Russian mining and metallurgical giant “Nornickel” – the world’s largest producer of nickel and palladium – plans to cut production of nickel and cobalt, key for batteries, due to delays in plant repairs and a fire at the refinery.
He writes about it Bloomberg.
The world’s largest producer of refined nickel is likely to cut production of the metal by 4-5% from 2022 levels of 219,000 tonnes as it carries out maintenance that has been delayed since last year due to equipment supply problems, it said senior vice president of the group Serhiy Stepanov.
Cobalt production will be less than half of what it was before the September fire at the Kola NPP.
“Although the United States and Britain imposed sanctions on the main shareholder of Nornickel, Vladimir Potanin, no sanctions were imposed on the company itself or the export of Russian metals. Nevertheless, the war in Ukraine has led to disruptions in logistics, insurance and supplies.
The limitation of Nornickel’s production volume also emphasizes how Russian metal production is affected by the cessation of supplies of equipment and technologies by Western firms,” the agency writes.
Nornickel controls approximately 10th of the global nickel market. This metal and cobalt are used in batteries and are crucial to the “green revolution”. Bloomberg reported in December that Nornickel was considering cutting nickel production as some European buyers shun Russian supplies and amid a potential glut.
This year, Nornickel expects nickel production to be between 204,000 tons and 214,000 tons. According to Stepanov, cobalt production could reach 1,000 tons compared to 2,500 tons in recent years.
We will remind:
One of the richest oligarchs of the Russian Federation, Volodymyr Potanin, the president and the largest of the world’s largest producer of nickel and palladium, Nornickel, statedthat against the background of sanctions, the company abandoned plans to enter other markets.
USA introduced sanctions against one of the richest oligarchs of the Russian Federation, Volodymyr Potanin, and his assets – the Interros holding, Rosbank and a yacht – were also sanctioned.