Russian miner Norilsk Nickel boosted nickel and copper output in the first half of 2008 after reconstructing a smelter and acquiring overseas assets, but production of platinum group metals declined.

Norilsk, the world's largest nickel miner, said on Thursday nickel output rose 13.7 percent year-on-year to 143,407 tonnes in the first six months of the year. Copper production rose 3.1 percent to 208,046 tonnes.

Norilsk said in a statement palladium output declined by 5.5 percent to 1.438 million ounces, while output of sister metal platinum output was 338,000 ounces, down 7.1 percent from year-ago levels.

These volumes do not include production at Norilsk's U.S. subsidiary, Stillwater Mining Co, the company said.

Norilsk said it was retaining its full-year 2008 output forecast. The company expects nickel output to rise this year to 300,000-305,000 tonnes from 295,209 tonnes, and palladium to decline to 3.00-3.05 million ounces from 3.113 million ounces.

Copper output is expected to decline to 415,000-420,000 tonnes in 2008 from 422,698 tonnes a year earlier and platinum output is seen falling to 710,000-720,000 ounces from 740,000 ounces.

Norilsk produces a fifth of the world's nickel and more than half of its palladium, a precious metal used in jewellery and vehicle exhausts. The company is also among the world's largest producers of platinum, rhodium, copper and cobalt.

Its key production units are in the Russian Arctic. The company last year acquired production assets in Finland, Australia, Botswana and South Africa through its purchase of LionOre Mining International and the nickel assets of U.S.-based OM Group. – Forbes