Sibanye-Stillwater Begins Repositioning Its U.S. PGM Operations, Montana
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Platinum group metals (PGM) producer Sibanye-Stillwater said last week the company has begun repositioning its U.S. PGM operations for lower cost structure to secure operational sustainability.
In a media release, the company said it has given notice to its employees and contractors that it will be implementing a restructuring of its U.S. PGM operations to reduce the operating and capital cost structures and ensure sustainability through a lower palladium price environment.
“The restructuring follows an initial repositioning for the changing macro environment announced in July 2022, with the subsequent anticipated decline in the palladium price and impact of ongoing inflationary cost pressures at the operations, necessitating a reduction in the cost structures,” Sibanye-Stillwater said.
According to the company, the restructuring is expected to affect approximately 100 Sibanye-Stillwater employees, the majority of which are at the Stillwater mine, with the remainder spread between the East Boulder mine, the Columbus metallurgical complex and Columbus offices as well as remote work locations. This follows attrition of approximately 20 employees since beginning of October 2023.
A significant amount of contract workers other than essential services will also be impacted, with the approximately 187 contract workers (69 percent of current primary mining contract workers) affected across the sites, the company said.
Sibanye-Stillwater pointed out that the restructuring is not expected to significantly impact current 2E mine production or recycling production but will result in “significantly lower” costs and capital.
”We have taken decisive action to address costs at the U.S. PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower than anticipated PGM prices. This is not a decision we have taken lightly, and we will engage frankly and candidly with affected stakeholders during this challenging period,” said CEO Neal Froneman.
This news comes after the Forest Service approved Sibanye-Stillwater’s East Boulder Mine expansion.
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations. Sibanye-Stillwater has established itself as one of the world’s largest primary producers of platinum, palladium, and rhodium, and is a top tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper, and cobalt. The group has recently begun to build and diversify its asset portfolio into battery metals mining and processing and is increasing its presence in the circular economy by growing and diversifying its recycling and tailings reprocessing operations globally.
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