Norilsk Cuts '09 Nickel Output Forecast, Ups Palladium

MOSCOW, Nov. 2 -- Russian metal company Norilsk Nickel (GMKN.MM: Quote), said on Friday it had cut its nickel output forecast for 2009 to 284,000 tonnes from 285,000-300,000 tonnes but gave no reason.

    The world's top producer of nickel and palladium also raised its 2009 forecast for palladium production to 2.850 million ounces from 2.685-2.710 million ounces and platinum output to 668,000 ounces from 615,000-640,000 ounces.

    Norilsk, also an important miner of other metals, said it would produce 402,000 tonnes of copper this year, which is in line with a previous forecast of 385,000-405,000 tonnes.

    Norilsk said in a statement its output of nickel declined in the first nine months of this year to 207,454 tonnes from 218,474 tonnes in the same period a year ago.

    The fall was due to repairs at its Harjavalta plant in Finland in July and August and a halt at its Australian assets.

    Norilsk produced 2.059 million ounces of palladium in January-September this year, down from 2.124 million ounces in the first nine months of 2008, the statement said.

    Platinum output in the first nine months of this year was 488,000 ounces, down from 495,000 ounces a year ago, copper output fell to 297,115 tonnes from 316,639 tonnes a year ago.

    In December, Norilsk said it would cut metals output in 2009 as demand fell due to the global economic crisis.

    In May, Norilsk trimmed its output forecasts for 2009, as it had to halt some of its foreign production units. It said it intended to keep output at its key units in Russia steady.

    Norilsk said nickel production in the third quarter of 2009 was 66,703 tonnes, down from 75,067 tonnes in the third quarter of 2008. Copper production in the third quarter of 2009 was 101,608 tonnes, down from 108,593 tonnes a year ago.

    Palladium output rose to 704,000 ounces from 686,000 ounces and platinum to 173,000 ounces from 157,000 ounces.

    United Company RUSAL, the world's top aluminium producer, holds a 25 percent-plus-two-shares stake in Norilsk. The stake is deposited as collateral with state-owned bank VEB.

    Interros, an investment vehicle of billionaire Vladimir Potanin, holds a stake of 25 percent plus one share.

    (Source: Reuters)