Along with the announcement, the company’s first vice president and chief operating officer Sergey Dyachenko discussed first quarter production results with the media, “As the main phase of the company’s downstream reconfiguration program was completed last year and work-in-progress inventory levels got normalized, the company increased production of all key metals in the first quarter of this year. In addition, the company also actively processed copper concentrate purchased from Rostec. As a result, metal production from the company’s own Russian feedstock increased in the first quarter by 22 percent year-on-year. Furthermore, Nornickel Harjavalta was at capacity thanks to the company’s Russian feed. In April 2018, the first batch of copper concentrate, produced during the hot commissioning stage at Bystrinsky GOK (Chita Copper Project), was shipped to Chinese customers. We have, however, reduced the 2018 production targets for the Chita project due to ramp-up issues with FLS and Outotec-supplied equipment, which we plan to sort out in this quarter. This year, Kola MMC’s nickel refining capacity is scheduled for intensive modernization and transition to a new chlorine-leaching technology. Overall, we confirm the company’s 2018 targets for metal production from the company’s own Russian feed.”

Nickel

In the first quarter of 2018, consolidated nickel production amounted to 54 thousand tons (kt), increasing one percent year-on-year. Nickel output from the company’s own Russian feed increased eight percent year-on-year to 53 kt. The growth was mainly attributed to the increase in processing volumes of nickel matte shipped from the Polar division to Kola MMC and Nornickel Harjavalta as a result of downstream reconfiguration.

In the first quarter of 2018, nickel output at Kola MMC increased by one percent year-on-year to 38 kt, which was driven mostly by the processing of additional volumes of nickel matte shipped from the Polar division.

Copper

In the first quarter of 2018, consolidated copper production increased 18 percent year-on-year to 112 kt. Copper output from the company’s own Russian feed increased 22 percent year-on-year to 112 kt, mainly as a consequence of increased processing of ore concentrate purchased from Rostec.

Сopper output at the company’s operations in Russia increased 18 percent year-on-year to 107 kt in the first quarter of 2018.

Platinum group metals (PGM)

In the first quarter of 2018, palladium and platinum were produced solely from the company’s own Russian feed, with processing volumes increasing six percent year-on-year to 583 thousand ounces (koz) and 138 koz, respectively. The increase of PGM output was mostly a result of a lower base effect due to the size of production in the first quarter of 2017 when PGMs work-in-progress inventory was building up. At the same time, in the reporting quarter, the output of palladium and platinum from the company’s own Russian feed increased 12 percent and 17 percent year-on-year, respectively. In the first quarter of 2018, production of PGMs from third party feed was suspended at Nornickel Harjavalta.

In the first quarter of 2018, palladium output in Russia increased seven percent year-on-year to 571 koz, while platinum output was up eight percent year-on-year to 136 koz.

Nornickel Harjavalta

In the first quarter of 2018, nickel production at Nornickel Harjavalta in Finland increased two percent year-on-year to 16 kt, almost all of which was produced from the company’s own Russian feed (16 kt, an increase of 21 percent year-on-year). The small growth was attributed to the increase in the processing of Russian feed as result of downstream reconfiguration.

In the first quarter of 2018, all of the copper produced at Nornickel Harjavalta was from the company’s own Russian feed. Cooper production at the facility increased 39 percent year-on-year to 5.0 kt.

In the first quarter of 2018, the output of saleable palladium (palladium in copper cake) declined 18 percent year-on-year to 12 koz, while the output of saleable platinum (platinum in copper cake) declined 52 percent year-on-year to two koz. The decrease of PGM output at Harjavalta was a result of substituting the feed purchased from third parties with the company’s own Russian feed having a lower PGM content.

Nornickel Nkomati

In the first quarter of 2018, the output at the Nkomati facility at South Africa (50-percent owned by Nornickel) declined to 2.0 kt of nickel, 0.7 kt of copper, 6.0 koz of palladium, and 2.0 koz of platinum. The decrease from the corresponding period of the previous year was attributed to a lower ore output and lower metal grades.

Along with the announcement, the company’s first vice president and chief operating officer Sergey Dyachenko discussed first quarter production results with the media, “As the main phase of the company’s downstream reconfiguration program was completed last year and work-in-progress inventory levels got normalized, the company increased production of all key metals in the first quarter of this year. In addition, the company also actively processed copper concentrate purchased from Rostec. As a result, metal production from the company’s own Russian feedstock increased in the first quarter by 22 percent year-on-year. Furthermore, Nornickel Harjavalta was at capacity thanks to the company’s Russian feed. In April 2018, the first batch of copper concentrate, produced during the hot commissioning stage at Bystrinsky GOK (Chita Copper Project), was shipped to Chinese customers. We have, however, reduced the 2018 production targets for the Chita project due to ramp-up issues with FLS and Outotec-supplied equipment, which we plan to sort out in this quarter. This year, Kola MMC’s nickel refining capacity is scheduled for intensive modernization and transition to a new chlorine-leaching technology. Overall, we confirm the company’s 2018 targets for metal production from the company’s own Russian feed.”

