Montana Miner To Lay Off Hundreds Due To Low Palladium Prices

The owner of the only platinum and palladium mines in the U.S. has announced that it plans to lay off hundreds of employees in Montana due to declining palladium prices, which are used in catalytic converters, the Associated Press (AP) reported.

Sibanye-Stillwater gave employees a 60-day notice of the layoffs, as required by federal law. I Photo: Sibanye-Stillwater

The price of the precious metal, which was around $2,300 per ounce two years ago, has dropped below $1,000 per ounce over the past three months, according to Sibanye-Stillwater Executive Vice President Kevin Robertson in a letter to employees explaining the estimated 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 flooded the U.S. market in recent years.”

Sibanye-Stillwater gave employees a 60-day notice of the layoffs, as required by federal law.

Montana U.S. Senators Steve Daines, a Republican, and Jon Tester, a Democrat, announced Thursday they will introduce legislation to ban U.S. imports of critical minerals from Russia, including platinum and palladium.

The south-central Montana mine complex includes the Stillwater West and Stillwater East operations near Nye, and the East Boulder operation south of Big Timber. Despite efforts to reduce production costs, the mines have lost over $350 million since the beginning of 2023, Robertson said.