OREANDA-NEWS. February 01, 2010. OJSC MMC Norilsk Nickel (hereafter – “Norilsk Nickel”, “the Company” or “the Group”), the world’s largest nickel and palladium producer, announced preliminary consolidated production results for the fourth quarter of 2009 and full year 2009 at its Polar and Kola Divisions in Russia and international operations in Finland, Australia, Botswana and South Africa, reported the press-centre of Norilsk Nickel.

Overall saleable nickel production for 12 months 2009 decreased to 282.9 thousand metric tonnes compared to 300.6 thousand metric tonnes for 12 months 2008, while Russian operations demonstrated stable levels of nickel production – 232.8 thousand metric tonnes.

Group’s overall decline in nickel production is primarily explained by refining capacity underutilization at the Harjavalta plant due to disruptions in deliveries of raw materials by Talvivaara Mining Company Plc.

Overall saleable copper production for 12 months 2009 decreased to 402 thousand metric tonnes compared to 419 thousand metric tonnes in 2008. The decline in overall copper output is attributable to the anticipated reduction of copper production at the Polar Division and Kola MMC, where 382.4 thousand metric tonnes of copper were produced in 2009. At the same time, production results of Russian divisions surpassed initial outlook amounting to 375 thousand metric tonnes.

The Group produced 2,805 thousand troy ounces of palladium and 661 thousand troy ounces of platinum for 12 months 2009, exceeding production results of 2008 and initial forecasts for 2009.

The Polar Division and Kola MMC produced 63.5 thousand metric tonnes of nickel and 100.4 thousand metric tonnes of copper in fourth quarter of 2009, beating the approved production plan. Full year nickel production totaled 232.8 thousand metric tonnes, copper production – 382.4 thousand metric tonnes.

Palladium production in fourth quarter of 2009 amounted to 724 thousand troy ounces and platinum production reached 169 thousand troy ounces. Full year PGMs’ production of the Polar Division and Kola MMC totaled 2,676 thousand troy ounces of palladium and 636 thousand troy ounces of platinum.

In the fourth quarter of 2009, the Harjavalta refinery in Finland produced 9.9 thousand metric tones of nickel, including 8.5 thousand metric tonnes of own saleable nickel and 1.4 thousand metric tones of tolled nickel. In the reporting period Tati Nickel shipped to the Harjavalta plant for further processing 2.2 thousand metric tonnes of nickel in concentrate, 1.6 thousand metric tonnes of copper in nickel concentrate, 13 thousand troy ounces of palladium in nickel concentrate and 2 thousand troy ounces of platinum in nickel concentrate.

Full year output of the Harjavalta refinery amounted to 40.8 thousand metric tonnes of nickel, including 28.5 thousand metric tonnes of own saleable nickel and 12.3 thousand metric tonnes of tolled nickel. Reduced production results of the Harjavalta plant in 2009 compared to 2008 are mostly owned to disruptions in deliveries of raw materials by Talvivaara Mining Company Plc. Moreover, the Group was substituting nickel concentrate, previously shipped from Australian operations of the Group, by the nickel concentrate of Tati Nickel.

In the fourth quarter of 2009, the overall combined production of nickel in concentrate by Tati Nickel and Nkomati totaled 5.7 thousand metric tonnes, including amounts of concentrate shipped for further processing to other entities of the Group. Full year production reached 22.6 thousand metric tonnes of nickel in concentrate, including intragroup shipments.

In the fourth quarter of 2009 no mining and metallurgical works were performed at the Australian operations of the Group. Full year results of Australian operations, before they were placed on care and maintenance mode, totaled 1.2 thousand metric tonnes of nickel in concentrate.

In 2010, the Group is envisaging to produce ca. 234 thousand metric tonnes of nickel at its Russian operations and 65-75 thousand metric tonnes of nickel at the Norilsk Nickel International operations. The copper output is expected to amount to ca. 363 thousand metric tonnes in the Russian Federation and to 30-35 thousand metric tonnes at the Norilsk Nickel International operations. Also, the Company intends to produce ca. 2,715 thousand troy ounces of palladium at its Russian operations and 115-120 thousand troy ounces at the Norilsk Nickel International operations.

The  platinum output is expected to total ca. 655 thousand troy ounces in the Russian Federation and 35-40 thousand troy ounces at the Norilsk Nickel International operations.

The stated production volumes and the production outlook for 2010 do not include the production figures of Stillwater Mining Company – subsidiary of Norilsk Nickel.