Implats May Shut Canadian Palladium Mine Early as Prices Slide

Palladium prices have plummeted from a peak of approximately $3,440 per ounce in March 2022 to around $921 per ounce, significantly impacting profitability. As a result, Implats' first-half profit fell 43% to 1.85 billion rand ($100.23 million), leading the company to halt dividend payments.

Last year, Implats announced plans to reduce the lifespan of the Canadian operation by three years to cut costs amid the ongoing price slump. The mine’s production dropped by 20% to 116,000 tons in the first half of the company’s financial year.

Other mining firms are facing similar challenges. Johannesburg-based Sibanye Stillwater has undergone extensive restructuring of its palladium operations in Montana, reducing production due to weak market conditions. Implats is also reviewing the viability of some of its South African mines that are struggling to remain profitable.

Platinum group metal producers, including Implats, Anglo American Platinum, Sibanye, and Northam Platinum, have seen profits decline due to falling metal prices. The future of these metals, which are essential for catalytic converters in internal combustion vehicles, remains uncertain as electric vehicle adoption continues to grow.