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MMC Norilsk Nickel Annual Report 2009
The key operating assets of Taimyr Peninsula
One of the main resources that will enable Norilsk Nickel to overcome the
current economic downturn and lay the foundations for future expansion
is an efficient management system. This will help the Company to be
adaptable, flexible and efficient.
Norilsk Nickel has taken the following actions in order to streamline the
management structure:
• created a management structure suitable for a diversified international
major, one with defined areas of responsibility and a high level
of transparency;
• decentralized responsibility: delegation of the appropriate authority
to heads of divisions;
• reduced headcount and general and administrative costs; and
• improved efficiency of the Company operations.
In 2009, the efforts to develop the database of internal management
documentation also continued.
MINING AND METALLURGICAL BUSINESS UNIT
The main goal of the Mining and Metallurgical business unit is to ensure
a stable output at minimal cost and in compliance with production
plans approved by the head office and the Sales business unit. The
development of the Company’s mineral resources, the increase in
ore extraction as well as the optimization of Company’s production
capacities are key to achieving this.
The Mining and Metallurgical business unit comprises extracting,
concentrating and metallurgical entities located in Russia (Taimyr
and Kola peninsulas), Australia, Botswana, Finland, the USA and the
Republic of South Africa.
Russia
Taimyr Peninsula
The Taimyr Peninsula is located in Russia above the Polar Circle, on the
69th parallel. It is linked to other regions of the country via the Yenisei
river, the Northern Sea Route as well as by air.
Seven Taimyr Peninsula mines produce copper-nickel sulfide ores from
the Oktyabrsky, Talnakh, and Norilsk-1 deposits. Ores mined have
different contents of nickel, copper, platinum, palladium, cobalt, gold
and other useful components.
Ore is enriched at the Talnakh and Norilsk Concentrators. The Talnakh
Concentrator processes rich ores mined at the Oktyabrsky and Talnakh
deposits to produce nickel, copper and pyrrhotite concentrates. The
Norilsk Concentrator processes the entire volume of disseminated and
cuprous ores from the Oktyabrsky and Talnakh deposits, and stockpiled
pyrrhotite concentrate to produce nickel and copper concentrates.
Dudinka
Nadezhda
Metallurgical Plant
Alykel airport
Talnakh Concentrator
Kayerkan
Talnakh
Mayak mine
Copper Plant
Zapolyarny mine
Oktyabrsky mine
Norilsk
Norilsk Concentrator
Taimyrsky
mine
Komsomolsky
mine
Skalisty mine
Nickel Plant
Medvezhy
Ruchey
open pit
In the Taimyr Peninsula, metallurgical operations include the Nadezhda
Metallurgical, Nickel and Copper Plants.
The Nadezhda Metallurgical Plant processes all the nickel and pyrrhotite
concentrates produced by the Talnakh Concentrator, some of the nickel
concentrates from the Norilsk Concentrator (about 15%), and all copper
concentrate from high-grade matte separation area of the Nickel
Plant roasting shop to produce high-grade matte, copper anodes and
elementary sulfur.
The Nickel Plant processes the largest part of nickel concentrate
produced by the Norilsk Concentrator (about 85%), all enriched
stockpiled pyrrhotite concentrate, and some high-grade matte from the
Nadezhda Metallurgical Plant, to produce nickel cathodes and cobalt.
The Copper Plant processes the entire volume of copper concentrates
produced by the Talnakh and Norilsk Concentrators and copper
anodes from the Nadezhda Metallurgical Plant to produce copper
cathodes, elementary sulfur and sulfuric acid. The Metallurgical Shop,
which is a division of the Copper Plant, recycles sludge from the copper
electrolysis and the nickel electrolysis shops to produce precious metal
concentrate, metallic silver, selenium and tellurium.
The Company has outsourced the refining of precious metal
concentrates from the Taimyr Peninsula under a tolling agreement to
the Krasnoyarsk Precious Metals Plant.
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