The Sibanye Stillwater mine in Stillwater County faced a significant setback two years ago, laying off around 700 workers due to low palladium prices. Last month, the U.S. government ruled in favor of Sibanye Stillwater in a trade case against Russia, addressing unfair palladium dumping that occurred during the early stages of the Ukraine invasion.
The International Trade Administration imposed a 132% tariff on Russian palladium, finding that the country’s actions halved the price from $2,000 to under $1,000 per ounce. “Every ounce of palladium we were producing was costing us $200,” stated Sibanye Stillwater’s Senior VP Heather McDowell.
Sibanye Stillwater’s status as a multinational company helped it endure these challenges. Montana’s Congressional delegation, including former U.S. Sen. Jon Tester, secured tax breaks for rare metal production, aiding the company. Additionally, the International Trade Administration is examining alleged unfair Russian government support to its palladium producers, which could result in higher tariffs.
McDowell credited U.S. Sen. Steve Daines’ staff for expediting the trade case, safeguarding remaining jobs. Russian palladium imports ceased in July, and the market price has since risen to more sustainable levels. “We think this case had the intended purpose and keeping the 132% tariff will keep them from doing it,” McDowell commented.
If finalized, the sanctions could last up to five years and be renewed for 20 years. Sibanye Stillwater is the only operation focused primarily on palladium, essential for catalytic converters in the automotive industry. With reserves ensuring decades of production, the company is optimistic about workforce growth as prices stabilize.
The mine operates at two sites: the older Stillwater mine and the East Boulder complex. Deeper mining requires new equipment and techniques to maintain cost-effectiveness. “Changing the plan and getting the right equipment, we want to be sure we’re close to the $1,000 per ounce (production cost),” McDowell explained.
Current palladium production costs range from $1,200 to $1,300 per ounce, while market prices are around $1,600. McDowell noted, “That’s a good price. And it’s sustainable for us.”
Recycling and reuse
Domestically, Sibanye Stillwater emphasizes palladium recycling, surpassing mining and refining outputs. Recycled elements from catalytic converters reduce environmental impact. “We’re now recycling the same palladium that came out of the ground in the 1980s and 1990s,” McDowell shared.
Sibanye Stillwater’s palladium is more concentrated, allowing higher yield per ton of ore. The company is committed to responsible mining, demonstrated by its “Good Neighbor Agreement.” While primarily used in catalytic converters, palladium has potential in medical devices and hydrogen fuel cells.
With rising precious metal prices, palladium has gained popularity among investors. “Since 2024, we’ve recycled more metal than we’ve mined,” McDowell stated.
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