The company that owns Montana's largest mining complex announced Friday that it will be acquired by a South African company for $2.2 billion in a deal that requires U.S. government approval. Sibanye Gold Limited will buy Littleton, Colorado-based Stillwater Mining Company under a merger agreement expected to close in the second quarter of 2017, said Stillwater Chief Executive Officer Mick McMullen. Stillwater is the only U.S. producer of platinum and palladium, precious metals used in catalytic converters to reduce pollution from cars and tracks, and as jewelry. It employs more than 1,400 people at two mines in southern Montana's Beartooth Mountains and at a smelter and refinery in the small Montana town of Columbus. As precious metals prices dropped in recent years, the company cut its workforce significantly, including at least 120 workers from the Stillwater Mine and the Columbus facility. With prices rising for palladium, McMullen said he does not anticipate further job losses following Friday's announcement. A U.S. subsidiary of Sibanye (sih-BAHN'-yay) will pay $18 per share in cash in the acquisition, Stillwater said. Sibanye also will take on some of Stillwater's debt. Stillwater's pending plans to expand operations with two mining projects located near its existing mines and known as Blitz and Lower East Boulder will continue. The deal was approved unanimously by Stillwater's board of directors, of which former Montana Gov. Brian Schweitzer is chairman. The two-term governor and other board members will resign when the deal closes.
