Nornickel 2020 output guidance unchanged despite weak quarter
MOSCOW – Russia's Norilsk Nickel, one of the world's largest nickel producers, on Thursday reported weak first-quarter output but kept its 2020 guidance unchanged.
Nornickel, which is also the world's largest palladium producer, attributed the weakness to "accumulated work-in-progress inventory" and an unfavourable comparison with the same quarter last year, adding that the coronavirus pandemic has not had any material effect on its operating activity so far.
"We expect saleable metal production volumes to recover during the rest of this year as the accumulated work-in-progress inventory is released," said operations chief Sergey Dyachenko.
First-quarter nickel output fell 7% year on year to 51 757 t while copper production dropped 9% to 114 987 t.
The company's palladium output amounted to 548 000 troy ounces, down 29% year-on year, while platinum was down 26% at 150 000 oz, it said. To see its current 2020 production forecast, click
Nornickel also said that the Nkomati mine in South Africa, in which it holds a 50% stake, reduced nickel output by 43% to 1 289 t after a decision to scale down ore mining this year.
"Norilsk Nickel and its operating partner African Rainbow Minerals are planning to put the mine on care-and-maintenance," the Russian company added.
South Africa's African Rainbow Minerals said in August that the loss-making Nkomati mine was preparing for closure.
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