Impala Platinum Holdings Ltd. said it’s reviewing the future of a Canadian palladium mine as the price of the metal used in gasoline vehicles languishes.
The South African producer of platinum-group metals posted a profit of 1.9 billion rand (US$103 million) for the second half of last year, according to a statement released on Thursday. Like peers such as Anglo American Platinum Ltd. and Sibanye Stillwater Ltd., Implats has been cutting costs in response to the persistently weak markets for the metals they mine.
The firm has been “continuously evaluating the future” of the palladium-rich Lac des Iles mine in Ontario, which contributed about 7% of the company’s production in the final six months of 2024, Chief Executive Officer Nico Muller told reporters.
The Implats boss said he “would not be overly surprised if in the course of the next few months we come to a position that an accelerated and responsible wind down of that operation seems to be economically the most effective way” to deal with the operations.
The price of palladium – the main metal produced from North American PGM mines – is trading at less than a third of its 2022 peak. Mines in southern Africa – where the rest of Implats’ assets are located – contain more platinum, for which prices have been steadier.
Implats acquired the Canadian mine in 2019 and it helped the company post bumper profits in the early part of the decade. Sibanye is also battling slumping palladium prices at loss-making mines it acquired in the US eight years ago.
In addition, Muller said that some shafts at the company’s flagship Rustenburg complex in South Africa are either nearing the end of their lives or struggling to turn a profit.
Implats restructured the Canadian operations last year, shortening its life and targeting high grade material. The mine has never made a full-year cash loss and a focus on lowering costs “has kept the door open for longer,” Muller said.
“God forbid, we may see a spike in the palladium price which will change everything,” the CEO said.
William Clowes, Bloomberg News
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