Montana Delegation's Proposed Ban on Russian Dumping of Critical Minerals First Step Towards Reopening Closed Mine
By Denise Rivette
On February 28, Senator Steve Daines’ office put out a press release announcing his introduction, with the rest of the Montana delegation, of legislation entitled ‘‘Stop Russian Market Manipulation Act” with the stated goal “to protect Montana mining jobs.” It provides for banning the importation of “certain minerals from the Russian Federation.” Those minerals include platinum and palladium. The Russian dumping on U.S markets of these metals is largely blamed for the mass layoff at Sibanye Stillwater mines in November. Montana is home to the only platinum and palladium mines in the United States. As written, the ban would take effect 90 days after enactment of the bill and continue until one year after Russia ends hostilities against Ukraine.
Senator Steve Daines, Senator Tim Sheehy and Representative Troy Downing were asked: Why does your proposed ban on Russian critical minerals only last until the war with Ukraine ends?
Senator Steve Daines’ replied:
“There’s no reason the United States should import critical minerals from Russia and fund their unjust war against Ukraine when we can produce these minerals right here in Montana. Under President Trump we are putting American mines and American jobs first. I’ll always fight for long-term support for Montana’s mining industry.
Senator Tim Sheehy stated:
“Reducing our dependence on other countries for critical minerals is the epitome of America First common sense. During the Biden administration, hardworking Montanans in the mining industry suffered while their federal government spent their tax dollars on overseas minerals that we can get here at home. There’s a new sheriff in town with President Trump back in the White House, and I’m proud to join our Montana delegation on this important legislation. We must streamline permitting for energy, mining, and timber projects, and reform the dizzying array of government agencies that constrict our resource economy here at home. It’s time for our timber mills to return to Montana and for our great mining companies to once again have the certainty and support they need to build a long, prosperous future here in the Treasure state.”
Representative Troy Downing’s team referred me to the original press release in which he stated:
“Commodity dumping by Russia, China, and other foreign actors have put Montana’s miners at a competitive disadvantage for too long. Montana is home to the only platinum and palladium mines in the United States. It is past time that we prioritize these jobs rather than sourcing key minerals from our adversaries. I'm proud to spearhead this legislation in the House and look forward to seeing it make a difference in the lives of my constituents.
Effects on Recently Shuttered Westside Stillwater Mine
To find out more about how this bill, if enacted, would affect the reactivation of the west side of the Stillwater mine, MIN reached out to Heather McDowell, Senior Vice President and General Counsel, Legal and External Affairs, Sibayne-Stillwater.
When asked if the delayed onset and limited time frame of the proposed ban on Russian imports would provide the market stability Sibayne-Stillwater would need to reopen the west side, McDowell stated, “What we really like about the bill is that it would be immediate after the 90 days. There are no further hurdles. I think it's very logical, and this is definitely Senator Daine's rationale, that it has to be tied to something, right? It wouldn't survive legal challenge if it didn't have a strong foundation. Unfair trade practices or, in this case, international conflict are very good reasons for banning products.”
Two market factors have to align in order to get the west side Stillwater mine brought back from its care and maintenance status and into production: A basket price reliably above $1,000 and reduced production costs. Sibayne-Stillwater, throughout its worldwide mining operations, is constantly working to improve production efficiencies and safety while instituting best environmental practices and community relations policies. The market price is out of its control, but can be influenced by legislation.
Enactment of the bill would provide Sibanye-Stillwater the assurances it needs to begin bringing the west side mine back to life. The timeframe for bringing the mine out of care and maintenance and into production is approximately six to twelve months. The longer the mine remains in its care and maintenance state, the longer it will take to bring back on line. Based on the situation and the available solutions, McDowell says they like the speed with which it could be enacted, “It's faster than anything else we can think of.”
The 90 day delay from enactment to implementation is standard in bills that affect commerce. The supply chain needs time to adjust to the new regulations. And, although this legislation would be a boon to Sibanye-Stillwater, Southcentral Montana and to national self-sufficiency, the import businesses currently providing Russian metals will quite likely be adversely affected. Federal laws that adversly affect a specific population while benefiting another can only survive legal scrutiny if they are in the national interest and do not violate the U.S. Constitution.
“Yes, we wish the ban could go on indefinitely, but we realize that if we're benefiting from this bill that we hope will become law, we need the law to be constitutional and have a rational basis and meet all the metrics of being a good law. We hope that this is the first step in stabilizing the PGM (platinum group metals) market in the United States in a way that lets us provide the PGMs the nation needs and the stable employment Montana’s miners and communities deserve.
After it was observed that Sibanye-Stillwater seems to have maintained their status as a good corporate citizen in Montana, McDowell reflected, “I hope so. I mean, it's hard with the layoffs, and we, we recognize this. I mean, it's been the worst year of our life. But, even though it's incredibly hard, it's still our mission to always do the right thing.”
Odd that Daines is suddenly concerned about minerals from Russia, now that trump is president. He didn’t seem to mind before. We wonder if he talked about minerals from Russia when he spent time with Putin when he visited Moscow.