Stillwater Mining president and chief executive, Frank McAllister has commented on "dwindling" palladium inventories.

During a conference call with precious metal analysts, Mr McAllister stated his belief that the automotive industry has depleted its palladium stockpile, while the US Defense Department is continuing to sell its logistical palladium stockpile.

However, the Stillwater chief speculated that the "one last wild card" might be Russia, as his opinion is that the Russians have been economical with the sales from their palladium stockpile.

And he revealed that Stillwater itself will use up its own stockpile during the first quarter of 2006.

Speaking following the announcement of Stillwater's results for the first half of 2005 - which showed a four per cent dip in production - Mr McAllister also stated that he expects to see greater competition in the US market from Chinese automobile companies.

That will result in an increase in the use of palladium, Mr McAllister explained, as the Chinese companies will need to comply with US clean air laws.


Ÿ DeHavilland Information Services plc