Norilsk Nickel Announces Results for 9 Months 2019
Time:Mon, 04 Nov 2019 06:43:18 +0800
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World’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper PJSC MMC Norilsk Nickel announced preliminary consolidated production results for the third quarter and the nine months of 2019. First Vice-President, Chief Operating Officer, Mr Sergey Dyachenko said that “In 9M19, the output of all of our core metals increased owing mainly to productivity improvements. The growth in nickel production was attributed to increased processing of high-grade matte from Polar Division, ramp-up of a refining shop with new chlorine leaching technology at Kola MMC, as well as higher production volumes of saleable metal at Norilsk Nickel Harjavalta driven by higher processing volumes of Russian material and feed from third parties. The increase in PGM production was mainly driven by higher output in 1Q19 due to release of accumulated work-in-progress inventory at Krasnoyarsk Precious Metals Refinery. In addition, the increase of PGM production by Norilsk Nickel Harjavalta was attributed to higher metal content in processed Russian feed. The increase in copper output primarily resulted from the ramp-up of Bystrinsky project, which was fully commissioned in September 2019.”
Nickel - In 3Q19, consolidated nickel production increased 7% QoQ to 57 kilo tonne, almost all of which was produced from own Russian feed. The growth was mainly attributed to increased production at Norilsk Nickel Harjavalta as the refinery recovered its capacity utilization rate to normal after the scheduled maintenance carried out in 2Q19. In 9M19, consolidated nickel production increased 6% YoY to 167 kilo tonne, with nickel output from the Company's Russian feed totaling 164 kilo tonne, up 6% YoY. The growth was attributed to the expansion of carbonyl nickel production at Kola MMC, increased refinery utilization rate, higher volumes of nickel matte shipped to Norilsk Nickel Harjavalta for further processing and processing of nickel feed supplied by a third party, Boliden.
Copper - In 3Q19, consolidated copper production decreased 3% QoQ to 121 kilo tonne, almost all of which was produced from the Company's Russian feed. The reduction was attributed to lower processing volumes of concentrate purchased from Rostec and trial shipments of copper concentrate from Kola MMC and Norilsk Nickel Harjavalta to Copper Plant at Polar Division for further refining in 4Q19. In 9M19, consolidated copper production increased 6% YoY to 372 kilo tonne, almost all of which was produced from the Company's Russian feed. The growth was driven by the ramp-up of Bystrinsky Project and higher volumes of copper concentrate produced at Kola MMC for the sale to third parties.
Platinum Group Metals - In 3Q19, palladium and platinum (both produced solely from the Company's Russian feed) output amounted to 720 koz (down 6% QoQ) and 164 koz (down 11% QoQ), respectively. Lower production was attributed to the commissioning of the new precious metals concentrate production line at the metallurgical shop at Kola MMC and trial shipments of copper cake (containing precious metals) from Norilsk Nickel Harjavalta to Polar Division for further processing. The new production line at Kola MMC is being launched as part of nickel refinery upgrade to a new nickel electrowinning technology, whereby precious metal concentrates will be produced from residue of chlorine leaching. In 9M19, palladium and platinum output amounted to 2,253 koz (up 7% YoY) and 553 koz (up 8% YoY), respectively. The increase of PGMs output was attributed to the release of work-in-progress inventory at Krasnoyarsk Precious Metals Refinery, higher PGM content in the Russian feed and processing of the feed purchased from third parties at Norilsk Nickel Harjavalta.
