digital copy available online at - montana mining
TRANSCRIPT
SONARtrac® Flow Monitoring Systems clamp-on without interruption of slurry flow, maximizing process up-time. Can your meter do that?
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To find more information about SONARtrac, please call us at 203.265.0035 or visit our CiDRA website at www.cidra.com. Minerals Processing
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digital copy available online at www.montanamining.org 3
MONTANA MINING 2010Published byDEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, ManitobaCanada R3L 0G5
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PublisherJason Stefanik
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in this issue ofM O N T A N A M I N I N G
index toA D V E R T I S E R S
MMA President’s Message – Mike Mullaney 4
MMA Mission Statement 4
MMA Executive Director’s Message – Debbie Shea 6
MMA 2010 Board of Directors 8
Montana Bureau of Mines and Geology Report 9
Member Profile – Dolores Rife 16
Join us once again at the Fairmont Hot Springs Resort 17
World Museum of Mining promotes important mining heritage to the public 18
MT voters’ mode uncovered in chamber poll 23
More than palling around: Provider Pals© 24
MNHC adds new mining trunk to its program 26
Big mine, small footprint 28
Happy Birthday GNA! 30
Barrick Golden Sunlight Mine achieves greatest level of mining excellence 33
The “lean” advantage 36
Montana Resources: A mining tradition, a mining family 39
Chapter Report 43
American Mining Insurance Company 44
Hard work and diligence pays off for Holcim’s Trident Plant 46
Graymont committed to working with government and community members 48
Revett’s commitment to environmental protection 52
MMA Members 58
AFFCO 13AMEC / Geomatrix 19American Mining Insurance Company 45Billings Clinic 41Bison Engineering 35Brenntag Pacific, Inc. 28Bucyrus International Inc. 14Butte War Bonnet Hotel 29CAMP (Montana Tech) 12Chemical Montana Company 10CiDRA Minerals Processing IFCCross Petroleum Service 30Dick Irvin, Inc. 36Energy Laboratories Inc. 28Ernest K. Lehmann & Associates of Montana, Inc. 47Ezzie’s Wholesale, Inc. 36F&H Mine Supply, Inc. 42Fairmont Hot Springs Resort 55Fickler Oil Company, Inc. 47Geometrics, Inc. 5Golden Sunlight Mine 33
Golder Associates Inc. 37Gough, Shanahan, Johnson & Waterman PLLP 11Graymont Western US Inc. 49GSE Lining Technology, LLC 30Hardsteel Inc. 45Holland & Hart LLP 46ITT Water & Waste Water/ Flygt Products 21Industrial Automation Consulting, Inc. 15Industrial Equipment Manufacturing Ltd. 15Intermountain West Energy 31Interstate BearingSystems 35Interstate PowerSystems 11Irwin Car and Equipment 34JBR Environmental Consultants, Inc. 42Larox, Inc. 38LeTourneau Technologies 26MDM Supply 50Metso Minerals Industries Inc. 32Mines Management, Inc OBCMontana Crane Service 43Montana Resources 41
Montana Seals & Packing CAD, Inc. 50Moore Oil, Inc. 14Nelson Brothers Mining Services, LLC 20O'Keefe Drilling Company 52Pierce Leasing 40Revett Minerals 53Richwood 43Rio Tinto IBCRuen Drilling, Inc. 24Small Mine Development LLC 48Spring Valley Drilling 11Stillwater Mining Company 31Stone Raven Resources, LLC 43Tetra Tech 47Thiessen Team USA 37Tractor & Equipment Co. 44Westate Machinery Company 54Western States Insurance - Missoula 50Western Wyoming Community College 7Wholesale Mine Supply 51WWC Engineering 17Cover Photo:
Site overview of East Boulder Mine.PHOTO COURTESY OF STILLWATER MINING.
MIKE MULLANEYPresident, Montana Mining Association
I’ve been honored to take on the responsibility of being president ofthe MMA these past few years. It has been a rewarding learning
experience, working with board members and the association staff. Wehave set up a team-type association that actively listens to feedback,and then makes sound decisions on a consensus basis.
MMA board members are involved in all four of our committees –health and safety; education; membership; and legislative – which aredefined in our bylaws. Commitment to these committees is essentialto our success – that success being a strong safety culture both on andoff the job; educating people of all ages about the importance of ournatural resources; environmental stewardship; and compliance withreasonable rules and regulations. The foundation has been put inplace for a bright future for this association.
Safety is a top priority and we need to have the appropriate be -havior instilled in us – on and off the job – to ensure no one is injured.This past year, our safety and health committee has been rejuvenatedby committee chair Jerry Laughery, and all the other safety managersat various operations throughout the state who have been activelyparticipating in this committee. The safety committee is by far themost active within the association; committee members have beenmeeting monthly and quarterly at mine sites to share incidents andbest practices, and to discuss on-going MSHA regulatory changes andhow to best deal with them.
The legislative committee that is chaired by Bruce Gilbert is activeand staying on top of issues such as the nutrient criteria standards,wilderness bill, proposed mining law changes, etc. In addition, anEnvironmental Committee has just been formed and is being led byTad Dale. Thanks to all the individuals and participants involved inthis important process.
Membership is stable but there has to be a stronger effort in gettingmore individuals, suppliers, and small operators such as sand andgravel producers, to join. Numbers do make a difference.
These past two years have brought difficult times to many opera-tions due to the struggling economy. It is commendable to see howthese folks have stepped up to the plate and dealt with challenging sit-uations by taking on some drastic downsizing and cost-cutting meas-ures within their operations to remain competitive for years to come.
It is a privilege to be part of the mining industry. We work so hardin our typical day’s work that we take little time to reflect on ouraccomplishments and to tell our stories. By putting out our annualmagazine, which is also available on the MMA website, we have beentelling our stories and communicating to others what we are doing.
I thank the board for the opportunity to serve as president of theMontana Mining Association. Please continue to give feedback andideas to Debbie, Debra and the board to help us continue achievingour objectives. ✦
The Montana Mining Association (MMA) is a Montana
trade association dedicated to helping mining compa-
nies, small miners and allied trade members succeed,
understand, comply and function in a complex busi-
ness and regulatory world. The primary purpose of the
Montana Mining Association is to protect and promote
the mining industry in the state.
The Montana Mining Association monitors issues of
concern and provides representation for its members at
the state legislature and with various state and federal
regulatory agencies. The Montana Mining Association
supports national mining initiatives.
The Montana Mining Association provides informa-
tion and education for its members and distributes
information to the general public about the contribu-
tion of minerals and mining to our economy and well-
being. One of the MMA’s primary functions is to pro-
mote and enhance the image of the mining industry.
The Montana Mining Association works in coopera-
tion with other state and national mining associations,
natural resource trade associations and groups with
similar interests and needs.
The MMA serves the industry on a wide range of sub-
jects through the expertise of its members. Many of the
MMA’s activities are conducted by various committees.
The association has many active associates. Com mit -
tees within the association are health and safety
(including the health and safety of employees within
the association), education, membership and legislative
(including environmental and land use and political
action committee).
President’s Message
4 Montana Mining Association — Montana Mining 2010
6 Montana Mining Association — Montana Mining 2010
Executive Director’s Message
Iam most proud to say I was born andraised in Butte, Montana. I lived the first
13 years of my life in a house my grandpar-ents settled into after journeying the manymiles from Ireland to find work in theMining City. That house was in the middle ofthe mining district and directly across thestreet from the Original Mine.
Having lived my entire life in Butte I do,on occasion, feel an overwhelming sense ofnostalgia and find myself increasingly jour-neying back in time. It was on such a jour-ney that I decided to pen several stories formy children and their children, about atime they will never know except throughwritten pieces of history, and the wonderfulvisuals preserved within the city and theWorld Museum of Mining.
I would like to share one of those stories.
THE MONTANA STREET TUNNEL
By the time of my birth in 1951, the min-
ing history of Butte, Montana was well-
known; however, as children growing up in
the center of this extraordinary venture, we
knew nothing of William Farlin, Marcus
Daly, William Clark or Augustus Heinze.
We saw the hoist houses, machine shops,
gallows frames and the large, faded maroon
fences that enclosed the mine yards and
thought little of them. We walked home from
school balancing on the 12-inch pipe that
sent air to the underground for hoist machin-
ery and rock drills, only noticing the four-let-
ter words scribbled in chalk across it. We
heard whistles and the roar of the shiv wheel
as it hoisted the miners from the under-
ground tunnels and went about our business.
We didn’t understand that spurs of the
Butte, Anaconda and Pacific Railroad tied in
all of the ACM Mines on the hill to the
smelter in Anaconda. We waived to the con-
ductor of the BA&P, often my grandfather’s
young friend, Kevin Shannon, as it snaked
through our neighborhood with cars of ore,
and thought little of his journey beyond our
view.
We knew nothing of the global copper
market. We didn’t analyze or question the
magnitude or complexity of the ACM opera-
tion. As children it just was what it was – a
constant and comfortable part of our lives.
The Montana Street Tunnel was the center
of our play world; just off the playground, it
held endless hours of adventure. The east
side had a bonnet of timber that gave it
character. The top of the tunnel connected to
Montana Street and was shielded with a five-
foot high timber wall. Attached to that barri-
er, facing the tracks, was a foot-wide timber
that covered the width of the tunnel. My sis-
ter, Bonnie, was the first of our pack to ven-
ture that crossing, 25 feet above the tracks.
We cheered her across.
On either side of the tunnel were three lev-
els of support timber with 12-inch lumber
going crosswise, perfect benches for watching
the train or sharing deep secrets with a
friend. Hills of granite and sand butted up
against the timber.
Inside the passageway were foot-and-a-
half sections of timbered walls and ceiling.
Two feet up from the bottom of the wall were
horizontal two by twos nailed to each section
for reinforcement. These reinforced divisions
made perfect stalls to climb into as the train
passed through the tunnel, so, as we were
told by the older kids, we wouldn’t be sucked
under the train.
The west side of the tunnel had a different
personality. The north timbered wall coming
out of the tunnel framed Virginia Street; a
wire fence along the street reinforced that
frame. The south side was a steep hill of
granite with sporadic sage brush leading to
the alley that separated our yard from mean
Mrs. Davies. On occasion, we would go
through the tunnel and scale that hill as if it
were Mt. Everest, but our time there was lim-
ited for an obvious reason – mean Mrs.
Davies.
At one time there was a dump ramp on the
south side of the tunnel, across from the
Metz home on Montana Street. It was a
supersized teeter totter that we had great fun
on, but it was no longer used as a dump
ramp and was an accident waiting to hap-
pen. Coming home from school one day
when I was quite young, men from the
Anaconda Company were tearing it down.
We all watched in disbelief, but life went on
and it was soon forgotten.
Neighborhood kids from Montana,
Boardman, Virginia, Pearl, Alaska, Ruby and
Agate streets played in and around the east
side of that magical tunnel on North
Montana Street, building castles of sand and
dams of mud and water.
In spite of warnings from very wise older
kids that we would derail the train, we
placed pennies on the track to be flattened by
the train; pennies never to be exchanged for
a piece of bubble gum again.
We played house and school on the three
levels of support timbers, as neighborhood
boys swung from a rope fastened to a pole
out toward the tracks and back in again –
an activity my mother had participated in
years before.
And when we heard the whistle of the
train rounding the bend by Graham’s house,
we would leave the playground and climb to
the third level of timbers. Not being able to
see the train but only hearing its rumble, we
held hands and waited anxiously for it to
pop out from the tunnel as it headed back
toward Main Street.
Then balancing the steel rail like a tight
rope on our way to school, Pat Sheehan
DEBBIE SHEAExecutive Director, Montana Mining Association
digital copy available online at www.montanamining.org 7
would tell us stories of her brother and
friends hooking the train and taking it for a
ride as far as Rocker. Names like Sheehan,
Dennehy, Whalen and Rosa were legendary.
My eyes would widen with amazement and
awe, as the danger was mind-boggling to me.
At night when you were tucked safely in
bed, you could hear the rumbling of the
train as it moved through the tunnel. It was
soothing as it lulled you to sleep.
Those magical times of my childhood
are gone now. The underground mines are
sealed, and nine gallows frames scattered
across the hill light the night sky remind-
ing us of that extraordinary time. The
stretch of track connecting the Montana
and Main Street tunnels is now paved and
serves as a beautiful walking path over-
looking the city. I often walk that path and
breathe in all the beautiful memories.
We are in a new era of mining now, a
safer and healthier venture. In those many
years before I was born, the men who had
a vision to mine that hill never thought of
reclaiming mined land … but it’s being
done now.
In the early days of mining in Butte, at
least one life a week was lost in those tun-
nels a mile below the earth. They never
fathomed assigning health and safety
engineers to each mine to see to its safety
… but it’s being done now.
Those many years ago, mining was
about boom and bust. Mining companies
and communities didn’t work on an exit
strategy with city government, or plans for
an alternative business to sustain the life
of the community … but it’s being done
now.
Oro y Plata was assigned as the state
motto to recognize the essential elements
of Montana’s economy and future. The
mining industry is not only a part of
Montana’s rich and often explosive history,
but an ever-growing part of its economic
future.
Tap ‘er light! ✦
Across the street from the Montana Street Tunnel, the Original Mine stands proud in this photo taken byButte photographer Cody Cavanaugh. Beyond the gallows frame is St. Mary’s Church and the FederalBuilding. In the distance is Montana Resources and the East Ridge with Our Lady of the Rockies tuckedin the snow on the top right.
