GMK Norilsk Nickel has reduced the production of copper, platinum group metals and Nickel. On the issue of copper impacts that end stocks of copper concentrate, purchased a few years ago “Rostec”. In the palladium market after the introduction of the quarantine restrictions in connection with the epidemic was a surplus instead of the expected deficit.In the first quarter of this year “Nornikel” has reduced manufacture of basic metals, the the company operating results for the quarter.Thus, the release of copper in the first quarter decreased 9% to 11 thousand tons. MMC explains that the planned reduction in processing of copper concentrate, which was purchased from Rostec and a decrease in the content of copper in the concentrate. Almost the entire volume of the metal was produced from domestic raw materials, the company explained.The deal to buy 1.5 million tonnes of copper concentrate was made in 2016. The raw material was in the state Fund from 1980-ies. Norilsk Nickel paid RUB 67.5 bn from the presentation for the investor day, the stock has run out. According to Maxim Hudalova of an ACRE, the volume of concentrate “Rostec” loaded spare capacity of the copper plant and gave Norilsk Nickel extra bonus in the form of products with a rather low cost.Now it is expected that in 2021 or 2022, the volume of copper production will decline up to 390-420 thousand tons 430-450 thousand tons in 2019. But then MMC is planning to increase production of its own ore, in particular, in the Talnakh cluster. The calculations do not take into account the indicators of Bystrinsky GOK, which is produced in the first quarter of 15 kt of copper in concentrate.Production of Nickel in the first quarter fell by 7% to 52 thousand tons. Also Norilsk Nickel decreased the production of platinum and palladium — by 26%, to 150 thousand ounces, and by 29% to 548 thousand Troy ounces, respectively. The drop is due to the high base last year when the refinery Krastsvetmet processed previously accumulated raw materials of high degree of readiness. In addition, was negatively affected by the commissioning works at Kola MMC. Because of this decreased Nickel production by 7% to 51.8 tons.In April, the company announced a surplus of 0.1 million ounces, although in March estimated the deficit at 0.2 million ounces in February and 0.9 million ounces.Eugene Zainullin
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