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MMC Norilsk Nickel (MNOD)
MMC Norilsk Nickel: NORILSK NICKEL REPORTS SIGNIFICANT REDUCTION IN EMISSION
OF AIR POLLUTANTS AND IMPROVEMENTS IN LABOUR HEALTH AND SAFETY IN 2017
19-Jul-2018 / 13:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
July 19, 2018
Public Joint Stock Company «Mining and Metallurgical Company «NORILSK
NICKEL» (PJSC "MMC "Norilsk Nickel", the "Company")
NORILSK NICKEL REPORTS SIGNIFICANT REDUCTION IN EMISSION OF AIR POLLUTANTS
AND IMPROVEMENTS IN LABOUR HEALTH AND SAFETY IN 2017
Moscow - MMC Norilsk Nickel PJSC, the world's largest refined nickel and
palladium producer, has released its annual Corporate Social Responsibility
(CSR) report for 2017.
Nornickel President, Vladimir Potanin, has commented on the Company's CSR
performance: "The year 2017 was not just marked by strong progress in our
sustainable development as the Company delivered further improvements in its
health and safety records and completed the first phase of environmental
program, but also was notable as we adopted new and ambitious long-term
targets. Having already delivered a major reduction of Sulphur dioxide
emissions in the city of Norilsk, the last year we approved the Sulphur
Project, which should result in further and very substantial cut to
emissions in our largest operating unit, Polar Division. We see ourselves
not just as a global mining industry leader that already supplies critical
materials for the global car industry, which help to clean gas exhausts, but
also as the company best positioned to supply the prospective and fast
evolving electric cars industry. Nornickel is aiming to get greener itself,
while already helping the world to get greener."
The Group reported further improvement in its labour health and safety. In
2017, total work injuries were down 45% year-on-year (y-o-y), while Lost
Time Injury Frequency Rate (LTIFR) was reported at 0.43 injuries per 1
million man-hours. The number of fatalities at the ?ompany's industrial
sites almost halved to 7 from 13 in 2016.
The company was on track with the implementation of its comprehensive
environmental programme. The first phase of the programme has been
successfully completed, with the Nickel Plant in the city of Norilsk fully
idled. This was alongside downstream reconfiguration, involving
modernization and expansion of capacity of existing processing facilities,
being complete. Since the full halt of the Nickel Plant in 2016, sulfur
dioxide emissions within the city of Norilsk residential area has reduced by
30-35%.
The cornerstone of the second stage of our environmental programme is the
Sulphur Project in the Polar Division, which targets the reduction of SO2
emissions by 75% by 2023. In 2017, after thorough analysis the Group
selected the optimal technology for the Sulphur Project, which will entail
construction of Sulphur dioxide capturing facilities to produce sulphuric
acid, which will be subsequently neutralized by natural limestone to produce
gypsum. The project will involve installation of new equipment at Nadezhda
metallurgical plant and modernization of Copper smelter. Investments in the
Sulphur Project are estimated at up to US $2.5 bn through 2022.
In Kola operations, the Group is planning to optimize its smelting
facilities, which should result in a reduction of Sulphur dioxide emissions
by 50% already in 2019.
From 2013 to 2017, total air pollutant emissions were decreased by 12%,
waste dispersion decreased by 21% and water consumption decreased by 16%. In
2017, total emissions of air pollutants reduced 4.6% y-o-y, including a 5%
reduction in SO2 emissions and a 2.1% reduction in solid emissions.
In 2017, the water consumption reduced by 8.3% y-o-y. However, water
discharge grew by 2.8% due to fluctuations in the inflow of mine water
throughout the year.
In 2017, the Company launched hot commissioning of the Bystrinsky Mining and
Processing Plant in the Chita region, which is considered as one of the most
environmentally-friendly mining facilities in Russia. The new technologies
employed by the plant will help to preserve the natural environment, while
enabling the steady rampup of production. Bystrinsky Project has also
created new high-skilled jobs and contributed to the further improvement of
the region's investment climate and its long-term sustainable development.
New processing technologies and equipment rolled out at the Kola MMC, the
Group's subsidiary in the Murmansk region of Russia, have resulted in a
significant reduction of air pollutant emissions in the Kola Peninsula. In
2017, the Sulphur dioxide emissions there were reduced by 8.3% y-o-y.
Moreover, in 2017 Kola MMC's passed its first assessment audit, which
certified its compliance with the Together for Sustainability Organisation
(TfS) principles. The Group's Polar Division and Nornickel's Harjavalta
plant in Finland also passed such audit, that recognises Nornickel as a
responsible corporate citizen with regards to both its labour force and the
environment.
In 2017, The Company increased its support for local communities. Overall
expenditures on social, charitable and social infrastructure development
programmes totalled US $445 million*. Nornickel has also embarked on several
major projects in the regions of its operations, including urban
redevelopment, education, cultural and social entrepreneurship programmes.
In 2017, some of the internal ESG strategies and principles were formulated
and approved by the Company's Board of Directors into respective policies,
such as Health and Safety Strategy, Environmental Policy, Biodiversity
Policy, Equal Opportunities Programme, Working Conditions Policy,
Anti-Corruption Policy, Indigenous Rights Policy, etc. The historical role
of Audit Committee of the Board of Directors' to oversee ESG matters has
been also recognized, so that this Committee's name was changed to Audit and
Sustainable Development Committee. The Company has also launched a new ESG
section on its corporate website, providing details on its sustainable
development strategy focusing on environmental management, social policy and
corporate governance.
The Company's efforts in improving its ESG performance has been gaining due
recognition from leading independent rating agencies. For instance, MSCI ESG
Research raised the Company's ESG rating from "CCC" to "B", praising its
approach to managing and mitigating toxic emissions and waste by means of
modernising equipment and decommissioning outdated facilities.
Sustainalytics rating agency increased the Company's score to 58 points (out
of 100) in 2017 from 46 in a prior year.
Nornickel's 2017 CSR report has been published in its long form as per GRI
G4 CSR reporting recommendations, endorsed by the Non-Financial Reporting
Council of the Russian Union of Industrialists and Entrepreneurs (RSPP),
audited by an independent auditor, NP Consult, and reviewed by the Global
Reporting Initiative SDG Mapping Service.
*US$ values provided above are based on the annual average exchange rate of
58.3529 Russian roubles per 1 US$.
ABOUT THE COMPANY
PJSC «MMC NORILSK NICKEL» is a diversified mining and metallurgical company,
the world's largest producer of refined nickel and palladium and a leading
producer of platinum, cobalt, copper and rhodium. The company also produces
gold, silver, iridium, selenium, ruthenium and tellurium.
The production units of «NORILSK NICKEL» Group are located at the Norilsk
Industrial District, on the Kola Peninsula and Chita region in Russia as
well as in Finland and South Africa.
PJSC «MMC «NORILSK NICKEL» shares are listed on the Moscow and on the
Saint-Petersburg Stock Exchanges. PJSC «MMC «NORILSK NICKEL» ADRs trade over
the counter in the US and on the London and Berlin Stock Exchanges.
Media Relations: Investor Relations:
Phone: +7 (495) 785 58 00 Phone: +7 (495) 786 83 20
Email: pr@nornik.ru Email: ir@nornik.ru
ISIN: US55315J1025
Category Code: MSCH
TIDM: MNOD
Sequence No.: 5765
EQS News ID: 706205
End of Announcement EQS News Service
(END) Dow Jones Newswires
July 19, 2018 06:01 ET (10:01 GMT)