8 Montana Mining Association — Montana Mining 2010
Mike Mullaney, President ................................O (406) 285-4970Holcim (US) Inc.4070 Trident Road, Three Forks, MT 59752Email: [email protected]
Doug Miller, Vice President.....................O (406) 295-5882 x 222Troy Mine – Revett GenesisPO Box 1660, Troy, MT 59935Email: [email protected]
Mark Redfern, 1st Vice President......................C (406) 671-4105Brenntag Pacific123 West Boulevard, Lewistown, MT 59457Email: [email protected]
John Junnila, 2nd Vice President......................O (406) 373-6010Westate Machinery CompanyP.O. Box 50370, Billings, MT 59105Email: [email protected]
Tim Smith, Past President...............................O (406) 495-2803Montana Tunnels Mining Inc.PO. Box 176, Jefferson City, MT 59638Email: [email protected]
Matt Wolfe, Secretary / Treasurer .....................O (406) 932-8259Stillwater Mining Company - East Boulder MineP.O. Box 1227, Big Timber, MT 59011Email: [email protected]
Mark Cole, Director .........................................O (406) 434-5583Dick Irvin Inc.P.O. Box 950, Shelby, MT 59474Email: [email protected]
Tad Dale, Director ...........................................O (406) 496-3200Montana Resources600 Shields Ave, Butte, MT 59701Email: [email protected]
Jim Daley, Director ..........................................O (406) 683-3324Barretts Minerals8625 Hwy 91 South, Dillon, MT 59725Email: [email protected]
Tim Dimock, Director ......................................O (406) 287-2046Barrick - Golden Sunlight Mine453 MT Hwy 2 East, Whitehall, MT 59759Email: [email protected]
Jason Ellis, Director .........................................O (406) 266-5221Graymont Western U.S. Inc.P.O. Box 550, 450 Indian Creek Road, Townsend, MT 59644Email: [email protected]
John Fitzpatrick, Director.................................O (406) 442-5032
Fess Foster, Director ........................................O (406) 287-3261Geological & Environmental Consultant21 Paul Gulch Road, Whitehall, MT 59759Email: [email protected]
Bruce Gilbert, Director.....................................O (406) 322-8700Stillwater Mining Company536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019Email: [email protected]
John Hinther, Director .....................................O (406) 266-5221Graymont Western U.S. Inc.P.O. Box 550, Townsend, MT 59644Email: [email protected]
Jim Liebetrau, Director.............................O (406) 563-8494 x 11AFFCO..............................................................C (425) 210-36531015 East Sixth Street, Anaconda, MT 59711Email: [email protected]
Robin McCulloch, Director ...............................O (406) 496-4171Montana TechW. 1300 Park Street, Butte, MT 59701Email: [email protected]
Gene Nelson, Director......................................O (406) 549-8856Yellow Band Gold Inc.3926 Bellecrest Dr., Missoula, MT 59801Email: [email protected]
Fred Panion, Director ......................................O (406) 285 5303 Rio Tinto Minerals767 Old Yellowstone Trail, Three Forks, MT 59752 Email: [email protected]
John Parks, Director ........................................O (406) 683-3324Barretts Minerals8625 Hwy 91 South, Dillon, MT 59725Email: [email protected]
Ben Scholz, Director ...........................O (406) 682-4882 ext. 233Rio Tinto Minerals280 Johnny Ridge Rd., P.O. Box 130, Cameron, MT 59720Email: [email protected]
Roger W. Rohr, Director ..................................C (406) 698-1563Tractor and Equipment Co.Major Accounts ManagerEmail: [email protected]
Jim Volberding, Director ..................................O (406) 538-2501Canyon Resources CorporationP.O. Box 799, Hilger, MT 59451Email: [email protected]
Debbie Shea, Executive Director.......................O (406) 495-1444Montana Mining AssociationP.O. Box 5567, Helena, MT 59604Email: [email protected]
Debra Pitassy, Director of Member ServicesEmail: [email protected]
www.montanamining.org
Montana Mining Association
2010 Board of Directors
digital copy available online at www.montanamining.org 9
2009was a year of changes for the mining industry.Early in the year, the prices and demand of most
commodities remained seriously depressed by the downturn of eco-nomic markets in 2008, and the international financial market hadnearly dried up for mineral funding. Prices for most metals showed asteady climb through the year, with gold leading the charge. Althoughprices did not reach previous highs, the market appeared to stabilizeby the fourth quarter. Funding for exploration has not recovered andonly limited capital was available for projects nearing developmentand production. Most exploration companies that were heavilydependent on investment capital have ceased to exist. Smaller com-panies that were producing have been limited to cash flow and prof-its for capitalization. Larger companies have been stable but mosthave kept capital-intensive projects on hold until financial uncertain-ties are resolved. Exploration efforts were at an all-time low.
Operators continued to voice concerns about inconsistent interpre-tations of the rules and regulations by the Mine Safety and HealthAdministration (MSHA), poorly prepared inspectors, and this year, per-sonal fines levied against supervisors for allowing untidy work sta-tions. Dust and noise seemed to be a particular focus of inspections.
Some industrial minerals companies in the international marketnoted recovery beginning at the end of the first quarter followed bysteady growth. Local industries tied to the construction trades haverealized a very slow recovery. Specialty markets, such as decorativestone, have been severely impacted by the crash in the building con-struction industry. Production costs of some industrial minerals haveremained high because of energy prices. Portland cement sales havebeen flat at low levels.
Operations (Fig. 1)The Troy Mine, located near Troy in northwestern Montana, is a
wholly-owned subsidiary of Revett Minerals (operated by Genesis,Inc.). In 2009, they increased copper-silver ore production by five per-cent to 3,700 tons per day. Their labor force has been steady, with180–185 employees. The ten percent pay cut for labor (implementedlate in 2008) has been fully reversed. Metal production increased byten percent for silver but declined by five to six percent for copper. Thecompany has continued to expand its reserves in the lower copper–sil-ver zones. Development of the “C” bed, located 370 feet below themain ore body, is planned for 2010, with production scheduled in2011. Many of the zones contain marginally economic amounts ofmetal, but the company has identified blocks of economic reserveswithin those zones.
Revett Minerals, owner of the Rock Creek copper-silver project, con-tinued to wait for the appeals and subsequent court decisions to beresolved prior to starting development of the property. They plan toinitiate the development of the upper decline in 2010 barring furtherlawsuits against the permitting agencies.
On the east side of the Cabinet Mountains Wilderness, MineManage ment Inc. ceased rehabilitation work in their decline until thepermitting of the Montanore copper-silver mine is completed. Thedraft environmental impact statement (DEIS) has been completed andthe company is waiting for the final record of decision. EnvironmentalProtection Agency (EPA) involvement has caused further delays. Thecompany had planned to start a bankable feasibility study near theend of 2009.
Within the Libby-Kalispell-Thompson Falls area, a large number ofsmall decorative stone quarries constitute a substantial local econom-ic influence. Most of them are located along Prichard Formation(Super Belt Supergroup) outcrops. Products range from thinly-beddedsheets (one to two inches thick) to various thicker-bedded blocks (threeto eight inches thick) used for dry stacking and landscape bouldersthat may exceed feet in thickness.
Most of the decorative stone products are used in the constructionof higher value housing and businesses. The financial decline in 2008in housing construction did not affect the demand as much as theanticipated 19 percent through the early quarters of 2009. However,the slump caught up in the latter half of 2009; demand is rumored tohave dropped by 50 percent. Inventories at many of the stone yardswere full by early fall, a time when inventories should have been sub-stantially reduced.
Near Superior, John Hageman and his son produced gold from thelower Quartz Creek placer through late summer. All disturbances werereclaimed after known reserves were exhausted.
Near Avon, Bill Darden briefly produced placer gold on Ophir Creekabove Blackfoot City. Further exploration was planned for late fall butwas delayed into 2010 when inclement weather settled in.
In southwestern Montana, Bud Guthrie produced placer gold in theScratchgravel Hills north of Helena. Availability of process water limitsproduction to spring and early summer.
In Helena, Al Ballard produced placer gold from the Pretty Girl plac-er in Grizzly Gulch. Most of the nuggets and flakes are crystalline andare derived from a skarn that is exposed at various locations through-out the drainage and surrounding area.
Ash Grove Cement West maintained production at Montana City ata reduced rate compared to recent years, except for a brief layoff
Montana Bureau of Mines and GeologyReview of 2009 Montana mines and explorationBy Robin McCulloch, Mining Engineer
10 Montana Mining Association — Montana Mining 2010
when tremolite was identified in the pit.
Subsequent testing of rock and air supplies
showed no asbestos-form minerals existed at
levels above government standards. The
company upgraded dust control systems at
the coal mill. Operations focused heavily on
cost savings, power monitoring, and efficien-
cy studies.
Apollo Gold Corp. and Elkhorn Goldfields’
Montana Tunnels mine (Au, Ag, Pb, Zn)
remained in standby mode. Permits have
been granted but development capital has
been difficult to raise. The open-pit metals
mine is located west of Jefferson City and has
more than seven years’ worth of reserves
remaining. It is estimated that $60 to $85
million will be necessary to complete the
pre-stripping and environmental stipulations
of the mine permit. Elkhorn Goldfields and
Apollo Gold Corp. have signed a letter of
intent to transfer ownership to Elkhorn
Goldfields, Inc.
Northwest of Townsend, Tracy Fortner
explored, permitted, and started production
of placer bench gravels above the north fork
of Indian Creek.
Graymont Western U.S.A. Inc. maintained
production of burnt lime at their plant
northwest of Townsend. Demand was down
during 2009, and was further negatively
impacted by the closure of the Smurfit-Stone
linerboard plant near Missoula in early 2010.
North of White Sulphur Springs, Holcim’s
Black Butte mine continued production as
Montana’s only iron mine. The ore is used in
the production of Portland cement.
In Butte, Montana Resources maintained
steady production of copper, molybdenum,
and silver. Prices climbed steadily through
the year. Tire problems of recent years were
eliminated as the allotment was raised from
28 to 80 tires per year and the price was
reduced from $175,000 per tire to $26,000.
The company continued to upgrade produc-
tion and support. They have completed a
new computer control system for the mill.
Proudly serving the mining industry with a full line ofchemical reagents, water treatment, refinery andspeciality chemicals. Make us your one stop shop for allyour chemical needs. Total inventory management andtechnical services available. One drum or one truckloadgive us a call we are ready to serve you.
Chemical Montana Company2000 Boulder Avenue Helena, MT 59601(406) 442-8900 • Fax (406) 442-8035
Greg Peterson - PRESIDENTMark McAlmond - OPERATIONS MANAGER
Toll Free 1-800-242-6515 email: [email protected]
“Common Chemicals With Uncommon Service”LOCALLY OWNED & OPERATED
digital copy available online at www.montanamining.org 11
Exploration on the south side of the deposithas increased the reserve base, especiallyfor molybdenum. Deeper drilling in the pithas also shown good results. Employmenthas been steady at 345 to 348 people whoparticipate in a comfortable profit-sharingprogram.
Near Whitehall, Barrick Gold Corp. con-tinued stripping waste at its GoldenSunlight mine. Development has beenfocused on the west and northwest sides ofthe pit to access the remaining ore in the 5Boptimized pit plan. During this three-yearstripping plan, the company has over-hauled equipment, expanded the truckfleet with three Cat 785 haul trucks, andrehabilitated the mill. The mill is scheduledto resume production on January 1, 2011,and the existing reserves are scheduled tobe depleted in 2015. They are also lookingfor compatible raw ore from undergroundproperties within 100 miles to purchase.
Barrick Gold continues to explore foradditional reserves from satellite ore bod-ies, while permitting the ore deposit discov-ered under the crushing circuit. Preliminarywork has been done in anticipation of con-verting the mill to a gravity-flotation circuitafter the ore body is exhausted. This willallow for reprocessing the tailings to recov-er sulfide minerals for further gold recovery.
West of Whitehall at Pipestone, CondaMining Inc. has maintained steady produc-tion of railroad ballast and crushed stonefrom a diorite body.
Near Three Forks, Holcim continuedsteady production of Portland cement.Some recovery in the market is expected inlate 2010. The permit for replacing a por-tion (20 percent) of their fuel needs withworn-out tires has stalled in the MontanaDepartment of Environmental Quality. TheDEIS showed no impact on the environ-ment, but the final impact statement andrecord of decision have not been forthcom-ing. When originally proposed, the projectwould utilize most of the waste tires gener-ated in Montana as a fuel in their process.
At Silver Star, Coronado Resources maintained copper and gold production atits Madison Project (formerly the Broadway-Victoria mine). They have direct-shippedcopper ore and gold ore from differentareas of the mine on a mining contract with
33 S.Last Chance GulchP.O. Box 1715Helena, Montana 59624-1715Tel. 406 442-8560Fax 406 442-8783email: [email protected]: www.gsjw.com
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12 Montana Mining Association — Montana Mining 2010
Blue Range Engineering. Cumulative production of recent years has
exceeded 1,750 ounces of gold and 1.35 million pounds of copper.
Highlights of a limited ore-definition drilling program revealed 45 feet
of 0.74 ounces per ton (opt) gold and 17.5 feet of 0.61 opt gold. Nearly
every hole drilled intercepted ore.
At Glen, Apex Abrasives Inc. completed Phase 1 construction of their
process plant at the former General Electric tungsten mill. They will
reprocess the garnet-rich tailings in the ponds to produce tungsten
concentrates and garnet for water-jet cutting media. Preliminary pro-
duction prior to seasonal closures produced a highly saleable product.
Full production is anticipated with the spring thaw.
At Alder, Ruby Valley Garnet, LLC maintained steady production of
garnet from the dry placer deposit in Red Wash. Late in the fall, the
company streamlined operations with a change in management and
workforce reductions. GMA Garnet (USA) Corp. has contracted Ruby
Valley Garnet’s total production. The company has continued to
expand production. Exploration this summer delineated hard rock
resources of up to 20 percent garnet at the head of the drainage they
are currently mining.
Barretts Minerals Inc. produces a number of talc products from the
Treasure and Regal mines, located east of Dillon. One of the products
is used in the production of the ceramic substrate for catalytic con-
verters. The 2008 economic decline triggered a stagnation of U.S. auto-
motive sales, which in turn temporarily eliminated the demand for
that portion of talc sales. The company had to reduce its workforce for
most of the year, but has hired all of their production staff back now
that sales have increased. As with most of the mining industry, they
have not replaced support personnel. In operations, they have contin-
ued construction of new shop facilities at the Regal mine while
expanding reserves northeast of the Regal mine. The exploration pro-
gram has yielded some good results.
South of Ennis, talc production was maintained at the Yellowstone
mine by Rio Tinto Minerals. Following the labor reduction programs
of the previous year, the company maintained labor levels and even
hired a few new employees. As with many of the industrial minerals
companies, the focus was on cost reduction or optimizing operations.
Internal capital was in short supply throughout the industry. Rio Tinto
continues to look to divesting the talc business of Rio Tinto Minerals.
In the south-central region, near Big Timber and Columbus, the
Stillwater Mining Co. maintained production from the largest mine
complex in the state. Under adverse financial conditions, the compa-
ny posted a net loss of $9.2 million. Over the year, they reduced staff
by 27 percent, increased production by 6.2 percent, and added a sec-
ond furnace at the smelter. They lost money on used catalytic con-
verters purchased for recycling when the price for platinum group
metals declined in late 2008 and early 2009. Recovery was impaired
when used catalytic converters were not available for purchase and
recycling. Early in 2009, General Motors backed out of their purchase
contract via the bankruptcy court. Because of the tough financial con-
ditions, Stillwater took drastic cost-cutting measures that will improve
their future. At the East Boulder mine, they laid off the entire staff
(649 people) and then hired 265 back after reevaluating their opera-
digital copy available online at www.montanamining.org 13
tions. Cuts were focused on management and support staff. Almostimmediately, productivity improved and cash operating costs declinedby nearly $40 per ounce of platinum-group metals (PGMs). Changes inmining methods reduced dilution and sidelined most of the fleet ofdiesel equipment.
On the Nye side, Stillwater production increased from 394,000ounces of PGMs from 349,000 in 2008. Total operating costs werereduced to $369 per ounce from $521 per ounce in 2008. They havereduced equipment, personnel, and dilution through changes in min-ing methods and are rethinking how they do business. The crisis thecompany faced in 2009 and survived may be the turning point thatmakes Stillwater the most improved mining company in the state.
South of Billings, production continued at the Warren Quarry.Montana Limestone Co. produces approximately 650,000 tons of lime-stone per year and provides feed for the Western Sugar cooperative,the Dakota Coal Co.’s burnt lime plant in Frannie, Wyoming, as well asseven various-sized lime products ranging from rip rap to fine grind.The reserves are owned by Bighorn Limestone Co., which is jointlyowned by Western Sugar Cooperative and Montana Limestone Co.
