Implats mulls early closure of Canada mine amid palladium slump

South African miner Impala Platinum (Implats) may close its Canadian palladium mine earlier than planned as prices for the metal, used in gasoline vehicles, have plummeted more than 70% over the past three years.

Commenting on the company’s results for the final six months of 2024, chief executive Nico Muller said Implats has been “continuously evaluating the future” of the palladium-rich Lac des Iles mine in Ontario. The operation contributed about 7% of the company’s production in the period.

“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.

Price plunge

Palladium has suffered the steepest price drop among platinum group metals (PGMs), plunging from a peak of about $3,440 an ounce in March 2022 to current levels around $921.

The sharp fall has weighed on Implats’ profitability, cutting its first-half fiscal 2025 earnings to 1.9 billion rand ($103 million).

Implats acquired the Lac des Iles mine in 2019, which fuelled the company’s profits in the early part of the decade. 

Like its peers such as Anglo American Platinum and Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW), the company has been forced to cut costs and scale back production in response to persistently weak metal prices.