MMC Norilsk Nickel and Nordic Yards sign contract for construction of arctic tanker

Moscow, March 1, 2010 – In accordance with the decision made by its Management Board, OJSC MMC Norilsk Nickel (hereinafter – MMC Norilsk Nickel or the Company) has signed a contract with German Nordic Yards Holding GmbH (hereinafter - Nordic Yards) to build an Arctic-class tanker Arc7. The vessel is expected to be built and delivered by the end of September 2011. The investments in the project will reach EURO 100 mil.

According to the Deputy General Director – Head of Commodity and Transport Logistics Sergey Buzov, the tanker will supply fuel and lubricants to Dudinka and take gas condensate from Pelyatkinsky gas field (Taimyr) to the “Continent”. This will ensure steady and reliable supplies of hydrocarbons to the Norilsk Industrial Region and other territories in Russia’s Far North.

Nordic Yards, which owns shipyards in the city of Wiesmar where four diesel electric vessels were built for Norilsk Nickel in 2006 -2009, has been selected to build the arctic tanker. Several navigation periods demonstrated high quality of these vessels and their efficiency in the Arctic conditions, which was taken into account in contractor selection.

Main technical characteristics of the Arctic-class tanker should ensure efficient use of the vessel in the Northern Sea Route. The vessel is 169 meters long, with a beam of 23,1 meters, shaft capacity of 13 000 kWt and tonnage of 15000 tons, with water draft of 9.0 meters and 20000 tons with the draft of 10.0 meters. “Azipod” propeller engine allows the tanker to break 1.5 meter ice without being escorted by icebreakers (fully autonomous navigation). The vessel can also be used for cargo handling in arduous waters at sea and river raids. This becomes possible, in particular, due to the use of transverse bow propeller.

The construction project envisages compliance of the vessel with all current international Conventions and regulations of two ship classification societies – the Russian Maritime Register of Shipping and the Norwegian society Det Norske Veritas.

ABOUT MMC NORILSK NICKEL:

MMC Norilsk Nickel is a diversified mining and metal producing company, the world's largest producer of nickel and palladium and one of the global leaders in the production of platinum, cobalt, copper and rhodium. By-product metals of MMC Norilsk Nickel include gold, silver, iridium, osmium, selenium, ruthenium and tellurium.

Production facilities of Norilsk Nickel Group are located in Russia (Norilsk Industrial Area and Kola Peninsula), Finland, USA, Australia, Botswana and South Africa.

The Company is rated Baa2 by Moody's Investors Service and BBB- by Standard & Poor's and Fitch Ratings.