Nixse
0

Nornickel to Increase Platinum and Palladium Production by 50% in the Next Decade

The Russian mining company Nornickel has set itself a goal for the next ten years to increase the production of the main metals it extracts. These are nickel, copper, and platinum group metals, especially platinum and palladium.

In particular, Russian mining intends to increase 15% production of nickel, 20% of copper, and 50% metal group platinum 2030 to ensure a sufficient supply to meet growing demand.

According to the company’s information, the fulfillment of these long-term objectives will be achieved through organic growth. Especially through developing its portfolio of future projects, without the need to acquire assets from other companies.

To carry out this expansion, Nornickel will double its capital investment, from $1.7 billion to $3.500-4 billion in 2022-2025.

From 2026 to 2030, capital investment will fall below $2 billion annually.

The miner plans to increase its nickel production by 15% from the levels reached in 2019-2020. The goal is to get to 250,000-270,000 tons in 2030 and the following years. In the same period, it is expected to increase copper production between 15 and 20% to 490,000 to 530,000 tons.

Regarding platinum group metals production, Nornickel expects to increase it by between 45 and 50% by 2030. As well as set a target between 150 and 160 tons per year.

This year will experience a deficit in the supply of platinum and palladium 

Between November 2013 and the same month of 2020, palladium’s price has risen 220%. This is why the company decided to increase platinum group metals production in a more significant proportion than any other metal.

Of course, this rise in palladium has allowed it to contribute more than the rest of metals to the Russian mining company’s general income.

Over the past seven years, Nornickel’s percentage of revenue from palladium sales increased from 19% in 2013 to 39% in 2019. In monetary terms, the benefits generated by palladium grew 143% between 2013 and 2019. It went from 2,200 to 5,300 million dollars.

Palladium and platinum are the only metals in the metal basket group whose global supply is going into deficit this year. In the case of palladium, its deficit at the end of 2020 will remain stable, around 400,000 ounces (12.44 MT). Meanwhile, platinum will go from having a surplus of 500,000 ounces (15.55 MT) in 2019. Thus, registering a deficit of 100,000 ounces (3.11 tonnes).

The company expects the global palladium market to balance out in 2021. While the platinum market will return to a surplus situation. The supply is forecast to exceed demand by around one million ounces (31.10 MT).

 

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)


You might also like

Leave a Reply

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending