Outokumpu Technology to modernize flash smelter for Norilsk Nickel

PRESS RELEASE OUTOKUMPU TECHNOLOGY OYJ  JANUARY 17, 2007

Outokumpu Technology Oyj has signed a contract with the world's largest nickel and PGM (Platinum Group Metals) producer MMC Norilsk Nickel for the modernization of a flash smelting production line at Nadezhda metallurgical plant in Norilsk, Russia. The value of the contract is some EUR 16 million. 

Outokumpu Technology's scope in the expansion and modernization project includes engineering, all the equipment and materials for flash smelting furnace No. 1, as well as installation and commissioning services.  The renewed line will be operational by mid-2008.

Outokumpu Technology and Norilsk Nickel have worked in close cooperation for more than 30 years. Two flash smelting production lines have been in operation in Nadezhda since 1981 and they have been expanded and modernized by Outokumpu Technology in 1998 and 2003.

"By selecting the latest and most efficient nickel smelting technology, we will strengthen our position as the world's leading nickel producer. Outokumpu Technology as a partner was a natural choice for us, since we have years of experience in working together", says Tav Morgan, Deputy General Director of Norilsk Nickel.

"The contract further enhances our position as the market leader in copper and nickel smelting technologies. Outokumpu Technology's flash smelting technology is used to produce half of the copper in the world, and also more than half of the world's nickel smelters use this technology. We are delighted to have the opportunity to deliver our latest improvements and technical solutions in flash smelting to the Nadezhda plant", says Tapani Järvinen, CEO of Outokumpu Technology.

The Flash Smelting Process, first invented in 1949 by Outokumpu, has been awarded the ASM Historical Landmark Status and rated as BAT (Best Available Techniques) production process by European Union because of its energy saving and environmental benefits. Throughout its existence, Flash Smelting technology has been continuously developed and improved. As a result, it has become the leading technology for copper and nickel smelting in the world. It is a highly attractive choice for smelting, since it is environmentally sound and makes use of the reaction heat of concentrate without a need for any external energy.

For further information, please contact:

Outokumpu Technology Oyj

Jukka Tuominen, Director - Technology Sales, Smelters
Tel. +358 (0)20 529 2123
e-mail: jukka.tuominen(at)outokumputechnology.com

Eila Paatela, Vice President - Corporate Communications
tel. +358 (0)20 529 2004, mobile +358 (0)400 817198
e-mail: eila.paatela(at)outokumputechnology.com