Sibanye took a $2.1 billion writedown on its unprofitable US belongings earlier this 12 months, citing a mix of plunging costs, rising prices and constraints on implementing an growth undertaking. The corporate, which acquired the Montana operations when it purchased Stillwater Mining Co. for $2.2 billion in 2017, additionally axed some jobs on the mine final 12 months as a part of its cost-cutting efforts.
Froneman stated in March that the Montana operation stays a “strategic asset” and that it was “not due for closure at this stage.” He stated on the time that the corporate had no choice however to make sure that the mine turns into worthwhile, even with depressed palladium costs.
Palladium, which is sort of completely utilized in catalytic converters that curb auto emissions, has come beneath rising stress as future demand is named into query by the shift to electrical autos. Palladium has slumped about 70% from a peak in March 2022.
The steel has additionally been substituted out of catalytic converters in favor of platinum, which till just lately was buying and selling at a cheaper price. Palladium is generally utilized in gasoline autos, whereas sister steel platinum — extra targeted round diesel demand — additionally has makes use of in hydrogen gasoline cells.
Sibanye’s US operations primarily produce palladium, whereas its South African mines are sometimes richer in platinum.
(By William Clowes)