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[quarterly report] Nornickel: Comprehensive Nickel production fell 7% in the first quarter of 2020 compared with the same period last year
May 7,2020 10:33CST
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SMM5, March 7: (Nornickel) of Norilsk Nickel Company of Russia recently released its results for the first quarter of 2020. Sergey Dyachenko, director of operations of the first vice president, said that the outbreak of COVID-19 has not yet had a negative impact on our operations. In the first quarter of 2020, the company's mine production increased by 5% over last year. However, the number of Coke metals is affected by the trial operation of the Coke MMC new chlorine leaching plant. As a result, the company has temporarily established a work-in-process bill of materials for nickel and (to a lesser extent) PGM. In addition, PGM sales fell compared with last year, due to the high base effect in the first quarter of 2019, when a large number of earlier accumulated work-in-process PGM inventories were released. We expect that with the gradual expansion of the new Coke MMC refinery, cumulative production of saleable metals will resume for the rest of the year as accumulated work-in-process stocks will be released. "

Production situation:

Norilsk Nickel Group

In the first quarter of 2020, combined nickel production fell 7 per cent to 52 kt from a year earlier. Production of nickel, the company's own Russian raw material, fell 7 per cent to 51 kt. The decrease is due to the construction of a new chlorine leaching refinery in Cora MMC and the establishment of a semi-refining inventory in Norilsk Nickel Harjavalta to ensure uninterrupted production during the break, resulting in the accumulation of work-in-process inventory. As part of a diversified sales strategy for advanced products, production of carbonyl ji nickel increased by 39 per cent to 1.6 kt compared with the same period last year.

Russian business

In the first quarter of 2020, all marketable metals produced by the company's Russian business came from its own raw materials. Coke MMC nickel production fell 10 per cent to 35 kt in the first quarter of 2020 from a year earlier. The decrease is due to the commissioning of the new chlorine leaching refinery in Cora MMC and the increase in semi-finished product stocks in Norilsk Nickel Harjavalta to ensure uninterrupted production and accumulation of work-in-process inventory during the break.

Norilsk Nickel Haryavata (Finland)

The nickel production of, Norilsk Nickel Harjavalta in the first quarter of 2020 was 17 kt, which was basically unchanged from the same period last year.

Nkomati (Southern Africa)

In the first quarter of 2020, 50 per cent of, Nkomati (was owned by Norilsk Nickel) producing 1.3 kt nickel (- 43 per cent year-on-year), 0.6 kt copper (- 44 per cent year-on-year), 7.1 oz palladium (- 33 per cent year-on-year) and 2.7k oz platinum (- 38 per cent year-on-year). The decline in nickel and palladium production and the increase in copper and platinum production were attributable to the decision to reduce ore production in 2020. In the future, Norilsk Nickel Mine and its operating partner, African Rainbow Mining, plan to maintain and maintain the mine.

Production guidance for 2020:

 

 

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