Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

Montana Faces Economic Blow with Potential Mine Closure

theguru Views  

The Montana palladium mine owned by Sibanye Stillwater, a South African mining company, is expected to shut down. This decision is attributed to the continuous decline in palladium prices and a consequent drop in demand.

Neal Froneman, CEO of Sibanye Stillwater, announced at a London conference on June 25 that “If palladium prices do not recover, we will have to cease operations at the Montana palladium mine.”

In response to a question about the mine’s outlook, Froneman explained, “The future of Sibanye Stillwater is still balanced. If palladium prices do not adjust soon, we will need to go into maintenance and management on a strategic level.” Sibanye Stillwater reduced its investment in its less profitable U.S. mines by $2.1 billion earlier this year due to a sharp drop in palladium prices, rising operating costs, and constraints associated with expansion projects. Last year, they also cut some jobs to reduce operating expenses.

Froneman said in March, “The Montana palladium mine remains a strategic asset, and it is not the time to close it at this stage.” At that time, he said there was no way to make the mine profitable even if palladium prices fell.

Palladium is a silvery-white metal by-product of refining copper, nickel, and platinum. It is one of the most expensive rare precious metals, along with gold, silver, and platinum. It is mainly used as an essential raw material for catalysts that purify exhaust fumes from gasoline vehicles, accounting for more than 80% of total palladium demand. The demand for palladium, which soared with eco-friendly policies and exhaust gas regulations centered in Europe and China, recorded an all-time high in 2019 but has rapidly decreased since COVID-19. In March 2022, prices peaked due to the Russia-Ukraine war but have declined since then.

The decline in palladium prices is closely related to the global economic slowdown and changes in the global automotive market. The transition from internal combustion engines to electric vehicles and replacing palladium with platinum in gasoline vehicle catalysts have contributed to this trend.

The weak demand for palladium is expected to continue for the time being. In the long term, global car production, stricter emission standards, and technological developments will influence palladium demand.

Meanwhile, Sibanye Stillwater acquired Stillwater Mining for $2.2 billion in 2017, becoming the owner of the Montana palladium mine.

theguru
content@viewusglobal.com

Comments0

300

Comments0

[BUSINESS] Latest Stories

  • Tesla Cybertruck Outsells Ford F-150 Lightning in May
  • U.S. vs. China: How Biden's New Rule Crashed the NASDAQ
  • SpaceX and X to Call Texas Home, Musk Blames California Law
  • Cathie Wood Bets Big on Nuclear Future, Invests $2.4 Million in Oklo
  • Elon Musk's Public Support for Trump Sends Tesla Shares Skyrocketing
  • Trump Shooting Caused 10% Surge in Chinese Tech Company

Weekly Best Articles

  • How Spain Is Using Goats and Sheep to Battle Wildfire Season
  • When Eye Contact Is Your Enemy: 10 Scary Reality of Scopophobia
  • 7 Romantic Getaways Around the World for a Deeper Love
  • Why Corn Should Be Your Go-To Snack This Summer: 10 Health Benefits Revealed
  • 10 Essential Tips for a Safe and Enjoyable Summer Hike
  • Could We Run Out of Ketchup? California Drought Threatens Tomato Supply
  • 4 Easy Tips to Keep Your Corn Freshness All Summer Long
  • How Regular Sauna Use Can Help Control Menopause Weight Gain
  • 10 Do’s and Don’ts of Peroxide Soda: Safety Tips You Need to Know
  • Passenger Forced to Pay $700 for Reclining His Seat on a Train – Here’s Why
  • 10 Easy Hacks to Prevent Armpit Sweat and Smell
  • Why You’ll Never See Trash at Disneyland: The 30-Foot Rule

You May Also Like

  • 1
    4 Easy Tips to Keep Your Corn Freshness All Summer Long

    LIFESTYLE 

  • 2
    How Regular Sauna Use Can Help Control Menopause Weight Gain

    LIFESTYLE 

  • 3
    10 Do's and Don'ts of Peroxide Soda: Safety Tips You Need to Know

    LIFESTYLE 

  • 4
    Passenger Forced to Pay $700 for Reclining His Seat on a Train - Here's Why

    LIFESTYLE 

  • 5
    10 Easy Hacks to Prevent Armpit Sweat and Smell

    LIFESTYLE 

Popular Now

  • 1
    Why You’ll Never See Trash at Disneyland: The 30-Foot Rule

    LIFESTYLE 

  • 2
    Hollywood's Next Big Hits: Top 10 Upcoming Movies You Can't Miss

    ENTERTAINMENT 

  • 3
    Barcelona Bumps Up Tourist Tax: Travel Just Got Pricier!

    LIFESTYLE 

  • 4
    First-of-its-Kind Suicide Capsule to be Used in Switzerland

    DEBATE 

  • 5
    South Korea's Loudspeaker Attack Has North Korea on Edge

    ASIA 

Weekly Best Articles

  • How Spain Is Using Goats and Sheep to Battle Wildfire Season
  • When Eye Contact Is Your Enemy: 10 Scary Reality of Scopophobia
  • 7 Romantic Getaways Around the World for a Deeper Love
  • Why Corn Should Be Your Go-To Snack This Summer: 10 Health Benefits Revealed
  • 10 Essential Tips for a Safe and Enjoyable Summer Hike
  • Could We Run Out of Ketchup? California Drought Threatens Tomato Supply
  • 4 Easy Tips to Keep Your Corn Freshness All Summer Long
  • How Regular Sauna Use Can Help Control Menopause Weight Gain
  • 10 Do’s and Don’ts of Peroxide Soda: Safety Tips You Need to Know
  • Passenger Forced to Pay $700 for Reclining His Seat on a Train – Here’s Why
  • 10 Easy Hacks to Prevent Armpit Sweat and Smell
  • Why You’ll Never See Trash at Disneyland: The 30-Foot Rule

Must-Reads

  • 1
    4 Easy Tips to Keep Your Corn Freshness All Summer Long

    LIFESTYLE 

  • 2
    How Regular Sauna Use Can Help Control Menopause Weight Gain

    LIFESTYLE 

  • 3
    10 Do's and Don'ts of Peroxide Soda: Safety Tips You Need to Know

    LIFESTYLE 

  • 4
    Passenger Forced to Pay $700 for Reclining His Seat on a Train - Here's Why

    LIFESTYLE 

  • 5
    10 Easy Hacks to Prevent Armpit Sweat and Smell

    LIFESTYLE 

Popular Now

  • 1
    Why You’ll Never See Trash at Disneyland: The 30-Foot Rule

    LIFESTYLE 

  • 2
    Hollywood's Next Big Hits: Top 10 Upcoming Movies You Can't Miss

    ENTERTAINMENT 

  • 3
    Barcelona Bumps Up Tourist Tax: Travel Just Got Pricier!

    LIFESTYLE 

  • 4
    First-of-its-Kind Suicide Capsule to be Used in Switzerland

    DEBATE 

  • 5
    South Korea's Loudspeaker Attack Has North Korea on Edge

    ASIA 

Share it on...