06. Environment


UN Global Compact Principles

Principle 7:
Businesses should support a precautionary approach to environmental challenges

Principle 8:
Businesses should undertake initiatives to promote Пасвикgreater environmental responsibility

Principle 9:
Businesses should encourage the development and diffusion of environmentally friendly technologies

Environmental Management System

Nornickel’s management considers environmental protection an integral part of the production process. The Company complies with the applicable laws and international agreements and is committed to reducing emissions, on a phased basis, and sustainable use of natural resources.

The Environmental Management System within the Group is part of the integrated quality and environmental management system, which enables the Company to harmonise environmental and quality management initiatives with operations of other functions (production management, finance, health and safety, etc.). Such an approach has benefits both for environmental security and for overall performance across the Group.

During 2017, the Company carried out internal audits as part of the CIMS. In line with international standards and Norilsk Nickel’s by-laws, internal audits were conducted by specially trained and competent personnel:

The Company has drafted and keeps updating a register of corporate and internal auditors.

Precautionary approach
In accordance with its Investment Project Risk Management Regulations, Nornickel analyses risks and assesses impacts and potential consequences using qualified expert review during both project initiation and implementation. In the event material risks are identified, mitigation initiatives are developed, and a decision may be taken to abandon the project. During state expert appraisal, FEED documents for all the projects being implemented by the Company undergo mandatory assessment for compliance with the applicable law. 102-11

When planning operations, the Company ensures compliance with the requirements of the applicable Russian environmental laws and regulations.

During 2017, the Company carried out internal audits as part of the CIMS. In line with international standards and Norilsk Nickel’s by-laws, internal audits were conducted by specially trained and competent personnel:

The Company has drafted and keeps updating a register of corporate and internal auditors.


2013 2014 2015 2016 2017 2018-2022
2013 — Nornickel presenting its new strategy
First strategic cycle Second strategic cycle
Deliverables Goals
  • Cessation of air emissions of ca. 370 ktpa from the sources of Nickel Plant
  • Reduction of air pollutant emissions across the Group by 12% (2017/2013)
  • Reduction of waste disposal by 21% (2017/2013)
  • Reduction of water consumption by 16% (2017/2013)
  • Reduction of SO2 emissions in Nickel by 50%
  • Significant reduction of discharged wastewater with sulphate, sodium chloride and boron in boric acid content
  • Significant reduction of SO2 emissions in Polar Division
Environmental expenditures, RUB bn
18.1 19.4 23.6 25.7 26.8 CAPEX for the Sulphur Project up to RUB 150 bn by 2023
  • Shutdown of the outdated Nickel Plant (Polar Division, emissions)
  • Upgrade of Talnakh Concentrator (Polar Division, emissions)
  • Treatment of salt effluent from nickel refining operations at Kola MMC (Kola MMC, effluents)
  • Transition to copper-nickel concentrate briquetting technology (Kola MMC, emissions)
  • Launch of electrolytic cobalt production (Kola MMC, emissions, effluents)
  • Sodium bisulphite production from flue gas at Copper Plant (Polar Division, emissions)
  • Change in off-gas removal process, elimination of ground-level emission sources at Copper Plant (Polar Division, emissions)
  • Sulphur Project (Polar Division, emissions)
  • Upgrade of melting equipment, cessation of low-grade concentrate processing at Kola MMC (Kola MMC, emissions)
  • Upgrade and expansion of refining capacities with transition to chlorine dissolved tube furnace nickel powder technology (Kola MMC, emissions)
  • Disposal of salt effluent from nickel refining operations (Kola MMC, effluents)


Environmental protection expenditures
The Group’s total environmental protection expenditures stood at RUB 26.8 bn in 2017, up 103.9% vs 2016. The largest spending items were current environmental protection expenditures (RUB 20.9 bn) and capital investments to ensure environmental protection and sustainable use of natural resources (RUB 5.0 bn). The charges for permissible and surplus emissions (effluents) and disposal of production and consumption waste amounted to RUB 0.6 bn while the charges paid by the Company to remedy damages arising from non-compliance with environmental laws stood at RUB 0.2 bn.

