IRA amendment hands Sibanye-Stillwater R4.2bn benefit

AN adjustment to the US’s Inflation Reduction Act (IRA) extending incentives to mining would add $240m (R4.2bn) in benefits to Sibanye-Stillwater’s beleaguered US platinum group metal (PGM) operations, the group said on Tuesday.Commenting in the group’s third quarter results, which showed further margin pressure on its US and South African PGM mines, Neal Froneman, CEO of Sibanye-Stillwater said the IRA underpinned the strategic importance of positioning the company as part of the West’s response to China’s critical minerals dominance.The IRA, initially passed in August 2022, aims to promote domestic clean energy component production. However, an earlier clause offering a 10% “production credit” for critical minerals extraction was withdrawn a year later. A subsequent iteration, however, contained in Section 45X (S45X) of the final IRA has reinstituted the benefit to mining.“While further engagement with our tax advisors is required to secure certainty with regard to the potential benefits for our US PGM operations from the amended S45X rules, our initial estimates amount to approximately $140m for 2023 and $100m for 2024,” said Froneman who promised further details when available.Froneman said there were promising signs that Europe would followed the US’s lead in providing economic incentives for the production of minerals for electric vehicles and other carbon reducing applications.“The European Union and its members have expressed similar intentions to support the development of regional supply chains in Europe,” said Froneman whose company recently approved the construction of the Keliber lithium mine in Finland.But the potential benefits of the IRA could be a godsend to Stillwater, Sibanye-Stillwater’s US PGM mine which is facing a yet further round of restructuring amid low palladium prices. Sibanye-Stillwater said in its third quarter production update today that Stillwater suffered a $6m adjusted Ebitda loss despite cutting costs to $1,274/2Eoz.While the US mines improved their production and cost expectations in the third quarter, the 2E PGM basket price was “well below” all-in sustaining costs, the company said.The post IRA admendment hands Sibanye-Stillwater R4.2bn benefit appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com