MOSCOW - Russian metals producer Nornickel on Monday said it expected another drop in nickel output in 2024, following on from a 5% fall last year, as geopolitical risks continue to affect the company's operations.
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.
Nornickel, the world's largest palladium producer and a major producer of refined nickel, said its nickel production fell to 209 000 metric tons last year. In 2024, the company said it expects nickel output at 184 000 to 194 000 tons.
Palladium output dropped by 4% in 2023 to 2 692 koz, Nornickel said. This year, palladium output is seen at 2 296 to 2 451 koz, Nornickel said.
The company had expected output for both metals to drop in 2023, but palladium output came in above forecast.
"In 2024, we expect that risks related to an adverse geopolitical situation will continue to impact our operations," Nornickel's Senior Vice-President and Operational Director, Sergey Stepanov said in a statement. "Furthermore, this year we are planning capital repairs of the flash smelting furnace #2 at Nadezhda Metallurgical Plant."