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                                                                    EXHIBIT 10.2


                                 LIMITED WAIVER

         THIS LIMITED WAIVER dated as of March 31, 2004 (this "Limited Waiver")
is made by and among STILLWATER MINING COMPANY, a Delaware corporation (the
"Borrower"), and TORONTO DOMINION (TEXAS), Inc., as administrative agent (in
such capacity, the "Administrative Agent"), for the Lenders (such capitalized
term and all other capitalized terms not otherwise defined herein shall have the
meanings set forth in the Credit Agreement).

                                   WITNESSETH:

         WHEREAS, the Borrower, the Lenders, the Administrative Agent, NM
Rothschild & Sons Limited, as technical agent, Westdeutsche Landesbank
Girozentrale, New York Branch, as documentation agent, and TD Securities (USA)
Inc., as lead arranger, have heretofore entered into that certain Credit
Agreement, dated as of February 23, 2001 (as amended by Waiver, Consent and
Amendment No. 1, dated as of June 27, 2001, as further amended by Amendment No.
2, dated as of November 30, 2001, as further amended by Waiver, Consent and
Amendment No. 3, dated as of January 28, 2002, as further amended by Amendment
No. 4, dated as of October 25, 2002, as further amended by Consent and Amendment
No. 5, dated as of March 20, 2003, the "Credit Agreement");

         WHEREAS, the Borrower has requested the Lenders to grant, on the terms
and subject to the conditions hereof, a limited waiver of the terms of clause
(ii) of Section 8.1.14 of the Credit Agreement with respect to the
four-consecutive-Fiscal-Quarter period ending on the last day of the first
Fiscal Quarter of the 2004 Fiscal Year and the second Fiscal Quarter of the 2004
Fiscal Year; and

         WHEREAS, the requisite Lenders are willing, on and subject to the terms
and conditions set forth below, to grant the limited waiver provided below;

         NOW THEREFORE, in consideration of the premises and the mutual
agreements herein contained, the Borrower and the requisite Lenders hereby agree
as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.1 Certain Definitions. The following terms (whether or not
underscored) when used in this Limited Waiver shall have the following meanings
(such meanings to be equally applicable to the singular and plural forms
thereof):

         "Administrative Agent" is defined in the preamble.

         "Borrower" is defined in the preamble.

         "Credit Agreement" is defined in the first recital.

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         "Limited Waiver" is defined in the preamble.

                                   ARTICLE II

                                 LIMITED WAIVER

         Subject to the satisfaction of the conditions set forth in Article III,
the Lenders, as of the date hereof, hereby waive the occurrence of an Event of
Default pursuant to the provisions of clause (ii) of Section 8.1.14 of the
Credit Agreement as a result of the Borrower failing to maintain combined
Palladium Production and Platinum Production of at least (i) 590,000 ounces for
the four-consecutive-Fiscal-Quarter period ending on the last day of the first
Fiscal Quarter of the 2004 Fiscal Year and (ii) 600,000 ounces for the
four-consecutive-Fiscal-Quarter period ending on the last day of the second
Fiscal Quarter of the 2004 Fiscal Year.

         The above limited waiver shall be limited precisely as written and
relates solely to the breach of the provisions of the occurrence of an Event of
Default as a result of the Borrower failing to comply with the provisions of
clause (ii) of Section 8.1.14 of the Credit Agreement and nothing in this
Limited Waiver shall be deemed to constitute a waiver of the occurrence of an
Event of Default as a result of the Borrower failing to comply with the
provisions of clause (ii) of Section 8.1.14 of the Credit Agreement for any
other period.

                                   ARTICLE III

                           CONDITIONS OF EFFECTIVENESS

         This Limited Waiver shall be effective on the date first above written,
subject to the satisfaction or waiver of each of the conditions contained in
Article III.

         SECTION 3.1 Execution of Counterparts. The Administrative Agent shall
have received counterparts of this Limited Waiver duly executed and delivered by
(i) the Borrower and (ii) the Administrative Agent on behalf of the Required
Lenders that have executed and delivered to Administrative Agent their written
consent to the limited waiver contained herein.

         SECTION 3.2 Fees and Expenses. The Administrative Agent shall have
received all fees and expenses due and payable pursuant to Section 5.3 (to the
extent then invoiced) and pursuant to the Credit Agreement (including all
previously invoiced fees and expenses).

