South Africa miner Impala Platinum’s (Implats) global business plan beyond 2026 does not include the Lac des Iles mine in northwestern Ontario.
Plummeting palladium prices are being blamed by Impala Canada for its decision to cease commercial production at the Lac des Iles mine near Thunder Bay on May 31, 2026.
Located 90 kilometres northwest of the city, LDI is one of two pure palladium producing mines in North America.
No one from Impala Canada’s senior management was available for an interview, but a company spokesperson attributed the closure to plunging prices of the metal.
"The primary reason driving the plan to cease commercial operations next May is palladium prices,” said Emily Robb by email. “We’ve been in a prolonged period of low prices, and as a result, the business is not generating the cash flow required to sustain the operation despite the team’s strong performance."
LDI has been in commercial production since 1993, mostly under the North American Palladium flag, as the mine gradually transitioned from an open-pit to an underground operation. It was placed on care-and-maintenance shutdown between 2008 and 2010 during a period of low metals prices,.
Impala acquired LDI for $1 billion in 2019.
Back in 2017, NAP released an updated feasibility study that the discovery of new underground reserves should deliver 10 more years of mine life to LDI. At the time, the company regarded LDI as one of the lowest cost underground mines in Canada to withstand any volatility in the market.
Robb said the company has not been reducing production since the beginning of the year.
“We’ve not curtailed production. Our fiscal year just began on July 1, and the next 11 months is a full production business year with a continued focus on safety, production and planning for a responsible closure.”
On what the guidance (annual production target) is for LDI and what its projected daily throughput will be, Robb answered that the parent company, Implats, will disclose that information by late summer as part of its regular reporting and disclosure processes.
As to what the processing of shuttering the mine will look like, Robb said: “We are still in the process of planning for the post-operations period.”
CEO Tim Hill circulated the mining company’s decision to the 750-member workforce last Thursday after spending a week at the northwestern Ontario operation.
“Looking ahead, we have plenty of work to do: we must prioritize safety, operating efficiently and plan for the responsible closure of the mine. Each one of us has a role to play in this work, and I have every confidence in this team,” said Hill.
A closure date could arrive sooner. In his email, Hill said a final decision on operations depends on factors such as available tailings capacity and the mine meeting production targets.
“Our next goal is to make this last year at LDI a great one. Many of us take pride in being part of this remarkable team at Impala Canada. Let’s keep our collective focus on safety and excellence, so we can compete this last year at the mine with our heads held high, proud of what we’ve accomplished together.”
Officials from United Steelworkers Local 9422, representing production and maintenance workers, were not available for an interview, but a spokesperson called Impala’s decision “very unfortunate news,” in an email.
Staff representative Cody Alexander said senior management gave assurances last fall that the operation was safe for the time being.
“We do not have much detailed information to share as of today because we are still working out a closure agreement with management,” said Alexander.
“Our goal is to ensure that our members' rights are maintained during this process and to help with their transition, wherever we can.
“We had in-depth discussion in collective bargaining with the employer last October and they went to great efforts to show us that there was no concern of the mine closing in our three-year (collective agreement) term. Now, six months later, they are announcing a complete closure mid-contract. Palladium prices are continuing to rise and there is plenty of material left to process underground.”
The union local represents 480 in the mining unit with Impala and 50 in the camp services with Amik-East Coast Catering.
Palladium prices have been rallying in June and July in the range of US$1,100 an ounce after a volatile spring where prices varied between $880 and to more than $1,000.
“This management decision not only impacts our members, but it is going to have ripple effects into all the surrounding northern communities. The government needs to start looking into this to see if they can help and we will be doing our part to inform them. There remains plenty of opportunity at the mine site.”
But Nico Miller, CEO of Impala Platinum Holdings (Implats), the parent company of Impala Canada, commented in February that the South African miner was “continuously evaluating the future” of LDI as the price of the metal using in catalytic converters had dropped 70 per cent over three years.
During the final six months of 2024, LDI contributed seven per cent of the company’s production over that period.
“I would not be surprised if, in the course of the next few months, we come to a position that an accelerated and responsible wind down of that operation seems to be economically the most effective way to deal with (Impala) Canada,” Muller said in a Reuters report.
