Norilsk Expects 2009 Profit of $2Bln

Norilsk Nickel, the world's biggest nickel and palladium producer, expects to report net profit of about $2 billion in 2009, which allowed it to pay down debt of $1.25 billion, chief executive Vladimir Strzhalkovsky said Friday. Strzhalkovsky told Prime Minister Vladimir Putin in a one-on-one meeting that Norilsk would invest $2 billion into its plants, without specifying a time period, according to a transcript of the meeting on the government web site. The country's biggest miner increased salaries for its employees by 10 percent as of Jan. 1, Strzhalkovsky said. Separately, Norilsk forecast a gain of as much as 9 percent in nickel output this year and a 2 percent drop in copper. The miner may produce 299,000 to 309,000 metric tons of nickel, compared with 282,900 in 2009, Norilsk said in an e-mailed statement. Copper output in 2010 will fall to 393,000 to 398,000 metric tons, from 402,000 tons last year. Output of palladium will be little changed at 2.73 to 2.805 million ounces, and platinum will fall 5 percent to 690,000 to 695,000 ounces.