GM and Montana’s Stillwater Mining Company are making amends according to documents filed this past week with federal regulators. The deal is of particular importance since Stillwater operates the only platinum and palladium mines in the United States — and platinum and palladium are used in catalytic converters to reduce emissions. The metals are also the same reason catalytic converters are often stolen from modern vehicles.
GM maintained a business relationship with Stillwater for 10 years before dropping the supply agreement when GM went into bankruptcy protection. The move drew flak from many, including Montana’s Governor and congressional delegation.
“It just makes sense for GM to get back in the business of buying from American companies because American taxpayers saved GM,” said Montana Sen. Jon Tester.
Terms of the deal between GM and Stillwater show the company providing palladium to GM for the next three years starting in January. Prices are to be based on the market average of palladium at the time of sale. The agreement is good news for Stillwater, which has been getting clobbered due to the decrease in price of these precious metals over the past two years.
“We kind of made peace with (GM) a while back and we’re obviously moving ahead,” said Greg Wing, Stillwater’s Chief Financial Officer.
Source: Detroit Free Press