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Today's paper. Last Updated: 05/30/2012

Production Setback for Norilsk

The Russian Arctic giant Norilsk Nickel, one of the world's largest metal factories, is set to face production losses this year as a result of a recent power station breakdown, but the decline is unlikely to impact world markets, a senior company official said Monday.


"We'll definitely lose something this year, though it's difficult to estimate how much," said Boris Gurevich, the company's technical director. "But these are not volumes which can influence international markets."


Norilsk Nickel production was estimated at 155,000 tons this year, compared with 161,000 in 1993 and 240,000 three years ago. The company accounts for about 15 percent of the world's nickel output, and also produces cobalt, copper and platinum.


The power failure, which occurred at the factory on Nov. 4, led to a restriction of heating that damaged equipment at the metallurgical plants.


Experts were divided over the significance of the damage. The Financial Times quoted Western analysts last week as saying that a pipeline carrying concentrate to the metallurgical plants could be damaged, and that full repairs may not be possible until summer.


Gurevich said he was leaving for Norilsk Monday to study the consequences of the breakdown. He added, however, that the repair at the power facilities had already been completed.




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