Montana guv blasts GM cancellation of mine contract
BILLINGS, Mont. — Gov. Brian Schweitzer is calling on the Obama administration to force General Motors to honor its contract with a Montana mining company instead of going overseas to buy the precious metals used to control vehicle pollution.
By failing to shield the platinum and palladium mines, the Democrat said Friday that the administration had shown a bias against his state — at a time when other U.S. jobs were protected with a "buy American" clause in the $787 billion stimulus act. GM is shedding its contracts with Stillwater Mining Co.'s platinum and palladium mines as part of the automaker's emergence from bankruptcy protection.
Details of the case paint a complex picture: GM was effectively subsidizing production by Stillwater, often paying above market price for the metals. And since 2003, the mines have been majority-owned by a Russian company, Norilsk Nickel.
GM's reorganization is fueled by $50 billion in government loans. The loans are separate from the stimulus bill.
"When it comes to protecting the industries of the Midwest it's buy American first," Schweitzer said. "When it comes to Montana, they say buy anywhere but Montana."
The state's sole U.S. representative, Republican Denny Rehberg, said it was "beyond outrageous" that GM would use bailout funds to "move American jobs overseas."
Platinum, palladium and a third metal produced by Stillwater, rhodium, are used in catalytic converters to control car pollution.
Columbus-based Stillwater employs more than 1,300 people and runs the only mines in the United States producing the metals, about 90 miles southwest of Billings.
With platinum and palladium mined in just two other countries, Russia and South Africa, Schweitzer said GM's cancellation would put the U.S. at a strategic risk and hurt the mining industry.
A White House spokesman declined comment.
All the palladium and 70 percent of the platinum produced by Stillwater's mines had gone to GM and Ford Motor Co. Stillwater representatives won't give specifics on how much GM's contract was worth. It had been set to expire in 2012.
Stillwater Vice President John Stark said the contract cancellation will be challenged at a July 22 hearing in U.S. Bankruptcy Court in New York.
Detroit-based GM defended its decision to cancel the Stillwater contract, saying the deal had been "uncompetitive" and could have hobbled its efforts to repay the government loan.
"We will continue to make difficult decisions that best position the new GM for long-term viability," said GM spokesman Dan Flores. "There is an obligation to the taxpayers to provide a return on their investment to our company."
Recent comments
time for the alarm to go off and the Dem's to wake up...they elected...
Demo's wake up... | July 12, 2009 at 1:29 a.m.
Another Obama administration blunder. When is this administration...
Love it | July 11, 2009 at 7:19 a.m.
- BYU football: What others are saying 7:45 p.m.
- Should districts pay union reps? 7:12 p.m.
- I-80 reconstruction finally done 6:55 p.m.
- Child porn case nets fed sentence 6:44 p.m.
- Groups celebrate Dobbs' CNN exit 6:43 p.m.
- H1N1 slightly down in Utah 6:40 p.m.
- Retirement fund still seeking money 6:39 p.m.
- Judge to send message in mink case 6:37 p.m.
- Man arrested in armed robbery 6:35 p.m.
- Smoking up nationally, down in Utah 5:36 p.m.
- House passes health care bill
333 - SLC council OKs gay rights policies
317 - TCU showdown has big implications
195 - Senators want food tax restored
158 - Cougars crush hapless Cowboys
155 - Will state consider gay rights law?
137 - Editorial: Mormons and gay rights
134 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - Letters: Strange breed in Utah
118
Maybe someone out there can help me understand how raising the state...
I think the Utes will give TCU a run for their money and I wouldn't be all...
"and alternatively, questions will be asked about someones sexual persuasion...
umm, Springville beat Spanish Fork earlier this year big guy. just thought...
Max is a stud. I am very greatful as a BYU fan for what he's done for the...
A union rep salary should come from union dues!!! just like any other union rep.
Anon::: Utah never complains about the weather when they play in it. To cold...
ALF and Peta are disgusting slugs.
Destroy Duchesne... we must.
Why is the tea-party crowd lining up behind Bridgewater? I just got a...
yeah but zero big game win. Utah fans will be sad after Maxi leaves. ...