Environmental costs and expenditures, RUB mln

Expenditure type 2016 2017
Current environmental protection expenditures 15,405.17 20,907.17
Capital investments to ensure environmental protection and sustainable use of natural resources 9,567.82 4,981.95
Charges for permissible and surplus emissions (effluents) and disposal of production and consumption waste 745.77 626.79
Charges paid by the Company to remedy damages arising from non-compliance with environmental laws (excluding environmental fines) 4.19 244.31
Environmental expenditures and costs 25,722.96 26,760.22


In 2017, the Company paid a total of RUB 999,000 in environmental fines (down 30% y-o-y) and received 18 improvement notices from regulators. 103-2 307-1

Performance indicators

Air protection
Polar Division’s various operations mainly impact the environment in Norilsk. 54 pollutants are emitted to the air in this area. The key pollutant is sulphur dioxide, accounting for ca. 98% of all emissions. 103-2 413-2

Kola MMC’s operations have environmental implications mostly for Monchegorsk and Zapolyarny towns and Nickel settlement. The key pollutants resulting from copper and nickel feedstock processing are sulphur compounds and dust which contains heavy non-ferrous metals such as nickel and copper.

Reduction of air emissions (especially those of sulphur dioxide and dust containing non-ferrous metals) is the key objective pursued by the Company’s operational units in terms of environmental management.

To communicate its environmental efforts to the people of Norilsk, since 2012, Polar Division has been running an automatic toll-free enquiry service offering short-term forecasts on the environmental situation in the city.

To raise the stakeholders’ awareness of its large-scale environmental initiative, in 2017, the Company opened a Sulphur Project showroom relying on the latest exhibition technologies at Nadezhda Metallurgical Plant. The exhibits include:

In 2017, a roadmap to reduce air pollutant emissions at Polar Division in 2018–2023 was developed, with Rosprirodnadzor’s approval obtained. The roadmap takes into account the current state of emission sources following the Nickel Plant shutdown and the completed reconfiguration stages of Polar Division’s production facilities. It includes major projects (the sulphur projects at Copper Plant and Nadezhda Metallurgical Plant, and the converter section upgrade at Copper Plant), timely progress on which will allow Nornickel to keep the emissions down to maximum permissible rates.

The official deadlines for reaching maximum permissible emission rates at Polar Division were set forth in a decree of the government of the Krasnoyarsk Territory.

Environmental Management at Nornickel


Air pollutant emissions, kt 305-7

In 2017, the Group’s pollutant emissions decreased by 4.6%, with Polar Division’s emissions down by 4.6% and Kola MMC’s emissions down by 8.3%.

The reduction was due to lower sulphur dioxide emissions primarily resulting from the Nickel Plant shutdown, increased sulphur disposal to mineral waste upon completion of the Talnakh Concentrator upgrade, transition to the copper-nickel concentrate briquetting technology at Kola MMC’s Zapolyarny site, and other initiatives.

Greenhouse (GHG) gas emissions
The Norilsk Nickel Group’s direct GHG emissions totalled 10,031,386 t of CO2 equivalent. The estimates for Polar Division, Kola MMC and Nornickel’s fuel and energy operations are based on the Guidelines and Instructions approved by Order of the Russian Ministry of Natural Resources No. 300 dated 30 June 2015. Direct GHG emissions intensity equals 18.69 t of CO2 equivalent per RUB 1 mln of consolidated revenue. 305-1 305-4

Use of ozone-destroying substances
The Group neither produces nor uses ozone-depleting substances (ODS), except for small amounts used as a chemical agent for laboratory-based chemical analysis as well as for filling and topping of compressors in various air conditioning units and carbonated water machines which produce water used as a cooling agent for medium- and low- temperature refrigerating equipment. The Company submits reports on ODS use to the Russian Ministry of Natural Resources as required. 305-6

Protection of water bodies
The Group uses water from surface and underground sources for its drinking, production and process supply needs as well as for community and shipping needs. The water is withdrawn in compliance with the approved limits, without any major impacts on water bodies. No water is withdrawn from either the Ramsar Wetlands or from other protected natural territories. 103-2

The Group’s wastewater effluents in general do not exceed the approved limits, including admissible impact limits, or have any major impact on biodiversity of water bodies and related habitats.

