The Wall Street Journal reported today that Stillwater Mining Co. (NYSE:SWC) does not have plans to accelerate development of its new platinum and palladium mines despite the ongoing strike in South Africa. The company intends to bring its Montana Graham Creek project to production later in 2014 with an anticipated production output of 20,000 ounces per year, according to the Journal.
As quoted in the publication:
The company mines the only known significant deposit of the metals in the U.S., in Montana state, and says that while it intends to boost mining operations in the U.S. and Canada in the longer term, it will first increase processing of recycled palladium and platinum by deploying unused capacity, allowing it to cash in on higher prices.
Stillwater CEO, Mick McMullen, said:
The demand for both palladium and platinum is very strong. People are looking to secure long-term supplies … We don’t want to fall into the trap of suddenly trying to increase our mined production.