Russian major mining group MMC Norilsk Nickel’s African operations delivered significant increases in output last year, helping boost the company’s global nickel production by 2%, compared with 2011. The group is the world’s largest producer of nickel and palladium, and its Africa division covers two operations – Tati Nickel and Nkomati Nickel. Tati Nickel is in Botswana, with Norilsk owning 85% and the Botswana government the remaining 15%, while Nkomati is a 50:50 joint venture with South African group African Rainbow Minerals, which has management control.
During 2012, Tati Nickel production was 12 215 t of nickel in concentrate, a 31% increase on the 2011 figure of 9 346 t. This increase was, Norilsk reported, “achieved by increased efficiency in ore processing as a result of the implementation of [a] complex of measures aimed at improving the crushing stage and metal extraction”. (Russians use the word ‘complex’ as a synonym for ‘system’.)
Nkomati demonstrated an even more dramatic production increase, of 66%. Norilsk’s 50% share of the mine’s output came to 9 624 t of nickel in concentrate shipped to the Russian group’s Harjavalta smelter, in Finland. In 2011, its share was 5 815 t.
Added to the 8 975 t produced by the recommissioned Lake Johnson operation of Norilsk Nickel Australia, these production gains pushed the group’s total production to 300 340 t from 295 096 t in 2011. This was “in line with the approved production plan”.
For this year, the group forecasts a nickel output of 45 000 t to 50 000 t from Australia, Botswana and South Africa (via the smelter in Finland), and a production of 230 000 t to 235 000 t from its Russian divisions (Kola and Polar).
Nkomati and Tati also produce copper, palladium and platinum. Tati’s output of copper in concentrate last year was 10 292 t, up from 8 803 t in 2011, while the group’s 50% share of Nkomati production was 4 594 t, compared with 2 927 t in 2011. However, overall, Norilsk’s copper production fell by 4% year-on-year, “due to the short delivery of raw materials” in the Kola division. This year, the group expects its African and Australian divisions to produce 5 000 t to 6 000 t of copper and concentrate and semiproducts, with the Russian divisions to contribute 355 000 t to 360 000 t.
Regarding palladium, Tati produced 84 000 troy ounces last year, an increase on its 2011 figure of 68 000 oz. Norilsk’s share of Nkomati output was 32 000 oz, compared with 24 000 oz in 2011. Total African division produc- tion of palladium was 24% higher in 2012 than in 2011. The group’s total palladium output last year was 2 731 000 oz.
“Palladium output was in line with the company’s approved production plan,” observed Norilsk. The group expects its international divisions to produce 25 000 oz to 30 000 oz of palladium this year, with the figures for its Russian operations targeted at 2 600 000 oz to 2 610 000 oz.
With regard to platinum, last year saw Tati produce 14 000 oz of platinum in concentrate, up from 12 000 oz in 2011, while Nkomati gave Norilsk 12 000 oz, up from 9 000 oz in the previous year. Group total platinum production came to 683 000 oz, down 2% relative to 2011. Nevertheless, “the company hit its platinum production target for the year”.
Norilsk projects that its international operations will produce between 15 000 oz and 20 000 oz of platinum this year, with its Russian output expected to be 640 000 oz to 650 000 oz.