GM won’t reconsider canceled contract with Stillwater Mining

GM won’t reconsider canceled contract with Stillwater Mining
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Stillwater Mining Co. officials said Tuesday that renewed talks with General Motors haven't led the automaker to reconsider its canceled supply contract with the mine.

"The brief meeting did not yield any positive results for our company, its employees and other stakeholders or the communities in which we operate," said Frank McAllister, Stillwater chairman and CEO.

GM's cancellation came in July as part of a bankruptcy announcement and reorganization by the company. The Montana mines, in the Beartooth Mountains, supplied platinum and palladium to the automaker.

The meeting, announced on Aug. 6 by Gov. Brian Schweitzer, was held Aug. 13 in Detroit, Mich. In an Aug. 6 Billings Gazette article, a GM spokesman said the meeting came Schweitzer's request.

Schweitzer, along with Democratic Sens. Jon Tester and Max Baucus, and Republican Rep. Denny Rehberg, criticized GM for canceling the contract.

A written release from Stillwater said the talks focused on changes to price guarantees for precious metals - mainly palladium and platinum - that come from the mine and are used to make catalytic converters.

"Modifications to price guarantees, which GM indicated in our meeting were key for them, had not ever been re-quested or even discussed prior to the contract being terminated," a point that was disputed by GM, McAllister said in the statement.

Stillwater previously appealed directly to GM, submitted an objection in bankruptcy court and petitioned the U.S. Government Auto Task Force.

Despite those efforts and the renewed discussion between the companies, Tuesday's statement said "in the meeting, GM officials made it clear they are not interested in reconsidering the terminated supply contract with Stillwater, although they did not exclude the possibility of a future competitive supply relationship."

The Stillwater mines are the only sources of platinum and palladium in the U.S. The only other sources are two foreign mines in Russia and South Africa.

GM also announced Tuesday that it would boost auto production by about 60,000 vehicles for the last two quarters of the year and recall more than 1,300 laid-off workers and give 10,000 more a chance to work overtime.

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