Economic effect from MMC Norilsk Nickel employees' innovation activities in 2011 exceeded RUB 253M.

Norilsk Nickel announces the results of innovation activities of the Company’s employees in 2011.

All in all, more than 340 unregistrable results of intellectual activities (innovation inventions) were implemented at the Group’s operations in 2011. Only last year economic effect exceeded RUB 253 mln..

Most of the inventions were conceived by the employees of the Polar Division of MMC Norilsk Nickel. In 2011, they submitted over 200 proposals for the improvement of the process flow sheet, machinery and equipment used. 189 innovation proposals were implemented, exceeding the 2010 results by 34. The economic effect amounted to RUB 243 mln. as compared to RUB 71.24 mln. in 2010. Mining companies take the lead in innovation proposals development with 48 proposals submitted (Octyabrsky Mine is responsible for 26 proposals), followed by Norilsk Railway with 38 proposals and Nadezhda Metallurgical Plant with 36 innovations.

In particular, one of the innovation proposals, "The use of graphite chips instead of crushed graphite in cobalt reduction smelting unit of Nadezhda Plant” is applied successfully at Nickel Plant. The actual economic effect amounted to RUB 12.3 mln.

"It should be noted that employees of the Company’s subsidiaries are also vigorously involved in improvement of technological processes and regularly submit innovation proposals for consideration”, - emphasized Head of Intellectual Property Section of the Company’s Research and Development Division, Nina Brazhnik. – A special tribute shall be paid to consistent efforts of the employees of Norilsk Procurement Complex, LLC (NPC) and OJSC Norilsk Taimyr Energy Company" (NTEC).

More than 100 employees of NTEC annually submit their innovation proposals. In 2011 they submitted 75 proposals. 70 innovation proposals were implemented, which totaled 93%. Actual savings from implementation of intellectual property results increased considerably. In 2011 this indicator grew from RUB 1.7 mln. to RUB 8.7 mln. This effect was gained by efforts of 111 employees.

88 applications were received from the employees of NPC in 2011. 85 innovation proposals were introduced, which totaled 97%. The economic effect from the implementation of intellectual activity results in 2011 amounted to RUB 1.1 mln.

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, 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.