Norwegian, a Russian mining company, said it expects nickel, copper, platinum, and palladium production to fall by about 15 to 20 percent this year. Two mines in Siberia are to blame. Markets react by rising the prices of these metals.
In the Siberian mines of Oktybrsky and Taimyrsky, traffic was restricted due to water appeared in them. A full resumption of mining is not expected for more than three to four months, and mining company Nornickel is already reducing its estimate of nickel, copper, platinum, and palladium production by 15 to 20 percent. Markets reacted quickly to the news. The price of the metals in question rose several percent, while Nornickel shares lost 5.5 percent on the Moscow Stock Exchange.
The mines had already cut back on mining at the end of February when groundwater was found to be penetrating them. Nornickel said it would have to reduce its initial nickel supply plan by about 35,000 tons, copper by 65,000 tons and platinum by about 710,000 Troy ounces.
Nornickel originally assumed that this year’s mining would remain at last year’s level. The loss caused by the decline in production of these metals will thus climb to $1 billion to $1.5 billion. Immediately after the leak was detected, the mining company began to build the necessary barriers and pumped about 30,000 tons of concrete into the affected areas.