Exploration (Fig. 2)Exploration in Montana has continued at an extremely low level
even though the mineral endowment is considerable. This is partlyfrom a common perception that after the gold open-pit cyanide ban,it is impossible to permit a mine in the state. Those companies will-
ing to work in the state have found permitting slower than they
would like, but it is possible. However, the outside perception, espe-
cially on the investment side, has left projects struggling for capital.
There were 13 projects in 2009 at various levels of activity.
Near Superior, Shannon Anderson purchased the southern half of
the Calumet gold placer in Quartz creek. The initial excavation
defined the boundaries of the upper end of the remaining deposit.
Anderson indicated production would start in 2010.
West of Drummond, Dick Komberec excavated a few pits on his
gold placer in lower Bear Gulch just above the dredge tailings. Nearly
all of the sites yielded gold but bedrock was not intercepted. Many
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of the exposures showed ten to 15 feet of topsoil. Further work isplanned in the future.
In the Garnet ghost town area, Grant Hartford Corp. continueddrilling targets for the second year. The company has contracted map-ping of the area’s geology and tested both gold placers and lodedeposits. Some initial tests have identified gold-bearing gravel associ-ated with debris flows. Lode deposits were explored by 37,763 feet ofreverse-circulation drilling and a small trenching program. The pro-gram has identified a resource of 611,244 ounces of gold on fourzones. There are 70,550 tons of 0.18 opt gold near the Nancy Hanksmine; 72,000 tons of 0.226 opt gold on the Willie vein system; 99,700ounces of gold in the Tostman zone; and a couple of holes in a five-to ten-feet-thick zone ranging from 0.268 to 0.444 opt gold on theTiger vein. The company is planning to continue the drilling programsin 2010.
In the Gold Creek area, Don Beck and Co. tested placer gold gravelsnear Pioneer. There are indications that production is planned in thecoming year.
North of Avon, Ash Grove Cement Co. drilled a clay deposit for usein cement manufacturing in the Nevada Creek drainage. The continu-ity was good but results are not yet available. The clay appears to behydrothermally-altered volcanic ash that encapsulated auriferousgravel deposits.
East of Lincoln, Atna Resources, Ltd. assembled data on theColumbia (7-Up Pete) mine. This property was drilled by Phelps Dodgeand Western Energy in the 1980s and 1990s. The gold and silver occurin veins that are up to 150 feet wide and dip to the west. The original
feasibility analysis identified projected production costs of $375 perounce of gold at open-pit production rates of 75,000 ounces per yearover 7.5 years. The company is reevaluating the feasibility with someconformation drilling planned in the 2010 field season.
At Marysville, RX Exploration Inc. resumed exploration late in thesummer on the historic Drumlummon mine. Historic production fromthis property is nearly one million ounces of gold and greater amountsof silver. After securing a permit to discharge the mine water, they con-tracted CDM, Inc. to design and build a water treatment plant for dis-solved arsenic. The plant was completed and installed, allowing thecompany to dewater the 600-level while rehabilitating the numberone shaft. Current drilling has identified a resource of 155,560 tonscontaining 70,703 ounces of gold and 1,915,560 ounces of silver in theCharley vein. On the D-Block, 160,000 tons of rock grading 0.4 opt goldand 4.0 opt silver were identified by prior operators. Numerous pre-existing stopes contain ore-grade resources as indicated on historicmaps. The drilling has also intercepted previously unknown mineral-ized structures adjacent and beyond old workings. The company hasstarted a decline to access resources in the D-Block–Charley vein area.This development work will allow them to gather bulk samples tocomplete metallurgical work. When the water is pumped below the600-level, the company plans to initiate drilling to expand the knownresource base for the mine.
South of Butte, Timberline Resources Corp. and Highland Mining,LLC, have joint-ventured the Butte Highlands project. A 16-foot x 16-foot decline is being driven 6,700 feet toward drill intercepts below thehistoric Butte Highlands mine, a gold-copper skarn. The project wasinitially designed to facilitate continued drilling of an identified goldresource of 500,000 ounces. Approximately ten to 15 drill stations willbe developed for 120 drill holes. The company is planning on collect-ing a 10,000-ton bulk sample for metallurgical analysis. Work is sched-uled into 2011.
Northwest of Twin Bridges, Teras Resources Inc. and Rick Childershave renovated the gravity mill at the Watseca mine. The companyplans on reopening old workings in the Rochester area for potentialmill feed.
Near Virginia City, John and Mike Magnus have started develop-ment on a gold placer in upper Alder Gulch. Due to permitting delays,the project got started just before the first freeze. Full production isscheduled for the 2010 field season.
St. Lawrence Co. drove a decline to examine drill intercepts of goldstructures in Norwegian Creek.
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14 Montana Mining Association — Montana Mining 2010
digital copy available online at www.montanamining.org 15
West of Dillon, Silica Resources, Inc. drilled a number of holes on
the Elkhorn mine deposit near the ghost town of Coolidge.
South of Nye, Nevoro, Inc. was acquired by Starfield Resources, Inc.
Both companies have interests in copper-nickel ore bodies. This acqui-
sition provides Starfield Resources access to extensive resources of
both copper–nickel and chromite deposits. Starfield Resources has not
yet announced their intent on activities in the Stillwater Complex.
Coal (Fig.1)
Statewide coal production declined 11.8 percent to 39,642,708 tons
for 2009. This reflects a general reduction in demand for industrial
energy corresponding to the overall decline in the economy. Late in
2009, Rio Tinto spun off Rio Tinto Energy America to Cloud Peak
Energy (CLD). The new company will operate two mines in Wyoming,
Spring Creek Coal and a 50 percent ownership of Decker Coal Co. Rio
Tinto retained a 48.3 percent ownership of the company.
Production at the individual mines showed significant changes at a
few sites. Decker Coal Co. had a decrease of 34.4 percent in their com-
bined production of the East and West Decker mines. Part of the
decrease was reported as a buyout of some long-term contracts. The
West Decker mine was down 73 percent in production to 1,720,374
tons. Projections are that the West Decker mine will close in about 1.5
years because of declining quality and increasing overburden. The
East Decker mine increased production 393 percent to 2,886,162 tons.
Near Savage, Westmoreland Savage Corp. decreased production by
5.4 percent to 337,061 tons at the Savage strip mine. This is
Montana’s only lignite mine. The operation feeds the Lewis and Clark
Station, which is located in Sidney and owned by the Montana-
Dakota Utilities Co.
At Colstrip, Western Energy Co. reduced production by 21.2 percent
to 10,105,036 tons at the Rosebud mine. This reduction is attributed
to a cracked turbine that had to be dismantled and shipped out for
repairs at the Penn Power & Light power generation facility. Repairs
took nearly eight months. The Colstrip Energy Limited Project (CELP)
plant that dries out waste coal to enhance the quality noted an
increase in production of 0.25 percent to 226,646 tons.
Near Hardin, Westmoreland Resources, Inc. produced 5,911,688
tons from their Absaloka mine. Production was down about 7.5 per-
cent from 2008.
The Spring Creek mine located near Decker reduced production by
1.9 percent to 17,608,969 tons of coal.
Signal Peak Energy, LLC increased their 2009 production at the
Bull Mountain mine by 364 percent to 866,772 tons with the instal-
lation of a longwall mining system. They also completed a railroad
branch line to the mine from Lockwood to facilitate unit-train vol-
umes of coal. The company is slowly increasing production to the
anticipated level.
In 2009, Arch Coal, Inc. acquired the private leases for the Otter
Creek coal field and added state leases in 2010. Initial production of
these resources is anticipated to take seven years.
Maple Resources Corp. has acquired leases on properties near the
Bull Mountain mine. The company has permitted a 300,000-ton test
pit located eight miles south of Melstone. Their interest is in the
McCleary and Carpenter coal seams that are initially surface
minable. They have not received a mining permit but anticipate
operations at their Snider Ranch deposit as well as the Maple
Carpenter Creek deposit.
Acknowledgments
The author thanks the mining companies, Montana Department
of Environmental Quality’s Environmental Management Bureau and
Industrial and Energy Minerals Bureau, small miners, the U.S. Forest
Service, and the Bureau of Land Management mineral administra-
tors for their invaluable contributions to this report. ✦
16 Montana Mining Association — Montana Mining 2010
I’ll admit it: After nearly three and a half years in the office of theMontana Mining Association, I still know next to nothing about
rocks and minerals. As we sort through my personal collection ofrocks, I can, however, tell you which one I think is the “prettiest”–ahighly technical term I’m sure is thrown around at all the geologicalhot spots throughout the state. All kidding aside, I’ve wondered inthese last few years if mining knowledge is something I’ll ever pick up.
Enter Dolores Rife. Now I’m a believer.From 1967 to 1971, Dolores and her late husband John owned the
Wass Mercantile. To the residents of Roy, Montana, it was considereda general store – but to Dolores, operating it was “disastrous”. That is,at least, until fate intervened.
“A man from California came to the store and said he was looking forsilver,” Dolores explains. “I knew where there was a lot of shiny rock.”
Shiny rock, indeed; Dolores sent “the man from California” homewith a piece of rock, which was assayed and came back with a highlevel of molybdenum (or steel hardener, in terms even I can under-stand). The level of molybdenum was so high, in fact, that the manwrote Dolores back and requested she “not tell anyone” because backthen, that [level of molybdenum] was rare.
Just like that – with no prior mining education or experience –Dolores was given the first indicator that her knack for rocks was morethan just a hobby.
Years later, Dolores found out about the “Golden Jack” claims in theJudith Mountains of Fergus County, Montana. Her husband, employedby the Montana Department of State Highways (first as a surveyor andthen as an engineer), helped Dolores get a lay of the land.
After going through the painstaking process of legally acquiring theproperty, Dolores took “samples” with friend Irene Philips.
“I didn’t know what I was doing; it just looked good to me!” Doloreslaughs. “I had no idea what I was pounding into, but it was different-looking.”
Apparently, on some instinctive level she did know what she wasdoing. As a geologist would later tell her, “Anything that looks like itshouldn’t be there is something to pursue.”
It’s the Montana Mining Association’s annual meetings, however, towhich Dolores partially credits her education.
“I had no geological education. I started going to the MMA’s semi-nars to learn. I’d learn something from every one of them.”
Learn she did. In the late 1970s, she helped form the Fergus CountyChapter, going on to become the first female director of the MMA in1991.
“I had a friend doing exploration up in the Judith Mountains,” says
one of the MMA’s current directors, Fess Foster, Ph.D., CPG. “That’s
when I met Dolores and her husband John. They were just salt-of-the-
earth, good people.”
A statement like that isn’t unusual when it comes to Dolores.
Accordingly, one of Dolores’ most prized possessions – her hard hat,
one she still uses today, came from another in the industry who held
her in high regard.
“I was going through the (MMA) convention and I didn’t have a hat
at the time. I was admiring a hard hat on display, and the man from
the Christensen Boyles Corporation just gave it to me. He said, ‘You
know, Dolores, you’ve done a lot for this mining association … Here –
take it.’ So he gave me my hat.”
Currently, Dolores owns the Golden Arrow Mining Co., LLC along
with her son Carson and daughter-in-law Patti. Dolores hopes the
operation will get going again soon; they are currently seeking an
interested party to further the development of the property, which
was historically mined in the 1930s and ‘40s for gold and silver. Amax,
one of the various companies to explore the Golden Arrow Mine,
drilled approximately 50 holes and reported a total of 56,500 con-
tained ounces of gold.
The “Golden Arrow” was named just as much for her husband’s love
of archery, and the many bobcats, elk, and deer the boys shot with
their bows throughout the years, as it was for the 12 arrows John
made and painted gold for Dolores. One of the 12 arrows still resides
above the entry door of her home.
A walk around her yard will land you at a pile of rocks affectionately
titled “the dump”, where you’ll find a rock (or two) for every visit
Dolores had made to her property throughout the years. And after
nearly four decades of following around geologists and gaining knowl-
edge through other prospectors, Dolores can speak mineral with the
best of them.
So, perhaps you won’t find “pretty” listed in the legend of a geo-
logical map. But then again, neither is intuition, insight, or just a
plain old hunch. If I ever get around to rock hounding, I’ll keep in
mind a piece of advice Dolores would give the first timer: “Go with
your gut.” ✦
Member profile on Dolores Rife
Her guess is as good as mineBy Debra Pitassy
Dolores standing in front of what her son, Carson Rife,named the “Dolores Vein” at the Golden Arrow mine site.
digital copy available online at www.montanamining.org 17
Members enjoyed having meetings and activities at one location... and we did, too.
This year, our focus will surround health and safety. The success ofour committee under Jerry Laughery has fueled a meeting dedicatedto health and safety issues and presentations. Highlights from ouragenda include: • A panel on health and safety: Safety professionals from major mine
sites around the state will be leading the panel and addressing yourquestions.
• FLRA and hazard recognition with Tim Kilbreath, CMSP, manager ofhealth and safety for Barrick Gold of NA Inc.
• A presentation and Q&A with Mark Savit, Patton Boggs, LLP on Day2 of the agenda. Mr. Savit has expertise in many areas, includinghealth and safety law, environmental law, public lands law, oil, gas,chemicals, mining, and related litigation and legislative services.
As always…Attendees can look forward to an opening social, closing banquet,
and optional activities such as the popular four-person golf scrambleor our educational tours.
Golf ScrambleFairmont Hot Springs Resort’s golf course features an outstanding
6,741-yard, 18-hole, par-72 layout. Fairmont’s “mile high, mile long”fifth hole is recognized as one of the most challenging amongMontanan golf courses. The green is a mile high and the tee box is 649yards away, making this par five the longest hole in Montana.Fairmont’s third hole features Montana’s largest green, a three-tiered10,000-square-foot putting surface. Please be sure to provide yourhandicap when signing up for the four-person scramble.
Field Trip/Educational Option
The following tours are given
together, as part of a package.
• Tour of Montana Resources
Montana Resources, one of
The Washington Companies,
has operated in Butte since
1985, operating an open-pit
copper and molybdenum
mine. The operation com-
prises the Continental
mine, crushers and a con-
centrator facility where
tons of raw ore are
processed into high-quali-
ty metal concentrates.
• Tour of the Copper King Mansion
The Copper King Mansion is a 34-room residence of Victorian archi-
tecture built between 1884 to 1888 as the primary residence of
William Andrews Clark – one of Montana’s three famous Copper
Kings who, through his many mining and banking ventures,
became one of the wealthiest men in the world. By 1900, Clark had
amassed a personal fortune estimated at $50,000,000.
The home features fresco-painted ceilings, elegant parquets
of rare imported wood, gas and electric chandeliers, ornate
hand-carved fireplaces and stairways, and stained-glass win-
dows. The mansion was added to the National
Register of Historic Places in 1970. ✦
Join us once again at theFairmont Hot Springs Resort
World Museum of Mining promotes importantmining heritageto the publicNeeds capital in order to preserve existing facilities and provide for future museum activities and exhibits
By Tina Green, Executive Director, World Museum of Mining
The World Museum of Mining (WMM)opened in 1965 on the site of the
original Orphan Girl Mine yard, located onthe northwestern edge of Butte. At thetime, the economy of Butte was changing,moving from deep underground miningto large-scale open-pit mining. This shiftmeant neighborhoods and undergroundmines would be swallowed up by theopen-pit mining, leaving no trace of the
substantial cultural and historical aspectsof the community.
