SIBANYE-Stillwater said on Wednesday it welcomed proposed countervailing duties on Russia by the US Department of Commerce related to imports of unwrought palladium.
The department announced a preliminary countervailing duty on March 6, a measure that targets Russian subsidies of its palladium exporters.
This follows a preliminary anti-dumping duty of up to 132.83%, proposed by the US Department of Commerce in February, which is focused on the exporters. As a tariff of 109.10% has been recommended in terms of this second countervailing duty, the total sanction on Russia’s palladium exports to the US is 241.93%.
In addition, the US International Trade Commission is conducting a concurrent injury determination, with a final hearing set for April 27, said Sibanye-Stillwater. The ITC’s final decision will be issued on May 19, the miner said.
These events originate from an antidumping petition filed by Sibanye-Stillwater and the United Steelworkers Union on Russian palladium in July last year. The miner’s CEO Richard Stewart said today the group’s actions had been “validated”.
According to Sibanye-Stillwater’s petition, Russian exports of palladium to the US between 2022 and 2024 increased by 35%, while palladium prices fell 50%.
During that time, Sibanye-Stillwater was forced to cut production at its Stillwater mine in Montana by half to about 300,000 ounces a year of platinum group metals (PGMs). It also slashed jobs at Stillwater’s mines amid hefty declines in all PGM prices.
“Our US PGM operations conform to more stringent environmental and labour regulations and to tax structures designed to support our local communities in Montana. We are grateful for our stakeholders’ unwavering support in advancing these trade remedies and look forward to the final determination,” said Stewart.
Russian palladium exports would be replaced by US production and recycling over time, said the World Platinum Investment Council last month. But there would be a short-term positive impact from the duties.
Since filing the petitions, Russian palladium imports into the US appear to have declined substantially, and palladium prices have increased materially. The palladium price is just over one percent weaker year-to-date but this was after registering gains of 68% over the last 12 months.
Unwrought palladium is refined metal produced in powder, ingot or bar form prior to manufacturing.
