RUSSIA’S Nornickel expects a further decline in nickel and palladium output this year, according to a report by Reuters on Monday.
Nornickel expects further decline in nickel, palladium in 2024
Citing Nornickel’s senior vice-president and operational director Sergey Stepanov, the newswire said the company expected the company expects 184,000 to 194,000 tons in nickel output compared to 209,000 tons in 2023. Production in 2023 was 5% down on lower than 2022 owing to adverse geopolitical risks and postponed furnace repairs.
CEO Vladimir Potanin said last year that sanctions had constrained Nornickel’s development, though Western governments have refrained from targeting Nornickel directly in response to the conflict in Ukraine.
Palladium output dropped by 4% in 2023 to 2.692 million ounces, Nornickel said. This year, palladium output is seen at 2.296 to 2.451 million oz.
“After testing and gradual roll-out of equipment from new suppliers, our mines recovered to the scheduled mining volumes in the fourth quarter,” said Stepanov.
“In 2024, we expect that risks related to an adverse geopolitical situation will continue to impact our operations,” he said. “Furthermore, this year we are planning capital repairs of the flash smelting furnace #2 at Nadezhda Metallurgical Plant.”
Repairing the furnace, which has been delayed for two years due to issues with the supply of equipment, is now expected in mid-2024, Stepanov said. Nornickel did not say whether it has found equipment suppliers.
Platinum output rose 2% in 2023 to 664,000 oz and is seen falling to 567,000 to 605,000 oz in 2024, Nornickel said.
