Norilsk Nickel has announced that its production of platinum group metals (pgms) increased during 2006.

The company stated that its palladium output rose to 3.164 million ounces, representing a 0.99 per cent growth on the previous year's production.

Platinum production also increased, up by 0.13 per cent to 752,000 ounces.

However, looking ahead to 2007, the company predicted a dip in output. Norilsk suggested it would see production of between three and 3.05 million ounces of palladium, as well as between 700,000 and 710,000 ounces of platinum.

The lower estimated figures are due to planned reconstruction work at Norilsk's operations, which the company announced it would be undertaking in June last year as part of its production strategy.

Norilsk added that the figures did not include production from its US subsidiary, Stillwater Mining.

Ÿ Adfero Ltd