OREANDA-NEWS. October 28, 2010. Following the request of the Audit Committee of OJSC MMC Norilsk Nickel (hereinafter – MMC Norilsk Nickel or Company), KPMG has completed special due diligence procedures on sales and insurance contracts of the Company’s Russian production entities and its international sales network. Based on the analysis of the Company’s operations for the 6 months ended 30 June 2010, the key findings included in the report are, reported the press-centre of Norilsk Nickel:

- The majority of MMC Norilsk Nickel products are sold on international markets;

- The main profit accumulation centres of the Company, excluding the operations of NNI and Stillwater, are its production entities based in Russia;

- Based on the selection of MMC Norilsk Nickel customers that was subject of the analysis:

- No “fixed price” arrangements have been identified, i.e. all contracted prices were linked to LME price;

- On average the actual sales prices for base metals were above the LME average cash seller price for the period;
- Available sources provided no evidence of affiliation with the Company’s staff and shareholders;

- All risks identified as critical by management of MMC Norilsk Nickel for which insurance is available on the market are 100% insured;

- Analysis of the most significant insurance contracts and the next best offers obtained by MMC Norilsk Nickel during the tender process indicates that the Company selected the offers primarily based on lowest insurance premiums.