OREANDA-NEWS. November 01, 2012. OJSC MMC Norilsk Nickel (hereinafter – “Norilsk Nickel”, “the Company” or “the Group”), the world’s largest nickel and palladium producer, announces preliminary consolidated production results for the third quarter of 2012 and 9 months of 2012 at its Polar and Kola Divisions in Russia and at international operations in Finland, Australia, Botswana and South Africa, reported the press-centre of Norilsk Nickel.

Overall saleable nickel production in the third quarter of 2012 amounted to 77.4 thousand metric tonnes being 11% higher as compared to results of the second quarter of 2012. The growth of nickel output was achieved due to increased loading rate of the nickel refinery Norilsk Nickel Harjavalta as well as due to normalised operation of the Russian Divisions following the end of seasonal flooding. For 9 months of 2012, the Group’s nickel production totaled 222.8 thousand metric tonnes exceeding results of the corresponding period of the previous year by 3%.
 
Overall saleable copper production in the third quarter of 2012 increased by 6% as compared to the second quarter of 2012 and amounted to 95.5 thousand metric tonnes. The growth of copper output in the reporting period was mostly driven by the growth of production at the Russian Divisions of the Group. For 9 months 2012, the copper production totaled 273.7 thousand metric tonnes.

In the reporting quarter the Company produced 702 thousand troy ounces of palladium, which represents 4% decrease as compared to the second quarter of 2012. The decrease in palladium output is mostly related to performance of the Russian Divisions of the Group and is due to the effect of high base in the second quarter. For 9 months 2012, the overall palladium production by the Group exceeded 2 million troy ounces being mostly in line with results of 9 months of the previous year.
 
For the third quarter 2012, the Group produced 175 thousand troy ounces of platinum fully in line with the approved production plan. The platinum output decreased by 6% as compared to the second quarter 2012 being driven by the same set of factors as palladium output. For 9 months 2012, overall platinum output reached 527 thousand troy ounces largely being in line with results of the corresponding period of the previous year.

In the third quarter of 2012, the Polar and Kola Divisions in Russia produced over 58 thousand metric tonnes of nickel which represents 3% increase as compared to results of the second quarter 2012. The nickel output from proprietary feed was in line with the approved production plan. For 9 months 2012, overall nickel production totaled 173 thousand metric tonnes slightly exceeding results of the corresponding period of the last year.

In the third quarter of 2012, copper production at the Russian Divisions of the Company increased by 6% as compared to results of the second quarter of 2012 and amounted to 92.7 thousand metric tonnes. In the reporting period the Russian Divisions performed in line with the approved production plan. For 9 months 2012, copper output by the Polar and Kola Divisions totaled 265 thousand metric tonnes.

In the reporting period palladium production at the Kola and Polar Divisions amounted to 678 thousand troy ounces. A minor decrease in palladium output was caused by the effect of high base in the previous quarter, while the production results of the Russian Divisions exceeded the production plan. For 9 months of 2012, the output of palladium reached almost 2 million troy ounces.

In the third quarter of 2012, the Russian Divisions of the Company produced 170 thousand troy ounces of platinum. The key factors that affected platinum output in the reporting period are similar to those for palladium. In general, for 9 months of 2012 the Polar and Kola Divisions produced 507 thousand troy ounces of platinum.

In the third quarter of 2012, the Harjavalta nickel refinery in Finland produced 13.5 thousand metric tonnes of nickel exceeding the results of the second quarter of 2012 by 5.6 thousand tonnes (or by 71%). Overall nickel output for 9 months of 2012 amounted to 34.5 thousand tonnes of nickel. The performance of the Harjavalta nickel refinery was affected by short deliveries of feedstock from third parties as well as by the substitution of nickel concentrate from Lake Johnston with Nkomati’s concentrate.

In the third quarter of 2012, Lake Johnston, an Australian operation of the Group, produced 2.2 thousand tonnes of nickel in concentrate. In the reporting period the operation achieved the designed nickel recovery rates and quality of saleable concentrate. The overall output of nickel in concentrate for 9 months of 2012 totaled over 6 thousand metric tonnes.

In the third quarter of 2012, Tati Nickel produced 3.2 thousand metric tonnes of nickel in concentrate. The main reasons for growth of nickel output were the improved nickel grades in ore treated as well as the stability of enrichment process achieved through better performance of technological equipment. For 9 months of 2012, output of nickel in concentrate by Tati Nickel totaled 8.7 thousand metric tonnes.

The Group’s share in the production volumes of nickel in concentrate by Nkomati (50%) in the third quarter of 2012 amounted to 2.8 thousand metric tonnes. The important growth of output of nickel in concentrate was achieved thanks to increased metal grades in ore treated as well as due to stable operational performance. For 9 months 2012, the Group’s share in the production volumes of Nkomati achieved 6.8 thousand metric tonnes of nickel in concentrate. All concentrate of Nkomati produced in the reporting period is envisaged for further delivery and processing at the Harjavalta nickel refinery of the Group.