The operator of the sole platinum and palladium mines in the United States revealed on Thursday its intention to reduce its workforce by hundreds in Montana, attributing the decision to falling prices for palladium, a key component in catalytic converters.
According to a letter from Sibanye-Stillwater Executive Vice President Kevin Robertson to employees, the value of the precious metal, which was approximately $2,300 an ounce two years ago, has fallen below $1,000 an ounce in the last three months. This decline is linked to the anticipated 700 layoffs expected later this year.
“We believe Russian dumping is a cause of this sharp price dislocation,” he wrote. “Russia produces over 40% of the global palladium supply, and rising imports of palladium have inundated the U.S. market over the last several years.”
Sibanye-Stillwater has informed employees of impending layoffs with a 60-day notice, in compliance with federal regulations.
Montana’s U.S. Senators, Steve Daines and Jon Tester, announced on Thursday their plans to introduce a bill aimed at banning the import of essential minerals from Russia, such as platinum and palladium. Daines’ proposed legislation aims to lift the import ban once Russia’s conflict with Ukraine comes to an end, with a one-year waiting period.
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The mine complex located in south-central Montana encompasses the Stillwater West and Stillwater East operations close to Nye, along with the East Boulder operation situated south of Big Timber. According to Robertson, it has incurred losses exceeding $350 million since the start of 2023, even after cutting production expenses.
The organization has decided to temporarily halt the Stillwater West operations. Operations are being scaled back at East Boulder, as well as at a smelting facility and metal refinery located in Columbus. Efforts are underway to enhance efficiencies that may pave the way for the reopening of the Stillwater West mine, according to Robertson.
The job cuts follow a year marked by the company’s halt on an expansion initiative, the dismissal of 100 employees, the decision to leave 30 positions vacant, and a decrease in available work for contractors, all attributed to falling palladium prices.
