Russian mining firm Norilsk Nickel has announced that it anticipates its platinum and palladium production levels will be higher than previously stated.

The company has revealed that it is raising its production forecast for platinum by 4.5 per cent, while it has increased its palladium production estimates by 3.2 per cent.

That means Norilsk's production levels for palladium will reach between 3,150,000 and 3,190,000 ounces in 2006.

According to the company, the reason for this increase is down to decreasing production inventories, as well as "achieving actual metal recoveries in excess of plans".

Norilsk has also released its production levels for the third quarter of 2006, which has seen the company produce 768,000 ounces of palladium and 179,000 ounces of platinum at its Polar Division and Kola operations.

Last month a senior executive at Norilsk revealed that the firm was seeing an almost insatiable demand for its precious metals, with the Asian jewellery industry driving sales.

Ÿ Adfero Ltd