The 7.2 mcm increase in water withdrawal of the Group in 2017 compared to 2016 was primarily due to higher natural inflow of snow melt and rain water to mine water of Zapolyarny, Kayerkansky and Oktyabrsky mines of Polar Division and increased processing of metal-containing feedstock at Nadezhda Metallurgical Plant following the shutdown of Nickel Plant.

Higher water withdrawal at NTEK (up 2.0 mcm y-o-y) resulted from longer process equipment running time.

The 3.8 mcm decrease in water withdrawal at Kola MMC was linked to lower inflow of mine water.

The Group’s overall decrease in water use by 8.3% is related to the discontinued operations at Nickel Plant and less power generation at NTEK’s TPP.

Lower water consumption at Kola MMC comes with significantly higher volumes of recycled and reused water as a result of commissioning of Cobalt-300 and disposal of salt effluent from nickel refining operations.

In 2017, the Group’s wastewater discharge grew by 4 mcm y-o-y (+2.8%) and totalled 147.6 mcm. This was due to fluctuations in the inflow of mine water through the year. The 23.6 kt (+12.2%) increase in pollutant discharges was related to higher wastewater volumes as well as increased productivity of electrolysis unit No. 1 of the nickel electrolysis shop at Kola MMC.

The wastewater volumes treated to standard quality at treatment facilities grew by 0.9 mcm (+16.7%) following the commissioning of hydrodynamic filters at Skalny open pit of Polar Division and utility wastewater treatment facilities at Norilskgazprom.

In 2017, the wastewater disposal at Kola MMC was down by 1.4% primarily due to lower water withdrawal for process needs.

Total water withdrawal1, mcm 306-1

Waste management
Over 90% of the Group’s production waste is classified as hazard class 5 (practically non-hazardous waste), including rock and overburden, tailings, and metallurgical slags. To minimise the environmental impact, mining waste and tailings are stored at special waste disposal sites and are used (utilised) at the Group’s facilities and other companies operating in the Norilsk Industrial District. Mining waste and tailings are used for preparation of filling compounds, as flux for melting of metal in melting furnaces, for construction and strengthening of tailing dumps, railroad groundwork, road filling, etc. ММ3 103-2

Total water consumption, mcm
Total wastewater discharge, mcm 306-1

1 The total for Polar Division, Norilskenergo Branch and other divisions includes water withdrawal from NTEK.

All of the Group’s waste disposal sites are listed on the national disposal site register. The sites undergo environmental monitoring in line with designated programmes. Tailings pits are monitored additionally as required by safety standards for hydraulic structures.

Production and consumption waste is treated in accordance with waste generation standards waste disposal limits.

In 2017, Polar Division commissioned the first stage of tailings pit at Talnakh Concentrator, which allowed for environmentally safe storage of ca. 31 mt of mineral waste.

In 2017, the Group generated 1.34 mt less waste than in 2016. Polar Division saw a 0.7 mt increase (+3.0%) in the total volume of waste due to liquidation of Nickel Plant facilities as part of the Sulphur Project, opening up and mining of new levels at Oktyabrsky mine and open-pit development at Zapolyarny mine.

Waste generation at Kola MMC decreased by 2.0 mt (-18.9%) y-o-y mainly due to discontinued open-pit mining at Yuzhny.

In 2017, the Norilsk Nickel Group re-used 65% of all produced waste and is committed to keep increasing the rate.

Most per-unit environmental impact indicators of the Group show consistent downward trends.

