Norilsk Ups '07 Nickel Output Forecast On LionOre Buy-Report

MOSCOW (Dow Jones)--Russian mining giant OAO Norilsk Nickel (GMKN.RS) saidTuesday it has raised its forecast for group nickel output this year to between295,000 and 300,000 metric tons, to take into account its acquisition of LionOreInternational Mining Ltd (LIM.T).

That is an increase of around 16% from its previous forecast of between 270,000 and 275,000 tons.

It said its operations including LionOre had produced 71,000 tons of nickel inthe second quarter.

It also said that its traditional production units in northern Siberia and onthe Kola peninsular had produced 100,000 tons of copper, 806,000 troy ounces ofpalladium and 195,000 oz of platinum in the second quarter.

It didn't give figures for its Stillwater Mining unit in Colorado.

Norilsk also repeated its existing guidance for production of copper,palladium and platinum this year. That is: 404,000-409,000 tons for copper, 3.00to 3.05 million oz of palladium, and 700,000 to 710,000 oz of platinum.

Company Web site: http://www.nornik.ru

-By Geoffrey T. Smith, Dow Jones Newswires (+7 495) 974 8055; geoffrey.smith@dowjones.com

(END) Dow Jones Newswires 07-31-07 0942ET Copyright (c) 2007 Dow Jones & Company, Inc.