Norilsk Nickel has refused to comment on speculation that the company is planning a major payroll cut.

A company spokesman told Platts that the company policy prohibited speculation about the decrease of the labour force of Norilsk Nickel, and that the company would not be drawn.

According to audited financial statements issued recently, Norilsk Nickel's management cut labour costs in 2002 by 7.5 per cent, reducing payroll spending by $44 million, with further cuts now widely anticipated.

Repairs and maintenance also face an extensive cuts program, with expenditure in these areas recently downsized by 16.5 per cent.

Meanwhile Platts also claims to have unearthed an internal Norilsk document that shows tension in the company and among those living in the area surrounding its headquarters remains high.

According to the documents the company acknowledged its own alienation of voters in its attempt to back particular candidates for the Norilsk mayoral election.

A Norilsk Nickel spokesman again refused to comment on any speculation.