OREANDA-NEWS. August 02, 2012. 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 second quarter of 2012 and first half of 2012 at its Polar and Kola Divisions in Russia and international operations in Finland, Australia, Botswana and South Africa, reported the press-centre of Norilsk Nickel.

Overall saleable nickel production in the second quarter of 2012 amounted to 69.6 thousand metric tonnes comparing to 75.8 thousand metric tonnes in the first quarter of 2012. The overall production volumes in the reporting period decreased mostly due to short delivery of raw materials from third parties to the Harjavalta nickel refinery in Finland (-5.1 thousand tonnes of nickel as compared to the first quarter of 2012). In the first half of 2012 nickel production totaled 145.4 thousand metric tonnes, representing a 7% growth as compared to the first half of 2011 mostly due to the production growth at Russian Divisions of the Group. 

Overall saleable copper production in the second quarter of 2012 increased by 2% as compared to the first quarter of 2012 and amounted to 89.8 thousand metric tonnes. The growth of copper output at Russian Divisions was partially offset by output decreases at Group’s international operations. In the first half of 2012, the copper production totaled 178 thousand tonnes being fully in line with the approved production plan.

In the reporting quarter the Company produced 729 thousand troy ounces of palladium, representing an 80 thousand troy ounces growth as compared to the first quarter of 2012. The increase in palladium output in the second quarter of 2012 was largely driven by the growth of production at Russian Divisions of the Company. In the first half of 2012 the overall output of palladium totaled 1,378 thousand troy ounces being in line with the production plan.

Overall platinum output in the reporting period reached 186 thousand troy ounces (+20 thousand ounces as compared to the first quarter of 2012) mostly due to the strong performance of Russian Divisions. In general, in the first half of 2012 the Company produced 352 thousand troy ounces of platinum.

 In the second quarter of 2012 the Polar and Kola Divisions in Russia produced 56.5 thousand metric tonnes of nickel. In the first half of 2012 nickel production totaled 115.1 thousand metric tonnes which represents a 4% increase in comparison with the first half of 2011.

In the second quarter of 2012 copper production of Russian Divisions of the Company increased to 87 thousand metric tonnes. In the first half of 2012 production of copper totaled 172 thousand metric tonnes, being largely in line with the Company’s production plan.

In the reporting period palladium production at the Kola and Polar Divisions amounted to 706 thousand troy ounces, which is 94 thousand troy ounces higher as compared to the results of the first quarter of 2012 and exceeds the production plan. In the first half of 2012 the output of palladium totaled 1,318 thousand troy ounces.

Russian Divisions of the Company augmented platinum output in the second quarter of 2012 by 24 thousand troy ounces up to 180 thousand troy ounces. In general, in the first half of 2012 the Polar and Kola Divisions produced 337 thousand troy ounces of platinum.

In the second quarter of 2012 the Harjavalta nickel refinery in Finland produced 8 thousand metric tonnes of nickel which is slightly below the plan. The main reason for certain underperformance is short deliveries of feedstock from third parties. In the first half of 2012 the Harjavalta refinery produced 21 thousand metric tonnes of nickel representing a 3% growth as compared to the first half of 2011.

In the second quarter of 2012 Lake Johnston, an Australian operation of the Group, increased the output of nickel in concentrate up to 2.5 thousand metric tonnes. In the reporting quarter the Group completed the in-house research and development works on improvement of enrichment technology enabling growth of nickel recovery in concentrate. In the first half of 2012 the production of nickel in concentrate totaled 4 thousand metric tonnes.

In the second quarter of 2012 Tati Nickel produced 2.8 thousand metric tonnes of nickel in concentrate improving the results of the first quarter of the current year by 7%. In the first half of 2012 nickel output in concentrate by Tati Nickel totaled 5.4 thousand metric tonnes thanks to stable performance of the enrichment plant and optimisation of reagent flows in the floatation process. In the meantime, the content of by-products in concentrate produced decreased due to changes in the mineralogy of processed materials.

The Group’s share in the production volumes of nickel in concentrate by Nkomati (50%) in the second quarter of 2012 was 2.3 thousand metric tonnes, which is 29% higher than in the previous quarter of 2012. High production results were achieved thanks to normalised performance of enrichment plants and increased nickel grades of treated ore. In the first half of 2012 the Group’s share in the production volumes of Nkomati achieved 4 thousand metric tonnes of nickel in concentrate. In the reporting periods all concentrate of Nkomati was shipped for further treatment to the Harjavalta nickel refinery.