On July 24, 2013 the Government signed a directive granting the Amur Prospecting Team the exploration rights to a section of federal mineral reserves that includes the southern sector of the Norilsk-1 ore field and is located in the Krasnoyarsk Territory, containing nickel, copper, cobalt and other associated minerals.
The tender for the exploration of this subsoil resources section was organised in accordance with Government Directive No 66-r dated January 27, 2012.
The Amur Prospecting Team and Norilsk Nikel Mining & Metallurgical Company were among the tender participants.
After considering the documents and information submitted by the bidders, the bidding committee declared the Amur Prospecting Team the winner of the tender.
Norilsk Nikel subsequently submitted grievances and appeals to the federal executive bodies and the Government, pointing out violations regarding the bidding procedure, and particularly, the biased assessment of the feasibility studies with regard to exploiting this mineral-deposit section made by the bidders.
Norilsk Nikel also went to court to appeal the legality of the procedure and the results of the tender organised by the Federal Subsoil Resources Management Agency.
The ruling of the Moscow Commercial Court dated February 15, 2013 and the ruling of the Ninth Moscow Commercial Court of Appeals dated June 13, 2013 dismissed Norilsk Nikel’s lawsuit.
The ruling of the Ninth Moscow Arbitrary Court of Appeals has entered into effect.
The mining tender was announced and organised in accordance with the norms of the Federal Law On Mineral Resources, which made possible the holding of auctions and tenders, through bidding, for the exploration rights to federal mineral deposits.
Therefore the decision of the Government to conclude the tender procedures and approve its results is legitimate due to the lingering nature of the bidding procedures and to the fact that a law cannot be applied retroactively. In addition, the final decision required a long and detailed examination of the feasibility study containing technical and economic parameters of exploiting and developing this mineral-deposit section made by the winning bid.
