Translations

NORILSK NICKEL: MOTIVATING THE BEST EMPLOYEES TO WORK WITH US

3. Labor relations / working conditions

Human capital development

Sector Industry

Year 2012

Country Russian Federation

Transmitter

Context

MMC Norilsk Nickel is the world’s largest producer of nickel and palladium, and one of the leading global producers of platinum andcopper. Norilsk Nickel is the largest Metals & Mining Company in Russia by market capitalization.
Due to severe climatic conditions of the Far North in the territories of key operations of Norilsk Nickel, power supply, and transport units, the company faces higher risks related to recruitment and retention of personnel with necessary professional skills.
A program was launched for key employees “Our Home”.

Objectives

- Hire qualified and non-qualified staff and retain them.

- Develop a stable core of professionals at the Company’s operations based in the Far North.
- Help employees acquire an apartment.

APPROACH

Under the program “Our Home” Norilsk Nickel acquires interior finished apartments to its key employees in Moscow region and in the South regions of Russia.

Apartments are provided to employees on a co-financing basis: Norilsk Nickel covers up to a half of the cost, while the remaining part is paid by the employee during a certain period of his or her work with the Company (between 5 and 10 years). The housing price remains fixed over the whole period of the employee participation.

The participant takes legal possession of the housing when all the payments are done. However, the employee is able to use the house from the very moment it is provided, sub-lease it to a tenant, stay in it during vacations, provide it for the use of his or her children or relatives etc.

The program covers employees of the Polar Division, Polar Transport Branch, Kola MMC as well as employees of the Company’s subsidiaries and affiliated companies based in the Taimyr and the Kola Peninsula.

“Our Home” budget is US$ 226 mln. As of October 2012 1,199 apartments were already bought. Norilsk Nickel aims to buy 600-650 apartments more.

“Our Home” plays an important role for the Company by:

• motivating key staff for long-term commitment to the Company

• improving the level of social protection of employees and the attractiveness of Group as an employer

CONTRIBUTION TO COMPANY PERFORMANCE

- Project budget : 171 m€ - Group attractivenessimproved
- Recruitment of qualified employees from the mainland to Far North.
- Motivation of key employees for long-term commitment.
- Increase of loyalty of the employees hired.

Benefits

- 199 apartments bought as of October 2012; 600 to 650 more to be bought. - Improved social welfare for the staff : the apartment helps timely migration from northern entities to the mainland on retirement