In danger of losing resources that inter-preted Butte’s and the region’s past, a vol-unteer group encouraged the AnacondaMining Company (AMC), which was theholder of the vast mining propertiesspread throughout the area, to donate theOrphan Girl mining property for the pur-pose of establishing a place for the preser-
vation of cultural and historical artifacts.AMC agreed, and the rest is history.
The mission statement of the WorldMuseum of Mining was developed andstill clearly describes its purpose andintent.
“The mission of the World Museum ofMining is to preserve the rich historicallegacy of mining, the related culture ofButte, Montana and the surrounding
18 Montana Mining Association — Montana Mining 2010
Elko Tel: (775) 778-3200 [email protected]
Reno Tel: (775) 331-2375 [email protected]
Englewood Tel: (303) 433-0262 [email protected]
Phoenix Tel: (480) 940-2320 [email protected]
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Bring AMEC Geomatrix’s experience to your project in:
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Helena Tel: (406) 442-0860 [email protected]@amec.com
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acility and plant designfal engineerinechnicgeot
tructiononsstoject and cprroe eosurrepermitting and cl
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oodwwoeewEnglel: (303) 433-TTeeith.williamsk
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digital copy available online at www.montanamining.org 19
region, and to promote the significant min-
ing heritage by educating the public with a
perspective toward total family interest.”
The museum was established by volun-
teers, and continued to be supported sole-
ly by volunteers as the museum and its
extensive artifact and photograph collec-
tion continued to build throughout the
years. The first professional staff was hired
in the early 1990s. The museum still relies
heavily on the support and help from its
many volunteers. Today, the museum
employs a small staff: an executive direc-
tor, a curator, maintenance staff and part-
time seasonal staff.
The museum’s centerpiece is the Orphan
Girl Mine yard marked by the 100-foot-high
gallows frame, or head frame, and associ-
ated mining buildings and equipment. The
museum allows visitors to imagine what it
might have been like to work in the veins
below the city of Butte or actually experi-
ence it through an underground mine tour.
When taking the underground mine tour,
guests are fitted with miner’s hard hats,
cap lamps and battery belts. Visitors are
guided 65 feet below the surface into the
2,700-foot-deep Orphan Girl Mine, hearing
stories and seeing equipment work along
the way.
The town at the base of the Orphan Girl
is named “Hell Roarin’ Gulch.” This repli-
cated turn-of-the-century mining town
contains some original structures from
Butte neighborhoods that were originally
slated for destruction as open-pit mining
expanded in Butte. Contained within the
buildings throughout the Gulch are histori-
cal and cultural artifacts from the history
of Butte and the surrounding region.
The museum is also home to an exten-
sive photograph archives collection. The
collection today contains over 22,000 pho-
tographs, negatives, and glass plate nega-
tives. These photographs display every-
thing from interior shots of the under-
ground mines and equipment to historic
buildings and events in the area, as well as
photographs of the famous and everyday
people who lived in and visited Butte.
The newest exhibit at the museum is the
Miners’ Memorial Wall and Remembering
Garden. Black granite slabs are engraved with the names of over
2,500 men who lost their lives in mining, smelting, railroad or con-
centrator accidents in Butte-Silver Bow. The number of mining
deaths in Butte exceeds that of any other hard rock mining district
in the Western Hemisphere.
The museum has two additional collections: the Samie Keith
Dollhouse and Doll Exhibit and a large mineral collection that com-
pliments the one on display at the Mineral Museum located on the
Montana Tech campus.
In an effort to advance preservation and guarantee the museum’s
survival for many years to come, the museum applied for and
received grants that allowed them to bring museum professionals
onsite to assess, not only the collections, but the buildings and infra-
structure as well. Two areas of major concern were addressed: the
electrical system and deferred building maintenance.
The museum was originally established in 1963, with much of the
reconstruction of the site taking place in the 1970s and 1980s.
Throughout the construction and remodeling of the museum build-
ings, much “patchwork” of the electrical systems took place. The elec-
trical system has been a concern of the museum, and has been
repeatedly cited in studies and assessments of the museum per-
formed over the past few years. A recently-competed risk assessment
has identified the electrical system as the number-one risk, and it is
rated extremely high. A project plan has been developed to mitigate
the electrical issues and provide for the ability to expand the museum
activities and exhibits in the future.
NelsonBrothersMINING SERVICES, LLC
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20 Montana Mining Association — Montana Mining 2010
22 Montana Mining Association — Montana Mining 2010
I/We are pleased to assist with the preservation efforts at the World Museum of Mining:
Palladium Level - $10,000 & abovePlatinum Level - $5,000 - $9,999Gold Level - $1,000 - $4,999
Other __________________________
Amount Enclosed ___________________
Pledge (to be paid later) ____________ (1 to 5 years)
NAME ____________________________ SIGNATURE ______________________________
We deeply appreciate your gift and commitment to the advancement of preservation efforts at the World Museum of Mining. Please return this form with your payment. You will receive a receipt promptly acknowledging your contribution.
All gifts are tax deductible as allowed by law.
WORLD MUSEUM OF MINING
The current electrical environment doesnot allow for proper lighting of exhibits,adequate electrical feeds or outlets, orheating/cooling or humidity control wherenecessary. The risk of fire, electrocution orother hazards at this stage is extremelyhigh. The project will provide for the repairand replacement of necessary wiring andsystems, and assure safe operations withregard to fire, electrocution or other safetyhazards. Currently, the museum and itscontents are at high risk for fire and otherdamage.
The assessments also point out an imme-diate need for a building and infrastructuremaintenance plan. Further, the plan mustinclude funding and staffing needs forimplementation. The museum is workingdiligently on this plan, including the recom -mendations made during the assessment toprotect the large collection housed in thebuildings and to maintain the historicalintegrity of the buildings. The limited staffand funds will have to be dramaticallyincreased to maintain and operate thisfacility. A major capital campaign wouldhelp to fund the preservation of the build-ings, and an endowment would be benefi-cial to assist with operation and long-termmaintenance of the facility.
The museum is in the process of apply-ing for grants to fund both projects.
Matching funds will be required for anygrant the museum receives. If you areinterested in helping to raise funds forthese two critical projects or if youwish to make a contribution to theprojects, please contact Tina orDolores at the museum: (406) 723-7211. Your support would be most val-ued and appreciated.
Finally, if you are in the vicinity ofthe World Museum of Mining in thenear future, please stop by to visit andenjoy a journey into Butte’s historicaland fascinating past. Your detour willbe worth the effort. ✦
digital copy available online at www.montanamining.org 23
The results of the Montana Chamber of
Commerce’s annual poll of Montana
voters are in and they reveal some interest-
ing new political and economic trends that
may affect your business. The Power Base (P-
base) is an annual scientific survey of 600
Montana voters, conducted on a variety of
business and political issues with a margin of
error of 4.1 percent. The poll is done to find
out what regular Montanans think about
important economic issues facing our state.
Here are some of the results:
Economic Development Not surprisingly, unemployment levels are
a top concern for Montanans. Forty percent
listed it as the top problem facing our state;
the next highest problem, health care, was a
third of that level at 15 percent. Montanans
want to get back to work, and they are look-
ing for businesses to provide the jobs.
As in prior surveys, the P-base shows
Montanans want to see more business
growth, especially in high-wage businesses
like natural resources industries. For exam-
ple, 78 percent of Montana voters want the
state to encourage more timber production,
76 percent want more oil and gas develop-
ment, 71 percent want more coal develop-
ment and 70 percent want more mining. In
addition, almost two-thirds of Montanans
say the land board should go forward with
the Otter Creek coal tracts leasing.
Montanans are still pessimistic about the
national economy. Fifty-three percent of vot-
ers believe the U.S.’s economy is on the
wrong track, as opposed to 24 percent who
think we are on the right track. Voters
believe the state’s economy is better off, with
41 percent saying we’re on the right track
versus 34 percent saying it’s the wrong track.
Strong majorities of voters believe busi-
nesses can be trusted to make important
decisions in treating workers fairly when itcomes to benefits, hiring and firing employ-ees, and protecting the environment. Only 19percent of Montana voters support raisingtaxes on businesses, compared with 65 per-cent who want to see taxes decrease or staythe same.
Health Care Respondents in the poll expressed signifi-
cant satisfaction levels with their own healthcare insurance. Almost three-quarters ofthose polled (74 percent) said they were sat-isfied, while only 15 percent said they weredissatisfied. Half of Montanans wantWashington, D.C. to scrap the current healthcare proposals and draft new legislation thatwould address rising costs.
Concerns of Voters The P-base is also a good opportunity to
see what financial concerns are on the mindsof voters. For the fourth straight year, healthcare costs continue to be the top concern at24 percent of the voting population; hightaxes came in second at 18 percent.Additionally, addressing the unemploymentsituation is the top issue (18 percent) voterswant addressed in the coming elections,while health care (17 percent) is a not-so-dis-tant second. In addition, it would appear acandidate will do well if he or she takes a jabor two at government involvement in ourown lives. Fifty-nine percent of respondentssaid government in general is getting tooinvolved in our daily lives and is spendingtoo much money; only 31 percent said gov-ernment wasn’t doing enough on issues likeeducation, health care and the environment.
2008 Elections When it comes to candidate endorse-
ments, voters respect candidates who getstamps of approval for business groups, like
chambers of commerce, agriculture groups
and more. When asked whether a chamber
of commerce endorsement of a candidate
would influence their vote, 51 percent of vot-
ers said it would have a positive effect, com-
pared to only 16 percent who said it would
have a negative effect (35 percent net posi-
tive). Even more popular are agriculture
groups, with 68 percent of respondents sup-
portive of their positive endorsements of
candidates, compared to only seven percent
negative (61 percent net positive).
Whose endorsements have more of an
overall negative impact on candidates? Trial
lawyers (-40 percent net negative), environ-
mental groups (-18 percent net negative) and
labor unions (-nine percent net negative).
When asked about the upcoming elections
for the Montana state legislature, voters are
more likely (46 percent) to want to replace
their local legislator rather than re-elect
them (34 percent). Additionally, Republicans
have a slight edge going into the legislative
elections; 32 percent prefer GOP candidates
for the legislature, while 25 percent prefer
Democrats.
Conclusions
The message from the survey is clear:
Montanans want to see the state move
toward long-term, sustainable growth by
increasing natural resource development,
improving our business climate, and creating
more good-paying jobs. So what can you do
to keep Montana on the right track?
First, identify who the pro-business candi-
dates are in your local and statewide elec-
tions in 2010. Second, support those candi-
dates with donations, volunteer time and
your vote on Election Day. Third, be a vocal
supporter of good business ideas in the leg-
islature. ✦
MT voters’ modeuncovered in chamber poll By Jon Bennion, Government Relations Director for the Montana Chamber of Commerce
24 Montana Mining Association — Montana Mining 2010
At a time when 80 percent of Americanslive in urban areas and few have any
contact with professions like mining andlogging, Gretchen Garwood and ProviderPals© are educating children one classroomat a time.
Provider Pals© is a cultural exchange pro-gram that links school children to the peo-ple who get their hands dirty every day pro-viding the basics of daily life: farmers,ranchers, loggers, oil field workers, com-mercial fishers, and miners like Garwood.
The 33-year-old Malta native doesn’tmatch people’s ideas of what a “miner”looks like. In fact, to a fifth grader inFlorida, mining itself might be no more realthan the dwarfs in Snow White “Hi-Ho-ing”off to work.
Meeting Garwood changes that.
Now in her third year with the program,
she became involved after hearing Bruce
Vincent – a third-generation logger and the
executive director of Provider Pals© – speak
at a conference.
“I thought it sounded intriguing because I
love kids and I love mining,” Garwood
explains. “I thought it would be a perfect fit.”
After talking with Vincent, she approached
her employer, Montana Tunnels Mining Inc.,
about working with Provider Pals©.
“I look at it as an investment,” Montana
Tunnels general manager Tim Smith says.
“To have someone like Gretchen doing this
program, explaining the mining industry to
kids, it’s just excellent all around.”
As part of Provider Pals©, Garwood is“adopted” by classrooms around the coun-try and then spends the school year corre-sponding with the classes. She answersquestions ranging from mine safety to thesize of her truck, usually via email, and pre-pares “diaries” about her work for them.
“The kids want to know all different kindsof things, and it varies from classroom toclassroom and by state,” she says.
With a family background in the miningindustry, a degree in mining engineeringfrom Montana Tech, and more than adecade of experience, Garwood is supreme-ly qualified to personalize mining culture.
“My dad worked at the Zortman Minegrowing up, so I got my interest in miningfrom that,” she says. “I thought it was fasci-
More than palling aroundWorking with Provider Pals©,one Butte woman teachesabout mining by sharingher own experiences
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nating that you could essentially dig in a
pile of dirt and come out with a precious
metal.”
Garwood caps each year by visiting the
classrooms. Bringing mining equipment
and gear to share with the students, she
also signs “Pal” certificates. Vincent says that
the process of getting to know the mining
industry through Garwood’s eyes gives stu-
dents a valuable new perspective.
“She works in mining, but the most
important thing is that they have met
Gretchen, the person,” he says. “She helps
them see that industries are full of people,
just like our cities are. At Provider Pals© we
don’t do politics, but we hope that some-
day, when these kids are called upon to
help society make decisions about our
industries, they will remember Gretchen.”
Vincent, who lives in Libby, says the
Provider Pals© concept came to him after he
gave a classroom talk about logging and
found out the class was planning to “adopt”
a wolf and learn about environmental
issues through that relationship.
“I knew that the people bringing the wolf
wouldn’t just be talking about the wolf, they
would be talking about politics,” he says.
“They would be saying that logging is bad,
that ranching is bad. When people want to
vilify those who work with their hands, they
use these charismatic megafauna, so I
asked the teacher if the class would want to
adopt a logger as well.”
He moved that message out of Montana
after a frustrating afternoon testifying in
front of a Senate subcommittee.
“These people were very intelligent, but
not about forestry,” Vincent says. “I realized
that we’ve got to talk to people before
they’re 62 years old and pushing a red or
green button that dictates the future health
of my kids’ forests.”
He found an elementary school six blocks
from the Capitol, walked in and asked if
they wanted to adopt a logger.
“At first they thought I said ‘lawyer’,” he
chuckles. “But when I explained it, they
were absolutely enthusiastic.”
Since 1997, some 60,000 students
throughout the United States and Canada
have gone through the program, and
Vincent believes that Garwood and the
other “Providers” are making a real impact.
“We are so disjointed,” he explains.
“We’re three generations from the farm, and
people have no idea where their stuff
comes from. Intelligent people are trying to
make complex decisions, but they don’t
have any interaction with the people who
make their stuff. Provider Pals© gives just
that.”
The teaching goes both ways, Garwood
adds.
“It’s really amazing – one of the most fas-
cinating things I’ve done,” she enthuses.
