BUILDING AN INDEPENDENT TRANSPORT CHAIN

NORILSK NICKEL

Alexey Tyukavin MINING AND METALLURGICAL COMPANY “NORILSK NICKEL”

NORILSK NICKEL is Russia’s leading mining KOLA MMC company and the world’s largest producer of nickel and palladium. It is also a major Monchegorsk producer of copper, cobalt, platinum group of metals, gold and silver. POLAR DIVISION

The key production units of the Company in Russia are the Polar Division located in Norilsk Norilsk industrial region and Kola Mining and Metallurgical Company located on Kola peninsula. EXISTING CARGO FLOW (BASIS 2008)

Direct export from Dudinka - 150K mts From Dudinka to Murmansk, Total = 365K ms: Export via Murmansk, Total = 270K mts: - Fine stein (matte) – 185K mts - from Dudinka – 170K mts - Copper and nickel – 180K mts - from Kola MMC – 100K mts

From Murmansk to Dudinka, Total =150К mts

Murmansk From Arkhangelsk to Dudinka, Total = 190K mts

Foreign ports (Rotterdam, Hamburg, etc.) Archangelsk Dudinka

From Dudinka to Arkhangelsk From Dudinka, Total = 130K mts:Norilsk To Dudinka, Total = 1670K mts: Copper toMoscow domestic market – - Sulfur - 106K mts 130K mts - Miscellaneous - 24K mts - Sand - 1100K mts - Miscellaneous – 240K mts - Logs in rafts – 300K mts

Railway routes Sulfur Lesosibirsk

Krasnoyarsk Yenisei River Shipping Co - Sea routes - River routes -Ports belonging to the Company Foreign ports - Independent ports (China) TOTAL SEA AND RIVER CARGO VOLUMES (BASIS 2008)

Sea shipments 1,1 Million mts

Norilsk Moscow

River shipments 1,8 Million mts

Total annual cargo volume – 2,9 Million mts STRUCTURE OF TRANSPORT AND LOGISTICS DIVISON

Total number of employees – 9 046

Department of transport and logistics Head office in Moscow

Yenisei River Shipping Polar Transport Branch Company Port of Dudinka Air Company «Taymyr»

Murmansk Transport Branch Port of Lesosibirsk Airport «Alykel»

Port of Krasnoyarsk Port of Archangelsk - Branches of the Company - Daughter companies Krasnoyarsk Shipbuilding Yard

Total employees – 3 244 Total employees – 4 311 Total employees – 1 449

Marine complex River complex Air complex FINANCIAL STATUS OF TRANSPORT AND LOGISTIC DIVISION

ANNUAL TURNOVER FIXED ASSETS

River Complex Air Complex Million USD USD 55 Million USD 79 Million

180 175,0

160

140 130,0

120

100,0 100

80

60

40

20 Marine Complex 0 USD 570 Million Marine Complex River Complex Air Complex

TOTAL turnover 2008 – USD 405 Million TOTAL fixed assets on 01.01.2009 – USD 704 Million YENISEI RIVER SHIPPING COMPANY

Total length of all river routes serviced by YRSC - 9 500 km

Total annual cargo volume - 3,5 Million tons

Logs and timber Vankor Local 11% 16% 4% Oil Products Miscellaneous 11% 13%

NorilskGazprom Norilsk Nickel 11% 34%

Port of Lesosibirsk Fleet of YRSC Group, Total - 818 Self-propelled fleet - 210 Incl.: Tugs – 120, Dry Cargo Ships – 402, Tankers – 18 Dry Cargo and Oil Barges – 435 Auxiliary Ships – 126 Floating Cranes - 19

Working substance – 460 ships Port of Krasnoyarsk of abt. 520.000 mt deadweight

Krasnoyarsk Shipbuilding Yard PORT OF DUDINKA

Cargo volume from outside customers – 0,29 Million tons

Cargo volume from NN group 2,6 Million tons

2000 1800 1600 1400 1200 By Sea 1000 By the River 800 600 400 200 0 2007 2008

Port of Dudinka is located about 215 miles away from the Total cargo handling volume – 2,9 Million tons place where the Yenisei River flows into the Yenisei Gulf. PORT OF ARCHANGELSK

The Ekonomiya Port-area is located in 18,5 nautical miles from the Pilot Buoy and 25 km from the center of Archangelsk

