Norilsk Nickel, the world's largest producer of platinum group metal palladium, has reported the agreement of a new palladium supply deal with China and South Korea.

However, deputy chief executive Maxim Finsky would not give specific details of the company's palladium production, as this remains classified information in Russia, reports Reuters.

He did, though, say that 'palladium sales for the seven months [between January and July 2003] were equal to 84 per cent of our current quota', and referred optimistically to the group's 'new clients in China and South Korea.'

'Our middle and long-term contracts account today for 70 per cent of our sales, while the remaining 30 per cent were sold under short-term contracts and on the spot market.

'The volumes of our sales do not include 877,000 troy ounces paid for Stillwater Mining Co', he added.