Stillwater Mining Company confirmed on Monday (17th November) that it has suspended operations at its East Boulder mine and laid off 370 employees.

The company revealed that it has released 320 workers and 50 contractors - representing 21 per cent of its total workforce - while lay-off notices have been issued to a further 156 workers.

While some will be relocated to the Nye mine, Stillwater will be discussing a restructuring plan with the United Steel Workers Union Local 11-0001 which will see East Boulder reopen with significantly less staff.

Chairman and Chief Executive Francis McAllister explained that the move has been prompted by the 60 per cent drop in the market value of palladium and platinum this year.

He said: "We regret the adjustments will require reductions and redeployment of some of our employees.

"While the adjustments are unavoidable under the current market conditions, they are designed to preserve the company's operating options, improve our competitive position and enhance our resilience to market price volatility for platinum-group metals."

In addition, the company has confirmed that if the market for the two precious metals fails to recover or if the mine cannot become profitable, it will be shut down permanently.

The workers have been given a 60-day notice under the terms of the federal Worker Adjustment and Retraining Notification Act and those whose services are no longer required will be laid off on 16th January.

Source:
http://www.billingsgazette.net/articles/2008/11/17/news/state/16-stillwatermine.txt