Norilsk Nickel sees mixed Q1'22 output, may develop lithium deposit with ROSATOM

PJSC MMC Norilsk Nickel on April 25 reported mixed results in its saleable metals production for the first quarter, with the Russian company saying operations remained uninterrupted despite logistical challenges.

During the three-month period, Norilsk Nickel's nickel output increased 10% year over year to 51,534 tonnes from 46,639 tonnes, while copper output was relatively flat at 91,414 tonnes.

Palladium production declined 8% to 706,000 ounces from 766,000 ounces, while platinum production fell 12% to 163,000 ounces from 184,000 ounces.

Excluding production from the Trans-Baikal division, Norilsk Nickel estimates full-year 2022 nickel output of between 205,000 tonnes and 215,000 tonnes, and copper output of between 365,000 and 385,000 tonnes. Palladium output is forecast to range from 2.5 million ounces to 2.7 Moz, while platinum output is forecast to range from 604,000 ounces to 667,000 ounces.

In a separate statement on April 25, Norilsk Nickel said it entered into an agreement with The State Atomic Energy Corporation ROSATOM to deliver strategic projects in the Russian Arctic. The joint projects may include the development of the Kolmozerskoye lithium deposit in the Murmansk region and further deep processing of lithium raw materials.

"[Norilsk Nickel's] products have long played an important role in energy storage. By expanding our range of metals with such an important and sought-after raw material as lithium, we intend to strengthen our position as a key supplier to the battery industry," Norilsk Nickel President Vladimir Potanin said in the statement. "And cooperation between Rosatom and Nornickel will allow the Russian industry to take a step forward in developing its own production of efficient modern batteries."

Earlier this month, the Interfax news agency reported that a shortage of raw materials for lithium looms in Russia after suppliers Chile and Argentina suspended shipments to the country.

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