Nornickel 20

IMPORTANT SOLUTIONS

Introduction SMELTING SHOP SHUTDOWN

In December 2020, Nornickel shut down it oldest production facility – smelting shop in , Region. The decision was driven by the Company’s green economy policy.

The smelting shop in Nikel was built back Halving emissions than 50% by the end of 2020 (from in 1942 in an area that was once part a 2015 baseline). Emission reduction of . After World War II, the Soviet The Nikel smelting shop shutdown is expected to reach 85% in 2021. Union restored the metallurgical completely eliminated sulphur dioxide facilities in this area. By 1991, the Nikel emissions in the – border People above all smelting shop was one of the largest area. in the industry. The shop was repeatedly Care for our people has always been upgraded with the latest production Large quantities of sulphur dioxide a top priority for us. Employee interests equipment over the period. Upgrades are found in industrial waste, including are always considered when any changes also continued after it became part metallurgical waste. Sulphur dioxide are made to the production chain. of Kola MMC in 1998: automated furnace in emissions reacts to form sulphuric acid charging, improved iD fan control aerosol, resulting in acid rains. People Affected employees are offered jobs and other innovations were implemented with respiratory illnesses and ecosystems in other units of the Company or contract to reduce harmful emissions. are particularly vulnerable to this termination on comfortable terms, pollution. Sulphur dioxide concentrations retraining programmes, pension plan, However, local improvements are no are particularly high in the Northern and social guarantees. The Company longer enough to ensure compliance Hemisphere, including Russia and Europe. offers affected employees jobs with environmental standards. elsewhere or, if the person does not want After the Nikel shop shutdown, total to move and wishes, for example, to start In November 2019, the Company sulphur dioxide emissions from Kola their own business, the Company helps decided to shut down the shop. MMC’s operations decreased by more them to get started. Annual report | 2020 STRATEGIC REPORT 20 21

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This approach helps foster highly skilled infrastructure, sports facilities A comprehensive post-closure talent, maintain long-term relations and advanced communication facilities, territory development is another with top talent and ensure succession participates in philanthropic and volunteer important objective for the Company. across all operations of the Company. programmes, addressed current issues The smelting shop building, which and works for the future. are being mothballed now, should remain Out of the 660 employees of the closed a functional part of the town, rather than smelting shop, 72% opted to continue Nornickel honours its commitments another abandoned piece of property. working with Nornickel elsewhere. Most even after an operation shutdown. Thus, Nornickel helped to hold a contest of them have already been provided the Company contributed to designing for the best project to redevelop the site. with jobs, with others to be given jobs the strategy for the development The environmentally friendly transformation in the near future. The Company will of the , which includes of the industrial zone with new green spend over RUB 900 million on support Nikel, in the Murmansk Region. Nornickel production facilities and jobs were among and social programmes for the smelting undertook to attract new businesses the most important conditions for entries shop employees before the end of 2022. and social entrepreneurs to this area. in the contest. The contest was won As early as in 2020, the Company held by a project to create a small-scale Next step a competition to provide RUB 185 million metallurgical plant producing grinding in interest-free loans to 11 winners for their balls and long products. Nornickel Being one of the largest employers business projects. New businesses will help the winner with consultations and tax payers in Russia, Nornickel are expected to launch in the Pechengsky and discounts for material and equipment makes social commitments to develop District in 2021, creating new jobs for local procurement and will undertake its operating regions. The Company people. to purchase a certain share of products. supports the construction of transport