Sibanye-Stillwater cuts US PGM annual production forecast
Challenges, including a five-week strike in Montana, threaten to test the company’s patience while the US seeks to strengthen domestic mineral supplies.
Sibanye-Stillwater, a prominent South African mining company, has reduced its annual production forecast for platinum group metals (PGM) operations in the United States. This decision comes after a five-week strike in Montana that has impacted the company's production capabilities. In addition to cutting production, Sibanye has also increased its cost guidance for running the mines.
The company's quarterly output update revealed that US PGM production may decrease by up to 15%, posing challenges to the company's operations and financial outlook. The strikes in Montana, which has resulted in the closure of the Stillwater and East Boulder mines, the sole sources of primary US PGM production, have raised questions about the commercial viability of these operations.
PGMs, primarily used in vehicle catalytic converters and defense equipment, are considered critical minerals by the US due to their economic significance. The country heavily relies on imports, predominantly from South Africa, which is the world's largest producer and exporter of PGMs.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
