[ferro-alloys.com]PJSC MMC Norilsk Nickel, the largest palladium and refined nickel producer in the

world, announces today preliminary consolidated production results for the first half 2018.

In 2Q18, consolidated nickel production amounted to 49 kt decreasing 9% quarter-on-quarter (q-o-q). Nickel output from own Russian feed decreased 8% q-o-q to 49 kt. The reduction was driven by scheduled annual repairs at Harjavalta refinery, emergencies at contractors’ facilities as well as the adjustments of technological processes to increase production volumes. As a result, Norilsk Nickel Harjavalta reached its designed production capacity for the first time in a long period of time.

In 1H18, nickel output amounted to 104 kt increasing 1% year-on-year (y-o-y). Nickel output from own Russian feed reached 102 kt, up 5% y-o-y. The increase was attributed to the processing of higher volumes Polar division of nickel matte by Kola MMC and Harjavalta following the downstream reconfiguration.

In 2Q18, nickel output at Kola MMC increased by a minor 1% q-o-q to 38 kt, which was driven by the processing of additional volumes of nickel matte shipped from Polar division. In 1H18, nickel output at Kola MMC was unchanged y-o-y at 76 kt.

In 2Q18, nickel production at Norilsk Nickel Harjavalta decreased 29% q-o-q to 12 kt, with nickel output from the Company’s own Russian feed also decreased to 11 kt. The decrease was attributed to scheduled annual repair works at Harjavalta refinery, emergencies in third party contractors as well as the debugging of technological processes to increase production volumes.

In 1H18, nickel output amounted to 28 kt, up 3% y-o-y. The increase was attributed to higher processing volumes of Russian feed as a result of the downstream reconfiguration.

In 1H18, output at Nkomati (50% Norilsk Nickel owned) amounted to 3 kt of nickel (down 29% y-o-y).

• [Editor:王可]