PJSC MMC Norilsk Nickel, the largest producer of palladium and high-grade nickel, as well as a major producer of platinum and copper, announced preliminary production results for the third quarter and nine months of 2023, as well as a production forecast for 2023.
"The production results of the first nine months of 2023 were mixed. We have increased the output of platinum group metals (PGMs) by increasing production at the Medvezhy Ruchey mine, raising the efficiency of PGM processing at our Kola division, as well as processing of accumulated stocks," said Sergey Stepanov, Senior Vice President and Production Director of Nornickel.
At the same time, according to him, production of nickel and copper decreased due to scheduled repairs of furnaces at the Nadezhdinsky Metallurgical Plant and the mill at the Talnakh processing plant, as well as setting up production to improve the quality of copper cathodes to meet new consumer requirements.
"During the third quarter, Norilsk Nickel produced and delivered a trial batch of premium quality nickel for the electroplating sector. The planned increase in the production of such products allows us to diversify and expand our sales markets," Stepanov said.
He added that in the third quarter, the company continued testing new mining equipment from "friendly" nations and conducted the planned replacement of outgoing equipment. Successful implementation of the program to replace mining equipment is an important condition for achieving the company's operational goals.
"Taking into account all the measures being implemented, we confirm the forecast for the production of metals from Russian raw materials within the previously announced range," Stepanov concluded.
In the third quarter of 2023, nickel production increased by 21% compared to the second quarter of this year to 54,000 tons. The reason is an increase in the supply of nickel matte accumulated in the second quarter during the inter-navigational pause at the Polar branch of the company.
In the first nine months of 2023, nickel production decreased by 9% compared to the same period last year to 145,000 tons, of which almost the entire volume was produced from the company's own raw materials. The decrease was due to the scheduled repair of furnaces at the Nadezhdinsky Metallurgical Plant, as well as mills at the Talnakh processing Plant during the first quarter of 2023.
Copper production in the third quarter of 2023 (including the Trans-Baikal Division) increased by 6% to 101,000 tons, made entirely from the company's own raw materials.
Similarly to nickel, copper production increased due to the fact that the inter-navigational period ended, while new electrolysis baths were put into operation after the planned maintenance of the Vanyukov furnace at the Copper Plant made it possible to achieve the projected levels of anode production.
In the first nine months of 2023, Norilsk Nickel produced 304,000 tons of copper, which is 4% less than in the same period of last year - mainly due to the adjustment of production to improve the quality of copper cathodes.
In order to meet the new requirements of its consumers, the Trans-Baikal Division of Norilsk Nickel continued to increase production according to plan. In the first 9 months of the year, copper concentrate production was up 2% compared to last year to 52,000 tons thanks to an increase in ore processing volumes.
In the third quarter of 2023, the production of palladium and platinum decreased due to lower grade PGM ore and amounted to 663,000 ounces, 13% less than in the second quarter, and to 160,000 ounces, a decrease of 14% compared to the second quarter, respectively. All metal was produced from the company's own raw materials.
In the first nine months of 2023, palladium production increased by 1% to 2,145,000 ounces, and platinum output was up 7% to 528,000 ounces, primarily due to higher-grade ore at the Oktyabrsky mine and an increase in PGM processing at both the refining and electrolyzing units at the Kola division, as well as usage of older stocks.
Alex Shishlo for Rough&Polished
