On June 30, 2003, MMC Norilsk Nickel's General Shareholder Meeting, which took place in Moscow.

The meeting approved the company's annual report and accounts for the year, including the profit and loss account, the allocation of MMC Norilsk Nickel's profits and losses for 2002 and accumulated profits for the previous years.

On the recommendation of the Board of Directors, the meeting voted for the allocation of RUR4.6 billion to the payment of dividends on MMC Norilsk Nickel shares entailing a dividend of RUR21.7 per share. This dividend payment (25% of 2002 IAS net income) is in line with the dividend policy, approved earlier by the Board of Directors, of paying out dividends of between 20 and 25 per cent of IAS net income.

In the report of the company's Board of Directors, which, along with other materials, was distributed at the meeting, it is pointed out that for the first time in the company's annual report contained the following information:

• The analysis of the company's achievements in 2002 and presentation of plans for 2003;
• The results of the company's operations: ore mined and the production of non-ferrous metals and semi-finished products;
• Management discussion and analysis section, based on the financial statements audited in accordance with International Accounting Standards;
• Audited financial statements in accordance with International Accounting Standards.

As the Chairman of the Board of Directors stated in the Annual Report, last year stands out in the history of MMC Norilsk Nickel in terms of achievement and progress. The company continued to pursue its long-term strategy aimed at creating shareholder value. The management team was strengthened, restructuring has been successfully completed, and work has continued to increase operational efficiency. Successful strategic deals have been undertaken such as the acquisition of the gold mining company ZAO "Polyus", which made MMC Norilsk Nickel the leading gold producer in Russia, and the acquisition of the Stillwater Mining Company, the largest producer of platinum group metals in the US. Work continues to bring corporate governance practice to the level of international standards. The company achieved strong financial results in a year of difficulties in the market for the one of the main metals – palladium.

The meeting elected the following candidates to the Board of Directors:

Andrei Burgov, Deputy Chairman of the Management Board of the Interros holding company;

Guy de Selliers, a member of the Board of Directors of Wimm-Bill-Dann and Solvay;

Vladimir Dolguikh, Chairman of the Board of the Krasnoyarsk Zemlyachestvo regional organization;

Andrei Klishas, General Director of the Interros holding company;

Vladimir Lisin, Chairman of the Board of Directors of the Novolipetskii Metallurgical Combine;

Mikhail Prokhorov, General Director of MMC Norilsk Nickel;

Leonid Rozhetskin, Deputy Chairman of the Management Board of MMC Norilsk Nickel;

Ronald Freeman, Honorary Co-Chairman of the International Tax and Investment Centre;

Heinz Schimmelbusch, Managing Director of the Safeguard International Fund.

At the first meeting of the Board of Directors Andrei Klishas, the General Director and Chairman of the Management Board of the Interros Holding Company, was named as a Chairman of the Board of Directors.

For the purposes of auditing Russian financial accounts the meeting re-confirmed Rosexpertiza company as MMC Norilsk Nickel's auditor.

In addition, the meeting approved remuneration and compensation of expenses of the independent directors, and the participation of MMC Norilsk Nickel in the following non-commercial organisations: the Euro-Asian Transportation Union, the US - Russia Business Council and the International Platinum Association.

Copyright © 2002 JSC MMC "Norilsk nickel"