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The most lucrative contracts 2014: palladium

21 May 2014
The most lucrative contracts 2014: palladium

According to the data, which were provided by the Stillwater Mining Co Stillwater leadership signed an agreement for a period of five years with a leading manufacturer of auto catalysts, Johnson Matthey in respect of the supply of all produced volume of palladium. As stipulated in the contract, Johnson Matthey acquires from the company at the average cost with reference to certain industry standards all mined palladium and a very impressive amount of platinum. As for benefits of the Stillwater Mining Co, Johnson Matthey is obliged, if necessary, provide its own facilities for the processing of recyclables and mined ore on more favorable terms. Services provided by Johnson Matthey include the analysis of the market for PGMs. In addition, the company made a decision on joint cooperation on technical aspects to improve performance in the refining and smelting of platinum group metals.

The Treaty will enter into force on 1 July, and Stillwater Mining Co given the opportunity to terminate the agreement at any time for a nominal penalty. In 2013, the volumes of production processes Stillwater have increased. In particular the production of PGMs increased by 2% compared to the previous year, which amounted to 523,9 thousand ounces, platinum output increased by 1.7% (to 119.7 thousand ounces) and palladium 2.1% (404,2 thousand ounces). Recycling has also increased in volume by 38.5%, which was is 616.7 thousand ounces.

Norilsk Nickel also enters into favourable contracts, at the moment the company conducts negotiations with China and Japan over the long-term agreements on the supply of palladium. The planned duration of the contracts will be for at least five years, and although the volumes of supply were not disclosed, it carried on considerable quantities. The structure of transactions is similar to the contract signed by the «Norilsk Nickel» with BASF in January of this year. Financial calculations in the framework of the agreement will be made in RMB.

According to company management, the initiative for the negotiations came from buyers seeking to secure long term contracts for the supply of palladium and platinum. Previously the role of the leading provider punctually went to South Africa, but the situation has changed in connection with the strike of Union workers and miners in the mines producing platinum.

20 May 2014
26 May 2014