Norilsk Nickel Not to Slash Copper, Nickel Output
Russia’s metals giant GMK Norilsk Nickel will slash expenses by 10 percent next year, including through the staff reduction. The company will lower funding of investment projects by 24 percent in Russia and by nearly two fold overseas. The analysts generally approve Norilsk Nickel strategy aimed at trimming the platinoid output but retaining the quantities of copper and nickel production - the drop in demand for these metals isn’t expected to last for long.
Norilsk Nickel released yesterday the production outlook elaborated till this year-end and for the year of 2009. The company will retain current quantities of nickel and copper production, reducing the output of platinum group.
To be more precise, Norilsk Nickel will produce 232,000 tons of nickel (298,000 with the overseas output taken into account), which actually matches the size of 2007. In 2009, Norilsk Nickel plans to come up with 225,000 tons to 230,000 tons of nickel in Russia (290,000 tons to 305,000 tons with overseas assets). The copper output will stand at 420,000 tons this year (402,000 tons in Russia) to go down to between 385,000 tons and 400,000 tons in 2009.
At the same time, the platinum output will lower by 15 percent to 625,000 ounces this year and remain at that level in 2009. Palladium production will narrow by 12.9 percent by this year-end (to 2,700 ounces) to lose another 4 percent (to 2,600 ounces) in 2009.
Trimming expenses by $800 million is the key purpose of the company in 2009. It will be attained also by reducing the staff of Russia’s headquarters by 220 employees (16 percent). Overall, the company counts on saving $340 million by cutting down operation costs and $90 million on supplies optimization.
As to the overseas enterprises, Norilsk Nickel will cut expenses by 15 percent there, including on dismissal of 1,100 employees.
www.kommersant.com
All the Article in Russian as of Dec. 02, 2008
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