Untitled - PRIME Gold

2 2005 NORILSK NICKEL • ANNUAL REPORT •NORILSK NICKEL • ANNUAL REPORT •20053CONTENTS1. Overview of OJSC MMC Norilsk Nickel including its gold mining assets 42. Corporate mission and strategic objectives 53. Operating and IFRS financial highlights of the Group 64. Letter from the General Director – Chairman of the Management Board 105. Letter from the Chairman of the Board of Directors 146. 2005 results and main tasks for 2006–2007 177. Risk factors 218. MMC Norilsk Nickel not including gold mining assets (Polus) 25page8.1 Review of market developments 258.2 Description of key operating assets 358.3 Management structure reform 378.4 Mineral resources and ore reserves 418.5 Review of operating performance 478.6 Capital investments 618.7 Review of sales performance 658.8 Commitment to environmental protection 678.9 Implementation of a quality and environmental management systemin accordance with international standards 718.10 Review of financial performance of Norilsk Nickel Group not including gold mining assets (Polus) in 2005 739. Gold mining assets of MMC Norilsk Nickel (Polus) 81CONTENTS9.1 Review of market developments 819.2 Description of key operating assets 839.3 Mineral resources and ore reserves 889.4 Review of operating performance 909.5 Review of sales performance 949.6 Commitment to environmental protection 949.7 Review of corporate developments 969.8 Review of financial performance of gold mining assets (Polus) in 2005 9810. Overview of human resources and social policies 10511. Share capital and share prices 11112. Corporate governance report 11513. Audited consolidated annual IFRS financial statementsof MMC Norilsk Nickel for the year ended 31 December 2005 12214. Audited consolidated annual IFRS financial statementsof Polus for the year ended 31 December 2005 16215. Information for shareholders 193Appendix 1. Report on compliance with the Corporate Governance Codeof the Federal Commission for the Securities Market 194Appendix 2. Interested party transactions of MMC Norilsk Nickel approved by the Board of Directors in 2005 208