Cargo volume from NN group 0,36 Million tons

Cargo volume from outside customers – 1,40 Million tons

Total cargo handling volume in 2008 – 1,76 Million tons MURMANSK TRANSPORT BRANCH

«Norilsk Nickel» «Monchegorsk» «Zapolyarnyy «Talnakh» «Nadezhda» (April 2006) (August 2008) (November 2008) (December 2008) (February 2009)

2006 i/b «Dudinka» 2008 2009 (October 2006)

Main data of container/cargo ship "Norilsk Nickel":

• Ice Class LU 7 • Length (LOA),м 169.0 • Breadth, м 23.1 • Depth Moulded, м 14.2 Murmansk Dudinka • Draft Winter,м 9.0 • Draft Summer, м 10.0 • Deadweight Winter, tn 14 928 • Summer, tn 18 486 • No. of holds / TWD 4 / 3 • Container capacity, TEU 654 • Type of main engine Diesel - Electrical • Type of propulsion system - Azipod Archangelsk • Max. rating, KW 13 000 • Service speed (open water, rating 10 200 kW), knots 16.5 FLEET OPERATIONS RESULTS FOR 2006-2009

Average Speed and Consumption Cargo Volumes and Voyage Durations

2006 2007 2008 2009 55,00 (9 months) (1st Quarter) 50,00 Number of the vessels 1 1 4 5 45,00 Total volume of cargoes carried 178,0 261,6 432,0 255,7 40,00 including: 35,00 Murmansk-Dudinka-Murmansk, Total 178,0 261,6 393,7 167,2 30,00 Murmansk – Dudinka 51,5 80,2 100,9 48,3 25,00 Dudinka – Murmansk 126,5 181,4 292,8 118,9

20,00 Archangelsk-Dudinka-Archangelsk, Total 0,0 0,0 38,2 88,5 15,00 Archangelsk – Dudinka 14,2 60,0 10,00 Dudinka – Archangelsk 24,0 28,5 5,00 Dudinka Murmansk Number of round trip voyages, Total 10,5 15 19,5 11,0 0,00 including: July- Sept- Nov- Jan- July- Sept- Nov- Jan- July- Sept- Nov- Jan- Aug Oct Dec May Aug Oct Dec May Aug Oct Dec Mar Murmansk-Dudinka-Murmansk 10,5 15 19,5 6,0 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 Archangelsk-Dudinka-Archangelsk 5,0 Round trip voyage durations: Average sailing distance (hundreds nautical miles) Murmansk-Dudinka-Murmansk Average transit time (days) Archangelsk summer navigation 19-20 18-19 18 Average speed (knots) winter navigation 20-21 20-21 21-22 22-23 Average consumption (tons per day) Archangelsk-Dudinka-Archangelsk winter navigation 32-33 GAS CONDENSATE TRANSPORTATION FROM PYLYATKA GASFIELD

Archangelsk

Main Dimensions: Length overall 169.00 m Breadth, moulded 23.10 м Depth 14.20 m Design draft 9.00 m Scantling draft 10.00 m Deadweight, design 14,800 t Deadweight max, scantling 18,400 t Cargo capacity: Cargo tanks 100% 19,300 m3 To Foreign Ports Slop tanks 100% 660 m3 Speed (Т=9м, 9000kW) 15.5 knots Icebreaking capability 1.5 m Vessel’s Class: RMRS КМ*, ARC 7, 1, АUT2, “tanker (oil)” ice class– ARC 7 (9.00 m) Murmansk Dudinka Equipment for Cargo: Cargo pumps 3 х 550 m3/h Slop pumps 2 х 100 m3/h Hose handling crane (outreach 17m) SWL 10 t Machinery: Existing annual volume – about 90,000 tons 3 diesel generators total output 3 х 8,314 kVa Propulsion system Azipod 13,000 kW Forecast – up to 200,000 tons Accommodation: Crew incl. pilot 19 pers. MURMANSK TRANSPORT BRANCH

Design of Cargo Terminal in Murmansk Murmansk Sea Commercial Port – Berth No.15

Total projected annual Total annual cargo handling volume of the port - 14,4 Million tons cargo handling volume – 1.5 Million tons

Total investments required - USD 130 Million Total annual cargo handling volume of the berth No 15 - 0,630 Million tons

Cargo volume from outside customers – 0,100 Million tons

Cargo volume from NN group 0,530 Million tons THANK YOU FOR YOUR ATTENTION

NORILSK NICKEL