Total nickel production for the third quarter of 2012 was in line with the prior period. Our total nickel production for the first nine months of the year increased by 2% to 79,474 tonnes compared to the same period last year, driven by a 16% increase in nickel in ferronickel production from Falcondo following the restart of mining activities in February 2011 to 50% of installed capacity.
Mined nickel production from our Integrated Nickel Operations during the third quarter was lower compared to the previous year, primarily due to the winding down of mining activities at Xstrata Nickel Australasia's Cosmos mine following our decision during the quarter to initiate a care and maintenance schedule in response to adverse market conditions. In Sudbury, mined nickel and copper production were both lower due to a planned 16 day electrical maintenance shutdown. Current run rates at our Sudbury mines indicate a strong fourth quarter.
Despite the reduction in mined output, nickel in matte production from the Sudbury smelter increased 11% in the third quarter of 2012 compared to the same period last year. This increase was achieved by drawing down existing feed inventory, and acquiring and processing additional third party feed. Copper in matte production from the smelter increased by 2%.
Refined nickel production from our Nikkelverk refinery in Norway remained in line with its nameplate capacity of 92,000 tonnes per year.
| Production Data | Q3 '12 | Q3 '11 | YoY |
| Total mined nickel production (t) (contained metal) � INO | 12,886 | 15,524 | -17.0 |
| Total mined copper production (t) (contained metal) � INO | 10,522 | 12,805 | -17.8 |
| Total mined cobalt production (t) (contained metal) � INO | 283 | 262 | 8.0 |
| Total nickel production (t) | 26,691 | 26,738 | -0.2 |
| Total refined nickel production (t) | 22,872 | 23,030 | -0.7 |
| Total ferronickel production (t) (contained nickel) | 3,819 | 3,708 | 3.0 |
| Average LME nickel price (US$/t) | 16,317 | 22,043 | -26.0 |
| Average LME copper price (US$/t) | 7,721 | 8,993 | -14.1 |
| Average Metal Bulletin cobalt low grade price (US$/lb) | 12.59 | 15.76 | -20.1 |
| Production Data | YTD '12 | YTD '11 | YoY |
| Total mined nickel production (t) (contained metal) � INO | 44,028 | 46,321 | -5.0 |
| Total mined copper production (t) (contained metal) � INO | 38,917 | 39,478 | -1.4 |
| Total mined cobalt production (t) (contained metal) � INO | 917 | 878 | 4.4 |
| Total nickel production (t) | 79,474 | 78,174 | 1.7 |
| Total refined nickel production (t) | 68,351 | 68,554 | -0.3 |
| Total ferronickel production (t) (contained nickel) | 11,123 | 9,620 | 15.6 |
| Average LME nickel price (US$/t) | 17,716 | 24,348 | -27.2 |
| Average LME copper price (US$/t) | 7,962 | 9,270 | -14.1 |
| Average Metal Bulletin cobalt low grade price (US$/lb) | 13.47 | 16.71 | -19.4 |
Source - Xstrata Plc
(www.steelguru.com)
