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Norilsk Posted: Thu, 20 Nov 2008 [miningmx.com] -- Norilsk Nickel , the world's largest nickel miner, may cut production at non-Russian assets in response to slower demand during the financial crisis, its chief executive said in an interview published on Thursday, Reuters reported. Vedomosti business daily quoted Vladimir Strzhalkovsky as saying Norilsk had not applied for an emergency loan from state bank VEB, which is bailing out other metals producers as part of the Kremlin's financial rescue package for indebted companies. Strzhalkovsky told Vedomosti Norilsk's anti-crisis measures would be discussed at a board meeting in early December. "The base case scenario is to retain current levels of production in Russia, but propose a significant reduction in investment expenditure," the Norilsk chief executive said. "The programme proposes the closure of several production assets outside Russia. The first measure was our decision to put our Cawse plant in Australia on hold," he told Vedomosti. Norilsk, which supplies one-fifth of the world's nickel, said on Oct. 17 it would halt production at the Cawse laterite nickel operation indefinitely due to higher costs and lower metal prices. Nickel is trading at less than one-fifth of its record price of $51 800 a ton reached in May 2007. Norilsk's latest output forecast for 2008 is 300 000 t to 305 000 t and has not been revised since the financial crisis began in earnest. Strzhalkovsky gave no more details of the proposed output reductions. Norilsk has production assets in Finland, Australia, Botswana and South Africa. Its US platinum group metals subsidiary, Stillwater Mining Co, said on Nov. 17 it would restructure its operations and reduce its workforce. The move will mostly affect its east Boulder mine operations.
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