Environmental impact indicators per unit

Indicator UoM 2013 2014 2015 2016 2017
Air emissions t / RUB mln1 5.727 4.404 4.077 3.53 3.438
Water withdrawal ‘000 cubimeters / RUB mln 0.963 0.772 0.689 0.599 0.625
Water consumption ‘000 cubic meters / RUB mln 3.681 3.109 2.808 2.668 2.5
Wastewater disposal ‘000 cubic meters / RUB mln 0.399 0.319 0.277 0.262 0.275
Pollutants discharged in wastewater t / RUB mln 0.381 0.308 0.302 0.352 0.404
Waste generation kt / RUB mln 0.111 0.077 0.066 0.061 0.059

Waste generation and disposal2, mt 306-2

1 Hereinafter in the table – RUB mln of the consolidated revenue.
2 The bulk of waste is generated as a result of Polar Division and Kola MMC operations. The share of waste generated in the course of operations of the Group’s other entities (including NTEK) is less than 0.01 mt (less than 0.5% of the total).

Biodiversity conservation

Nornickel recognises the importance of biodiversity, and its environmental policy seeks to minimise the Company’s footprint and hence contribute to biodiversity conservation. In 2017, the Company developed a standalone Biodiversity Policy approved by the Board of Directors in early 2018. 103-2

Its focus areas include land rehabilitation, cooperation with nature reserves and reproduction of aquatic bioresources.

The Company is supporting the programmes run by nature reserves to study and preserve rare and endangered species listed on Russia’s Red Data Book, including Siberian bighorn sheep, polar bears and lesser white-fronted geese.

Environmental protection and monitoring measures taken during the field life cycle 304-3 MM1


Land rehabilitation
The Company is developing the Oktyabrskoye, Talnakhskoye and Norilsk-1 Fields on the Taimyr Peninsula, the Zhdanovskoye, Zapolyarnoye, Kotselvaara and Semiletka Fields on the Kola Peninsula, and the Bystrinskoye Field in the Trans-Baikal Territory.

Pursuant to the Russian laws, design documents on capital construction projects, including field development, must have a section describing the company’s environmental protection and control initiatives to track changes across the ecosystem resulting from ongoing development, construction, or any accidents.

The Company has field development, mine liquidation and land rehabilitation projects in place for all of its fields, with special reserves set up for rehabilitation activities. The projects provide for making layouts, slopes, hydraulic and irrigation structures, and taking other technical measures. Importantly, the Company’s fields are in commercial development, exploration and production test stages with liquidation or abandonment not expected until 2050.

The Company complies with all applicable regulations for land rehabilitation and other environmental protection initiatives associated with field development, construction and other operations.

The Company has field development, mine liquidation and land rehabilitation projects in place for all of its fields, with special reserves set up for rehabilitation activities. The projects provide for making layouts, slopes, hydraulic and irrigation structures, and taking other technical measures. Importantly, the Company’s fields are in commercial development, exploration and production test stages with liquidation or abandonment not expected until 2050.

The Company complies with all applicable regulations for land rehabilitation and other environmental protection initiatives associated with field development, construction and other operations.

Cooperation with nature reserves
Kola MMC is located 15 km from the Pasvik Nature Reserve and 10 km from the Lapland Biosphere Reserve, while Polar Division’s sites are some 80–100 km away from the buffer zone of the Putoransky Nature Reserve. Bystrinsky GOK is located 160 km away from the Relict Oaks State Reserve (the Trans-Baikal Territory). At present, the Company’s operations do not produce any significant impact on areas adjacent to the nature reserves and areas of high biodiversity value outside protected areas. 304-1 304-2

Taimyr Peninsula
The Putoransky State Nature Reserve, one of the biggest in Russia with a total area of over 1,887,000 ha, was included on the UNESCO world heritage list in 2010. The reserve is part of the Joint Directorate of Taimyr Nature Reserves, which also includes the Putoransky, Taimyrsky and Big Arctic reserves, as well as the Purinsky and Severozemelsky natural protected areas.