“And I learn as much from them as they do
from me.” ✦
26 Montana Mining Association — Montana Mining 2010
The Montana Natural History Center (MNHC), an environmental
education non-profit in Missoula, recently added a new mining
trunk to their Nature Discovery Traveling Trunk program. The trunk,
originally designed by Washington Companies intern Meghan Walsh,
was enhanced through a Dennis and Phyllis Washington Foundation
grant. Additional work to enhance the science and geology content
was done by MNHC naturalist Alyssa McLean, former teacher Carrie
Brunger, and Tad Dale of Montana Resources in Butte.
The curriculum guide, specific for fourth through sixth-grade
classrooms, showcases four main topics: rocks, minerals, the history
of mining in Montana, and mining today. Each section begins with a
brief introduction to the topic, and contains five to six lessons that
are designed to teach students geology concepts using examples of
rocks and minerals found in Montana. The curriculum also refer-
ences Montana’s rich mining history to provide relevant and place-
based experiences and lessons to students, and there is an extensive
appendix that provides teachers with important supplemental mate-
rials on mining in Montana.
Although the curriculum is strongly science-based, many of the
lessons are cross-disciplinary and teach important math, language
MNHC adds newmining trunk to its program Helps promote youth appreciation,understanding and stewardship of nature through education
arts, history, literacy, and art concepts. One lesson has studentsresearching a mineral mined in Montana and then creating a news-paper article to share information about it. Another lesson has stu-dents mimicking the formation of metamorphic rocks using crayons,and an introductory lesson to minerals involves students creatingwatercolor resist paintings to determine how minerals reveal them-selves in rocks.
The most interesting elements of the trunk are the mineral androck collections. Because many of the materials required for lessonsmay not be available to teachers, the trunk includes an extensivesupply of minerals and rock samples to keep the lessons hands-onand engaging for students. The trunk also includes all the posters,books, and art supplies needed for lessons, and hence only requiresthe teacher to supply basic materials. It is the hope of the MNHCthat revising the mining trunk will allow teachers to teach geologyand mineral extraction in new and imaginative ways using geologicexamples and history found in their communities. This new educa-tional discovery trunk has been well-received by teachers who haveutilized it in their classes.
Overall, MNHC’s Nature Discovery Traveling Trunk program offers22 different resource trunks for use in classrooms and youth pro-grams across Montana. Topics include biology, botany, geology andother sciences. Each trunk features a theme and includes a wealthof resources not readily available to teachers. In 2009, MNHC sharedtrunks with more than 180 teachers and 2,300 students in Montana.MNHC has been a leader in natural history education in the regionfor the last 19 years, through programs for schools and the commu-nity and by encouraging explorers of all ages to discover more aboutthe natural world. The mission of MNHC is to promote and cultivatethe appreciation, understanding and stewardship of nature througheducation. To this end, they provide more than 20 different pro-grams and projects annually for community members of all ages,with many additional special program options, events and partner-ships throughout the year.
To reserve the mining trunk and learn more about the NatureDiscovery Traveling Trunk program, or other programs of theMontana Natural History Center, please visitwww.MontanaNaturalist.org or call the office at 406-327-0405. ✦
Photos courtesy of Alyssa McLean,Montana Natural History Center.Photos courtesy of Alyssa McLean,Montana Natural History Center.
Please support the advertiserswho help make this publication possible.
digital copy available online at www.montanamining.org 27
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28 Montana Mining Association — Montana Mining 2010
Montana is famous for big dinosaurs,
big geysers and a big sky overhead. It
is also home to the United States’ biggest talc
mine. The Yellowstone mine is a world-class
deposit, and our talc is used in a wide range
of consumer products that help keep the
planet green.
Our operation has been successful for
more than 70 years because we make prod-
ucts that people want and need – but also
because we understand how people expectus to operate. Simply put, they want businessto behave responsibly, whether that’s mak-ing our environmental footprint smaller, orour social and economic contribution bigger.
Social PerformanceWe measure our social performance by
our ability to provide good jobs and a safeworking environment to employees – and wewere proud to be recognized for that per-
formance when we received the Montana
Governor’s Safety Award.
We also measure our social performance
through our contributions to the local com-
munity. Children of all ages love dinosaurs,
and we love getting them interested in sci-
ence – which is why we are proud to support
the Museum of the Rockies. The museum is
home to a world-famous fossil collection and
paleontology program curated by Dr. Jack
Big mine, small footprint
Rio Tinto Minerals’ Montana operations
Brenntag Pacifi c, Inc.7535 Mossmain Lane, Billings, MT 59106
J. Mark RedfernTelephone: (406) 628-3640 | Fax: (406) 628-2072
Cell Phone: (406) 671-4105 | Email: [email protected]
“Chemicals for the Mining Industry”
Rio Tinto Minerals’ Montana operations hold annualTeachers Minerals Education workshops for K-12 teachers to give them a look at earth science in action, and todemonstrate the importance of minerals as the buildingblocks of life and modern living.
Horner, who served as science advisor to theJurassic Park films. Science doesn’t get anycooler than that!
We also support other initiatives aimed atdeveloping the next generation of scientists,including inviting teachers to our operationsto get a practical experience and continuingeducation credits through our TeachersMinerals Education workshops.
Environmental PerformanceOur location – just 60 miles from
Yellowstone National Park – serves as a con-stant reminder that we need to protect theenvironment and minimize our footprint. Wefeel privileged to live and work here; andsince our livelihoods rely on naturalresources, our commitment to responsibleenvironmental stewardship is one the entireworkforce shares.
We work to reduce the water and energywe consume, as well as reduce the green-house gas emissions we produce. We havesuccessfully lowered these emissions by 25percent or more in different parts of ouroperations by making major investments inbetter equipment and technology. We arealso proud of our products’ contribution tothe environment.
The talc we mine here in Montana is usedto make the plastics, catalytic converters,diesel filters and tires that, in turn, make carsand trucks lighter and more fuel-efficient.Our talc is also used to make constructionmaterials like paint and decking longer-last-ing and more environmentally friendly.Finally, almost all the paper you use everyday contains talc – paper manufacturers useit in the paper itself, as well as the processwhere it helps them increase their use ofrecycled paper.
Economic PerformanceWe generate value for our shareholders,
employees and the local economy by differ-
entiating our products and services in the
marketplace, remaining cost-competitive in
our operations and growing our business in
promising markets. Our ore body is unique
in its purity and physical properties, giving us
access to markets in North America, South
America, Asia and Europe.
Global markets, however, mean global
competitors – many of whom have lower
costs and less stringent regulatory frame-
works. To stay in the race, we anticipate and
adapt to what our customers need – includ-
ing consistent product quality and supply
reliability – and invest in research and devel-
opment to develop the next generation of
talc products and processes.
This investment has helped position our
business to take advantage of rising demand
for our products in the years ahead, driven
primarily by population growth, urbaniza-
tion and energy conservation trends.
The U.S. Geological Survey estimates that
the average lifetime supply of minerals is
approximately 1.3 million pounds per per-
son and growing. Population growth is
equally astonishing: it took a century for
world population to grow from one billion to
two billion (between 1830 to 1930), and it
will take about the same amount of time to
grow from two billion to nine billion people
(1930 to 2050).
Two of the major growth drivers for ourproducts have to do with where these peoplewill live, and what they will drive. Accordingto the United Nations, by 2030, 60 percent ofthe world’s population will be living in urbancenters. Urbanization requires more homesand infrastructure to support more people. Asa result, demand for building materials andconsumer goods made with talc – such asarchitectural and industrial paints, compositedecking, joint compound, adhesives, paper,cardboard and body powders – will rise.
The number of cars on the road is expect-ed to triple between 1985 and 2020. Today,the average car contains more than eightpounds of talc. Rio Tinto Minerals recentlyintroduced a new generation of specialty talcgrades that will make car parts and tires evenlighter and more fuel-efficient, increasingthe intensity of its use in the process.
As a world leader in talc supply and sci-ence, Rio Tinto Minerals will continue todevelop new products and technologies tomeet growing world demand. Strong eco-nomic performance will, in turn, give us themeans to continue investing in reducing ourenvironmental footprint and improving oursocial and economic contribution.
To find out more about our big mine andsmall footprint, please visit www.riotin-tominerals.com. ✦
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The talc we mine here in Montana is used to make the plastics, catalytic converters, diesel filters and tires that, in turn, make cars and trucks lighter andmore fuel-efficient. Our talc is also used to make construction materials like paint and decking longer-lasting and more environmentally friendly.
Ten years ago, Stillwater Mining Company (SMC), the Northern
Plains Resource Council, the Stillwater Protective Association and
the Cottonwood Resource Council (referred to as the Councils) estab-
lished an innovative agreement that strives to protect the natural envi-
ronment while encouraging responsible economic development. The
“Good Neighbor Agreement” (GNA) is a legally binding contract that
has become a template for dispute resolution and positive interaction
in the permitting and development of natural resources projects.
Only a decade ago, reaching a win-win agreement between a min-
ing company and local stakeholders was a rarity, and reaching the
same type of agreement with non-governmental organizations (NGOs)
was rarer yet. Environmental gridlock and a “culture of conflict” dom-
inated the natural resources landscape when it came to the permitting
and developing of mineral projects, and litigation was commonplace.
SMC and the Councils were no strangers to this type of gridlock, and
had in the past locked horns on a variety of mine development issues.
After many years of strife and controversy, the Councils approached
SMC about the concept of a good neighbor agreement.
SMC’s history of proactive environmental management and a tradi-
tion of community involvement, philanthropy and best management
practices made such an agreement attractive to Stillwater, especially
given the potential that it held to reduce conflict and litigation while
Happy Birthday GNA!An innovative approach to responsible management and environmental protection celebrates its 10th anniversary
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30 Montana Mining Association — Montana Mining 2010
digital copy available online at www.montanamining.org 31
Stillwater Mining Company,listed on the NYSE (SWC), is theonly U.S. producer of palladiumand platinum and the onlysignificant primary source of
platinum group metals outside ofSouth Africa and Russia. Theseprecious metals are essentials inautomotive catalysts used toconvert otherwise harmful airpollutants into harmless emissions.As well these elements are used injewelry, electronic, dental andmedical applications. Stillwater’smining operations are located insouthern Montana along theCompany controlled 28-mile longJ-M Reef, the world’s highest-gradedeposit of platinum group metals.
536 East Pike Ave, P.O. Box 1330Columbus, MT 59019
406.322.8700 Tel. | 406.322.9985 Faxwww.stillwatermining.com
enhancing environmental and economic stability. As North America’s
largest producer of palladium, used primarily in catalytic converters
and other clean air technologies, SMC had become intrinsically moti-
vated and committed to minimize its environmental footprint and to
look for ways to increase operational sustainability.
Conceptual agreement and formal negotiations were laborious and
lengthy, taking the better part of a year to complete, and implemen-
tation of the multifaceted agreement required an additional 18
months to put into place.
Today, looking back on the 10-year anniversary, the significance
and relevance of the GNA remains intact and SMC remains committed
to the process. The GNA is a force for positive change within the natu-
ral resource industry, and further demonstrates a willingness on the
part of the participants to break with the failed policies and practices
of the past. The legally binding agreement strives to preserve the
interests of all parties through interaction, discussion and proactive
mitigation within the context of a structured plan.
The fact that the GNA is legally binding dissuades many organiza-
tions from entering into such an agreement; however, it is specifically
this element of the GNA that provides the structure and incentive nec-
essary to keep all parties at the table until a resolution has been
reached. Additionally, interaction and ongoing discussion within the
implementation phase of the project helps develop an openness and
transparency that leads to a better understanding and respect for the
issues and concerns of both parties. This benefit is a natural side effect
of the process, and ultimately builds credibility and trust for the struc-
ture and process of the agreement. The GNA also provides the Councils
a voice in the decision-making process, and an opportunity to review
and comment on plans, procedures and proposed mitigation upfront
in the planning stage, where issues can be mitigated and addressed in
a positive proactive atmosphere. This process further minimizes the
potential for conflicts and legal challenges that can slow or stall
important development activities, and provides a level of confidence
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Whitehall, MT 59759-9647
Phone: 406.287.3229
Chris HyleTechnical / Sales Representative
Cell: 406.490.3059
32 Montana Mining Association — Montana Mining 2010
and predictability in mine development and permitting that
is unique to the GNA.
The practical implementation and ensuing benefits of the
Good Neighbor Agreement have fully convinced Bruce Gilbert,
SMC’s director of environmental and governmental affairs,
that the GNA remains as important as ever as an example of
positive social change within the natural resources arena.
“At first, I was very skeptical about our ability to negotiate
and implement a lasting Agreement, but the process has with-
stood the test of time and I remain even more convinced that
it’s the right way to do business,” he says. “Trying to settle dis-
putes in court or with administrative appeals is a culture of
conflict that is socially irresponsible from the standpoint that
it generates no understanding, develops no common ground,
and provides no incentive for ongoing discussion and positive
interaction.”
This ground-breaking accord lends credence to the adage
that you can ‘have your cake and eat it, too.’ Crafting and
implementing this type of agreement isn’t easy, quick or with-
out its obstacles; however, it is, in SMC’s view, the right way to
vet our differences while seeking to enhance understanding
and constructively resolve issues.
So SMC says, “Happy Birthday, GNA!” May you continue to
thrive and prosper to the benefit of all who believe that
responsible mining, environmental protection and important
economic development can co-exist. ✦
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In 2009, for the second year in a row, Barrick Golden Sunlight Mine
(BGSM) realized the greatest level of success and excellence any
mining operation can expect: no Lost Time Incidents. Early in 2010,
BGSM achieved an industry milestone of distinction: One Million
Man-Hours worked without a Lost Time Incident. Further, BGSM
boasts one of the lowest Mine Safety and Health Administration
(MSHA) citation rates in the industry.
These accomplishments are no accident. They can only be
achieved by a dedicated, skilled and motivated workforce with a
mind-set that worker safety is paramount in any task undertaken
and that Courageous Leadership – employees looking out for other
employees and contractors – is the linchpin of BGSM’s proven safety
culture.
On the production front, $1,100 per ounce gold prices make this
an exciting time to be operating a gold mine. The stripping of BGSM’s
5B Optimized layback is ten percent ahead of schedule. In 2009,
nearly 27 million tons of material was moved from the open pit.
Three new Caterpillar 785 150-ton capacity haul trucks were also
purchased so that BGSM could reach the pay zone eight months
sooner than originally planned.
Additionally, BGSM is evaluating the feasibility of a myriad of proj-
ects, both on-site and off-site, that could enable them to restart their
milling operations as early as January 2011. On-site, BGSM is looking
at a shallow resource adjacent to the existing open pit; this resource
could supply as much as 2.5 million tons of ore to the mill.
However, it is the off-site projects that are the most exciting, and
which are a demonstration of the renewal of interest in mining in
Montana. There are numerous smaller scale underground gold min-
ing ventures that are quite profitable, if not burdened by the capital
outlay of constructing their own ore processing facilities. Being the
digital copy available online at www.montanamining.org 33
“WORKING TOGETHER WITH OUR LOCAL “ “ “ “ “ “ “ “ “ “ “ “ “ “
34 Montana Mining Association — Montana Mining 2010
only active large-scale gold ore processing
facility remaining in Montana, BGSM is
uniquely suited for custom milling proj-
ects. BGSM has proactively engaged sever-
al projects within the state to explore the
feasibility of toll milling their produced
ore. The company views toll milling not
only as a means to supplement mill feed,
but also as a way to stimulate entrepre-
neurial development, enhance local
economies, provide value-added employ-
ment within the state, and produce tax
revenue for local and state governments.
