Nornickel reduced 6-month nickel production by 2% to 108 kt in 2020

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AK&M 31 July 2020 16:23

In January-June 2020, NorNickel reduced nickel production by 2% year-on-year to 108 thousand tonnes, the company informed.

The company's own Russian feed accounted for almost all of the output (107 kt, -1% y-o-y). The decline was attributed to hot commissioning of a refining shop using new chlorine leaching technology at Kola MMC. In 1H2020, carbonyl nickel output increased 41% y-o-y to 3.2 kt.

Total copper output for the 6-month period decreased 5% y-o-y to 240 kt, almost all of which were produced from the Company's own Russian feed. The decline was attributed to lower processing volumes of concentrate purchased from Rostec compared with 1H2019, as well as a decrease of copper production at Kola MMC due the short-term reduction of capacity utilisation rate of its smelting operations owing to unfavorable meteorological conditions in order to reduce

environmental impact. Bystrinsky Project was ramping up on schedule, having increased production of copper in concentrate by 49% y-o-y to 30 kt.

Palladium and platinum output amounted to 1,270 koz (-17% y-o-y) and 323 koz (-17% y-o-y), respectively. The decrease of PGMs was attributed mostly to a high base effect of 1H2019, when Krasnoyarsk Precious Metals Plant processed earlier accumulated work-in-progress inventory, the statement points out.

PJSC MMC Norilsk Nickel (tax number: 8401005730) is Russia's largest diversified mining and metallurgical company, the world's leading producer of nickel and palladium and one of major platinum, rhodium, copper and cobalt producer. Besides, the company produces a wide range of by-products including gold, silver, tellurium, selenium, iridium and ruthenium. The mining and processing assets of the MMC Norilsk Nickel group are located in the Norilsk industrial area, the Kola Peninsula as well as Finland, USA, Australia, Botswana, and RSA.

IFRS net profit of Norilsk Nickel for 2019 increased by 95% to $5.966 billion from $3.059 billion a year earlier. Consolidated revenue went up 16% to $13.6 billion, EBITDA increased by 27% to $7.9 billion.