OREANDA-NEWS. February 04, 2013. OJSC MMC Norilsk Nickel (hereinafter –“Norilsk Nickel”, “the Company” or “the Group”), the world’s largest nickel and palladium producer, announces preliminary consolidated production results for the fourth quarter and full year 2012 at the Polar and Kola Divisions in Russia, as well as at its international operations in Australia, Finland, Botswana and South Africa, reported the press-centre of Norilsk Nickel.

4Q 2012 Production Results

Nickel output was stable quarter-on-quarter (q-o-q) reaching 77.5 thousand metric tonnes.

Copper production decreased 6% q-o-q amounting to 90.0 thousand metric tonnes.

Palladium production totaled 655 thousand troy ounces.

Platinum output reached 156 thousand troy ounces.

FY 2012 Production Results

Nickel production increased 2% year-on-year (y-o-y) from 295.1 to 300.3 thousand tonnes, which is in line with the approved production plan. This growth was driven by the increase of nickel output at the Group's international divisions in Africa and Australia.

Copper production declined 4% y-o-y to 363.8 thousand tonnes due to the short delivery of raw materials to Kola MMC.

Palladium output was in line with the Company’s approved production plan reaching 2,731 thousand troy ounces.

Platinum output reached 683 thousand troy ounces. Though, it was 2% down as compared to 2011 results, the Company hit its platinum production target for the year.

Russian operations
In the fourth quarter of 2012, the Polar and Kola Divisions in Russia produced 60.1 thousand metric tonnes of nickel, which represents a 3% growth as compared to the third quarter of 2012. For twelve months of 2012, the saleable nickel production decreased 2% reaching 233.6 thousand tonnes.

The volumes of copper production in the fourth quarter of 2012 were 6% lower q-o-q as compared to the third quarter of 2012 and constituted 87.4 thousand metric tonnes. Full year 2012 copper output totaled 352.5 thousand metric tonnes representing a 3% decline as compared to the results of the previous year.

In the fourth quarter of 2012, the Polar and Kola Divisions produced 631 thousand troy ounces of palladium as compared to 678 thousand troy ounces in the previous quarter. Full year 2012 palladium output by the Russian divisions amounted to 2,628 thousand troy ounces, which is in line with the approved production plan.

The Russian divisions of the Company produced 153 thousand troy ounces of platinum in the fourth quarter of 2012 as compared to 170 thousand troy ounces of platinum in the previous quarter. For twelve months of 2012, the total volume of platinum production by the Russian divisions decreased by 2% amounting 660 thousand troy ounces.

Norilsk Nickel Finland
The Norilsk Nickel Harjavalta refinery in Finland produced 11 thousand metric tonnes of refined nickel in the fourth quarter 2012. For the full year 2012 NN Finland produced 45.5 thousand metric tonnes of saleable nickel (which is 3 thousand metric tonnes less than in 2011) due to the shortfall in delivery of nickel semi-products from 3rd parties.

Norilsk Nickel Australia
Lake Johnston produced 2.7 thousand tonnes of nickel in concentrate in the fourth quarter of 2012 and almost 9 thousand tonnes of nickel in concentrate for the full year.

Norilsk Nickel Africa
In the fourth quarter of 2012, the production of nickel in concentrate by Tati Nickel totaled 3.5 thousand metric tonnes. For the full year 2012 Tati Nickel produced 12.2 thousand metric tonnes of nickel in concentrate exceeding the results of 2011 by 31%. The growth was achieved by increased efficiency of ore processing as a result of the implementation of complex of measures aimed at improving the crushing stage and metal extraction.

The production of nickel in concentrate by Nkomati (reported on 50% basis) totaled 2.8 thousand metric tonnes in the fourth quarter of 2012. For 12 months of 2012, Nkomati produced 9.6 thousand metric tonnes of nickel in concentrate on attributable basis, demonstrating a 66% growth as compared to the previous year.

2013 Outlook
In 2013, Norilsk Nickel is targeting the production of 230-235 thousand metric tonnes of nickel at its Russian divisions and 45-50 thousand metric tonnes of nickel in Australia, Botswana, South Africa and Finland. The outlook for copper production is 355-360 thousand metric tonnes in Russia and 5-6 thousand metric tonnes of copper in concentrate and semi-products at the international divisions of the Group. The output of palladium in 2013 is expected to amount 2,600-2,610 thousand troy ounces at the Russian divisions and 25-30 thousand troy ounces at the international operations of the Group. The outlook for platinum production is 640-650 thousand troy ounces in Russia and 15-20 thousand troy ounces at the international divisions.