The Asia Miner

JAN-MAR 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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the asia miner • volume 16 • issue 1 19 REGIONAL FOCUS: Central Asia & Mongolia PJSC MMC Norilsk Nickel, the world's largest refined nickel and palladium producer, reports exceeding its 2018 producঞon guidance owing to an increase in processed volumes of concentrate purchased from Rostec, as well as producঞvity improvements. In its preliminary consolidated producঞon results for the fourth quarter and the full year of 2018, Norilsk states that output of all key metals, especially copper, has exceeded the guidance for 2018. "Following the compleঞon of a downstream reconfiguraঞon program, we stopped low-margin processing of the third- party feed and increased the producঞon of nickel from our own Russian feed by 3 per cent and copper by 19 per cent," stated First Vice-President/Chief Operaঞng Officer, Sergey Dyachenko. "The output of plaঞnum group metals from our own Russian feed remained pracঞcally unchanged but was also above our producঞon guidance." In 2018, Bystrinsky GOK – the Chita Copper Project – begun a producঞon ramp-up but due to issues with equipment at the concentrator the reported metals' output was slightly below the producঞon guidance. By the end of 2018, most of these issues were recঞfied, with Norilsk planning to ramp up producঞon in 2018 to 40- 46 kt of copper (in concentrate). Nickel In Q4 2018, Norislk's consolidated nickel producঞon increased 16 per cent quarter-on-quarter (q-o-q) to 62 kt, almost all of which was produced from its Russian feed. The growth was aributed to expansion of carbonyl nickel producঞon capaciঞes at Kola MMC and increase in producঞon of nickel concentrate for sale to third parঞes. The consolidated nickel producঞon increased in 2018 to 1per cent year-on-year (y-o-y) to 219 kt. Nickel output from the company's own Russian feed amounted to 217 kt, up 3 per cent y-o-y and above the 210-215 kt producঞon guidance. Copper The consolidated copper producঞon increased 3 per cent q-o-q to 124 kt, almost all of which was produced from own Russian feed. The growth of output owed to an increase in processed volumes of ore with higher copper content. The consolidated copper producঞon increased 18 per cent y-o-y to 474 kt, almost all of which was produced from own Russian feed. The growth was driven by the ramp up of Bystrinsky Project, increase in processed volumes of concentrate purchased from Rostec and reduced metal losses in recovery of copper into copper concentrate as a result of Talnakh Concentrator reaching its design parameters a[er modernisaঞon. Copper output from own Russian feed amounted to 454 kt, above the 400-420 kt producঞon guidance, mostly due to an increase in processed volumes of concentrate purchased from Rostec. Copper output at Bystrinsky GOK amounted to 19 kt, which was slightly below the 20-25 kt. Plaঞnum Group Metals Both palladium and plaঞnum were produced solely from the Norilsk's own Russian feed, with output amounঞng to 632 koz (-10 per cent q-o-q) and 140 koz (-22 per cent q-o-q), respecঞvely. The decrease of PGM output was aributed to a build-up of work-in-progress inventory at Krasnoyarsk Precious Metals Refinery. Norilsk Nickel exceeds 2018 production guidance PJSC MMC Norilsk Nickel is the world's largest refined nickel and palladium producer

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