Impala Platinum (Implats) could wind down its palladium mine in Canada earlier than planned if there is no immediate recovery in metal prices, CEO Nico Muller said after a 43% slump in first-half profit. Palladium has plunged from its March 2022 peak of about $3,440 an ounce to current levels around $921 an ounce.
An aerial view of Shaft 11 at Impala Platinum Mine, in Rustenburg. Source: Reuters/Shafiek Tassiem
Muller said Implats could close the Canada mine before the end of its remaining two years, but no final decision has been taken yet.
"I would not be 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 (Impala) Canada," Muller said on a media call.
Implats' first-half profit slumped 43% to R1.85bn, hit by lower metal prices, prompting the miner to scrap dividend payments.
The company had said last year that it would shorten the life of the Canadian mine by three years, to cut costs in the face of the price rout.
Production at the mine fell by 20% to 116,000 tons in the first six months of Implats' financial year, the company said.
Lessons from Sibanye
Johannesburg-based rival Sibanye Stillwater has extensively restructured its Montana-based palladium mines and scaled back production because of lower prices.
Implats CEO Muller also said his company is assessing some of its South African mines that are struggling to make a profit.
Implats and South African peers including Anglo American Platinum, Sibanye and Northam Platinum have had profits squeezed by a sharp decline in prices for platinum group metals.
The outlook for platinum group metals, which are used in devices that help to curb vehicle emissions, has become uncertain because of growth in electric vehicle.
