Nornickel’s core profits jumped 37% in 2021
Last year, the company was hit by a drop in production at two of its Arctic mines after flooding halted production for several months. An accident at a processing plant last February also hampered production.
Its Oktyabrsky mine returned to full production capacity in mid-May, but the Taimyrsky mine and Norilsk concentrator did not do so until December.
Nornickel’s net income in 2021 was $6.97 billion, a 92% increase from 2020.
In addition to higher metal prices, Nornickel said the 15% year-over-year revenue increase to $17.9 billion was due to the sale of palladium from inventory built up in 2020.
“(These have) positively offset production losses caused by industrial incidents in 1H21,” Nornickel said.
The company said it saw a global palladium market deficit of 300,000 ounces in 2022 and a global nickel market surplus of 42,000 tonnes.
Nornickel’s operations have encountered other problems in recent years. The company paid $2 billion for environmental damage caused by the leaking of 21,000 tonnes of diesel into rivers and underground from a storage tank at its Norilsk power plant in May 2020.
Late last year, he was discussing an out-of-court settlement with the state fisheries agency, which sought damages of 58.7 billion rubles ($785.9 million) from the miner of metals for this spill.
Nornickel said capital spending rose 57% in 2021 to a record $2.8 billion.
“Spending on capitalized repairs, industrial safety improvements and major asset upgrades increased by more than 40%, topping $800 million,” the company said.
($1 = 74.6950 rubles)
(By Anastasia Lyrchikova, Gleb Stolyarov and Alexander Marrow; Editing by Jane Merriman)