MMC Norilsk Nickel (MNOD)
NORNICKEL DISAGREES WITH METHODOLOGY FOR CALCULATING DAMAGE CAUSED BY THE
DIESEL FUEL SPILL
08-Jul-2020 / 14:07 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Public Joint Stock Company «Mining and Metallurgical Company «NORILSK
NICKEL» (PJSC "MMC "Norilsk Nickel", "Nornickel" or the "Company")
NORNICKEL DISAGREES WITH METHODOLOGY FOR CALCULATING DAMAGE CAUSED BY THE
DIESEL FUEL SPILL
Moscow, July 8, 2020 - Nornickel, the world's largest producer of palladium
and high-grade nickel and a major producer of platinum and copper, announces
that it disputes the amount of damage caused to the environment as a result
of the diesel fuel spill, which has been calculated by the Federal Service
for Supervision of Natural Resources Management (Rosprirodnadzor). At the
same time, Nornickel reiterates its commitment to fully cover the cost of
remediation of the environmental impact of this accident. Today, the company
sent a letter to that effect to Rosprirodnadzor.
According to the Company, the calculations of damages caused to water bodies
and soil made by the Yenisei Interregional Department of Rosprirodnadzor
were based on certain assumptions, which led to distortion of the damage
estimates and thus should be adjusted.
In particular, the maximum applicable multiple of 5x was applied in this
calculation, which reflects the duration of pollutants having negative
impact on a water body assuming that no measures have been taken to
eliminate the impact (so-called "Kdl coefficient" or duration coefficient).
Meanwhile, according to the prevailing legal practice, such a multiple due
to being punitive in nature is applied only in cases when no efforts have
been undertaken at all or no efforts have been undertaken over a long period
of time to clean up pollution. Taking into account the Company's immediate
response and launch of the clean-up of the diesel spill, applying the
maximum multiple ("Kdl coefficient") was not justified.
The existing judicial practice also refutes the justification of applying
the maximum multiple to cases of pollution of water bodies with oil
sub-products due to their solubility. Diesel fuel, which have been leaked to
a water body, does not fall under the category of soluble pollutants, which
are not feasible to collect from the water surface.
In the Company's opinion, the volume of oil products which has been spilled
to the water bodies has been also determined incorrectly, since their
content in the water-fuel mixture, contaminated soil and sorbent collected
in the HPP-3 area was estimated before the collection of oil products in
this area was completed.
At the same time, the Company reiterates its commitment to fully cover the
cost of remediation of the environmental impact of the fuel spill accident
in line with the applicable legislation. Furthermore, Nornickel is ready not
only to remediate the environmental impact, but also to completely restore
the ecosystem of the impacted area in close cooperation with Rosprirodnadzor
and other government agencies and organizations.
The Company has organized regular monitoring of the environment in the
impacted area in order to receive objective measurement of the pollution
levels and the effectiveness of clean-up efforts. The recent water tests
taken by Rosprirodnadzor confirm that pollution levels in the water bodies
were in line with the background maximum permissible levels of pollution
(PDK).
Nornickel has already launched land recultivation program. The Company
jointly with the leading Russian and international experts has been
simultaneously looking for the best technologies and tools, which should
help to restore the environment as much as possible.
The Company is offering cooperation to Rosprirodnadzor, other government
agencies and independent experts, in order to prepare most efficient plan
for environment rehabilitation. This work stream can be arranged within the
intragovernmental commission, which has been set up by the Ministry of
Natural Resources, as well as within an ad hoc working group.
FOR INFORMATION PURPOSES
Nornickel is running a major clean-up operation of the accidental diesel
fuel spill from one of the Heat and Power Plant #3 (HPP-3) emergency fuel
storage tanks. The HPP-3 area and adjacent land as well as water bodies
nearby are being cleaned-up. Alongside with the Ministry of Emergency
Situations (EMERCOM), a special assistance to prevent the spread of diesel
in water bodies has been provided by the Marine Rescue Service group of
Rosmorrechflot, and the special rescue divisions of Gazpromneft and
Transneft.
According to EMERCOM's assessment, as of July 8, 2020, with the direct
involvement of Norilsk Nickel, 33,401 cubic meters of fuel-water mixture was
collected, including 25,702 cubic meters collected from the water bodies and
7,699 cubic meters collected from fuel and water pits. Some 188,502 tons of
contaminated soil has been collected and transported, 140.2 km of river
coastline and 271,720 square meters of contaminated land have been treated
with sorbents. In total, 496 of personnel and 248 pieces of equipment have
been involved in the clean-up by Norilsk Nickel and its partners.
On June 19th, the Minister of Emergency Situations, Evgeny Zinichev,
reported to President of Russia, Vladimir Putin, that "We can say that the
second phase of the liquidation of emergency situation is nearing its end".
The collected water-fuel mixture will be transported to a utilization site
as part of phase three. At the final phase, full rehabilitation of the
environment will be carried out.
ABOUT THE COMPANY
MMC Norilsk Nickel is a diversified mining and metallurgical company, the
world's largest producer of palladium and high-grade nickel and a major
producer of platinum and copper. The company also produces cobalt, rhodium,
silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other
products.
The production units of Norilsk Nickel Group are located at the Norilsk
Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as
well as in Finland and South Africa.
MMC Norilsk Nickel shares are listed on the Moscow and on the
Saint-Petersburg Stock Exchanges, ADRs are traded over the counter in the US
and on the London, Berlin and Frankfurt 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.: 74568
EQS News ID: 1089155
End of Announcement EQS News Service
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July 08, 2020 07:07 ET (11:07 GMT)
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