Norilsk Nickel has announced that production of platinum group metals in 2005 is expected to remain at similar levels to those recorded last year.

According to Interfax, the Russian mining giant also stated in its fourth quarter report that nickel production was expected to fall "in line with environmental norms and limits".

Norilsk also expects metal prices, apart from palladium, to embark upon on a downward trend this year.

"Prices on the world market and, as a result, actual sales prices for all the main metals, except for palladium, will supposedly show a negative trend in 2005," the firm stated.

"[This] will lead to a drop in the financial indicators for the issuer's activities for 2005."

At the end of last year, Norilsk announced plans for a major new mining development at the Skalisty Mine on in the Taimyr Peninsula, which aims to boost electrolytic nickel production.