Nickel

In the first quarter of 2018, consolidated nickel production amounted to 54 thousand tons (kt), increasing one percent year-on-year. Nickel output from the company’s own Russian feed increased eight percent year-on-year to 53 kt. The growth was mainly attributed to the increase in processing volumes of nickel matte shipped from the Polar division to Kola MMC and Nornickel Harjavalta as a result of downstream reconfiguration.

In the first quarter of 2018, nickel output at Kola MMC increased by one percent year-on-year to 38 kt, which was driven mostly by the processing of additional volumes of nickel matte shipped from the Polar division.

Copper

In the first quarter of 2018, consolidated copper production increased 18 percent year-on-year to 112 kt. Copper output from the company’s own Russian feed increased 22 percent year-on-year to 112 kt, mainly as a consequence of increased processing of ore concentrate purchased from Rostec.

Сopper output at the company’s operations in Russia increased 18 percent year-on-year to 107 kt in the first quarter of 2018.

Platinum group metals (PGM)

In the first quarter of 2018, palladium and platinum were produced solely from the company’s own Russian feed, with processing volumes increasing six percent year-on-year to 583 thousand ounces (koz) and 138 koz, respectively. The increase of PGM output was mostly a result of a lower base effect due to the size of production in the first quarter of 2017 when PGMs work-in-progress inventory was building up. At the same time, in the reporting quarter, the output of palladium and platinum from the company’s own Russian feed increased 12 percent and 17 percent year-on-year, respectively. In the first quarter of 2018, production of PGMs from third party feed was suspended at Nornickel Harjavalta.

In the first quarter of 2018, palladium output in Russia increased seven percent year-on-year to 571 koz, while platinum output was up eight percent year-on-year to 136 koz.

Nornickel Harjavalta

In the first quarter of 2018, nickel production at Nornickel Harjavalta in Finland increased two percent year-on-year to 16 kt, almost all of which was produced from the company’s own Russian feed (16 kt, an increase of 21 percent year-on-year). The small growth was attributed to the increase in the processing of Russian feed as result of downstream reconfiguration.

In the first quarter of 2018, all of the copper produced at Nornickel Harjavalta was from the company’s own Russian feed. Cooper production at the facility increased 39 percent year-on-year to 5.0 kt.

In the first quarter of 2018, the output of saleable palladium (palladium in copper cake) declined 18 percent year-on-year to 12 koz, while the output of saleable platinum (platinum in copper cake) declined 52 percent year-on-year to two koz. The decrease of PGM output at Harjavalta was a result of substituting the feed purchased from third parties with the company’s own Russian feed having a lower PGM content.

Nornickel Nkomati

In the first quarter of 2018, the output at the Nkomati facility at South Africa (50-percent owned by Nornickel) declined to 2.0 kt of nickel, 0.7 kt of copper, 6.0 koz of palladium, and 2.0 koz of platinum. The decrease from the corresponding period of the previous year was attributed to a lower ore output and lower metal grades.

About the company

Nornickel (Norilsk Nickel) is a diversified mining and metallurgical company. Nornickel is the world’s largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper, and rhodium. The company also produces gold, silver, iridium, selenium, ruthenium, and tellurium.

The production units of the Nornickel group are located at the Norilsk industrial district, on the Kola peninsula, and within the Chita region of Russia, as well as in Finland and in South Africa.

Nornickel’s shares are listed on the Moscow and on the St. Petersburg Stock Exchanges. Nornickel’s ADRs trade over the counter in the U.S. and on the London and the Berlin Stock Exchanges.

Nornickel (Norilsk Nickel) is a diversified mining and metallurgical company. Nornickel is the world’s largest producer of refined nickel and palladium and a leading producer of platinum, cobalt, copper, and rhodium. The company also produces gold, silver, iridium, selenium, ruthenium, and tellurium.

The production units of the Nornickel group are located at the Norilsk industrial district, on the Kola peninsula, and within the Chita region of Russia, as well as in Finland and in South Africa.

Nornickel’s shares are listed on the Moscow and on the St. Petersburg Stock Exchanges. Nornickel’s ADRs trade over the counter in the U.S. and on the London and the Berlin Stock Exchanges.