Help Desk -
9958816305, 9810335381
Email
Password

Nornickel Announces Production Results for Q1 of 2020

Metal News - Published on Tue, 05 May 2020

Image Source: themoscowtimes.com
PJSC MMC Norilsk Nickel announced preliminary consolidated production results for the first quarter of 2020. Norilsk Nickel Chief Operating Officer Sergey Dyachenko said “In 1Q2020, the Company increased mine output 5% compared to last year. However, the volumes of saleable metals were affected by the pre-commissioning of the new chlorine leaching refining shop at Kola MMC. As a result, the Company built up temporarily nickel and (to a lesser extent) PGMs work-in-progress material inventories. In addition, PGMs’ volumes reduced relative to last year due to a high base effect of 1Q2019, when a substantial amount of earlier accumulated work-in-progress PGM inventory was released. Whereas the decrease in copper output was attributed to scheduled reduction in processing volumes of concentrate purchased from Rostec and its lower metal grades. At the same time, Bystrinsky project continued its ramp-up delivering a record 15 kt of copper in copper concentrate, up 21% from the fourth quarter 2019 and 51% higher than a year ago. We expect that saleable metal production volumes to recover during the rest of this year as the accumulated work-in-progress inventory will be released following the gradual ramp-up of the new refining shop at Kola MMC”.

In 1Q2020, consolidated nickel production decreased 7% year-on-year to 52 kt. Nickel output from the Company's own Russian feed decreased 7% to 51 kt. The decline was attributed to accumulation of work-in-progress inventory owing to the pre-commissioning of the new chlorine leaching refining shop at Kola MMC and a build-up of semis inventories at Norilsk Nickel Harjavalta to ensure uninterrupted production during a navigation break. As part of strategic diversification of sales into premium products, production of carbonyl nickel increased 39% y-o-y to 1.6 kt.

In 1Q2020, consolidated copper production decreased 9% y-o-y to 115 kt, almost all of which was produced from own Russian feed. The decline was attributed to lower processing volumes of concentrate purchased from Rostec and its lower copper content. This reduction was partly offset by increased mined ore volumes at Polar Division and expansion of copper production at Bystrinsky (Chita) Project to 15 kt (+51% y-o-y). This growth owed to the improvement of the grinding equipment productivity as the concentrator having been reaching its design parameters.

In 1Q2020, palladium and platinum output amounted to 548 koz (-29% y-o-y) and 150 koz (-26% y-o-y), respectively. The decrease of PGMs was attributed mostly to a high base effect of 1Q19 when the Company processed earlier accumulated work-in-progress inventory. The pre-commissioning of the new refining shop at Kola MMC, where precious metal concentrates are extracted from residue of chlorine leaching, has led to an increase of PGM work-in-progress inventory, which also contributed negatively to PGMs output.

Source :

Posted By : Rabi Wangkhem on Tue, 05 May 2020
Related News from Metal segment