The Joint Directorate of Taimyr Nature Reserves is implementing environmental projects selected under Nornickel’s World of New Opportunities charitable programme to support socially important initiatives. The projects focus on raising environmental awareness, environmental protection and engagement of local communities, land improvement and landscaping.

In 2017, we helped Taimyr nature reserves to organise environmental raids and transporting research groups to the outer field locations.

Disturbed and rehabilitated land area in 20171, ha 304-3 ММ1

Indicator Total Including
during mining during construction during disposal of solid domestic and industrial waste during other activities
Total disturbed area, beginning of period 14,722.38 13,102.36 366.62 66.36 1,187.04
Total rehabilitated area 0 0 0 0 0
Total disturbed area in the reporting period 167.54 105.11 62.43 0 0
Total disturbed area, end of period 14,889.92 13,207.47 429.05 66.36 1,187.04

1 The difference of 324.68 ha against the year-end figure in the 2016 CSR Report is due to updated data for Norilskenergo.

Kola Peninsula
The Company cooperates with the Lapland and Pasvik Nature Reserves in several areas. The key ones are environmental monitoring and vegetation restoration in the vicinity of Kola MMC’s production sites.

The Pasvik State Nature Reserve is featured as one of the Wetlands for the Shadow List of Ramsar Sites under the name of Fjarvann – Schaannings Field Base. It covers a total area of over 14,000 ha.

Since 2006, the Pasvik Nature Reserve has been carrying out an assessment of the natural environment in the area of Pechenganickel Plant (including Zapolyarny, Nickel and their suburbs, as well as the Pasvik State Nature Reserve), and developing a long-term environmental monitoring programme. The reserve is also working on several projects that received grants under the World of New Opportunities charitable programme.

The projects seek to reach out to Russian and Norwegian audiences and cover a variety of topics, including traditional use of natural resources, raising environmental awareness of schoolchildren and promoting research.

On 17 January 2017, the reserve launched its visitor centre completed with the support from the Company, which marked the start of the Year of Environment in the Murmansk Region. 304-4

Red List species found in the Pasvik, Lapland and Putoransky Nature Reserves, pcs

Indicator Pasvik Lapland Putoransky
On the IUCN Red List, of which 23 23 13
Endangered (EN) 1 1 1
Vulnerable (VU) 1 0 3
Near Threatened (NT) 1 0 1
Least Concern (LC) 20 22 8
On Russia’s Red Data Book, of which 16 21 14
Endangered (EN) 1 10 -
Vulnerable (VU) 6 0 3
Near Threatened (NT) 8 10 8
Least Concern (LC) 1 1 3
On the Murmansk Region’s and Krasnoyarsk Territory’s Red Data Books 93 153 13


With an area of 278,000 ha, the Lapland State Nature Biosphere Reserve is one of the largest protected areas in Europe and also one of Russia’s oldest nature reserves (founded in 1930). In 1985, it was included in the UNESCO Network of Biosphere Reserves.

In 2002, Kola MMC and the Lapland Biosphere Reserve signed contracts for the development of a methodology to reclaim disturbed natural environments in the areas affected by permanent emissions from Severonickel Plant and monitoring of the Monchegorsk District and the Lapland Biosphere Reserve.

The scientific research data provided a basis for further rehabilitation of disturbed lands and for sanitary and fire-protection improvements in the forest areas.

The Company also provided financial aid for the Lapland Biosphere Reserve to make a few new nature trails and publish books about Oleg Semyonov-Tyan-Shansky and Herman Kreps, the reserve founders.

