The Russian Norilsk Nickel announced the 26% reduction in the production of nickel in the first half of the year due to flooding of two key mines.
The company has cut production of its base metal more than expected due to accidents at key mines. According to the results of Q2, the volume of nickel production decreased by 30% compared to the first quarter, to 33,000 tons. According to the results of the first half of the year, nickel production decreased by 26% in annual terms, to 79,000 tonnes.
The company continues to experience the consequences of accidents at the Taimyrsky and Oktyabrsky mines, which were suspended at the end of February due to flooding. According to senior vice president and production director Sergei Stepanov, Oktyabrsky reached full capacity by mid-May, while "the restoration of the Taimyrsky mine is somewhat delayed due to a larger-than-expected volume of work."
As the top manager told in an interview with Kommersant business paper at the moment the Taimyrsky has reached 80% of its design capacity and a full recovery of production is expected by the end of November.
At the same time, Norilsk Nickel has confirmed the previous production forecast: by the end of 2021, the company intends to produce 190,000-200,000 tons of nickel, 335,000-355,000 tons of copper, 2.3-2.4 million troy ounces of palladium and 580,000-640,000 troy ounces of platinum.
By: Eugen Gerden