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.1 Representations and Warranties. In order to induce the
Required Lenders and the Administrative Agent to enter into this Limited Waiver,
the Borrower hereby represents and warrants to Agents, Issuer and each Lender,
as of the date hereof, as follows:

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                  (a) the representations and warranties set forth in Article VI
of the Credit Agreement (excluding, however, those contained in Section 6.7 of
the Credit Agreement) and in each other Loan Document are, in each case, true
and correct unless stated to relate solely to an earlier date, in which case
such representations and warranties are true and correct as of such earlier
date;

                  (b) there is no pending or, to the knowledge of the Borrower
or its Subsidiaries, threatened litigation, action, proceeding or labor
controversy, except as disclosed in Item 6.7 of the Disclosure Schedule,
affecting the Borrower, any of its Subsidiaries or any other Obligor, or any of
their respective properties, businesses, assets or revenues, which could
reasonably be expected to have a Material Adverse Effect and no development has
occurred in any labor controversy, litigation, arbitration or governmental
investigation or proceeding disclosed in Item 6.7 which could reasonably be
expected to have a Material Adverse Effect;

                  (c) there is no pending or, to the knowledge of the Borrower
or its Subsidiaries, threatened litigation, action, proceeding or labor
controversy which purports to affect the legality, validity or enforceability of
the Credit Agreement or any other Loan Document;

                  (d) no Default has occurred and is continuing, and neither the
Borrower nor any of its Subsidiaries nor any other Obligor is in material
violation of any law or governmental regulation or court order or decree;

                  (e) this Limited Waiver has been duly authorized, executed and
delivered by the Borrower and constitutes a legal, valid and binding obligation
of the Borrower, enforceable against it in accordance with its terms, except to
the extent the enforceability hereof may be limited by (i) the effect of
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to or affecting the rights and remedies of
creditors generally and (ii) the effect of general principles of equity, whether
enforcement is considered in a proceeding in equity or at law; and

                  (f) the execution, delivery and performance by the Borrower
and its Subsidiaries of this Limited Waiver does not (i) contravene the
Borrower's Organic Documents, (ii) contravene any contractual restriction, law
or governmental regulation or court decree or order binding on or affecting the
Borrower or (iii) result in, or require the creation or imposition of, any Lien
(other than the Liens created under the Loan Documents in favor of
Administrative Agent for the benefit of the Secured Parties) on any of the
Borrower's properties.

         SECTION 4.2 Compliance with Credit Agreement. Each Obligor is in
compliance in all material respects with all the terms and conditions of the
Credit Agreement and the other Loan Documents to be observed or performed by it
thereunder.

                                    ARTICLE V

                                  MISCELLANEOUS

         SECTION 5.1 Full Force and Effect; Limited Waiver. Except as expressly
provided herein, all of the representations, warranties, terms, covenants,
conditions and other provisions of


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the Credit Agreement and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms and are in all respects hereby
ratified and confirmed. The limited waiver set forth herein shall be limited
precisely as provided for herein to the provisions expressly waived hereby and
shall not be deemed to be a waiver of, consent to or modification of any other
term or provision of, or prejudice any right or remedy that the Administrative
Agent or any Lender may now have or may have in the future under or in
connection with, the Credit Agreement, any other Loan Document referred to
therein or herein or of any transaction or further or future action on the part
of the Borrower or any other Obligor which would require the consent of any of
the Lenders under the Credit Agreement or any of the other Loan Documents.

         SECTION 5.2 Loan Document Pursuant to Credit Agreement. This Limited
Waiver is a Loan Document executed pursuant to the Credit Agreement and shall be
construed, administered and applied in accordance with all of the terms and
provisions of the Credit Agreement. Any breach of any representation, warranty,
condition, covenant or agreement contained in this Limited Waiver shall be
deemed to be an Event of Default for all purposes of the Credit Agreement and
the other Loan Documents.

         SECTION 5.3 Fees and Expenses. The Borrower shall pay all reasonable
out-of-pocket expenses incurred by Administrative Agent in connection with the
preparation, negotiation, execution and delivery of this Limited Waiver and the
documents and transactions contemplated hereby, including the reasonable fees
and disbursements of Mayer, Brown, Rowe & Maw, LLP as counsel for the
Administrative Agent.

         SECTION 5.4 Headings. The various headings of this Limited Waiver are
inserted for convenience only and shall not affect the meaning or interpretation
of this Limited Waiver or any provisions hereof.

         SECTION 5.5 Execution in Counterparts. This Limited Waiver may be
executed by the parties hereto in counterparts, each of which shall be deemed to
be an original and all of which shall constitute together but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Limited Waiver by facsimile shall be effective as delivery of an original
executed counterpart of this Limited Waiver.

         SECTION 5.6 Cross-References. References in this Limited Waiver to any
Article or Section are, unless otherwise specified or otherwise required by the
context, to such Article or Section of this Limited Waiver.

         SECTION 5.7 Severability. Any provision of this Limited Waiver which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Limited
Waiver or affecting the validity or enforceability of such provision in any
other jurisdiction.

         SECTION 5.8 Successors and Assigns. This Limited Waiver shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

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         SECTION 5.9 GOVERNING LAW. THIS LIMITED WAIVER SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.


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         IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver
to be executed by their respective officers thereunto duly authorized as of the
day and year first above written.

                                        STILLWATER MINING COMPANY



                                        By: /s/ John R. Stark
                                            ------------------------------------
                                            Name:  John R. Stark
                                            Title: Vice President


                                        TORONTO DOMINION (TEXAS), INC., as
                                        Administrative Agent



                                        By: /s/ Lynn Chasin
                                            ------------------------------------
                                            Name:  Lynn Chasin
                                            Title: Vice President