Montana environmental officials may cut ties with a bankrupt mine operator near Helena and seek out a new company to operate the site.
Colorado-based Black Diamond Holdings has continually failed to pay a required reclamation bond to Montana’s Department of Environmental Quality (DEQ). It’s owned the Montana Tunnels pit mine south of Helena for more than a decade with little mining success. Montana Tunnels had its permit suspended in 2018 and declared bankruptcy last year.
DEQ Director Chris Dorrington said in a statement, “when requirements are not met, we must take action.” The state is seeking a new operator to take over the site.
Bonnie Gestring, local program director for Earthworks, a DC-based environmental nonprofit, said this should be a wake-up call to state lawmakers.
“The big picture is that we need the legislature to strengthen the laws and regulations that require financial assurance from these mining companies,” Gestring said.
Under Montana law, mining companies must front a bond that covers the estimated cost of cleaning up a mining site.Theoretically, this prevents taxpayers getting stuck with a bill if a company goes under.
Montana Tunnels has paid a little over half of its $40 million reclamation bond. Any new permit holder would be required to pay the remaining balance. If none are found, the DEQ would have to undertake an extensive, and expensive, cleanup.
Mining companies, including Butte’s Montana Resources, have expressed interest in the Montana Tunnels project. But without activity since 2008, the mine has fallen into disrepair. Experts estimate it would take years of work and well over $100 million to get the pit running again.
Black Diamond Holdings did not immediately respond to MTPR’s request for comment.
