Nornickel Increases Production of Non-Ferrous Metals in Q3 2024
Nornickel released its production results for the first nine months and the third quarter of 2024, showing mixed trends across different metals. From January to September 2024, nickel production rose by 0.3%, reaching 146.2 thousand tons, while copper output increased significantly by 7%, totaling 326.1 thousand tons. Palladium production also saw a slight increase of 1%, totaling 2.2 million troy ounces, whereas platinum output decreased by 1% to 521 thousand troy ounces.
The third quarter of 2024, however, presented a different scenario. Nickel production jumped by 16% to 55.8 thousand tons, largely due to the restart of the weighted smelting furnace No. 2 at the Nadezhda smelter after a major overhaul, which increased its capacity by 25%. Conversely, copper production fell by 1% to 107.5 thousand tons, while palladium and platinum production both dropped by 8%, to 696 thousand troy ounces and 165 thousand troy ounces, respectively. The decline in copper and precious metal output was partly attributed to adjustments and overhauls in the production facilities.
Nornickel continues to produce premium-grade nickel products, such as Nornickel Plating Grade, used in electroplating, and Nornickel High Purity nickel for superalloy production. Additionally, renovation work at the Kola MMC carbonyl nickel department has been completed, allowing for the production of specialized nickel powders.
In September 2024, Nornickel opened the Battery Technology Center, which is focused on developing nickel-based cathode materials for batteries. The center's work is expected to pave the way for future projects aimed at creating battery materials production facilities.
October also marked the start of trading for Nornickel's platinum and palladium on the Moscow Exchange, which has attracted interest from a variety of investors. Palladium, in particular, has emerging applications in industries such as hydrogen power generation, which could boost future demand.
Meanwhile, Nornickel is advancing its Sulfur Program, an environmental initiative designed to reduce sulfur dioxide emissions at the Nadezhda Smelter. Investments in the approximately $1.9 billion USD.
In 2023, Nornickel produced 209 thousand tons of nickel, 425 thousand tons of copper, 2.7 million troy ounces of palladium, and 664 thousand troy ounces of platinum. By the end of 2024, the company forecasts nickel production in the range of 184-194 thousand tons, copper at 334-354 thousand tons, palladium at 2.296-2.451 million troy ounces, and platinum at 567-605 thousand troy ounces.
