Norilsk Sells Stillwater Stake
Norilsk acquired its controlling inter- est in Stillwater in June 2003.
Also in mid-December, Stillwater reported in an SEC filing it had entered into a three-year palladium sales agree- ment with General Motors, beginning January 1, 2011. Sales will be for con- tractually determined quantities at prices based on the London PM fix monthly average for palladium at the time of each sale. General Motors broke previous sales agreements with Stillwater when it filed for Chapter 11 bankruptcy protection in 2009.
Stillwater Mining produces platinum and palladium at its Stillwater and East Boulder mines in southern Montana. Its smelter and refinery are located at Columbus, Montana. On January 12, the company announced its full-year 2010 mined production of palladium and plat- inum totaled 485,000 oz. This was at the high end of the company’s most recent guidance (475,000 to 485,000 oz) and in particular reflected excellent performance for the year at the East Boulder mine. The Stillwater mine strug- gled with lower-than-planned ore grades and some intermittent operational chal- lenges throughout much of 2010, espe- cially in the off-shaft area of the mine, which historically has produced much higher ore grades, the company said.
Stillwater has two mine delineation and development projects currently in progress at the Montana mines that will have a combined cost of about $68 mil- lion over a period of five to six years.