JOHANNESBURG (miningweekly.com) – Russian miner Norilsk Nickel has substantially increased its second-quarter platinum group metals (PMGs) production, while nickel volumes decreased in the three months under review.
Group palladium production increased by 41% quarter-on-quarter to 781 000 oz and platinum production rose by 46% quarter-on-quarter to 190 000 oz, the miner reported on Monday.
Palladium production from Norilsk Nickel’s Russian operations amounted to 759 000 oz and platinum production amounted to 183 000 oz.
The higher second-quarter PGM output was attributed to the processing of precious metal concentrate, which was accumulated in the first quarter as work-in-progress material in transit from the Polar to Kola division and at the Krasnoyarsk precious metals plant.
In the half-year period, palladium production was unchanged at 1.33-million ounces and platinum production fell by 4% to 320 000 oz.
Norilsk Nickel reported that an 8% quarter-on-quarter decrease in nickel production, to 49 000 t, was mainly owing to scheduled maintenance at the Harjavalta refinery, in Finland, and the termination of processing of Nkomati concentrate, in South Africa.
Overall, half-year nickel production decreased by 15%, to 103 000 t, as a result of lower-margin processing of third-party feed. Nickel output from Russian operations decreased by 1% to 98 000 t in the first six months of the year, which the company said was the result of the reconfiguration of downstream production facilities at the Polar division in the third quarter of 2016, and as a result, an increase of work-in-progress material.
The company idled its out-dated nickel plant at the Polar division in August last year and now only produces saleable nickel at the Kola plant and at Harjavalta.
The group’s production guidance for 2017 remains unchanged at 206 000 t to 211 000 t of nickel, 377 000 t to 387 000 t of copper, 2.64-million to 2.73-million ounces of palladium and 581 000 oz to 645 000 oz of platinum.