In 2015, the electrolytic nickel output exceeded the target, but decreased by 26 kt y-o-y (—20%) due to reconfiguration of production facilities.

Copper cathode production was below the target as metal content in ore was lower than planned, causing the output to decline by 5 kt (—2%) y-o-y due to reconfiguration of production facilities.

The output of platinum and palladium was at the target level, but below the 2014 level by 142 thousand oz t due to the increase of work-in-process inventories at Krasnoyarsk Gulidov Non-Ferrous Metals Plant.

In 2015, the output of nickel metal exceeded the target, increasing by 19 kt y-o-y (+15%) due to reconfiguration of production facilities, while the output from own feedstock shrank by 4% y-o-y.

Copper cathode production was not as high as planned due to the decrease in low-margin tolling operations and copper content in Polar Division’s matte below the target. In 2015, copper output grew by 6 kt y-o-y (+9%) due to reconfiguration of production facilities, while the output from own feedstock remained at the last year’s level.

The output of platinum and palladium was at the target level, growing by 84 thousand oz t y-o-y due to reconfiguration of production facilities.

In 2015, feedstock supply mainly included nickel concentrate from Nkomati (South Africa, internal supply), nickel concentrate from Mirabela (Brazil), nickel concentrate from Titania (Norway), nickel concentrate from CRI (Canada), nickel sulphide concentrate from Talvivaara (Finland), converter matte from ВНР (Australia) and BCL (Botswana), and nickel matte from Kola MMC.

Concentrates processed at the facilities of Boliden Harjavalta Smelter (BOHA) totalled 140 kt. Concentrates were processed under a tolling agreement until its termination on 1 July 2015. Harjavalta processes nickel-containing semi-products from third-party suppliers and is in the process of transition to feedstock of Polar Division.

Under the agreement, concentrates undergo preliminary processing at Boliden AB’s Harjavalta Smelting Plant, which shares the grounds of the Finnish Suurteollisuuspuisto Industrial Park with Norilsk Nickel Harjavalta Oy. Other semi-products with high nickel content are delivered directly to Norilsk Nickel Harjavalta Oy.

Starting 2H 2015, NNH processes BOHA’s nickel matte produced from the plant’s own feedstock.

Higher y-o-y recovery rates in 2015 are due to better quality of copper and ferrous cake.

In 2015, Norilsk Nickel Harjavalta produced 44 kt of commercial nickel, including 15 kt of cathodes, 22 kt of briquettes, 236 t of nickel powder, 7 kt of nickel salts, and 129 kt of nickel solution. The sales of copper cake to third parties totalled 13 kt.

The main driver behind the nickel production growth is the increased feedstock supply from third parties.

In 2015, copper and PGM sales grew y-o-y as a result of improved sales to third parties.

Nkomati is a 50/50 joint venture of the Norilsk Nickel Group and African Rainbow Minerals. In October 2014, the Group signed an agreement with BCL Limited to sell its African assets — Tati Nickel Mining Company and Nkomati. The sale of Tati Nickel Mining Company was completed on 2 April 2015. The sale of Nkomati is yet to be closed.

In 2015, total ore mined by Nkomati reached 4.2 kt (attributable to the Group’s 50% shareholding) with the average nickel content of 0.34%. The Group accounts for 11.4 kt of nickel concentrate produced, flat against the previous year.