Russian mining giant Norilsk Nickel confirmed on Friday (30th January) that its platinum and palladium output fell over the course of last year, Reuters reports.

Although the company did not provide exact comparisons with figures for 2007, it announced that platinum production for 2008 was 659,000 oz and palladium output was 2.821 million ounces.

However, excluding subsidiaries purchased during 2007 in Finland, Australia, South Africa and Botswana, the firm produced 3.087 million ounces of palladium and 734,000 oz of platinum, according to the news provider.

In addition, Norilsk revealed that it has not altered its 2009 metals output forecast, which includes predictions of 2.610 - 2.625 million ounces of palladium and 600,000 - 620,000 oz of platinum.

Michael Kavanagh, Metals Analyst at UralSib investment bank, told Reuters: "Despite two to four per cent quarter-on-quarter growth in palladium and platinum production, volumes for 2008 declined by nine to ten per cent year-on-year due to a production upgrade at the Nadezhda plant in Russia."

Mr Kavanagh reportedly added that an extra seven per cent output decrease in palladium, platinum and copper is on the cards for this year as ore grades decline and processing facility upgrades continue.

Norilsk is the world's largest producer of palladium and nickel.

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UPDATE 2-Norilsk raises '08 nickel output, PGMs decline (30/01/09)
http://uk.reuters.com/article/tnBasicIndustries-SP/idUKLU25641020090130?sp=true