Palladium: Extraction

How nickel mines in the Arctic pay for palladium

Palladium is mined from two kinds of deposit. In Russia's Norilsk region it comes from nickel-copper sulphide ores, where nickel revenue covers the mine's costs (Nassar et al., pdf p. 5). In South Africa and Zimbabwe it comes from platinum-rich reefs. Either way it is recovered from smelter matte and refinery residues after the host metals. Nassar and colleagues put its companionality at 80-97% (pdf p. 6), so almost all supply depends on nickel or platinum economics. Canada and Montana have smaller palladium-rich mines; US output fell from 10,200 kg to 6,200 kg in 2025 with one operation still on care and maintenance.

Almost no mine exists for palladium alone. It comes out of two kinds of ore body. In Russia it is a by-product of nickel and copper mining at Norilsk, which makes Russia the largest source of mined palladium. In South Africa and Zimbabwe it comes with platinum from layered igneous intrusions, where platinum usually earns more revenue. A few North American mines are palladium-rich. All routes share the same long chain of milling, flotation, smelting and refining. The fourth big source is recycling of spent catalytic converters, which now supplies about a third of the market.

Methods compared

How each method works

Underground mines in the Norilsk-Talnakh district produce massive and disseminated nickel-copper sulphide ore rich in palladium. Ore is floated, smelted at Nadezhda and refined, with palladium recovered from the precious-metal residue. Output is driven by nickel and copper plans, so palladium supply hardly responds to its own price.

Lowest-cost, price-inelastic supply, but exposed to sanctions and Western equipment bans (Nornickel cited equipment replacement for a 6% drop in 9M 2025 palladium output).

Narrow Merensky and UG2 reefs are mined underground with conventional drill-and-blast stoping; the Platreef is mined by open pit and mechanised methods. Concentrates are smelted and refined in-country. Platinum is the main revenue metal, with palladium, rhodium and nickel as co-products.

Huge reserves, but high labour and power costs; USGS cites deep-mining costs and electricity disruptions for a 9% fall in 2025 output.

Stillwater and East Boulder in Montana mine a narrow, steep reef where palladium outweighs platinum about 3.4 to 1, one of the few places palladium pays the bills. Canada adds output from Lac des Iles and nickel mines at Sudbury. Zimbabwe's Great Dyke mines ship concentrate and matte, now taxed at 5% if exported unrefined.

Primary palladium supply that reacts to price, which is why low prices in 2024 put one US operation on care and maintenance; JM expects Lac des Iles to near end of life.

Scrap dealers collect catalytic converters from scrapped cars; the ceramic is decanned, milled, sampled and smelted, often with copper or iron collectors, and the PGMs are refined. Volumes depend on car scrappage rates and the price of PGMs, which pays for collection.

No mining footprint and growing as the petrol fleet ages, but lags new demand by 10-15 years of vehicle life and slows when prices fall.

By-product supply

Palladium has a companionality of about 95%: almost all of it is mined for nickel at Norilsk or alongside platinum in South Africa and Zimbabwe. Russia supplied about 45% and South Africa 34% of 2025 primary supply (JM). Because Norilsk mines for nickel and Bushveld mines mostly for platinum, high palladium prices call forth little new ore, and low prices cut supply only when they hurt the host metals too. Nornickel itself describes Russian output as price-inelastic.

Share produced as a by-product

Who does it: global

Who does it: India

India has no palladium mine or primary refinery and imports all its metal, mostly inside catalyst materials and electronic components. Demand comes from catalyst coaters supplying BS-VI vehicles, chemical and pharmaceutical catalysts and electronics. India was not among the top six palladium importers by value in 2024 (UN Comtrade, HS 711021), and no Indian exchange lists a palladium contract.