In the first quarter of 2010, Norilsk Nickel increased the output of its principal commodity, nickel, by 1 percent. Norilsk Nickel, which is the largest producer of the metal in the world, produced 70 thousand metric tons of nickel in the first three months of the year.

The company’s production of palladium increased by 17 percent, reaching 690 000 ounces. Platinum output also increased, by 14 percent to 160 000 ounces.

The increase in production figures is attributable to enhanced productivity of the company’s Russian divisions and good performance results of Norilsk Nickel’s asset in Finland, the Harjavalta refinery.

The production of saleable copper in quarter one, 2010 amounted to 97 000 metric tons, a result that represents a 1-percent increase in year-on-year terms.

In the first quarter of the current year, the company’s Polar and Kola divisions within Russia produced 56 900 metric tons of nickel. In 2009, the two plants generated only 55 200 metric tons.

The production figure for copper at the Russian divisions of Norilsk Nickel stood at 90 600 metric tons, a number that did not change significantly from the result obtained in 2009.

The Kola and the Polar divisions increased the production of metals from the platinum group. Cumulative results were 154 000 troy ounces of platinum and 656 000 troy ounces of palladium. The company was right on target with its budgetary plans for these precious metals.

The Finish refinery at Harjavalta generated 8 900 tons of nickel in the first quarter of 2010. The refinery did not process any tolled nickel during the first quarter timeframe. The plant missed its target mark by 3 200 tons, as a consequence of reduced deliveries of compounds and materials used in leaching. The Harjavalta refinery has prepared a program to meet original targets in the second half of the year.

The cumulative production of nickel concentrate by Tati Nickel and Nkomati reached 4 400 tons in the first quarter, a figure that is in line with initial production guidelines. The company’s assets in Australia remained in care and maintenance mode during the first quarter.

The Norilsk Nickel’s stated production volumes did not include production results of Stillwater Mining Company, which is officially a subsidiary of the company.

Norilsk Nickel is expected to call a general annual meeting of shareholders on June 28 to discuss production results and make important business decisions.

Shareholders

UC RUSAL belonging to Oleg Deripaska owns a blocking stake in Norilsk, and Vladimir Potanin’s INTERROS also owns 25 percent. Vnesheconombank (VEB) has not disclosed whether it still owns shares since it returned a deposit from the National Welfare Fund to the Finance Ministry at the end of 2009. There is also no information on how many shares Metalloinvest owner Alisher Usmanov holds.