Impacts from transport operations

Fleet Transported products Social and environmental responsibility Outcome
The Group’s own fleet Products of the Group companies
Products procured to meet internal needs
Commercial and social cargo
  • Compliance with international conventions, codes, guidelines, Russian laws, regulations and requirements
  • Four freight-forwarding licences, all environmental permits in place
  • Multi-stage control from the Group companies, other transportation participants and supervisory bodies
  • Security and industrial health and safety management systems in place at facilities
No significant environmental impact produced by the Company’s freight and personnel transportation
Fleet chartered by the Group's Metal Trade Overseas Products of the Group companies
  • Compliance of the fleet’s environmental parameters with the requirements of international environmental conventions

Raising environmental awareness in the Pasvik State Nature Reserve
Nornickel has provided funding to build the Pasvik Reserve’s state-of-the-art visitor centre in the settlement of Nickel. Its area spans 840 sq m comprising a permanent environmental exposition and hosting ecological seminars and conferences, dedicated film screenings and workshops. The multifunctional centre also plays host to various environmental forums. The Company has partnered the reserve experts to raise environmental awareness in the Pechengsky District of the Murmansk Region, including by spreading the environmental knowledge, teaching children and adults how to care about nature, and promoting the sustainable nature-focused tourism.

Developing the Relict Oaks State Reserve
Nornickel has taken on a commitment to help develop the Relict Oaks State Reserve located in the Gazimuro-Zavodsky District of the Trans-Baikal Territory. This is a specially protected natural area stretching along the Russian-Chinese border. It spans across an area of 30,000 ha and features unique ecosystems that have remained untouched to the present day. Among them are the island woods with numerous rare and endangered relict Manchurian, Far Eastern and Boreal plant and animal species. The project provides for the construction of a special base for reserve rangers and scientists with all the required equipment and communications. The reserve will also host education events for children and adults.

Rescuing the endangered lesser white-fronted geese
The Company has been providing support for a long-term programme focusing on the research and protection of lesser white-fronted geese (the Anatidae family) listed on the Red Data Book. Scientists managed to learn more about the bird’s distribution across the Taimyr Peninsula and even track its wintering grounds. The successful completion of seven research expeditions to the outlying parts of the Putorana Plateau helped collect valuable data on the habits of this rare goose and develop a strategy to protect this species. Thanks to the programme, Taimyr is now home to around 4,000 lesser white-fronted geese.

Environmental impact metrics of Norilsk Nickel Harjavalta

Indicator 2013 2014 2015 2016 2017
Industrial wastewater, ‘000 cubic meters 625 625 728 771 899
Pollutants in industrial wastewater, t
Ni 0.5 0.41 0.4 0.4 0.5
SO42- 19,420 19,281 20,051 22,457 25,853
NH4+ (converted to nitrogen) 28.3 45 36 49.5 60.3
Total water consumption, mcm2 11.50 10.90 10.4 10.9 11.10
Total air pollutant emissions, t
Ni 2 1.8 1.7 1.6 1.7
NH3 80 50 70 70 69
Waste generation, kt 22 30.8 16.5 7 5.5
Waste disposal, kt 21.3 29.8 15.7 0.8 0.8

1 Excluding 66,189 kg (Ni) discharged in July 2014 as Ni solution due to a heat exchanger failure at the reduction plant.
2 Over 95% is water withdrawn from surface sources (Kokemaenjoki River).

Let’s Do It environmental marathon
The environmental marathon for the Company’s employees is held on an annual basis. The marathon seeks to promote environmental responsibility and support the joint volunteering initiatives of the employees and the local communities aimed at preserving the natural heritage. The marathon’s environmental teams are made up of Nornickel’s eco-conscious employees from Moscow office, Kola MMC facilities, Polar Division and other subsidiaries of the Company. As part of the project, a total of 75 environmental campaigns and initiatives have been launched, and over 1,000 trees and bushes have been planted. Those initiatives included an ecological quest to revamp the nature trail in the Lapland Biosphere Reserve, construction of titmouse houses for the Putoransky Nature Reserve, and a Green Living Room event held in the Pasvik State Nature Reserve’s visitor centre. In 2017 alone, over 3,500 volunteers took part in the project.

