Posted on 08/19/2003 11:34:48 AM PDT by Willie Green
For education and discussion only. Not for commercial use.
BUTTE — Montana Resources said Monday it will reopen its idled copper mine here and rehire as many as 350 workers by fall.
The decision came just days after a state board approved a $2 million loan to Butte-Silver Bow County to help reopen the mine.
Montana Resources said it plans to begin hiring workers immediately to complete startup work, and expects to have a full staff of 350 employees by mid-October.
"We are extremely fortunate to be in a position to make this decision," said Larry Simkins, chairman of Montana Resource´s management committee. "Frank (Gardner) and his team prepared a very thorough analysis and presented a compelling case for a new beginning for mining in Butte."
Gardner was also named president Monday to oversee startup activities. Gardner was president of the mine from 1986 until 1997.
Montana Resources, the majority owner of the Butte mine, suspended operations nearly three years ago when the price of electricity skyrocketed. The closure put more than 300 people out of work.
Last month, Montana Resources officials asked Gov. Judy Martz to look into options to help reopen the mine.
The company said at the time that it believed nearly half the employees who were laid off in 2000 were available to return to work.
Butte-Silver Bow County applied for a loan through the state Board of Investments, which was approved Friday. The money will be used to help buy new electrical transformers at the mine.
Sen. Max Baucus, D-Mont., and Sen. Conrad Burns, R-Mont., praised the work that went into the mine reopening.
"This is exactly what Butte needs," Baucus said. "These will be good, high-paying jobs for Butte. … The mine will provide Butte´s economy the shot in the arm that it needs."
"The folks in that area have taken an awful lot of hits," added Burns. "I´m very pleased to see them get great news like this."
Montana Resources is a general partnership with the majority of its ownership interest held by Montana Resources Inc., a company owned by Missoula businessman Dennis Washington.
Among immediate priorities are to negotiate several new contracts for the sale of copper and molybdenum concentrates and for a power supply.
"Current indications for power costs are much better than what we found when operations were suspended in 2000," Gardner said. "Quickly obtaining a stable and secure electricity supply for the mine will be of utmost importance."
There was both relief and celebration in Montana´s Mining City.
Jim Kambich of the Montana Economic and Revitalization Development Institute and a mine task force member was among those praising the announcement.
"Butte without a mine is like California without palm trees," said Kambich. "This is a big day for Butte. It´s phenomenal; in a time of utter chaos with the utilities to have a base industry come back is great."
"Everybody´s yelling," said Brenda Hipp at the Butte Job Services, as word of the reopening arrived. "It´s a good thing."
The Job Service has dealt with waves of layoffs, including the 2000 suspension of mining operations at Montana Resources and last month´s layoffs at Touch America.
Hipp said workers, some forced to move out-of-state, have already started calling about jobs.
"We are all ecstatic," said Butte-Silver Bow Chief Executive Judy Jacobson.
She said the Butte Local Development Corp. will have training money available for workers.
Jacobson said the state´s average annual mining wage is $54,000, compared to a state average of $24,000 for all other jobs. The wage scale at Montana Resources when it reopens hasn´t been announced.
"This is good news big time … I don´t think you can overstate the dramatic impact on Butte´s economy," said Evan Barrett, executive director of the Butte Local Development Corp.
Gov. Martz said she was delighted with the news.
"I´m delighted with the news that Montana Resources will reopen the mine and I´m so pleased to see Frank Gardner back at the helm. I´ve worked quietly for some time with the Montana Resources leadership to encourage them to resume operations and today´s announcement is wonderful news for the people of my hometown and for all citizens of Montana," she said.
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