Norilsk Nickel said its production of palladium could decline in 2018
Nornickel, part-owned by Russian tycoon Vladimir Potanin and aluminium giant Rusal, previously said its production of nickel and platinum group metals would be unchanged with rising copper output in 2018-2020.
The company completed the main phase of its downstream reconfiguration programme in 2017 and plans active modernisation and expansion of capacity at its Kola nickel refining operations in 2018.
Nornickel, which competes with Brazil’s Vale SA for the rank of the world’s top nickel producer, experienced a fall in consolidated production of nickel as its reconfiguration led to a reduction of low-margin processing of third parties’ feed at Norilsk Nickel Harjavalta in Finland.
Its output of copper and platinum group metals rose in 2017 mainly due to the processing of concentrate it previously purchased from state conglomerate Rostec.
This year Nornickel plans to produce from Russian feedstock 210 000 t to 215 000 t of nickel, 400 000 t to 420 000 t of copper, 2.6-million to 2.7-million troy ounces of palladium and 600 000 oz to 650 000 oz of platinum.
In 2017, consolidated nickel production was 217 112 t, down 8% year-on-year, and consolidated copper output was 401 083 t, up 11%. Its palladium and platinum production was 2.8-million ounces, up 6%, and 670 000 oz, up 4%, respectively.