In 2016, Norilsk Nickel reduced the production of palladium by 2.64% compared with the previous year to 2.618 million ounces (81.428 tons), platinum - by 1.83% to 644 thousand ounces (20.031 tons), the company reports.
Dynamics of the Norilsk Nickel’s metal production:
|2016||2015||Change, %||Q4, 16||Forecast for 2017|
|palladium, thousand ounces||2 618||2 689||-2.64||633||2 636-2 732|
|platinum, thousand ounces||644||656||-1.83||154||581-645|
|nickel||235 749||266 406||-11.51||58 392||206-211|
|copper||369 426||360 217||+2.56||96 188||377-387|
* The forecast for 2017 indicates production only from own raw materials of the company.
In 2006, the palladium production from own material of Norilsk Nickel amounted to 609 thousand ounces (-1%), production of platinum - 145 thousand ounces (+ 1%). Overall, in 2016, the decline in the production of platinum group metals was associated with carrying out the reconfiguration of metallurgical facilities.
In 2016, the palladium production from the company’s own raw materials amounted to 2518 thousand ounces, which is more than the previously published forecast of 2296-2392 thousand ounces. The production of platinum from its own was also higher than the forecast (542-586 thousand ounces) and reached 608 thousand ounces. The increase in the actual production compared with the forecast was caused by the processing of raw materials residues, released after the close of the Nickel plant.
Nickel and copper
The main reason for the decline in the nickel production became the planned closure of the Nickel plant, the modernization of the Talnakh concentrator and the growth of the transport work in progress in the framework of the reconfiguration of metallurgical facilities. The nickel production from the company’s own raw materials made up 197 000 tons, which corresponds to the previously published forecast of the company in the amount of 195-200 thousand tons.
The decline in the copper production in the reporting period was due primarily to carrying out installation and commissioning works at the Talnakh concentrator and decrease in the copper content in the ore. The copper production from own material was 344 thousand tons, which corresponds to the previously published forecast of the company in the amount of 342-352 thousand tons.
In 2016, Russian divisions produced 2.554 million ounces of palladium (-2% compared to 2015) and 622 thousand ounces of platinum (the level of 2015). The decline in the platinum group metals production was caused by the reconfiguration of the production and the decrease in metals content in the processed raw materials.
In connection with the closing of the Nickel plant, since the fourth quarter of 2016 the entire nickel matte, produced at the Nadezhda metallurgical plant is sent for processing to the Kola mining and metallurgical company and Norilsk Nickel Harjavalta (Finland). The Kola company produced 42 thousand tons of commercial nickel in the fourth quarter of 2016.
In 2016, the volume of the nickel production in Russia amounted to 182 thousand tons, which is by 18% less than the results of 2015. The main factor of the decrease in the production was the full stop of the Nickel plant in the third quarter as part of the program of the metallurgical facilities reconfiguration.
In 2016, the copper production by the Russian divisions of the company amounted to 351 thousand tons, which is by 1% less than in 2015. The decrease was connected primarily with carrying out installation and commissioning works at the Talnakh concentrator and the decrease in the copper content in the ore in 2016.
Norilsk Nickel Harjavalta
In the fourth quarter 2016, the output of commercial palladium and platinum (in copper cake) made up 21 thousand ounces and 7 thousand ounces, respectively. During the year, the production of palladium and platinum amounted to 64 thousand ounces (-18%) and 22 thousand ounces (-33%), respectively. The decline was caused by the increased shipments of copper cake to the Kola mining and metallurgical plant.
In the fourth quarter of 2016, Norilsk Nickel Harjavalta produced 17 thousand tons of nickel, which is by 13% more than in the third quarter of 2016, the volume of the nickel production from Russian raw materials of the company made up 12 thousand tons, increased 2 times compared with the third quarter. Over the year, 54 thousand tons of nickel were produced, which is by 23% more than in 2015. The increase was connected with the increase in processing of Russian concentrate within the reconfiguration of metallurgical facilities, as well as with processing of raw materials purchased from third parties.
The output of commercial copper in the fourth quarter of 2016 made up 3 thousand tons, over the year the production fell by 26% to 10 thousand tons. The decline was caused by the increased shipments of copper cake to the Kola plant in 2016.
The share of Norilsk Nickel is over 13% of the world production of nickel, 2% of copper, almost 44% of the production of palladium and about 14% of platinum.