Two years ago, Sibanye Stillwater mine in Stillwater County slashed nearly 40% of its workforce, affecting around 700 miners. This significant job cut impacted the county’s economy heavily reliant on high-paying mining jobs.
Recently, the U.S. government ruled in favor of Sibanye Stillwater in a trade dispute against Russia. The International Trade Administration imposed a 132% tariff on Russian palladium imports, addressing the unfair market practice of dumping which had halved the metal’s price from $2,000 to under $1,000 per ounce.
Sibanye Stillwater’s Senior Vice President, Heather McDowell, stated, “That meant every ounce of palladium we were producing was costing us $200.” The mine, a global leader in palladium production, survived due to tax credits and support from Montana’s Congressional delegation.
The ruling ensures any Russian palladium entering the U.S. will face a steep tariff, making it pricier than local production. Additionally, the ITA is investigating potential unfair Russian government support to palladium companies, which could lead to increased tariffs.
U.S. Senator Steve Daines and Montana’s delegation expedited the case, preserving jobs against Russian economic maneuvers. Since the trade sanctions, no Russian palladium has entered the U.S., and prices have risen steadily.
McDowell remarked, “We think this case had the intended purpose and keeping the 132% tariff will keep them from doing it.” If finalized, these sanctions could last five years, extendable up to 20 years.
Sibanye Stillwater, the only operation focused on palladium, expects a workforce increase as prices rebound. However, reopening the older Stillwater mine requires new equipment to reduce production costs closer to $1,000 per ounce.
Current production costs range from $1,200 to $1,300 per ounce, while market prices hover around $1,600, down from nearly $2,200. Recent trading shows palladium between $1,740 and $1,795.
Recycling and reuse
Sibanye Stillwater leads in palladium recycling, recovering more than it mines. This sustainable approach reduces the environmental impact of traditional mining. “We’re now recycling the same palladium that came out of the ground in the 1980s and 1990s,” McDowell noted.
The Montana mine produces palladium with higher ore concentration, making it unique globally. The company holds significant reserves to ensure long-term operations, adhering to environmental agreements with local communities.
Palladium’s primary use remains in catalytic converters for internal combustion engines, but its applications are expanding into medical devices and hydrogen fuel cells. With precious metals’ prices climbing, palladium is also drawing interest as an investment.
“Since 2024, we’ve recycled more metal than we’ve mined,” McDowell said.
