Montana Tunnels gets final OK for mine expansion

HELENA, Mont. - Operators of the Montana Tunnels metal mine about 25 miles south of Helena have final approval to expand it.

The U.S. Bureau of Land Management this week authorized the expansion approved in late October by another regulator, the Montana Department of Environmental Quality.

The open-pit mine produces lead, zinc, silver and gold.

The federal and state agencies authorized enlargement of the pit, expansion of waste-disposal areas and other measures that Montana Tunnels operators project will lengthen the mine's life by about six years. Plans include diversion of two stream channels and realignment of an access road.

Montana Tunnels said earlier the company was awaiting final approval before seeking private sources of about $70 million for the expansion.

Montana Tunnels environmental manager John Schaefer has said the expansion would enlarge the pit by about 40 acres, an increase of roughly 20 percent. Mine manager Tim Smith said the current pit is sufficient for mining until the end of November. An ore stockpile totaling 2 million tons is enough to keep the Montana Tunnels milling operation supplied until April.

Nearly half of the mine's 209 employees were told recently that they might be placed on paid leave for two months, starting at the end of November, while financing for the expansion is sought.

Montana Tunnels opened in 1986. The mine closed in October 2005 for repair of an unstable pit wall and reopened in March 2007.

Owners of the mine are Apollo Gold Corp. and Elkhorn Tunnels.

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