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Russian mining giant Nornickel reports production decline of all key metals in Q2 2021

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(Kitco News) - Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announced today that in Q2 2021, its consolidated nickel output decreased 30% quarter-on-quarter (q-o-q) to 33 kt, most of which were produced from the company’s own Russian feed (31 kt, down 31% q-o-q).

The company said that decrease in nickel production was attributed to the temporary suspension of mining operations and subsequent restoration works at Oktyabrsky and Taimyrsky underground mines of the Norilsk division after the flooding caused by the inflow of groundwater, as well as the suspension at the Norilsk Concentrator and consequent repairs.

In Q2 2021, Nornickel’s consolidated copper production decreased 11% q-o-q to 81 kt. All of the copper produced in the reporting periods was produced from the company’s own feed. Copper production declined in the reporting period owing to the same causes as nickel as described above.

The company’s palladium and platinum output in Q2 2021 decreased 28% q-o-q to 548 koz and 27% q-o-q to 134 koz, respectively. All PGMs were produced from the company’s own Russian feed. The decline of PGM output in the second quarter was attributed to the same reasons as base metals as described above.

Senior Vice-President, Operations, Sergey Stepanov commented, «In Q2 and H1 2021, the output of all key metals reduced owing to one-off factors such as the temporary suspension of Oktyabrsky and Taimyrsky underground mines of the Norilsk division due to the natural groundwater inflow and an accident at Norilsk Concentrator. Currently, recovery of these assets is progressing by and large in line with the schedule.”

Nornickel added that the company reiterates its previously announced 2021 metal production forecast.

Norilsk Nickel (Nornickel) is a diversified mining and metallurgical company, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur and other products.

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