Norilsk Nickel continues an investment project in Zabaikalye

Currently, MMC Norilsk Nickel completed all necessary exploration work and is busy preparing the development of deposits. In accordance with the Government Act RF No.1872-r of 25.10.2010, the Company and the state through its RF Investfund will invest over 104 billion rubles in the project implementation. MMC Norilsk Nickel will invest over 80 billion rubles of which 72,358 billion will be invested in the development of Bystrinskoye and Bugdainskoye deposits and 8,059 billion in the railway construction: the 223km rail track will connect Naryn-1 (Borzya) with Gazimursky Zavod. Investfond, will finance railway construction, investing 24,179 billion rubles.

The railway construction shall be finalized by 2012. The construction of mining and processing plants will commence in 2012-2013 and will be completed upon phased commissioning of the production facilities over the period of 2015-2016.

«The project in Zabaikalye is very important to MMC Norilsk Nickel in terms of the Company’s further growth and diversification. The project will enable increasing significantly mid-term and long-term production of copper and add new products – molybdenum and iron in concentrates to our product line. It will also strengthen the Company’s position in Asia. We are glad to participate together with the state in the implementation of such an important project for Russia», said Vladimir Strzhalkovsky, Chairman of the Management Board of MMC Norilsk Nickel.

This is a national-scale investment project to be implemented within the framework of public-private partnership by two partners: Investfund of the Russian Federation and MMC Norilsk Nickel. Total investments in the project will amount to 104,597 billion rubles.

The scope of the project includes: 1) cooperative construction of a railway line (223 km) from Naryn-1 station (Borzya) to Gazimursky Zavod; 2) development of Bystrinskoye and Bugdainskoye mineral deposit by MMC Norilsk Nickel alone (projected life-of-mine is about 30 years).