Additionally, BGSM has participated in
abandoned mine reclamation efforts. At
current gold prices, many abandoned
mine sites contain gold values exceeding PHO
TO C
RED
IT:
KAT
HY
GAL
LAG
HER
.
reclamation costs. BGSM has processedmaterials delivered from several local aban-doned mine sites and produced revenues inexcess of the transportation, processing andsite remediation costs. An excellent exam-ple of this was the delivery for processing ofapproximately 15,000 tons of historic tailingfrom the Rochester Basin near TwinBridges; after processing the material atBGSM, the claim holder, his agent, and thetrucking company made profits and the U.S.Department of Interior - Bureau of LandManagement saved tens of thousands ofdollars in reclamation costs. Moreover,residual tailings from material processed atBGSM are stored in a modern, synthetically-lined, permitted and fully bonded tailingsimpoundment.
BGSM currently has an ore purchaseagreement with the Montana Departmentof Environmental Quality (MDEQ) to processup to 100,000 tons of McLaren tailings fromCooke City. The tailings, located on theboundary of Yellowstone National Park andthe Absaroka-Beartooth Wilderness, areexpected to generate revenue, perhaps evenenough revenue for MDEQ to off-set taxpay-
er funding for the remainder of the site
reclamation project.
Barrick Gold is optimistic about the
future of the gold market and its ability to
continue to produce gold in Montana. A
demonstration of this optimism is a million
dollar exploration budget for Golden
Sunlight. This year, BGSM intends to con-
duct exploration drilling on geophysical tar-
gets identified north and northeast of the
active mine area. The program amounts to
approximately 15,000 feet of drilling.
BGSM has a long and distinguished repu-
tation for innovative and ambitious concur-
rent reclamation programs. The past sever-
al years were no exception; nearly 220 acres
have recently been completely reclaimed,
with the majority of those acres in a natural
regrade configuration. Hundreds more
acres are in various stages of reclamation.
BGSM’s goal is to have all of the west-side
dumps that were redisturbed by the 5B
Optimized layback completely reclaimed by
the end of 2012. ✦
PHO
TO CRED
IT: MARTY JO
HN
SON
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digital copy available online at www.montanamining.org 35
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Manufacturing efficiency ideas born in the U.S. and perfected in
Japan are now making an impact on mining in small-town
Montana.
Barretts Minerals Inc., a talc mining operation in Dillon with 74
employees, is in the midst of a transition to “lean manufacturing,” an
overarching methodology that seeks to eliminate waste and increase
efficiency. Perhaps best known as the system that led to Toyota’s dom-
inance in the automotive industry, lean manufacturing is already ben-
efiting Barretts, according to plant manager Jim Daley.
“I absolutely recommend it,” Daley says of the system that CEO Joe
Muscari has introduced to Minerals Technologies Inc., including the
Barretts operation. “The principles are all beneficial and valuable.”
The principles—5S, Standard Work, Daily Management Control, and
TPM – sound at first like business speak alphabet soup. However,
Daley insists they are not difficult to understand, adding they were
largely the brainchild of W. Edwards Deming, an American statistics
professor who went to Japan after World War II to assist with the recon-
struction there.
“General (Douglas) MacArthur sent Deming to Japan, and Deming
proposed some of the same efficiency and quality control ideas he
had offered to U.S. manufacturers,” he says. “The U.S. manufacturers,
having just won the war, were not interested. But when Deming met
with the Toyota Motor Corp., they decided to adopt his ideas, eventu-
ally perfecting them into the Toyota Production System.”
The “lean” advantageA Dillon talc operation’s conversion to “lean manufacturing” is already bearing fruit
By Nicole Ritter
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36 Montana Mining Association — Montana Mining 2010
PHOTO CREDIT: DEBRA PITASSY.
digital copy available online at www.montanamining.org 37
The first principle, 5S, is the foundation of lean management. Its
name derives from five Japanese words that all start with the letter
“S” when translated and transliterated into English – Sort, Set in
Order, Shine, Standardize, and Sustain. All five words have to do with
how the workplace is organized and maintained.
“Sort means that you go through all the things that you keep
around your workstation and figure out how often they are used,”
Daley explains. “Set in Order involves arranging those things in the
way that is the most efficient. The example most people use is that
you keep your pen at your desk, within two or three inches of where
you write. You use the stapler less, so it might go a foot away. A hole
punch that you use once every other day can go in a drawer.”
While the desk items make a good example, Daley notes the prin-
ciples can just as easily apply to other kinds of work environments
and tools, from crescent wrenches to cardboard boxes.
Shine is shorthand for keeping the workplace not only neat but
also very clean on a daily basis. According to Daley, this one has
been especially helpful at Barretts.
“We’ve seen a decrease in MHSA (Mine Safety and Health
Administration) citations because our work area is cleaner and safer,
with fewer tripping hazards,” he says.
Standardize holds that work practices should be consistent
throughout the organization. Daley explains that this allows multiple
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38 Montana Mining Association — Montana Mining 2010
people to work efficiently in the same job. Sustain is simply making
the previous four “S” practices so ingrained that people don’t even
need to think about it, he adds.
After the 5S principles comes Standard Work, which is used to
improve efficiency in a person’s entire job, eliminating wasteful steps.
Daily Management Control sets targets for tasks within a company,
allowing workers to shoot for a reasonable pace, improving when they
fall behind or duplicating the efforts of those who improve on the tar-
gets. It also prioritizes any problems that may arise by identifying
those that come up most often, Daley explains.
“Both Standard Work and Daily Management Control work by elim-
inating problems, which increases productivity,” he says.
The final principle, Total Productive Maintenance or TPM, holds that
workers can and should be responsible for the daily maintenance of
equipment, something made easier by the clean and orderly work-
place.
“This helps the operators develop ownership of the equipment and
allows problems to be fixed while they are still small rather than wait-
ing until the machine breaks,” Daley says.
When employed together, the lean manufacturing principles make
companies more efficient, hold lower inventories and respond more
quickly to customer needs. At Barretts, that has meant an ability to
provide customers with what they want more quickly.
“If we produce to order rather than hold inventory, a customer can
change specifications and we can respond on their next order. This
also reduces our carrying cost of the inventory,” Daley says.
While still in the early phases of adoption – Daley estimates they
are between 15 and 25 percent through the implementation –
Barretts is already seeing benefits.
“By adopting these principles, we are increasing our efficiencies,
decreasing our number of in-shop violations, increasing our connec-
tion to the customer and listening to the customer more,” Daley says.
“The outcome is that we maintain less inventory, which helps the bot-
tom line and gives more money for making investments and doing
capital improvements.”
Daley contends that making changes during these tough times has
been difficult, but says it has not only helped Barretts weather the
storm but will also make Barretts a stronger company in the future.
“The journey that we’re on is very promising,” he concludes.
For More Information: To learn more about lean manufacturing and
how it can be successfully adapted to suit businesses in Montana,
manufacturers can turn to the Montana Manufacturing Extension
Center (MMEC). MMEC is a statewide manufacturing outreach and
assistance center staffed by full-time professionals with degrees in engi-
neering and extensive experience in manufacturing and business in a
variety of industries. Field staff will visit businesses on-site, assess oper-
ations and provide recommendations for making improvements.
According to the MMEC website (www.mtmanufacturingcenter.com),
the grant-funded organization has provided assistance to 600 clients
across Montana in 48 of Montana’s 56 counties. ✦
Where would you be if you were 1,000 degrees Fahrenheit,underneath 14,000 pounds per square inch of pressure, and a
mile below the earth’s surface? You would have been at the MontanaResources’ office location during the time of mineralization of theContinental ore deposit.
The GeologyThe Butte Mining District had its origins some 75 million years ago
when a great heat source of molten rock squeezed its way to near sur-face, an event that probably happened over the course of several mil-lions of years. This area in southwestern Montana is known as theBoulder Batholith, and the Butte Mining District is 25 square miles inthe southern portion of this large mass of igneous rock. The end resultof this geologic occurrence is truly a world-class ore deposit known asthe “Richest Hill on Earth.” Montana, and the United States by exten-sion, is fortunate to have this mineral resource located in Butte, aplace that was named after a prominent outcrop on the western edgeof the district.
The amount of copper removed from the Butte Mining Districtcould pave a four-lane highway four inches thick extending from Butteto a point 30 miles south of Salt Lake City – the equivalent to23,000,000,000 (billion) pounds of copper. Even though this is a stag-gering amount of copper, there is “still plenty where that came from.”Montana Resources (MR) still has at least 25 years of recoverable orereserves ahead.
Every day, over 50,000 tons of ore are hauled, crushed and milled,thus providing copper concentrates – “humankind’s oldest metal” – aswell as molybdenum concentrates that are some of the highest qual-ity in the world. These concentrates are then shipped to locations in
the United States and beyond for use in products that sustain our cur-rent way of life.
The PeopleIt doesn’t take much digging around Montana Resources to find
that even in a shifting economy, they have – due to a great businessmodel – continued a lean and efficient operation, while maintainingproduction levels. “Our People Are Our Greatest Assets” – a motto thatis not just PR; it’s a rule to live by. As VP of operations Steve Walshemphasizes to the workforce, “MR has a core value of being pro-employee.” This means that there is a great amount of communica-tion with employees, who are encouraged to freely express themselvesand who share in the net profits of the mine.
Employees realize they can’t control the price of metals, but theycan work safely and focus on the job at hand. “There have been no lay-offs during this economic downturn – in fact, due to retirees, we havehad to hire replacements because we run this mine with no extra peo-ple,” states Tad Dale, VP of human resources. Seventy-seven percentof those employed are Butte residents, while another 23 percentreside in Anaconda, Philipsburg, Deer Lodge, Dillon, Whitehall, ThreeForks, Basin, Boulder and Twin Bridges, making a workforce of friends,relatives, and neighbors.
The Safety StandardMontana Resources sets a standard for safety in and around its
operations visually, with signs to remind employees that “safety is noaccident” as seen on the front page of the employee newsletter. Theoperation also has its employees fill out Field Level Risk Assessments(FLRA) to determine if any potential hazards exist in the job they are
Montana Resources:A mining tradition,a mining family
Continental Mine, Montana Resources.
By Tad Dale
digital copy available online at www.montanamining.org 39
40 Montana Mining Association — Montana Mining 2010
about to perform. This tool gets employeesthinking about possible dangers aroundthem by having them identify the steps toperform the task at hand, the potential haz-ards of the task and ultimately, the ways toavoid those hazards.
“We want employees to have the samethought process in every job they do, inorder to identify risks and avoid them,” sayssafety manager Mike McGivern.
“Every one of these completed, is an acci-dent prevented,” states president RolinErickson to his employees during his dailyvisits around the operation. One thing is for
certain: property damage, minor injury, totalinjury frequency, and lost time rates have allhad steady declines since the re-opening ofthe mine in 2003. Montana Resources wasalso recently awarded The Joseph A. HolmesSafety Association Certificate of Honor forachieving an entire year without a Lost TimeInjury.
Learning from the success of their peers atBarrick’s Golden Sunlight Mine, MontanaResources has also adopted a “CourageousLeadership” program to encourage employ-ees to make safety a core value that is a partof their everyday lives. In 2008, all employ-
ees underwent eight hours of leadershiptraining. The recurring course has beenoffered to all new employees to instill a cul-ture of safety awareness.
The Workers’Longevity and LoyaltyMR employees are loyal. They are loyal to
Montana Resources and loyal to mining inButte. One hundred and sixteen currentemployees, out of a total of 347, haveworked for MR for more than 10 years.Additionally, some of MR’s senior employ-ees have worked at this location since the
Three generations of the Galle family (left to right): Chad, Tyke and Cliff.
Billings 888-636-3581 877-550-0668 866-910-5253
PHOTO CREDIT: DEBRA PITASSY.
Froth flotation in the concentrator.
late 1950s, having worked for the Anaconda
Company and Atlantic Richfield before
working at Montana Resources. This loyalty
is greatly appreciated.
Many families have two family members
working at the mine; brothers, sisters, hus-
band and wife, father and son, and uncle
and nephew. But one family has three gen-
erations of family working at the mine; this
is the Galle family. Cliff Galle started with the
Anaconda Co. in 1959 at the smelter in
Anaconda. He transferred to the Berkeley Pit
operation in 1963 as a boilermaker, and
worked there until the Berkeley operation
was shut down in 1982. Galle then returned
to Anaconda with Cleveland Wrecking Co. to
dismantle the Anaconda smelter, and
worked in the area for several years. Galle
started with Montana Resources in 1986, and
has been there since then (except during the
shutdown years of 2000 to 2003). Galle will
be 69 years old this year, and has decided to
retire as continental garage supervisor at the
end of 2010 after 50 years of working.
“They paid me well for everything I did,”
Galle says. “I didn’t have to stay here; I chose
to stay.” His son, Tyke (Cliff the Third), started
work in 1984, at the age of 17, for a subcon-
tractor of Cleveland Wrecking when they
were tearing down the smelter. When
Montana Resources started in 1986, he came
on board. “My dad taught me everything I
know, and he is my best friend,” states Tyke,
Montana Resources’ shovel and drill mainte-
nance supervisor. Tyke’s wife Cheri works as a
buyer in the warehouse and Tyke’s son,
Chad, just started full-time (he previously
worked summers) as a laborer/truck driver
with MR. He is now 20 years old and will con-
tinue the family tradition of mining in Butte.
Community Involvement
and Plans for the Future
An extensive two-year drilling plan is cur-
rently underway to determine the life of the
mine on which so many in the community
depend. “Mining is, and always has been,
an important industry in Butte-Silver Bow,”
says Jeff Amerman, finance and budget
director for Butte-Silver Bow. “It [mining]
built our city and was instrumental in the
development of our great state. Mining
remains a cornerstone in Butte-Silver Bow,”
Amerman says.
And with figures like $26.7 million dollars
in 2009 being pumped into the Butte Silver
Bow area in purchase orders, mineral taxes
and property taxes, and another $1.3 mil-
lion in payroll per month – dollars that “can
be turned around three times,” according to
Butte Local Development Corp.’s Jim
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Occupational HealthWorking to keep you healthy.
For more information, call (406) 247-6200.
digital copy available online at www.montanamining.org 41
PHOTO CREDIT: DEBRA PITASSY.
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Butte, MT DivisionJBR Environmental Consultants, Inc.
Ed Handl I Division ManagerDave Lambrecht I Butte Project Manager
[p] 406.723.7980
How can we help you?
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240-ton capacity haul trucks waiting to dump their ore. Springtime in the Rockies: Montana Resources’ reclaimed area.
Smitham – it’s no wonder why the mine can be referred to as cor-
nerstone of the community.
Community development continues through multiple charitable
acts. Through regular contributions to the Dennis and Phyllis
Washington Foundation founded by the company’s owner, Montana
Resources is able to pool with other affiliates to multiply its charita-
ble impact in many areas of giving.
