The Sibanye-Stillwater mining company announced Thursday it plans to lay off around 700 employees in Montana. This restructuring is due to a drop in palladium prices and over $350 million in losses in Montana since early 2023.
Less than a year ago, the company announced it was laying off around 100 employees in Montana. Sibanye-Stillwater owns the Stillwater and East Boulder operations, southwest of Columbus, and the Columbus Metallurgical Complex.
As the largest employer in Stillwater County, the layoffs prompted Montana’s U.S. senators to introduce a bill to ban the import of Russian palladium, which the company blames for its financial troubles.
In a letter sent to employees Tuesday, following a corporate results call for the year’s first half, CEO Neal Froneman announced 800 job cuts. Kevin Robertson, executive vice president of U.S. platinum group metals operations, said layoffs will start Nov. 12, with salaried employees informed by email and hourly employees by their union.
The Department of Labor and Industry (DLI) estimates 700 jobs represent about 13% of payroll jobs in Stillwater and Sweet Grass counties, 20% of those counties’ total wages, and 16% of statewide mining jobs. A company spokesperson indicated the average annual salary is around $110,000 plus significant benefits.
“We estimate that this restructure will reduce our total number of employees at our Montana operations from approximately 1,680 on July 31 to just under 1,000 after layoffs,” Robertson said in the letter. “We know this will be a very difficult time for everyone and want to ensure employees receive the support they need.”
Montana operations produce about 78% palladium and 22% platinum. Palladium prices have fallen from $2,305 per ounce two years ago to below $1,000 per ounce. Palladium futures were trading at $1,057 per ounce as of 2 p.m. MT Thursday.
The company attributes the price drop to Russia flooding the palladium market, leading to a nearly 40% decrease in U.S. palladium import prices this year.
Despite an 8% production increase in the first half of this year, costs have surpassed sales prices, leading to $265 million in losses last year and $87 million in the first half of 2024 for Montana operations. Robertson emphasized that “responsible and sustainable mining and metals processing is much more expensive than that of our competitors in Russia and other areas.”
The western section of the Stillwater mine began production in 1986, and the eastern section is in a buildup phase. The East Boulder mine has been operational since 2002. The company plans to pause operations at Stillwater West, continue production at Stillwater East and East Boulder, use fewer ramps at East Boulder, and reduce operations at the Metallurgical Complex.
“The decision to pause operations at Stillwater West and to curtail production at East Boulder was one we put considerable thought, time, and effort into and delayed as long as we could,” Robertson stated. “But to continue to operate at these losses would jeopardize our ability to operate at all.”
Robertson’s letter mentioned plans to meet with United Steelworkers leadership to ensure long-term sustainability. AFL-CIO executive secretary Jason Small expressed uncertainty about how many union members would lose their jobs but noted that the vast majority of employees at Montana sites are union workers.
Small said some laid-off employees might seek similar underground mining work in states like Nevada, New Mexico, and Arizona, while others might stay in Montana, transitioning to roles such as boilermakers, laborers, pipe-fitters, and ironworkers.
“We’re more than willing to step in and do that again. They’ll have a team set up and ready to roll to help get these guys going,” Small said. Department of Labor and Industry Commissioner Sarah Swanson said DLI will release a mining-specific skills matching tool to help workers find new job opportunities.
Montana officials call layoffs ‘unacceptable,’ ‘significant blow’
Gov. Greg Gianforte called the layoffs “a significant blow” and committed to bringing “every available resource” to help affected families, citing regulatory challenges facing the mining sector.
U.S. Sens. Jon Tester (D) and Steve Daines (R) introduced bills to ban Russian palladium imports. Tester called it “unacceptable” that Montanans were losing jobs due to Russian imports. Daines criticized the administration for allowing these imports, emphasizing Montana’s mineral wealth.
Sen. Forrest Mandeville (R-Columbus) contacted officials to coordinate resources for affected workers and families. “It’s really going to be specific, family-to-family, individual-to-individual, on what help is needed,” he said. Commissioner Swanson stated that DLI would host rapid response and career fair events in Columbus when layoffs begin.
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