Norilsk Nickel to up spending to maintain pgm production 4th January 2011

Norilsk Nickel is planning to tap into more ore deposits and increase spending on plants and other capital projects by up to 54 per cent this year.

According to Bloomberg, the Moscow-based company will spend as much as $2.8 billion （?1.8 billion） in 2011, a rise from $1.82 billion （?1.2 billion） last year.

Norilsk will spend $45 million （?29 million） on mineral exploration projects in an effort to maintain 2010 levels of primary metal production.

It expects its nickel output in Russia next year to reach 235,000 tons, along with 21 tons of platinum, 84 tons of palladium and 358,000 tons of copper.

The increase in capital spending is necessary to counter diminishing levels of metal in the ore it is mining, Norilsk said in a statement.

It follows reports that the Norilsk Nickel has declared it is open for dialogue regarding raising its offer to buy the 25 per cent stake in the company currently owned by key shareholder Rusal.