OREANDA-NEWS. December 28, 2010. OJSC MMC Norilsk Nickel (hereinafter – MMC Norilsk Nickel or the Company) announces that on December 28 the regular meeting of the Board of Directors will take place. Agenda of the BoD meeting includes such important issues as the main parameters of the Company’s Budget for 2011 and key parameters of the Company’s long-term production development strategy to the year 2025, and other.

i. Key parameters of the Company’s long-term production development strategy (to 2025) will be presented for the BoD consideration for the first time since 2006. The document is based on the priorities and principles formulated by the Company’s management over the period of 2008 - 2010 and presented to the Company’s investors, shareholders and expert community in May, 2010.

The Strategy is aimed to develop the Company’s resource and production base as well as to strengthen its competitive advantages. The document defines:
- Production volumes of the Company’s strategic metals and by-products for the long run;
- Ways to diversify the existing production range and expand the Company’s resource base;
- Implementation of new processes for ore beneficiation and production of non-ferrous and precious metals, effect of new technology on the Company’s production volume and costs;
- Main directions of modernization and capital renewal of fixed assets both in core auxiliary production;
- Options to resolve environmental problem and implementation of the most effective sulfur capture process to reduce air pollution;
- Investment program for the period of 2011 - 2025 and major investment projects.

ii. The Company’s management has developed  Budget – 2011 , which is aimed to help in achieving the following goals:
- Launching the large-scale investment program in the Company’s history in line with its strategic plans and tasks;
- Implementation of the program that implies renovation, repair and modernization of fixed assets and infrastructure so as to reduce production risks, ensure stable equipment operation and optimize costs;
- Ensure salary growth for the employees engaged in metal production;
- Development of social programs;
- Continuation and acceleration of works related to sulphur utilization program;
- Development and implementation of social programs together with federal and regional authorities (relocation of elderly people from Norilsk to other Russian regions; modernization of Norilsk municipal infrastructure etc.)
2011 Budget was developed on the basis of key macroeconomic assumptions and internal/external budgeting factors, and it includes the analysis of their influence on the Company’s financial position.

The management believes that constructive discussion and adoption of the Strategy and 2011 Budget will enable the Company to make a breakthrough in its development, strengthen its competitive advantages and reveal its growth potential.