Montana miner cuts hundreds of jobs amid falling palladium prices

The owner of the only platinum and palladium mines in the United States, Sibanye-Stillwater, announced plans to lay off approximately 700 employees in Montana due to a significant decline in palladium prices. Over the past two years, the price of palladium has dropped from around $2,300 an ounce to below $1,000 an ounce, largely attributed to increased imports from Russia, which supplies over 40% of the global palladium market. This price drop has resulted in substantial financial losses for the company, exceeding $350 million since the start of 2023. In response to the layoffs, Montana Senators Steve Daines and Jon Tester are proposing legislation to ban the import of critical minerals from Russia, including palladium and platinum. Daines' bill aims to lift the import ban only after Russia concludes its military actions in Ukraine. The layoffs come after the company has already taken steps to reduce production costs and pause operations at the Stillwater West mine, while also scaling back activities at the East Boulder operation and a smelting facility in Columbus. The decision to lay off workers follows a 60-day notice period mandated by federal law, allowing employees time to prepare for the impending job losses. The company is also exploring ways to enhance operational efficiencies, which may lead to the potential reopening of the Stillwater West mine in the future. The situation highlights the broader impact of international market dynamics on local employment and the mining industry in Montana. As the palladium market continues to fluctuate, the future of the mining operations and the livelihoods of the affected employees remain uncertain, emphasizing the need for strategic responses to global supply chain challenges.