Nornickel improves 2021 production outlook

Image courtesy of Nornickel

Russian metals producer Nornickel has improved its 2021 production forecast slightly as one of its mines is resuming work ahead of schedule after flooding, the company said in a statement on Monday.

Nornickel, the world’s largest palladium producer and a leading nickel producer, downgraded its 2021 output forecast by 15%-20% in March due to inflow of water to two its mines, which account for 36% of ore mined by the company in Russia.

Nornickel currently expects to produce 190,000-200,000 tonnes of nickel and 335,000-355,000 tonnes of copper in 2021. Its 2021 palladium production is expected at 2.35 million-2.41 million troy ounces of palladium and 580,000-640,000 ounces of platinum, it said.

Its Oktyabrsky mine will resume full production this month after flooding and is already running at 60% capacity. Its Taimyrsky mine is scheduled to resume production in early June.

This incident and another one – partial collapse of its processing plant during maintenance in February – affected Nornickel’s production of nickel and copper in the first quarter, it added.

Its January-March nickel production fell by 10% year on year to 46,639 tonnes, while copper output was down by 21% to 91,292 tonnes.

However, its output of platinum group metals rose due to the ramp-up of a new production line: palladium output increased by 40% to 766,000 ounces and platinum by 23% to 184,000 ounces.

(By Polina Devitt; Editing by Steve Orlofsky)

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