Reproduction of aquatic bioresources
The Company provides annual financing for the projects to breed valuable fish species, including those listed on Russia’s Red Data Book, and release them into natural water bodies. In 2017, the Company helped release over 316,000 Siberian sturgeon fingerlings into the Yenisey River, and 235,000 salmon fingerlings into the Umba River (Murmansk Region).

Impacts from foreign operations

Norilsk Nickel Harjavalta has all the necessary environmental permits and operates a certified integrated management system that meets the requirements of ISO 9001, ISO 14001 and OHSAS 18001. Its main environmental impact consists in the emissions of ammonia (NH3) and nickel into the air, and discharges of nickel (Ni), sulphates (SO42-) and ammonia ions (NH4+) into water bodies.

In 2017, Norilsk Nickel Harjavalta met all permit requirements for emissions, discharges and waste disposal volumes. Lower waste volumes result from switching to the Company’s feedstock that is less contaminated with impurities as compared to third party materials.

Energy conservation and efficiency

Most of the Company’s production facilities and workforce operate or live in the harsh Arctic climate. The fuel and energy block is an integral link in the production chain and a key element in providing adequate support to the households. 103-2

The Company’s fuel and energy assets include:

The Norilsk Nickel Group’s total energy consumption 302-1 302-3

Indicator UoM 2013 2014 2015 2016 2017
Fuel consumption TJ 167,489 162,301 161,710 172,643 176,438
Coal TJ 4,250 4,417 4,170 2,132 1,460
Natural gas TJ 151,351 146,200 145,266 151,081 134,709
Diesel fuel and fuel oil TJ 11,888 11,684 12,274 15,640 35,090
Gasoline and aviation fuel3 TJ 3,789 5,178
Electricity and heat consumption TJ 75,219 82,978 77,356 65,221 61,963
Electricity consumption TJ 44,499 45,100 42,943 32,530 32,355
Consumption of water and steam heat TJ 30,720 37,878 34,413 32,691 29,609
Total energy consumption across the Group4 TJ 173,955 169,307 173,056 174,314 178,654
Energy intensity GJ / RUB mln5 474 371 349 318 333

3 Consolidated data have been calculated since 2016.
4 Calculated as per the GRI methodology taking into account fuel consumption for all purposes, including electricity and heat generation by the Group’s own CHPPs, energy procurement and sales internally and to third parties, and energy generation by HPPs.
5 RUB mln of the consolidated revenue.

The key documents governing the development of the fuel and energy assets are the Fuel and Energy Development Strategy and the Programme to Upgrade, Revamp and Replace the Norilsk Industrial District’s Power Facilities through 2025.

For the purposes of implementing a uniform R&D policy and meeting the targets of the strategy for the fuel and energy assets, the Company has set up an Expert Committee on Energy, which forms a part of the Company’s R&D Council and is chaired by the Senior Vice President – Head of Non-Industrial Assets and Energy Supply.

To achieve the fuel and energy development goals and objectives, the Company is running investment projects approved by the Investment Committee.

In 2017, the Company continued to enhance the reliability of generating equipment, grid and gas transportation infrastructure and boost gas output.

The Ust-Khantaiskaya HPP is running a large-scale project to replace equipment in hydroelectric units, and launched a third one launched in 2017.

The Company made a decision to replace adjustable blade hydroelectric units that had been operating for over 40 years, in 2012. The new units boast better reliability and service life of at least 50 years.

Also, Nornickel developed Energy Saving and Energy Efficiency Programme for Polar Division approved by its Deputy CEO – Chief Engineer.

In 2017, the programme provided for the completion of an upgrade to compressor systems at Nadezhda Metallurgical Plant, and capital repairs of heating stations at Copper Plant. The Company continued rolling out energy efficient equipment across its other business units, including Mayak, Zapolyarny and Oktyabrsky mines, Talnakh and Norilsk Concentrators, and Kola MMC’s units, and installing an automated commercial energy metering system.

Each year, the Company develops and implements organisational and technical action plans to save fuel, heat, power and water.