MOSCOW, February 5 (RIA Novosti) - Metals giant Norilsk Nickel [RTS: GMKN, LSE: MNOD] intends to create an energy holding before the end of the year, the company said in a news release Monday.
Norilsk Nickel is one of the world's largest precious and non-ferrous metal producers, accounting for more than 20% of the world's nickel output, and over 10% of cobalt and 3% of copper. The company produces 96% of Russia's nickel, 55% of its copper and 95% of its cobalt.
"Norilsk Nickel has started working on a project to create Russia's largest energy holding. This structure will incorporate the energy assets that have already been acquired and that will be acquired," the company said.
It was reported earlier that Norilsk Nickel's former co-owner, Mikhail Prokhorov, decided to consolidate his energy assets, developing both traditional and alternative energy sources.
"Spinning off energy assets into a separate company will help create added value for Norilsk Nickel shareholders," the news release said.
In 2006, Norilsk Nickel produced 3.164 million ounces (98.4 metric tons) of palladium, compared with 3.133 million ounces (97.4 metric tons) in 2005, and 752,000 ounces (23.4 metric tons) of platinum, compared with 751,000 ounces in 2005, the company said.
In 2007, Norilsk Nickel intends to produce 240,000-245,000 metric tons of nickel, 3-3.05 million ounces (93-95 metric tons) of palladium and 700,000-710,000 ounces (about 22 metric tons) of platinum, the company said.
