DEQ Receives $20.78 Million for Reclamation Costs of the Montana Tunnels Mine near Jefferson City, Montana

HELENA—Montana Department of Environmental Quality (DEQ) has a received a $20.78 million payment for the reclamation costs of the Montana Tunnels Mine near Jefferson City, Mont. The payment comes from the latest bankruptcy filing by Montana Tunnels Mining, Inc. and reflects a structured sale of the mine to Silver Bow Mining Corp and Silver Bow Tunnels Corp. 
 
“The bankruptcy payment provided to DEQ is a huge win for Montana taxpayers,” said DEQ Director, Sonja Nowakowski. “The $20.78 million ensures that the reclamation requirements for the mine can be met and reflects nearly a decade of DEQ holding the operator of the mine accountable to the anticipated reclamation costs. DEQ works closely with mine operators across Montana to ensure laws and regulations are met. When agreed-upon actions are not taken and adequate bond is not posted, DEQ must take the necessary steps to protect Montana’s taxpayers, the environment, and the integrity of the requirements of the Metal Mine Reclamation Act.”
 
The $20.78 million payment covers the shortfall between the bond calculated by DEQ for reclamation at the mine and the amount of money forfeited from Montana Tunnels Mining, Inc., as well as for the release of property bonds Montana Tunnels Mining, Inc. previously posted to DEQ. The $20.78 million payment also paves a potential path for Silver Bow Mining Corp. and Silver Bow Tunnels Corp. to pursue becoming a permitted operator of the mine. 
 
The once active gold, silver, zinc and lead mine has not operated since 2008. In 2018, the mine’s permit was suspended over its failure to post adequate bond. The bond was forfeited in 2024.  Since the 1970s, the state has made improvements in bond calculations to ensure that mines are adequately bonded and can be reclaimed by the state in instances where the operator is unable to do so.
 
The bankruptcy sale also satisfied the debts Montana Tunnels Mining, Inc., owed to numerous other creditors, including Jefferson County.
 
DEQ continues to pursue its remaining claims in its pending enforcement lawsuit against Montana Tunnels Mining, Inc., including its Chairman/Director Patrick Imeson and President/Director Robert Trenaman. Imeson and Trenaman remain “bad actors” under Montana law and are prohibited from taking part in any mining or mineral exploration activities in Montana, either through Montana Tunnels Mining, Inc. or any other corporate entity they direct or control.
 
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About DEQ:
At the Montana Department of Environmental Quality, our mission is to champion a healthy environment for a thriving Montana. DEQ is charged with maintaining and improving Montana’s air, land and water. Please visit deq.mt.gov for more information about DEQ programs.

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