CZP monitors current Russian and international environmental legislation, in order to comply with current regulations and implement any necessary remedial actions. The Company seeks to anticipate potential issues, and it is generally able to implement measures to address problems at a relatively early stage.

The Company has implemented programs to reduce the impact of its operations on the environment. For example, there was introduced a closed cycle water management policy in order to reduce both the volume of water consumed and the volume of water that is discharged externally. As a result, CZP currently recycles approximately 97% of the 4.5 thousand cubic meters of water that it uses each day in the production process. The Company has also reduced the sulphur dioxide content of emissions from the plant. Between 1999 and 2005, as a result of the plant’s upgrading, the volume of atmospheric emissions per tonne of zinc produced went down from 39.7 kilograms to 24.1 kilograms.

In 2005, the Company’s zinc and zinc alloy production process was certified for compliance with EN ISO 9001:2000 standards by the German certification agency TÜV NORD. In July 2006, CZP environmental management system at its production facilities in Chelyabinsk was certified for compliance with ISO 14001:2004 standards by the French certification agency BVQI.