In 2009, donations of time and over $9,000 from employees, as
well as an additional $8,500 from the Dennis and Phyllis Washington
Foundation, went into making 368 Christmas food baskets – the
most ever assembled in the 16 year tradition. The “baskets” are large
plastic totes filled with turkey, potatoes, milk, eggs, and other essen-
tial items that provide a fulfilling holiday breakfast and dinner. The
totes are then delivered to those who are less fortunate in Butte and
the surrounding communities.
“I am 72 years old, and have been fighting cancer for five years
already. Now I will have a Merry Christmas,” wrote one gentleman
who received one of the baskets in a letter addressed to the main
office. “I have no relations in Butte, but now I know I have friends in
Butte,” he stated.
“We continually forget about the significance of mining of the past
and presently, Montana Resources. Thanks to copper mining of the past,
all of us are able to enjoy the luxuries of electricity, automobiles and
telephones,” says executive director of the Butte/Silver Bow Chamber of
Commerce Marko Lucich. “Montana Resources is a major part of our
community, and we are proud that they call Butte their home.” ✦
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42 Montana Mining Association — Montana Mining 2010
digital copy available online at www.montanamining.org 43
The Missoula Chapter of the Montana Mining Association start-ed up its fall program with an October talk by Ted Antonioli on
the Philipsburg Mining District. They’ve since heard from TomGignoux on gold in the Garnet Range; Robin McCulloch of theMontana Bureau of Mines and Geology on 2009 mining and explo-ration in Montana; Mary Williams of the USFS on the history of plac-er mining in the Cedar and Ninemile districts; Zane Smith ofTimberline Resources on the Highlands Gold Project; and Bruce Coxon the Keno Hill District in the Yukon.
They’ve also started a Facebook group to communicate withmembers. They are posting pictures of outings and mines as well asinformation about Montana mining projects. You can find theirgroup by searching for “Montana Mining” on Facebook, and can jointhe group by sending a request via Facebook.
For more information on the Missoula Chapter of the MMA, pleasecontact Ted Antonioli via email at: [email protected].
The Ravalli County Chapter of the Montana Mining Associationmeets the third Wednesday of each month (April through
October) in Victor, Montana. Chapter members can access outingdates and location maps via the MMA website at www.mon-tanamining.org.
Scheduled outing dates for 2010 are asfollows:
May 15th and 16th at Trout CreekJune 12th and 13th at Trout CreekJuly 10th and 11th at Nevada CreekAugust 14th and 15th at Nevada Creek
For more information on the RavalliChapter of the MMA, contact CliffSimonsen at 406-642-3293.
Conveyor Belt CleaningConveyor Belt Protection
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Chapter Report
44 Montana Mining Association — Montana Mining 2010
Some insurance companies claim to
have their feet planted firmly on the
ground. We know what it is like to have
your feet hundreds of feet below ground.
And we’re with you every step of the way,
whether it is deep in an underground
mine or working in an above-ground
quarry.
We’ve been writing insurance in
Montana for a little over a year, but we’ve
specialized in providing insurance protec-
tion to the mining industry since 1989. As
American Mining has grown and expanded
geographically, it has become the pre-
ferred provider of insurance to many with-
in the mining and aggregates industries.
Offering primarily workers’ compensation,
American Mining also provides general lia-
bility, commercial automobile and
umbrella coverage.
In 2007, American Mining became a part
of the W. R. Berkley Corporation (NYSE:
WRB). As a part of the W. R. Berkley Cor -
pora tion, American Mining Insurance
Company has greater financial strength, an
A. M. Best rating of A+ (Superior), and the
ability to expand into additional states.
That expansion includes significant growth
in the Western United States, including
Montana.
Though American Mining is a recent
addition to the W. R. Berkley Corporation,
the leadership remains the same and con-
tinues to show a long-term commitment to
the company and to the mining industry.
Chandler F. Cox, Jr., American Mining’s
president and chief executive officer, and
Dominick Giovannelli, its executive vice
president and chief financial officer, each
have over 25 years of experience in the
insurance industry and co-founded
American Mining in 1989.
American Mining has substantially
added to our senior management in the
past 12 months, significantly increasing
our already extensive experience in both
the insurance and mining industries.
Our expertise continues to extend
throughout the company. Many employees
have been with American Mining since
American Mining Insurance Company:“Insurance from peoplewho know mining”
digital copy available online at www.montanamining.org 45
“insurance from people who know mining”
For more information, contact your local Independent Insurance Agent
or call 1.800.448.5621, x 249.
Serving
the Mining Industry
for over 20 years
Does Your Current Insurance Company
Understand YOUR Needs?
WE DO! WWW.AMERICANMINING.COM
1989. Others have been in the insurance
industry for decades. Still others have
experience with both mining and insur-
ance, having worked in the mining indus-
try before joining American Mining. Many
employees have taken mine tours to bet-
ter understand the complex world of
both surface and underground mining.
American Mining Insurance Company
distributes insurance products through
a network of local independent insurance
agents and offers insurance coverage
for the following types of mines: sand
and gravel, coal, copper, rock quarries,
gold and silver, clay, shale, and limestone.
Please visit www.AmericanMining.com,
talk to your local insurance agent, or
call Bryant Brown, vice president of
marketing, at 800.448.5621, ext. 249
to learn more. ✦
46 Montana Mining Association — Montana Mining 2010
The Holcim (US) Inc. Trident Plant in Three Forks, MT prides itselfnot only on its quality cement products, but also on its safety per-
formance. On March 27, 2010 they celebrated 1,000 days without aLost Time Accident. This is an excellent record, especially for the min-ing industry.
The Trident Plant has a variety of safety programs to ensureemployees return home to their family and friends safely each andevery day. Programs include: all-employee weekly housekeeping;weekly departmental safety meetings; monthly safety committeemeetings; annual employee safety improvement projects; job safetyanalyses and risk assessments; safety observation systems; fatality pre-vention elements; near miss reporting; incident investigation andanalysis; continuous safety training (approximately 50 hours annual-ly); and an annual incentive program reward.
The programs focus on five lifesaving cardinal rules of Holcim Inc.:
• Do not override or interfere with any safety provision, nor allow
anyone else to override or interfere with them.
• Personal protective equipment rules, applicable to a given task,
must be adhered to at all times.
• Isolation and lockout procedures must always be followed.
Hard work and diligence paysoff for Holcim’s Trident PlantWins 2009 MontanaGovernor’s Safety Awardamong other awards
401 North 31st Street, Suite 1500, Billings, MT 59101(406) 252-2166
www.hollandhart.com
� Acquisition, disposition and financing of mineral projects worldwide� Financial and regulatory due diligence� Development of mining infrastructure� State and federal legislation for mining� Mineral patenting and permits� Title opinions, quiet title actions and title curative work� Access, surface/mineral owner and royalty dispute resolution� Environmental, public lands and NEPA issues
Larry W. [email protected]
Donald W. [email protected]
Charles W. [email protected]
Holland & Hart has provided comprehensive representation for the mining industry for 60 years.
digital copy available online at www.montanamining.org 47
TETRA TECH
Supporting the
Montana Mining Industry
since 1959
Environmental Engineering Consulting
Billings
406.248.9161
Bozeman
406.582.8780
Helena
406.443.5210
Missoula
406.543.3045
Ernest K. Lehmann & Associatesof Montana, Inc.Mineral explorationDeposit development
Consulting to the mineral industry
Contact Ernest Lehmann at:
Fickler Oil Company, Inc.Dave CeriseLubricants Sales Manager 1480 Continental Dr.
Butte, MT 59701Phone: (406) 782 0616
Fax: (406) 782 0260Cell: (406) 490 3891
• No person may work if under the influence of alcohol or drugs.• All injuries and incidents must be reported.
Of the many safety programs employed at Trident, three are specif-ically noteworthy for their innovation. The first program of interest isthe safety observation system (SOS). SOS is a behavior-based programby which employees observe others performing tasks and note bothopportunities for improvement as well as safe work practices. Theobserver provides feedback to the employee conducting the task, aswell as submitting the observation for review to the safety managerand safety committee. Approximately 40 SOS exercises are conductedeach month.
Another remarkable program is the annual employee safetyimprovement projects. Annually, each employee must select a safetyimprovement project, and each must take a minimum of two hoursand focus on improving plant safety. The projects are enthusiastically
embraced because they are also part of each employee’s annual per-formance evaluation. Projects range from taking additional safetytrainings (such as EMT or First Responder certifications) to fabricatingnew guarding for equipment that enhances process safety.
Trident also utilizes a weekly housekeeping program. All employ-ees, both salaried and hourly, are required to spend 90 minutes eachThursday cleaning assigned areas throughout the plant. This weeklyprogram promotes personal accountability, increases efficiency, andreduces hazards in the work environment.
The hard work and diligence of the Trident Plant has paid off. Inaddition to the 1,000 days without a Lost Time Accident, Trident hasreceived multiple safety awards. These awards include: PortlandCement Association’s Safety Excellence Award, Department of Labor’sSentinels of Safety Award, and the 2009 Montana Governor’s SafetyAward. ✦
As the third-largest producer of lime in North America, Graymontoperates facilities on sites that have been in operation for up to
200 years. A family-owned company in the lime business for over 50years, subsidiary companies in the United States include operations inMontana, Ohio, Pennsylvania, Washington, Oregon, Utah and Nevada,as well as service markets in a much-wider geographic area. In Canada,Graymont subsidiaries have operations across the country, from NewBrunswick to British Columbia. In addition to Graymont’s lime inter-ests, Graymont Materials (located in upstate New York as well as theprovince of Quebec, Canada) provides construction stone, sand andgravel, asphalt products and ready-mix concrete.
The focus of this company, whose management team and employ-ees are dedicated to meeting or exceeding customer needs, is the pro-duction of high calcium lime, dolomitic lime, value-added lime-basedproducts (such as specialty hydrates and precipitated calcium carbon-ates), and the aggregate and pulverized stone business.
Central to the company’s corporate philosophy is a long-termapproach to business built upon a solid commitment to sustainablegrowth. This growth is through the active participation of a responsibleenvironmental workplace and responsible operating practices. At thesame time, Graymont is proud of its past accomplishments, whichdemonstrate its commitment to responsible conduct of the business.
That corporate philosophy is well-served in Montana at the IndianCreek plant, located just north of the Limestone Hills in Townsend. TheIndian Creek plant is managed by Jason Ellis. Ellis came to Indian Creekin November of 2009 from Graymont’s corporate office in Salt LakeCity, Utah, where he managed environmental health and safety for the
Graymont committed to working with government andcommunity members to provideresources in a sustainable andenvironmentally safe manner
Building & OperatingAmerica’s
Underground Mines
For more informationvisit our website at
www.undergroundmining.comor call
208-338-8880 ext. 2
48 Montana Mining Association — Montana Mining 2010
GRAYMONT PHOTOS COURTESY OF DEBRA PITASSY.
digital copy available online at www.montanamining.org 49
company’s Western U.S. operations. Prior to starting with Graymont, Ellis
worked as an environmental health and safety professional in San Diego,
California (Vertex Pharmaceuticals) and Ogden Utah (Weber State University).
He is a graduate of Utah State University where he studied industrial hygiene,
chemistry and the Russian language.
The management team at Indian Creek also includes maintenance super-
visor John Hinther. Hinther, a veteran employee of Graymont for 20 years,
started with Graymont after working for Dick Irvin Trucking and owning and
operating a portable rock crushing company. Transportation supervisor Carla
Hilton and plant engineer Allen Holubec round off the team that drives pro-
duction at Indian Creek, the largest taxpayer in Broadwater County.
Production of lime at the plant engages two coal/coke-fired preheater
kilns. The plant is equipped with lime-sizing and storage facilities, allowing
Graymont to produce and store a full range of bulk quicklime products, as
well as a hydrator capable of producing 300 tons of hydrated lime per day.
This plant supplies customers in Montana, as well as clients in several other
western states.
Located on the south side of Indian Creek is the quarry. High purity lime-
stone from the quarry is trucked to the crushing plant, where it is sized and
conveyed to a large storage pile adjacent to the preheater kilns. Bulk truck
loading facilities are provided at the plant site, and rail loading is available
from a 1,500 ton terminal located on the Montana Rail Link line in Townsend.
The company is among the leaders in the industry in adding new, efficient
plants and equipment and operates some of the most modern facilities on
the continent. Since 1989, Graymont has added new, state-of-the-art pro-
cessing, increasing capacity by close to two million tons, and will continue to
Serving theMining Industry forover 50 Years in theUSA & Canada.
Graymont Western US, Inc.4 1/2 Miles West of TownsendP.O. Box 550Townsend, MT 59644Phone: (406) 266-5221Fax: (406) 266-3079www.graymont.com
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add new capacity to meet market demand. Many important lime markets are servicedby Graymont:• Agriculture | Asphalt | Building
Construction | Lime Application | Mortar| Plastering | Restoration | Whitewash |Environmental | Remediation | Flue GasDesulphurization | Food | Glass |Mining | Precipitated Calcium Carbonate(PCC) | Pulp and Paper | Soda Ash | SoilStabilization | Steel | Sugar | WaterTreatmentIn addition to providing high-quality
products for its customers, Graymont pro-vides engineering and technical support tofacilitate customer applications in the fol-lowing areas: • Product Application: With technical and
sales personnel skilled in solving cus-tomer problems, employees work withcustomers and recommend the properproducts to meet their specific needs.This may include support on FGD proj-ects, steel blends of high calcium anddolomitic products, the usage of limein asphalt, or how to apply buildingproducts.
• Transportation: Having extensive expert-ise in transportation of products by truck,rail, or water, the company’s emphasis ison building reliable, cost efficient supplynetworks. An example of this commit-ment is the operation of a fleet of PCCdelivery barges to support customers inthe paper industry in the Northwest.
• Material Handling: To ensure efficientand economical operations, Graymontreviews and inspects customer material-handling facilities and design criteria. Ifrequested, Graymont is prepared to own
MDMS U P P L Y
A Montana Company
Res: (406) 227-5674Cell: [email protected]
Dale PersonSales Representative
MDM Supply Company2609 Bozeman AvenueHelena, MT 59601Phone: (406) 443-4012Fax: (406) 442-45361-800-697-0005
“Wholesale Distributors of Plumbing, Heating, Pipe, Valves and Fittings”
50 Montana Mining Association — Montana Mining 2010
MONTANA
SEALS AND
PACKING
CAD, Inc.
The Seal Shack®
CAD, Inc.
MECHANICAL SEALREPAIR AND SERVICE
6837-A Commercial Ave (406) 245-3757
Billings, MT 59101 Cell: (406) 855-3369
1-800-456-7325 Fax: (406) 245-2948
digital copy available online at www.montanamining.org 51
and operate such facilities at the cus-tomer’s site, including storage facilities.Graymont also provides portable slak-ers, silos, and unloading and materialhandling equipment for short-termprojects. Several customers lease thisequipment until their project has beencompleted.
• Research and Development: Graymontcan work with customers in R&D effortsfor new product and process applica-tions, and has equipment available tofacilitate testing of new applications ata customer’s site.Graymont’s vision for the future involves
supplying the ever-increasing need forquick lime to clean up and protect ourenvironment; eighty percent of the com-pany’s product is used for environmentalpurposes.
Mining is essential in every aspect ofour lives, and Graymont is committed toworking with members of our governmentand community to help provide theseresources in a sustainable and environ-mentally safe manner. ✦
Maintenance supervisor John Hinther.
