The Montana Economic Developers Association (MEDA) Applauds Governor Schweitzer’s Efforts on Behalf of Stillwater Mining/GM Contract Issue

The Montana Economic Developers Association (MEDA) http://www.medamembers.org applauds the recent efforts of Governor Schweitzer http://governor.mt.gov/ regarding General Motors (GM) contracts with Stillwater Mining Company (SMC) http://www.stillwatermining.com/ for precious metals extracted from south central Montana. This industry has had a significant impact on Montana’s economy for over twenty years.

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"Damn right I’m mad!" – Montana Governor Schweitzer blasts GM plan to cancel Stillwater platinum contract" http://matr.net/article-35059.html

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As one of the top employers in Montana, Stillwater Mining Company (SMC) employs over 1300 people. The company is dependent upon sales to GM and Ford Motor Companies. The misguided course of action taken by GM in petitioning the bankruptcy court to reject the existing Palladium and Rhodium Supply Agreement will severely impact SMC employees, their families, and the communities in which SMC operates. The employees of SMC have made significant sacrifices to keep the company solvent during the current economic downturn; many have even lost their jobs. Our rural hospitals and schools feel the significant impact of economic crisis on Stillwater Mining Company.

Once they terminate their contract with SMC, the only US supplier of this metal, GM will be importing their supply of palladium. Parallel to this action, the US Government is infusing billions of dollars into the GM Company for restructuring. This financial support must be contingent on GM honoring existing contracts that support key industries and maintain jobs here in the United States. To quote GM spokesman Dan Flores, “There is an obligation to the taxpayers to provide a return on their investment to our company.” MEDA agrees with this statement. However, this should not come at the cost of dishonoring an agreement with another large US Company so that the raw materials can be bought from a foreign competitor. In addition, cancelling the SMC contract is doing exactly what the President does not want to see happen: increasing the flow of US jobs going overseas.

As an organization that represents over 200 Economic Development professionals who work for local economic development organizations across the state of Montana to promote and foster economic development activities in Montana, we encourage continued action from the President and Congress to take immediate steps to rectify this situation. If we are going to support our automakers, they should concurrently support the key industries and jobs that supply them.

Together we must work to protect Montana jobs and strengthen our American economy.

Sincerely,

Jim Davison, President of MEDA

Gloria O’Rourke

Montana Economic Development Services

118 E. Seventh St; Suite 2A * Anaconda, MT 59711

Ph: 406.563.5259 Cell: 406.490.0462 Fx: 406.563.5476