OREANDA-NEWS.  July 10, 2014. OJSC MMC Norilsk Nickel (hereinafter – "Norilsk Nickel" or "the Company"), the world’s largest nickel and palladium producer, announces that through its Australian subsidiaries, MPI Nickel Pty Ltd. and Black Swan Nickel Pty Ltd., it has entered into an agreement to sell its Black Swan / Silver Swan assets (“Project”) located in Western Australia and currently under care and maintenance to Poseidon Nickel Limited ("Poseidon").

As a result of this transaction, Norilsk Nickel expects to realize a material gain, primarily through the release of environmental obligations which will be fully assumed by Poseidon.

The Project encompasses the Black Swan open pit mine, the Silver Swan underground mine, a processing plant and associated infrastructure. The Project was put on care and maintenance in February 2009.

"Adding to our previous disposals in Australia, the sale of Black Swan / Silver Swan marks another step forward in the implementation of our strategy focusing on Tier-1 mining assets. In addition to cash proceeds, we will realize significant value from the transfer of associated environmental obligations to the new buyer", Pavel Fedorov, Norilsk Nickel First Deputy CEO commented.

The sale is subject to regulatory approvals and satisfaction of other customary closing conditions and is expected to close in the second half of 2014.

Poseidon is a nickel sulphide exploration and development company which is currently focused on bringing its Mt Windarra project in Western Australia to production and intends to re-start part of the operations in the near future.

Citigroup continues to act as Norilsk Nickel’s exclusive financial advisor on the divestment of its portfolio of Australian nickel assets.