February, 2000
Siberia, Russia
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The catalytic converter in your vehicle is made with palladium, a precious metal mined in only a few locations worldwide.
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Economic events can have profound and widespread environmental effects. In early March, the Wall Street Journal reported that Russian supplies of palladium have been severely reduced in recent months. Palladium is a rare, precious metal used in the catalytic converters of cars to clean up emissions and reduce air pollution.
Since 1998, rising palladium prices have caused periodic crunches in the production of catalytic converters. In February, restrictions in Russian palladium supplies made international prices jump from a previous $200 per ounce to $1,000 per ounce. The increase in international palladium prices results largely from Russia's recent political instability, which has slowed deliveries from mines at Norilsk, a frozen outpost that was once a prison gulag and is now the world's largest producer of palladium.
High prices have also instigated increased palladium production at a palladium mine in the Beartooth Mountains of southern Montana. The Stillwater Mining Company, which operates the mine, has signed agreements with three auto manufacturers (Ford, General Motors, and Mitsubishi) to more than double production, planning to reach 1.2 million ounces by 2001. The Stillwater mine is an important source of palladium because it is the only palladium mine in the United States; in fact, it is the only operational palladium mine outside of South Africa and Siberia. However, the increased mining activity and associated pollution are likely to further impact the fragile environment in this popular vacation area just outside Yellowstone National Park.
With the rise in palladium values, recycling has also become more attractive and cost-effective. Recyclers now have greater incentive to mine the significant palladium reserves stored in the catalytic converters of old cars in junkyards.
To learn more, see these related websites:
Stillwater Mining Corporation home page
Worldwide information on mining
To read more, see:
Environmental Science, A Global Concern, Cunningham and Saigo, 6th ed.
Metal resources-map, pp. 358-59
Strategic metals, p. 360
Mineral extraction, pp. 360-64
Catalytic converters, p. 415
Environmental Science, A Study of Interrelationships, Enger and Smith, 7th ed.
Costs of resource extraction, p. 188
Mineral resources, pp. 189-91
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