The Montana Department of Environmental Quality has received $20.78 million to cover reclamation costs at the long-idled Montana Tunnels Mine near Jefferson City, following the latest bankruptcy proceeding involving Montana Tunnels Mining Inc.
The payment is tied to a structured sale of the property to Silver Bow Mining Corp. and Silver Bow Tunnels Corp. and is intended to cover the gap between DEQ’s calculated reclamation obligation and money already forfeited from the previous operator.
DEQ Director Sonja Nowakowski called the payment a significant win for Montana taxpayers, saying it ensures the state has the funds needed to meet reclamation requirements at the site.
The mine, which once produced gold, silver, zinc and lead, has been inactive since 2008. Its permit was suspended in 2018 after the operator failed to post an adequate reclamation bond, and the bond was forfeited in 2024.
The $20.78 million payment also clears the way for the new owners to potentially seek permits to operate the mine, though any future activity would still be subject to state regulatory approval.
The bankruptcy sale also resolved debts owed by Montana Tunnels Mining Inc. to other creditors, including Jefferson County.
DEQ said it is continuing to pursue claims in a separate enforcement case against Montana Tunnels Mining Inc., Chairman and Director Patrick Imeson and President and Director Robert Trenaman.
Under Montana law, Imeson and Trenaman remain designated as “bad actors” and are prohibited from participating in mining or mineral exploration activities in the state through Montana Tunnels Mining Inc. or other entities they control.
The payment reflects Montana’s broader bonding system for hard-rock mines, which is designed to ensure reclamation costs are covered if an operator is unable or unwilling to complete cleanup obligations.