Kola Peninsulas. MMC Norilsk Nickel international assets include operations in Finland, USA, Australia, Botswana and South Africa.

MMC Norilsk Nickel’s shares are traded at MICEX-RTS. ADR’s on the Company’s shares are traded on the other the counter market in the US and at the London and Berlin stock exchanges.