Montana’s leading Republican officials announced that the U.S. Department of Labor has awarded the state a $3.5 million grant. This funding aims to support 700 workers laid off from the Sibanye-Stillwater Mine earlier this year by providing training for new job opportunities. The layoffs, announced in September due to a decline in palladium prices, prompted the Montana Department of Labor and Industry and Gov. Greg Gianforte to seek $11.5 million in National Dislocated Worker Grant funding.
The Montana Department of Labor and Industry’s commissioner emphasized that although only $3.5 million was granted, it will help laid-off workers in 10 counties gain new skills, further education, or enter apprenticeships. “This is a meaningful win for the affected workers, their families, and the entire state,” said DLI Commissioner Sarah Swanson.
National Dislocated Worker Grants aim to stabilize local economies after significant layoffs by helping workers re-enter the workforce. The DLI reported in September that the 700 lost jobs represented about 13% of payroll positions in Stillwater and Sweet Grass counties and 16% of Montana’s mining jobs. Average salaries at the mine were estimated at $110,000.
Approximately 75% of the company’s Montana production is palladium, a metal whose price dropped from $2,305 per ounce two years ago to $907 recently. The price reduction has cost the Montana operations about $350 million from early 2023 through mid-year, with Russia blamed for flooding the market.
In response to the layoffs, U.S. Senators Jon Tester and Steve Daines proposed bills to ban U.S. imports of Russian palladium. Job Service Centers opened to assist the laid-off workers, and in late October, the U.S. Department of Treasury and IRS finalized rules for a 10% tax credit for critical mineral mining, which could help stabilize operations.
Gov. Gianforte expressed gratitude for the grant, describing it as “important relief” for those affected. Daines and U.S. Rep. Ryan Zinke acknowledged the funding but urged for additional measures to support the mining sector and prevent future job losses, advocating for legislation to curb Russian influence on mineral markets.
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