Idled Butte mine to rehire 350

Montana Resources said Monday it will reopen its idled copper mine here and rehire as many as 350 workers.

The decision comes just days after a state board approved a $2 million loan to Butte-Silver Bow County to help reopen the mine.

The Associated Press Great Falls Tribune

Montana Resources said it plans to begin hiring workers immediately to complete startup work, and expects to have a full staff of 350 employees by mid-October.

"We are extremely fortunate to be in a position to make this decision," said Larry Simkins, chairman of Montana Resources’ management committee. "Frank (Gardner) and his team prepared a very thorough analysis and presented a compelling case for a new beginning for mining in Butte."

Gardner was also named president Monday to oversee startup activities. Gardner was president of the mine from 1986 until 1997.

Montana Resources, the majority owner of the Butte mine, suspended operations nearly three years ago when the price of electricity skyrocketed. The closure put more than 300 people out of work.

Last month, Montana Resources officials asked Gov. Judy Martz to look into options to help reopen the mine.

The company said at the time that it believed nearly half the employees who were laid off in 2000 were available to return to work.

Butte-Silver Bow County applied for a loan through the state Board of Investments, which was approved Friday. The money will be used to help buy new electrical transformers at the mine.

Sen. Max Baucus, D-Mont., and Sen. Conrad Burns, R-Mont., praised the work that went into the mine reopening.

"This is exactly what Butte needs," Baucus said. "These will be good, high-paying jobs for Butte. … The mine will provide Butte’s economy the shot in the arm that it needs."

"The folks in that area have taken an awful lot of hits," added Burns. "I’m very pleased to see them get great news like this."

Montana Resources is a general partnership with the majority of its ownership interest held by Montana Resources Inc., a company owned by Missoula businessman Dennis Washington.

He said Montana Resources has "significant challenges" ahead that will take a "supreme effort" from the company, the state, the city and the county.

Among the priorities are to negotiate several new contracts, including for the sale of copper and molybdenum concentrates, and for a power supply.

"Current indications for power costs are much better then what we found when operations were suspended in 2000," Gardner said. "Quickly obtaining a stable and secure electricity supply for the mine will be of utmost importance."

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