Mineral base

Nornickel boasts a unique mineral resource base due to its Tier 1 assets on Russia's Taimyr and Kola Peninsulas, in Zabaykalsky Krai. The continued expansion of the resource base secures the Company’s long-term development.

Taimyr Peninsula (Polar Division and Medvezhy Ruchey)

Norilsk Nickel’s Polar Division develops copper-nickel sulphide deposits at the Talnakhskoye and Oktyabrskoye Fields (the Talnakh Ore Cluster). Medvezhy Ruchey develops copper-nickel sulphide deposits at the Norilsk-1 Field (part of the Norilsk Ore Cluster).

The Company has a strong potential to maintain the high level of ore reserves given the significant mineral resources available within the existing mining operations. The depleted rich and cuprous ore reserves at the existing mines are mainly replaced through inferred resources on the flanks of the fields under exploitation. The Company plans to ramp up its mining operations by tapping into new rich ore deposits and focusing on the gradual and active development of disseminated and cuprous ore horizons. The Company will leverage the approved projects to develop new deposits and horizons in the Talnakh Ore Cluster and promising geological exploration data to ensure a sustainable mineral resource base going forward.

Balance reserves of the Talnakh and Norilsk OreClusters (A + В + С₁ + С₂ ).
2,160 mt

Ni 15.8 mt

Cu 30.4 mt

PGM 10.7 kt

Proven and probable ore reserves
690 mt

Ni 6.4 mt

Cu 12.07 mt

PGM 3.9 kt (124.8 mln oz)

Measured and indicated mineral resources
1,714 mt

Ni 12.0 mt

Cu 22.7 mt

PGM 8,2 kt (over 264.2 mln oz)

Depletion of balance metal reserves 15.0 mt Ni — 250.5 kt, Cu — 434.5 kt, PGM — 0.138 kt

Additional balance reservesOperational and follow-up exploration, and re-estimation of reserves within the boundaries of the fields under exploitation. 5.4 mt Average metal content
Ni — 2.87%, Cu — 7.02%, PGM — 17.04 g/t

Kola Peninsula (Kola MMC)

Kola MMC develops copper-nickel sulphide deposits at the Zhdanovskoye, Zapolyarnoye, Tundrovoye, Kotselvaara-Kammikivi and Semiletka Fields as part of Pechenga ore fields. In addition to those, Pechenga ore fields include the Sputnik, Bystrinskoye and Verkhneye Fields, and Kola MMC also holds an exploration and mining licence for them.

Balance reserves of Pechenga ore fieldsClusters (A + В + С₁ + С₂).
470.4 mt

Ni 3.16 mt

Cu 1.54 mt

Proven and probable ore reserves
125 mt

Ni 0.7 mt

Cu 0.36 mt

Measured and indicated mineral resources
333 mt

Ni 2.3 mt

Cu 1.1 mt

Depletion of balance metal reserves 6.86 mt Ni — 43.6 kt, Cu — 18.7 kt

Conversion of balance reservesOperational exploration. 6.7 mt average metal content
Ni — 0.63%, Cu — 0.27%

Zabaykalsky Krai (GRK Bystrinskoye and Bugdainsky Mine)

Bystrinskoye Field

GRK Bystrinskoye develops deposits of gold-iron-copper ores at the Bystrinskoye Field.

Bugdainskoye Field

Bugdainsky Mine holds an exploration and mining licence for the Bugdainskoye Field.

The exploration of the field resulted in B + С₁+ C₂ mineral reserves entered into the government books in 2007. 2013 saw the launch of a development project at the Bugdainskoye Field in accordance with the duly approved design documents. In 2014, due to the low international molybdenum prices, the subsoil user suspended its right to develop the Bugdainskoye Field for three years. In 2017, the suspension of the right to develop the field was extended for another five years, until 31 December 2022.

Balance reserves of the Bystrinskoye Field (В + С₁+ С₂)

333 Ore, mt

Cu 2.27 mt

Au 9,265 koz

Ag 39,763 koz

FeMagnetite iron. 76 mt

5.2 mt

Depletion of balance ore reserves in 2017

Balance reserves of the Bugdainskoye Field (В + С₁+ С₂ )
812 Ore, mt

Mo 600 kt

Au 360 koz

Ag 6,221 koz

Pb 41 kt

Australia (Norilsk Nickel Cawse)

The Group holds a licence to develop the Honeymoon Well Project including:

fields with disseminated nickel sulphide ores (Hannibals, Harrier, Corella and Harakka);
the Wedgetail Field hosting solid and vein ores.

The total measured and indicated mineral resources of the Honeymoon Well Project are estimated at
173 mt of ore

Average nickel:

Ni — 0.68%

South Africa (Nkomati)

Nkomati is a 50/50 joint venture of the Norilsk Nickel Group and African Rainbow Minerals. Nkomati's performance is reflected in financial results using proportional consolidation according to our stake and not reflected in other totals.

The Nkomati disseminated copper-nickel sulphide ore deposit constitutes part of the Bushveld Complex. Nkomati is comprised of several ore bodies, the key ones being a solid sulphide ore body (rich nickel ore) and the Main Mineral Zone (MMZ). The field also contains a Peridotite Chromite Mineralisation Zone (PCMZ) with a lower metal content vs MMZ.

The proven and probable ore reserves as at the end of 1H 2017

Proven average content and probable ore reservesAt the end of 1H 2017.
88.6 mt of ore

Average content:

Ni — 0.31%

Cu — 0.11%

Co — 0.02%

PGM — 0.88 g/t

Measured and indicated mineral resourcesAt the end of 1H 2017.
182.4 mt of ore

Average content:

Ni — 0.35%

Cu — 0.14%

Co — 0.02%

PGM — 0.95 g/t