In 4Q21, consolidated nickel output increased 25% quarter-on-quarter (q-o-q) to 63 kt, and practically all of which were produced from the Company’s own Russian feed (62.7 kt). The increase in production was attributed to the recovery of Oktyabrsky (5 mtpa of ore) and Taimyrsky (4.3 mtpa of ore) mines, as well as the ramp-up of the Norilsk Concentrator as a result of the launch of mobile crushers.
In 2021, consolidated nickel production decreased 18% year-on-year (y-o-y) to 193 kt. The decrease in production was attributed to the temporary suspension of mining operations at Oktyabrsky (recovered to full capacity in May 2021) and Taimyrsky (recovered to full capacity in December 2021) mines after the flooding caused by the inflow of underground water, as well as the temporary suspension of the Norilsk Concentrator and consequent repairs (fully recovered in December 2021).
In 2021, nickel output from the Company’s own Russian feed amounted to 190 kt, at the low end of the 190-200 kt production guidance for 2021.
In 4Q21, palladium and platinum output increased 18% q-o-q to 704 koz and 23% q-o-q to 178 koz, respectively. In 2021, palladium and platinum output reduced 7% y-o-y to 2,616 koz and 8% y-o-y to 641 koz, respectively. The changes in PGM production volumes in the reported periods were attributed to the same reasons as nickel described above. However, owing to the longer production cycle from mining to final products of platinum group metals compared to base metals, the recovery of mines in the 3Q21 led to a significant increase in the production of platinum group metals only in 4Q21.
In 2021, palladium and platinum output from the Company’s own Russia feed amounted to 2,616 koz and 641 koz, respectively, which was above the production targets for palladium of 2,350-2,410 koz and 580-640 koz for platinum, respectively.
Senior Vice-President — Operational Director, Sergey Stepanov commented on the 1H2022 production results: “In 1H2022, we increased the output of all key metals compared to the same period last year. The company successfully passed the inter-navigation season owing to duly accumulated stocks of raw materials.
We continued to implement the modernization program at Norilsk Concentrator in order to improve the reliability and safety of operations and to stabilize the processing of raw materials to ensure reaching its design capacity. In the second quarter, Norilsk Nickel Harjavalta carried out an annual scheduled repair of equipment and in June the enterprise has fully resumed its operations.
One of the key risks that might affect our production plans remain the supply disruption of high-performance equipment and spare parts. To manage these risks Nornickel held First Arctic Region’s import substitution forum. During the two-day event we explored capabilities of domestic business to meet the needs of Norilsk Nickel and Russia’s other largest companies for materials and equipment.
About 200 forum attendees from more than 100 largest industrial companies from Russia, Kazakhstan and Belarus, as well as federal, regional and municipal government representatives visited Norilsk during the forum.
Taking into account the ongoing measures to minimize the negative implications from the geopolitical situation, we reiterate previously announced production guidance from own Russian feed for FY2022”.
ABOUT THE COMPANY
MMC Norilsk Nickel 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 and other products.
The production units of Norilsk Nickel Group are located at the Norilsk Industrial District, on the Kola Peninsula and Zabaykalsky Krai in Russia as well as in Finland.
MMC Norilsk Nickel shares are listed on the Moscow and on the Saint-Petersburg Stock Exchanges, ADRs are accepted for trading on the Saint-Petersburg Stock Exchange.
Norilsk Nickel fully supports the 2030 Agenda for Sustainable Development and the UN Sustainable Development Goals. The Company considers social responsibility and commitment to the principles of sustainable development as one of the pillars of operational efficiency and business development. Nornickel seeks to continuously improve its activities in the areas of environmental protection, human rights, health and safety, environmental impact assessment, and biodiversity preservation. The company spent RUB 221.5 billion on SDG-linked projects in 2021.
Vladimir Malakhov, Rough&Polished