It goes without saying in this day and agethat modern mining operations pay close
attention to minimizing impact on the envi-ronment. Times have changed and so hasmining. If you don’t care about the environ-ment, you will not have a successful opera-
tion. Unfounded claims that the 1872 mininglaw is an “antique in need of repair” aremerely misdirected attempts at putting anend to mining. The fact is, there are manyexisting laws and acts that adequately coverenvironmental protection. Compliance withthe Clean Air Act, Clean Water Act, MontanaEnvironmental Policy Act (MEPA), NationalEnvironmental Policy Act (NEPA), theEndangered Species Act and the Hard RockMining Impact Act is required, along withoversight from the Montana Department ofEnvironmental Quality (DEQ), the U.S. ForestService (USFS), the Bureau of LandManagement, the U.S. Army Corps ofEngineers, and the Environmental Protection
Agency (EPA). All mining companies mustcomply with these acts and regulations inorder to have a valid operating permit.
Air quality, water quality, wildlife protec-tion, surface protection and social impactsare all covered under various existing lawsand acts. The following is a brief descriptionof various ways Revett Minerals followsthrough on our commitments to environ-mental protection to not only comply withthese laws and acts, but also to hopefullyexceed the minimum requirements.
An example of Revett’s efforts to protectair quality is shown in the photo above.During the months from mid-April to as lateas November, use of water sprays and plant-ing of barley are two methods used to con-trol dust at the tailing facility. Other methodsinclude placing a cover of topsoil and seed-ing areas, such as the tailing embankmentslope, along with applying dust suppressanton roads. During the spring of last year, lackof snow coupled with an unusually highwind event resulted in unacceptable dustlevels during early seeding operations. As aresult, we modified the timing of seeding,added additional spray capacity using an irri-
Revett’s commitment to environmental protection
By Carson Rife, VP Operations
52 Montana Mining Association — Montana Mining 2010
For more information, call 866-921-2294
Montana has made a lot of progress over the last 100Montana has made a lot of progress over the last 100years. Mining has progressed, too.
In the old days, miners focused solely on recoveringvaluable ore and metals. In fact, the state motto is “Goldand Silver” and Montana is known as “The TreasureState.” But this historical single-minded approach is noate.” But this historical single-minded approach is nolonger acceptable to society or modern mining companies.longer acceptable to society or modern mining companies.
Today, the old ways are gone, replaced by moderntechnology, science, and environmental protection.
Modern mining projects are closely monitored byregulators and comply with thousands of pages of federal,state, and local regulations to ensure that the environmentstate, and local regulations to ensure that the environmentis protected. In addition, mining geologists and engineersutilize advances in science and technology that wereunknown in the old days.
Key among those improvements is our ability to protectwater quality.
Today’s mining projects are designed with multiple layersof environmental protections that must be approvedbefore a single spade of dirt is turned.
For example, all of the water at The Rock Creek Project– whether natural ground water, processing water, orrainwater that has fallen on the tailing facility collectedthrough an under drain system through an under drain system – will go through a dualwill go through a dualwater treatment process to ensure that it exceedsdrinking water standards.
In addition, addition, we will protect water quality quality by ensuringensuringthat the tailing created by processing the quartzite oreprocessing the quartzite ore– actually just beach sand – remains within thedesignated storage area to be covered and landscapedto mirror the surrounding habitat both concurrently andat the conclusion of the Rock Creek Project.
To guarantee that this protection extends long afterprojects are completed, modern mines fund multimilliondollar bonds set by Montana’s Department ofEnvironmental Quality and the U.S. Forest Service.
A lot has changed over the years, but one thing hasn’tchanged: mining provides good paying jobs.
For example, The Rock Creek Project will provide 300jobs paying $50,000 a year, and over its life, Rock Creekwill contribute $400 million in salaries, $50 million in taxrevenue, and $200 million in revenue for local businesses.revenue, and $200 million in revenue for local businesses.
Times have changed. So has mining.
Mining helped build Montana in the past.With care and commitment, it can help build Montana’s future.
Mining in Sanders County, Montana, circa 1908Photo: Northwest Museum of Arts & Culture
54 Montana Mining Association — Montana Mining 2010
gation wheel line, purchased an agricultural spray truck with a 70-
foot-wide boom (for quick application of dust suppressant) and divid-
ed a portion of the tailing facility in half to allow better flexibility for
sequencing filling operations. Other efforts to maintain good air qual-
ity at the mine include the use of significantly lower emission diesel
engines (mostly Tier 3) coupled with the use of electric hydraulic
equipment where applicable.
Maintaining the high quality of water in creeks and streams near
our Troy Mine is of the utmost importance to us. We’re pleased that
water quality is as good today as it was prior to startup of the mine in
1981, some 29 years ago. We’re very fortunate that at both our Troy
Mine and Rock Creek Project, the strata-bound copper and silver
deposits are hosted in clean quartzite beds formed from ancient
beach sands. Thus, after the ore processing is complete, the resulting
tailing is benign beach sand with no other deleterious elements that
could cause acid rock drainage or other water quality issues.
Changes in aquatic life in streams are one of the first indicators of
any minute changes in water quality. Lake Creek has been sampled
three times a year throughout the past 20-plus years and has shown
no impact. An unfortunate leak in one of the tailing lines last October
resulted in spillage into a tributary of Stanley Creek; quick actions
were taken by Troy employees for containment and clean up, and no
impact on aquatic life or fish was detected. We are now completing
engineering work for secondary containment of tailing lines in sensi-
tive areas near active waterways. Often an unfortunate incident will
result in something positive; in this example, the positive result will be
improved containment. There are always ways to improve and it’s our
goal to continue to do so.
Another prime indicator of the benign nature of the tailing facility
is the water quality of the toe ponds. These ponds were created early
on between the toe of the embankment and Lake Creek to intercept
any seepage and allow pump-back if required. These ponds have con-
tinuously shown good quality water and are havens for wildlife and
support populations of bass and perch. Even though the Troy Mine has
a long-time track record of good water quality without a water treat-
ment plant, a two-stage water treatment plant is included to treat
excess water prior to discharge. This added measure of protection at
the Rock Creek Project ensures there will be no adverse impacts to
water quality.
Maintaining healthy wildlife populations near our Troy Mine and
Rock Creek Project is very important to us. Not only are our employ-
ees people who enjoy outdoor activities such as fishing, hunting and
hiking, it is simply the right thing to do and it’s in their back yard. Both
Troy and Rock Creek are within the Cabinet-Yaak Ecosystem (CYE),
which is home to at least two species listed as threatened or endan-
gered with the U.S. Fish and Wildlife Service (USFWS): the grizzly bear
and the bull trout. In addition, a significant portion of the Rock Creek
deposit lies beneath the Cabinet Mountain Wilderness Area, which
heightens environmental awareness even more.
With respect to grizzly bears, the two main ways to enhance recov-
ery is through reducing mortality and improving habitat. We are cur-
rently doing annual bear awareness training and eliminating exposed
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garbage at the Troy Mine. Several grizzlies have been released near the
Troy Mine to supplement populations in the CYE. Radio collar moni-
toring has shown these bears have traveled over top and around the
mine area, apparently showing little concern for the mine activities. At
Rock Creek, an extensive grizzly bear mitigation plan (approximately
$30 million over 25 years) has been included as part of the operating
plan. Funding will be provided for two to three employees to work
with Montana Fish, Wildlife and Parks (MFWF) covering biological and
law enforcement activities throughout the 20-plus-year mine life.
Funding will also be used to monitor bears with the USFWS, purchase
bear-resistant garbage containers and fence off county garbage sites.
In addition, although the mine will only disturb 482 acres in total, of
which only 140 acres are on National Forest lands, a total 2,450 acres
of other private land in key grizzly bear habitat areas will be pur-
chased and set aside from development, either through perpetual
conservation easement or deeding over to the USFS.
In regard to other endangered species of the area, bull trout pro-
tection is achieved by maintaining or improving existing water quali-
ty. At Rock Creek, installation of sediment control measures, such as
sediment traps at culverts combined with rolling dips in the road to
reduce erosion, are expected to reduce sediment load to the stream
and thus improve bull trout habitat.
The operating plan for the Rock Creek Project includes areas of
the deposit that will remain un-mined (buffer zones) in order to
ensure no damage will occur to the surface. A minimum overburden
height of 450 feet has been set, resulting in an average overall min-
ing depth of approximately 1,000 feet below the surface. Also, a1,000-foot lateral buffer zone (radius around the lake) will be leftunmined below Cliff Lake to prevent any possible impact to the lake.Other unmined areas will be left near known fault zones to preventany impacts to the surface.
These are just some of the main activities we conduct or plan toconduct in the case of Rock Creek to minimize environmental impact.Revett is an important provider of good, quality jobs and taxes for thebenefit of the people of Lincoln and Sanders County, and to Montanaas a whole. Additionally, let’s not forget about the much-needed pro-duction of strategic metals such as copper and silver. We look forwardto continuing these efforts and improving our commitment to envi-ronmental protection in the coming years.
The Troy Mine is operated by Genesis, Inc., a subsidiary of Revett SilverCo. The underground copper-silver mine is located 15 miles southwestof Troy in Lincoln County and employs about 180 workers. The compa-ny has fully-funded all reclamation obligations, and Montana DEQholds a reclamation bond in the amount of $12.9 million.
Revett Minerals Inc. has completed the permitting of the Rock CreekMine, located nearby in Sanders County, and is in the final stages oflitigating opposition brought by a number of environmental groups.Revett has provided interim funding for the hiring of MFWP employeesas a key part of the Rock Creek grizzly bear mitigation plan. Like Troy,Rock Creek will be an underground copper-silver mine and will employabout 250 to 300 workers. ✦
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digital copy available online at www.montanamining.org 55
56 Montana Mining Association — Montana Mining 2010
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58 Montana Mining Association — Montana Mining 2010
The Montana Mining Association would like to thank thefollowing members for their continued support:
AFFCOAMEC Geomatrix Inc.Applied Industrial TechnologiesArcadisBaroid Industrial Drilling ProductsBison EngineeringBoart Longyear CompanyBrenntag PacificBrowning, Kaleczyc, Berry, & HovenButte War Bonnet HotelCDMChampion Charter SalesChemical Montana CompanyChevronChilds Geoscience, Inc.Christensen, Moore, Cockrell, Cummings &
Axelberg, P.C.Continental Supply, Inc.Cross Petroleum ServiceCrowley Fleck PLLPCrown Parts and MachineCummins Rocky MountainDick Irvin, IncEnergy LaboratoriesEnvironomics
Ezzie's Wholesale, IncF & H Mine Supply Inc.Fairmont Hot Springs ResortFickler OilGCR Tire CentersGeneral DistributingGlacier HR Services, Inc.Godwin PumpsGolder AssociatesGough, Shanahan, Johnson and WatermanGuy Nielson Co.H&E Equipment ServicesHolland and HartIndustrial Automation ConsultingIndustrial Sales and ServiceIntermountain West EnergyInterstate Power SystemsJorgenson'sK&N Electric Inc.Kirk ENR, IncLacy & Ebeling Engineering, IncLeTourneau TechnologiesLiberty CompaniesMcCloskey's Auto Electric, Inc.MDM Supply
Metallurgical EngineeringMining Technologies International, IncModern MachineryMoen BuildersMontana Bolt CompanyMontana Crane ServiceMontana Electric Motors, IncMoore Oil IncNorco Inc.Northside Welding & FabricationNorthwest Mine SupplyNorthwest Parts and Rigging Co IncNorthwest Pipe and Fittings IncO'Keefe DrillingPacific Steel & RecyclingPayne MachineryPoore, Roth and Robinson, P.C.Power Service of MontanaR. Dorvall & Associates, IncRain for RentRed Lion ColonialResource Management
Sandvik, Inc.Southern Cross Company, LLC.Spencer Fluid PowerSpherion IncSpring Valley Drilling Inc.Sun Mountain LumberTaylor Mine ServicesTechline ServicesTEREX MiningThe Archibald Co.The Industrial Co. Wyoming, Inc.Thiessen Team U.S.A.Timberline Resources Corp.Town Pump Inc.Tractor and EquipmentTri State Truck & EquipmentTurkenburg Power Systems, Inc,U.S Bearings & DrivesWESCOWestate MachineryWestern States Equipment CompanyWhitewood TransportWholesale Mine Supply L.P.Zeigler Sales, Inc
ASSOCIATE MEMBERS
Alan GrantBob MoodryBrad IsbellBrian RoatCarol BrownCherie TilleyDanney GlaserDavid ArmstrongDavid StevensDolores Rife
Douglas ParkerEd DiekmanFess FosterJames CollinsJerry HanleyJoe BardswichJohn FitzpatrickJohn WittKenneth HitronKevin Johnson
Larry JohnsonLeora BachMark RadcliffeMary BergMichael HendricksonMike MullaneyMitzi NelsonNeal HurniP. DavisRay ConnorsRichard Berg
Rick StrandRobert RoutaRod McElwainRonald BellScott RosenthalSteve FitzpatrickTim LindseyTom HarringtonTom WeitzWilliam Brooks
INDIVIDUAL MEMBERS
Apex Abrasives, Inc.Barretts MineralsBigler MineBlue Range Engineering Co. Inc.Caboose Mining Co.Carter Creek Iron Inc.Contact Mining
CR Kendall CorporationErnest K. Lehmann & Associates of
MontanaGentor Resources Inc.Golden Sunlight MineGranite Resources CompanyGraymont
HolcimKennecott Exploration CoMadison Mining CompanyMines Management IncMontana ResourcesMontana TunnelsNewmont Mining
NLC. Inc.NorthWestern EnergyRevett Minerals, Genesis Inc.Rio TintoStillwater Mining CompanyTMC, Inc.WCP Resources Ltd
PRODUCERS, NON-PRODUCERS, SMALL & INACTIVE MINERS
Montana Mining AssociationMissoula Chapter
Montana Mining AssociationVictor Chapter
Zelda DavisHoward Lindsey
CHAPTERS AND CHAPTER MEMBERS
Courtney Young Tom Harrington
HONORARY MEMBERS
Montana is famous for big dinosaurs, big geysers and a big sky overhead.
Did you know that it’s also home to the United State’s biggest talc mine?
While Rio Tinto Minerals’ Yellowstone mine is a big deposit, the talc we find here ends up making environmental footprints smaller. Cars run cleaner, paint lasts longer, and paper mills use less energy thanks to our talc.
Our people also work hard to make our operations’ footprint smaller – putting big ideas to work toreduce energy use, water use and greenhouse gas emissions.
To find out more about our big mine and small footprint, visit www.riotintominerals.com.
Big minesmall footprint
Toronto Stock Exchange: MGTNYSE Alternext US: MGN
Advancing theMONTANORESilver-Copper
Project
Mines Management, Inc.
Lincoln County, Montana
Innovative and ResponsibleNatural Resource Development
Unearthing Life’s Key Ingredients
Northwestern Montana boasts host to some of the world’s largest deposits of copper and silver. Mines Management, Inc., are committed to advancing the devel-opment of such projects in a manner consistent to further the interests of the local community and the long term preservation of the environment.