The U.S. Department of Commerce has preliminarily backed a petition from a mining company to impose anti-dumping tariffs on palladium imported from Russia, with a proposed rate of nearly 133%. A final ruling is expected later this year.

Sibanye Stillwater Ltd., which operates the Stillwater palladium mine in Montana, submitted a petition last year to the U.S. Department of Commerce and the U.S. International Trade Commission, requesting relief measures. The company argued that Russian palladium is being sold in the U.S. market at prices below fair value.

The preliminary decision to impose a 132.83% tariff on unwrought palladium from Russia is still subject to final rulings from both government agencies. Sibanye stated that the final decision is anticipated by June.

Sibanye CEO Richard Stewart said in a statement, "Dumping of Russian palladium has placed U.S. platinum group metal producers and their employees at a significant competitive disadvantage. Enforcing U.S. trade laws will allow our PGM operations in the U.S. to compete on a more level playing field against producers from less regulated regions."

When palladium prices were low, Sibanye's Montana mining operations faced difficulties, leading to cost-cutting, reduced production targets, and asset impairments. However, the metal, which is primarily used in the automotive industry to reduce harmful emissions from gasoline vehicles, has rebounded over the past year. Its price hit a three-year high in January before moderating slightly.

The petition claims that the Russian government provides various forms of financial support to its palladium mining companies, including grants, preferential loans, and lenient environmental regulations.

Russia's MMC Norilsk Nickel PJSC is the world's largest palladium producer.

On Friday, spot palladium prices rose along with other precious metals, following a significant sell-off in the previous trading session. Spot palladium increased by 4.53% to $1,696.15 per ounce, though it recorded a weekly decline of 0.67%.