Russia is the third largest producer of nickel in the world, and the Russian company Nornickel is one of the main suppliers of nickel used in the production of stainless steel and electric vehicles. After Russian invasion of Ukraine nickel prices soared. On March 8, the London Metal Exchange (LME) exceeded the level of 100 thousand. dollars per ton. Due to large price fluctuations The LME temporarily stopped trading nickel.
On Saturday, on the First Program of Polish Radio, Chludziński was asked if KGHM was feeling the turmoil in the market of raw materials and metals. The president of KGHM emphasized that Russia is not a large producer of copper, the company’s main product. He added that copper prices also rose, which is good for KGHM.
– We have an increase in prices and better trade because demand is not falling. We do not expect worse financial results, the demand is sustained and the price has risen. Of course, a lot can happen, but for us this situation has a positive economic impact – he said.
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He recalled that Russia is, on the other hand, a key producer of nickel. “We have a dramatic increase in nickel prices and shortages, for example in the production of stainless steel. On steel market Ukraine and Russia had a significant influence, the price of steel increased twice. This has an impact on the costs of the construction and construction industries. This is a huge challenge for many industries – pointed out Chludziński.
Reported that KGHM has nickel deposits abroad. “We will want to launch them as soon as possible in order to meet the demand, which was unsatisfied by Russian production. We will accelerate certain projects to respond to the market situation, said the president of KGHM.
According to the information on KGHM’s website, among other things, the company has a number of assets in Sudbury, Canada, in which copper and nickel ore along with precious metals are mined. As reported, in 2005, the Morrison field was discovered, rich in polymetallic ore with high contents of copper, nickel and precious metals, the production of which began in 2008. In the first quarter of 2019, production from the Morrison field was suspended.
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