OREANDA-NEWS. May 03, 2011. OJSC MMC Norilsk Nickel (hereinafter – “Norilsk Nickel”, “the Company” or “the Group”), the world’s largest nickel and palladium producer, announces preliminary consolidated production results for the first quarter of 2011 at the Polar and Kola Divisions in Russia and international operations in Finland, Botswana and South Africa, reported the press-centre of Norilsk Nickel.
 
Overall nickel production in the first quarter of 2011 amounted to 71 thousand metric tonnes, being largely in line with the results of the first quarter of 2010. Minor increase of nickel output was driven by higher loading rate of Norilsk Nickel Harjavalta nickel refinery (+31% as compared to the same period of previous year), nickel production at the Russian divisions of the Group remained mostly unchanged, while African divisions of the Group demonstrated certain decline in nickel output.

Overall copper production in the first quarter of 2011 totaled 94 thousand metric tonnes as compared to 97 thousand metric tonnes in the first quarter of 2010. The small decline in overall copper output was driven by the decreased production of this metal at all divisions of the Group. In general, the production results of the first quarter of 2011 are in line with Company’s annual production outlook for 2011.

Overall nickel production in the first quarter of 2011 amounted to 71 thousand metric tonnes, being largely in line with the results of the first quarter of 2010. Minor increase of nickel output was driven by higher loading rate of Norilsk Nickel Harjavalta nickel refinery (+31% as compared to the same period of previous year), nickel production at the Russian divisions of the Group remained mostly unchanged, while African divisions of the Group demonstrated certain decline in nickel output.

Overall copper production in the first quarter of 2011 totaled 94 thousand metric tonnes as compared to 97 thousand metric tonnes in the first quarter of 2010. The small decline in overall copper output was driven by the decreased production of this metal at all divisions of the Group. In general, the production results of the first quarter of 2011 are in line with Company’s annual production outlook for 2011.

 In the first quarter of 2011, copper production by the Russian divisions of the Group slightly decreased as compared to the same period of 2010 and amounted to 89.9 thousand metric tonnes. These results are matching the annual production outlook for cooper production.

In the first quarter of 2011, the production of palladium at the Polar and Kola Divisions remained flat as compared to the first quarter 2010 and totaled 652 thousand troy ounces, exceeding to some extent the approved production plan.

The Russian divisions of the Group produced 164 thousand troy ounces of platinum in the first quarter of 2011 as compared to 154 thousand troy ounces in the first quarter of the previous year, surpassing the approved production plan for 2011, as well.

The Norilsk Nickel Harjavalta nickel refinery in Finland produced 11.7 thousand metric tonnes of refined nickel in the first quarter of 2011, beating production results of the same period of the previous year by 31%. The increase in output of refined nickel was driven by substantial growth of the refinery loading rate, partially due to deliveries of nickel semi-products (matte) from third-parties.

In the first quarter of 2011, the production of nickel in concentrate by Tati Nickel totaled 2.4 thousand metric tones. In the reporting quarter, there were no deliveries of nickel in concentrate from Tati Nickel to the Norilsk Nickel Harjavalta refinery. Results of the reporting quarter were affected by changes in mineralogical structure of ore mined, causing the decline of output of nickel in concentrate and by-products (copper, platinum and palladium), as compared to the first quarter of 2010. Another reason of decreased production was the execution of industrial tests on treatment of stockpiled tailings of magnetic separation.

In the first quarter of 2011, the production of nickel in concentrate by Nkomati (reported on 50% basis) amounted to 1.5 thousand metric tonnes, which were entirely shipped to the Norilsk Nickel Harjavalta refinery for further processing. The production results of Nkomati were affected by rain season factor and by treatment of lower grade ore.