North American Palladium has announced today (21st October) that it will be temporarily shutting down its Lac Des Iles mine and releasing around 350 workers.

The Canadian mining and exploration company has cited the recent downward pressure on commodities prices as the main reason behind the move.

The trends in the global markets mean that the mine is running at a loss at present and the firm is now intending to streamline costs as it ponders its next strategic move.

A statement read: "Declining sales and production in the automotive industry, the major consumer of palladium and platinum, suggest that PGM (platinum group metals) producers will face significant challenges in the near term."

The company also confirmed that it now intends to explore the value of potential acquisitions and look into the possibility of embarking on joint venture opportunities in the current market climate.

The Lac Des Iles mine traditionally produces around four per cent of global palladium supply.

Source:

UPDATE 1-North American Palladium temporarily closes LDI mine (21/10/08)

http://www.reuters.com/article/marketsNews/idUSBNG34566420081021http://www.napalladium.com/