Moscow, July 13, 2020 — Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announces that internal investigation regarding the discharge of recycled water from Talnakh Concentrator’s technical water sump on 28 June 2020, has been completed.

The investigation has discovered two instances of unauthorised industrial water discharge from a recycled water sump, part of Talnakh Concentrator’s tailings dam system, into adjacent area using flexible pipes and floating pumps.

The water samples taken from Talnakh Concentrator’s technical water sump on 28 June indicated that the water discharge should not have any material impact on the environment and, most importantly, on the Kharaelakh River. An inspection survey conducted jointly with the Centre of Laboratory Analysis and Technical Measurements (part of the Environment Supervision Agency, “Rosprirodnadzor”) has confirmed that there has not been any impact on the Norilskaya River.

Nevertheless, the Company would like to reiterate that no recycled water discharge is allowed beyond the boundaries of Talnakh Concentrator’s tailings dam. Although the Company has no evidence that similar violations have been committed previously, it cannot completely rule them out.

Nornickel considers operational management misconduct as totally unacceptable. “Any violations of industrial safety or environmental protection should be completely eradicated. Nornickel announces zero tolerance towards environmental violations and will take harsh disciplinary actions whenever such violations take place,” said Sergey Dyachenko, Nornickel’s First Vice President and Chief Operating Officer.

Upon completion of the internal investigation, Director, Chief Engineer and Deputy Chief Engineer, Operations and Industrial and Environmental Safety of Hydraulic Structures, of Talnakh Concentrator have been dismissed due to gross misconduct. In addition, the department of Deputy Director of Polar Division, Chief Engineer, to be reorganized, with a new department being set up to focus solely on technical support and instrumental supervision of hydraulic structures of Polar Division.

The Company has already developed and started rolling out a range of initiatives to prevent similar incidents in the future. Among other things, these initiatives will aim at stabilization of the water cycle and improvement of process discipline at hydraulic structures of tailing dams.