Forest fires smoke out Stillwater

Production was suspended for a total of nine days at the southwestern Montana palladium-platinum mines of Stillwater Mining (SWC-N) after smoke from two large forest fires closed roads and forced local evacuations.

Stillwater Mining suspended operations at its Stillwater mine last month when the Derby Mountain fire caused state police to close down Interstate 90, the main east-west route across Montana, state highway 419, and a number of local roads.

The East Boulder mine, at first unaffected by the Derby fire, was closed down on Sept. 4 after an evacuation order in Sweet Grass Cty. and remained closed for five days. It was closed down for two more days by the Jungle forest fire.

The Derby fire burned 809 sq. km and the Jungle fire 101 sq. km before being contained. The two destroyed 28 homes and did about US$21 million in damage.

Neither fire caused any damage to the two mines, and Stillwater’s processing plant in Columbus, which serves both East Boulder and Stillwater, remained in operation. Chief executive Frank McAllister said in a release that the company should still meet its expected production of 600,000 oz. precious metals for the year. Stillwater produced 428,000 oz. palladium and 126,000 oz. platinum in 2005.