Nornickel Maintains Stable Production in H1 2024 Amid Market Challenges
Nornickel has announced its production results for the first half of the year and the second quarter of 2024. According to its statements, the company's nickel smelting remained almost unchanged at 90,000 tons for January-June 2024. Copper output increased by 7% to 219,000 tons. Palladium output was stable at approximately 1.5 million troy ounces, while platinum production saw a slight decline to 356,000 troy ounces.
In the second quarter of 2024, Nornickel increased its nickel output by 15% to 48,300 tons, while copper output remained stable at 108,800 tons. Palladium and platinum production remained virtually unchanged at 735,000 and 138,000 troy ounces, respectively.
The company's production performance was influenced by ongoing projects at its enterprises. Notably, a weighted smelting furnace at the Nadezhda Metallurgical Plant was shut down for an overhaul. Concurrently, the depletion furnace of peripheral equipment was overhauled, improving the reliability of process units. Additionally, the electrolysis shop of Norilsk Nickel's Kola Division increased the production of premium-grade nickel used for smelting superalloys and electroplating.
Nornickel is among the world's largest producers of nickel, copper, platinum, and palladium. In 2023, it produced 209,000 tons of nickel, 425,000 tons of copper, 2.7 million troy ounces of palladium, and 664,000 troy ounces of platinum.
For 2024, Nornickel forecasts production of nickel in the range of 184,000-194,000 tons, copper at 334,000-354,000 tons, palladium at 2.296-2.451 million troy ounces, and platinum at 567,000-605,000 troy ounces. The company does not intend to significantly reduce the smelting of these metals despite the weakness in global prices caused by various factors, such as the uncontrolled growth of export supplies from Indonesia affecting nickel prices.
