Workers at Sibanye-Stillwater's Stillwater East mine and Columbus metallurgical plant in Montana have accepted a new three-year contract, ending a strike that began on September 3. They are due back at work on October 9.
At a glance
- About 420 union workers walked out on September 3 over health benefits and a new team-based bonus system.
- The new contract runs from June 1, 2026 to May 31, 2029, backdated to the start of June.
- Sibanye-Stillwater runs the only significant primary palladium mining operation in the United States.
Background
Palladium is a platinum group metal (PGM) used mainly in catalytic converters that clean car exhaust. Sibanye-Stillwater's Montana mines are the main US source. The company owns two Montana mines, Stillwater and East Boulder, and the Columbus complex, which smelts, refines and recycles PGMs.
What happened
Sibanye-Stillwater said on October 7 that workers at its Stillwater East mine and Columbus metallurgical facility had ratified a new collective bargaining agreement. The deal with the United Steel Workers union (USW) runs from June 1, 2026 to May 31, 2029. Employees are expected to return to work on October 9.
About 420 workers had been on strike since 7 a.m. on September 3. Their walkout came after four months of failed talks. The settlement completes the round of US wage talks, because workers at the nearby East Boulder mine ratified their own three-year deal on September 30.
Why workers walked out
The dispute centred on proposed changes to health benefits, including higher deductibles and out-of-pocket costs. Workers also objected to replacing individual bonuses with a team-based incentive system. The company said it had offered a 5% wage increase.
Sibanye-Stillwater argues it must cut costs because palladium prices have fallen from earlier highs. Palladium has traded between the mid-$1,300s and low-$1,500s an ounce in 2026. The company's all-in sustaining cost was about $1,291 per ounce of palladium and platinum combined, leaving the mines close to break-even.
What it means
The pay terms of the East Boulder deal are public. It gives 4.5% in the first year, then the greater of 3.5% or inflation, then the greater of 3% or inflation. Sibanye-Stillwater says the new contracts support full mechanisation, team-based incentives and modernised benefits.
"These agreements support the long-term sustainability and competitiveness of the US PGM operations," said chief executive Richard Stewart. For the palladium market, the main effect is that a five-week supply risk at the only significant US primary producer has ended. The mines produced 68,386 ounces of palladium and platinum in the first quarter of 2026.
Our read
Outlook: neutral. The end of the strike removes a supply risk, but the Montana mines produced only 68,386 ounces of palladium and platinum in the first quarter. Palladium prices are unlikely to react much on their own.
What to watch
- How quickly Stillwater East and Columbus return to normal output after October 9.
- Sibanye-Stillwater's next quarterly update, which will show how much production the strike cost.
- Whether the new incentive system lowers costs per ounce at the Montana mines.
For information only, not investment advice.
Palladium price in India
metalscost.com India reference price as of 2026-10-23.
Detailed analysis
Timeline
- 2026-09-03: About 420 USW members strike at Stillwater East and the Columbus metallurgical facility.
- 2026-09-30: East Boulder workers ratify a separate three-year agreement.
- 2026-10-07: Sibanye-Stillwater confirms the new Stillwater East and Columbus agreement.
- 2026-10-09: Striking employees are due back at work.
Supply Drivers
A five-week strike halted output at Stillwater East and the Columbus smelting and refining complex.
Mining Production
The Montana operations produced 68,386 ounces of palladium and platinum in the first quarter of 2026.
What could lift prices
- The strike cost about five weeks of output at the main US palladium source.
- The mines run close to break-even, which limits any push to expand output.
What could weigh on prices
- Workers return on October 9, ending the supply risk from the strike.
- Palladium has fallen from earlier highs, which is why the company is cutting costs.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | The country's only significant primary palladium producer is back at full staffing. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| PGM Mining | Positive | A costly strike is over and wage terms are fixed until 2029. |
| Automotive (Emissions Systems) | Neutral | Catalytic converter makers see a small US supply risk ease. |
Who gains, who loses
- Sibanye-Stillwater: It secures labour terms that support mechanisation and team-based incentives until 2029.
- Striking workers: They accepted a shift from individual to team-based incentive pay after a five-week strike.
Other ways this could play out
- If the team-based incentives cut costs, the Montana mines could move further above break-even.
- If palladium falls further, Sibanye-Stillwater could face fresh pressure to scale back US output.
Price risks
- Further falls in palladium prices would squeeze mines that already run close to break-even.
- A slow restart at Columbus could extend the supply loss beyond October 9.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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