Russian Mining Giant Slashes Nickel Output By 23% Over Suspension Of Production

(@FahadShabbir)

Russian Mining Giant Slashes Nickel Output by 23% Over Suspension of Production

Russian metals producer Norilsk Nickel (Nornickel) said on Wednesday that it was forced to cut back on production of nickel by 23% to 130,000 tonnes, and the output of palladium by 7% to 1,913 million ounces in the first three quarters of this year after suspension of its underground mines and production facilities

MOSCOW (UrduPoint News / Sputnik - 20th October, 2021) Russian metals producer Norilsk Nickel (Nornickel) said on Wednesday that it was forced to cut back on production of nickel by 23% to 130,000 tonnes, and the output of palladium by 7% to 1,913 million ounces in the first three quarters of this year after suspension of its underground mines and production facilities.

Platinum output dropped by 10%, to 463,000 ounces, while copper production decreased by 20%, to 288,000 tonnes, the company said.

"In 9M 2021, the output of all key metals decreased owing to the temporary suspension of Oktyabrsky and Taimyrsky underground mines and Norilsk Concentrator. Over this period, production volumes of saleable nickel and copper reduced more relative to platinum group metals due to the shorter production cycle from ore to refined metal of the former," Nornickel Senior Vice President of Operations, Sergey Stepanov was quoted as saying.

At the same time, nickel and copper volumes recovered faster relative to platinum group metals (PGM) from July-September, he added.

A major reduction in work-in-progress in transit materials and a rise in PGM production in the first quarter of 2021 also helped to partly neutralize the negative impact of temporary suspension of operations during the period from January-September, Stepanov further explained.

In the third quarter of this year, nickel output increased by 55% compared to the previous quarter, to 51,000 tonnes, copper saw a rise of 42% up 116,000 tonnes. Palladium output increased by 9% to 598,000 ounces, and platinum by 8% to 145,000 ounces.

"Taking into account the current progress in the recovery of the production facilities of the Norilsk division, we reiterate 2021 metal production forecast for nickel and copper within the earlier announced range, while flagging up an upside risk for PGM volumes, which are expected at the top end of the guided range," Stepanov said.

The forecast in question, announced earlier this year stipulates nickel output in 2021 reaching 200,000 tonnes, copper production will amount to 355,000 tonnes (excluding Bystrinsky mining and processing plant), while palladium output will equal 2.35-2.41 million ounces, and platinum - up 640,000 ounces.