Operating performance
operating performance for 2018
With the completion of our capacity reconfiguration, we fully met the production targets for 2018.
In 2018, the output of our key metals, primarily copper, was above the guidance thanks to increased processing of copper concentrate purchased from Rostec State Corporation and improved operating efficiency.
As we successfully reconfigured our production facilities, we were able to almost completely eliminate low-margin processing of third-party feedstock and increase output of nickel and copper produced from the Company's own Russian feedstock by 3% and 19%, respectively. Production of PGM from our own feedstock remained flat y-o-y, but was also above the guidance.
In 2018, Bystrinsky GOK came close to reaching its target parameters and is expected to yield some 40–46 kt of copper concentrate as early as in 2019.
2019 will see an active phase of the Kola MMC upgrade and higher copper output once Bystrinsky GOK hits its target capacity.First Vice President – Chief Operating Officer Sergey Dyachenko
| Asset | 2016 | 2017 | 2018 |
|---|---|---|---|
| Russia, including | 24.8 | 25.0 | 25.2 |
| Polar Division and Medvezhy Ruchey | 17.2 | 17.4 | 17.3 |
| Kola MMC | 7.6 | 7.6 | 7.9 |
| Bystrinsky GOK | 0 | 0 | 7.9 |
| Nkomati (South Africa) Volumes based on the 50 Volumes based on the 50% ownership | 2.8 | 3.5 | 3.1 |
| Asset | 2016 | 2017 | 2018 |
|---|---|---|---|
| Nickel (%) | |||
| Polar Division and Medvezhy Ruchey | 1.2 | 1.3 | 1.3 |
| Kola MMC | 0.5 | 0.5 | 0.6 |
| Nkomati (South Africa) | 0.4 | 0.3 | 0.3 |
| Copper (%) | |||
| Polar Division and Medvezhy Ruchey | 2.1 | 2.2 | 2.2 |
| Kola MMC | 0.2 | 0.2 | 0.2 |
| Nkomati (South Africa) | 0.1 | 0.1 | 0.1 |
| PGM (g/t) The five following metals are included: palladium, platinum, rhodium, ruthenium and iridium. | |||
| Polar Division and Medvezhy Ruchey | 6.8 | 6.8 | 6.7 |
| Kola MMC | 0.1 | 0.1 | 0.1 |
| Nkomati (South Africa) | n/a | n/a | n/a |
| Asset | 2016 | 2017 | 2018 |
|---|---|---|---|
| Nickel | |||
| Polar Division and Medvezhy Ruchey | 77.1 | 79.9 | 81.5 |
| Kola MMC | 69.0 | 69.8 | 69.5 |
| Nkomati (South Africa) | 70.6 | 70.7 | 65.9 |
| Copper | |||
| Polar Division and Medvezhy Ruchey | 94.2 | 94.7 | 94.6 |
| Kola MMC | 73.6 | 75.4 | 74.1 |
| Nkomati (South Africa) | 89.5 | 90.9 | 88.4 |
| PGM The five following metals are included: palladium, platinum, rhodium, ruthenium and iridium. | |||
| Polar Division and Medvezhy Ruchey | 77.7 | 81.5 | 82.7 |
| Asset | 2016 | 2017 | 2018 |
|---|---|---|---|
| Nickel | |||
| Polar Division and Medvezhy Ruchey Feedstock to end products. | 93.4 | 93.9 | 94.6 |
| Kola MMC Feedstock to converter matte. | 96.8 | 96.5 | 96.7 |
| Kola MMC In refining, converter matter to end products. | 98.0 | 98.2 | 98.0 |
| Нarjavalta In refining, converter matter to end products. | 98.3 | 98.5 | 97.9 |
| Copper | |||
| Polar Division and Medvezhy Ruchey Feedstock to end products. | 94.1 | 94.0 | 94.4 |
| Kola MMC Feedstock to converter matte. | 96.6 | 96.2 | 96.1 |
| Harjavalta In refining, converter matter to end products. | 97.1 | 97.4 | 97.6 |
| Нarjavalta In refining, converter matter to end products. | 99.7 | 99.7 | 99.7 |
| PGM | |||
| Polar Division and Medvezhy Ruchey Feedstock to end products. | 95.0 | 95.6 | 95.9 |
| Kola MMC In refining, converter matter to end products. | 93.4 | 96.7 | 94.0 |
| Нarjavalta In refining, converter matter to end products. | 99.4 | 99.3 | 99.8 |
| Metal | 2016 | 2017 | 2018 |
|---|---|---|---|
| Group total | |||
| Nickel, kt | 235.7 | 217.1 | 218.8 |
| from own Russian feed | 196.8 | 210.1 | 216.9 |
| Copper, kt | 360.2 | 401.1 | 473.7 |
| from own Russian feed | 344.5 | 397.8 | 473.5 |
| Palladium, koz | 2,618 | 2,780 | 2,729 |
| from own Russian feed | 2,526 | 2,728 | 2,729 |
| Platinum, koz | 644 | 670 | 653 |
| from own Russian feed | 610 | 650 | 653 |
| Russia | |||
| Nickel, kt | 182.1 | 157.4 | 158.0 |
| Copper, kt | 350.6 | 387.6 | 436.2 |
| Palladium, koz | 2,554 | 2,738 | 2,671 |
| Platinum, koz | 622 | 660 | 642 |
| Finland | |||
| Nickel, kt | 53.7 | 59.7 | 60.8 |
| Copper, kt | 9.6 | 13.4 | 18.0 |
| Palladium, koz | 64 | 42 | 58 |
| Platinum, koz | 22 | 10 | 11 |
| SOUTH AFRICA Saleable concentrate production based on the 50% ownership Nkomati’s performance is reflected in financial results using proportional consolidation according to our stake and not reflected in other totals. | |||
| Nickel, kt | 8.5 | 8.0 | 6.6 |
| Copper, kt | 4.1 | 4.5 | 3.1 |
| Palladium, koz | 40 | 46 | 33 |
| Platinum, koz | 15 | 20 | 13 |