Norilsk Nickel cuts Q2 nickel output 7%, copper 15% due to scheduled repairs, affirms 2023 guidance

MOSCOW. July 24 (Interfax) - MMC Norilsk Nickel reduced nickel output 4% quarter-on-quarter to 45,000 tonnes in Q2 2023, the company said.

Output fell 7% year-on-year, from 48,500 tonnes in Q2 2022.

The drop attributed to the scheduled accumulation of work-in-progress material during the inter-navigational pause in the port of Dudinka, as well as scheduled repairs of furnaces at Nadezhda Smelter and a grinding mill at Talnakh Concentrator.

Nickel production fell 9% year-on-year in H1 2023 to 91,000 tonnes.

Copper production, including by the Trans-Baikal Division, fell 13% QoQ in Q2 2023 to 95,000 tonnes and was down 15% form 112,539 tonnes a year previously. Copper production was flat in H1 2023 at 203,000 tonnes.

Copper production decreased in the reported period due to the same reasons as described above for nickel. In addition, copper production in the reported quarter decreased as a result of temporary suspensions of smelting operations at Copper Plant due to unfavorable weather conditions in Norilsk. The Trans-Baikal Division continued to ramp up on schedule, increasing production of copper in concentrate by 4% year-on-year in H1 2023.

"During the first half of the year we tested the machinery from new suppliers and began the gradual replacement of retired mining equipment with the new samples. The successful implementation of equipment replacement is essential to the achievement of our operational plans," said Sergei Stepanov, Nornickel Senior Vice-President - Operational Director.

"Taking in account all ongoing activities, we reiterate our previously announced production guidance from own Russian feed for FY2023," Nornickel said. The company plans to produce 204,000-214,000 tonnes of nickel and 353,000-373,000 tonnes of copper, compared with 218,970 tonnes and 432,980 tonnes in 2022.