Latest reports have indicated that DaimlerChrysler and Norilsk Nickel have agreed a contract relating to palladium supplies.

Although details of the agreement have not been confirmed, a long-term contract between the two firms has been signed, reports news agency Prime Tass.

The deal focuses on the delivery of palladium from the Russian mining company for the production of car catalysts by the auto giant.

BMW also acknowledged negotiations between itself and Norilsk but a source at BMW could not confirm that agreement had been reached.

DaimlerChrysler recently highlighted the importance of dealing with reliable suppliers, with a third annual ceremony held to honour its top international suppliers.

Taking into account issues such as quality, cost, technology and supply, a number of suppliers were rewarded for their work while the firm emphasised the importance of "transparency, objectivity and close collaboration" between firms.

Meanwhile, Norilsk Nickel recently released preliminary production figures for 2005, which revealed that output had reached 3.133 million ounces of palladium and 751,000 ounces of platinum, beating previous predictions.


Ÿ Adfero Ltd