Holcim (US) Trident Plant celebrates 100 years – see page 60.
Transcription
Holcim (US) Trident Plant celebrates 100 years – see page 60.
Holcim (US) Trident Plant celebrates 100 years – see page 60. Photo Courtesy of Tintina Gold PROVIDING CORE DRILLING SERVICES FOR THE MINING INDUSTRY P.O. Box 267 | Clark Fork, ID | 83811 | P. (208) 266.1151 Branch Office | Bozeman, MT | P. (406) 586.6266 | E. offi[email protected] www.ruendrilling.com Rock solid Metso crushers: built first, built to last. Whatever you throw at them and wherever you use them, Metso crushers can take it. Our history, experience and world-class engineering enable them to handle even the hardest work, so that you get the results you need. With outstanding availability and uptime, you can rely on Metso’s equipment and reputation. They’re both rock solid. metso.com – email: [email protected] in this issue MMA President’s Message – Mike Mullaney MMA Mission Statement MMA Executive Director’s Message – Debbie Shea Introduction to Laura Feist, MMA Director of Member Services Mining and exploration in Montana: 2010 review Montanans’ mode uncovered in Chamber’s poll Report on the 62nd Montana Legislative Session Educating local teachers for more than a decade Mr. Ambassador: profile on Robin McCulloch American Mining Insurance Company: “Insurance from people who know mining” Kendall: past, present and future Taking ownership of safety: Revett Minerals Geology (and mining) rocks! Successful mining starts with successful exploration A trusted authority for both private industry and public agencies Stillwater Mining Company advances growth and diversification goals for sustainable development Ash Grove Cement’s Montana City Plant anticipates future business H-E Parts Crown: Thriving in Montana, serving mines across the globe The more you dig – It all starts with mining Dedicated maintenance supervisor, John Hinther, kept industry relationships in good working order MTI invests in hydrogen technology for underground mining equipment Northwest Pipe proud to be serving Montana’s mining industry Holcim (US) Trident Plant celebrates 100 years of production and community building Montana Resources LLP explores for the future while maintaining a focus on safety Talc in Montana: An important industrial mineral for the U.S. – and the world Holcim (US) continues commitment to educating future leaders Geomatics announces release of GPS interface program MagMap2000 V 5.0 The history of Apex Abrasives Benefits of membership in the MMA MMA Membership Application Thank you to MMA members 6 6 8 12 14 20 22 26 28 30 32 34 38 42 44 46 50 52 54 55 56 58 60 62 64 66 68 69 72 73 74 index to A D V E R T I S E R S A-Z Industries, Inc. AFFCO AMEC Geomatrix American Mining Insurance Company Ash Grove Cement Company Becker Wholesale Mine Supply, LLC Billings Clinic Bison Engineering Brenntag Pacific, Inc. Browning, Kaleczyc, Berry & Hoven, P.C. Buckley Power Co. Bucyrus Butte War Bonnet Hotel CAMP Cattron Group Champion Charter Sales & Service Chemical Montana Company Crowley Haughey Hanson Cummins Rocky Mountain Dick Irvin, Inc. Ernest K. Lehmann & Associates Ezzie’s Wholesale, Inc. F & H Mine Supply, Inc. Fairmont Hot Springs Resort Fickler Oil Company, Inc. 4 66 33 13 31 51 13 22 36 42 69 29 56 65 28 7 21 60 57 16 11 34 43 48 44 12 Geometrics Inc. 5 Golden Sunlight Mine 9 Golder Associates 24 Gough, Shanahan, Johnson & Waterman, PLLP 58 Graymont Western US Inc. 19 GSE Lining Technology, LLC 12 H-E Parts Crown 53 Hardsteel, Inc. 36 Holcim 61 Holland & Hart LLP 39 Hydrometrics, Inc. 45 Industrial Automation Consulting, Inc. 8 Industrial Equipment Manufacturing Ltd. 43 Intermountain West Energy 25 Interstate PowerSystems 23 Interstate BearingSystems 49 JBR Environmental Consultants, Inc. 30 LeTourneau Technologies, Inc. 41 MDM Supply 32 Metso Minerals Industries, Inc. 3 Mi Swaco 54 Mines Management, Inc. OBC Mining Technologies International Inc. 57 Montana Crane Service 67 Moore Oil, Inc. 32 Montana Mining Association — Montana Mining 2011 Nelson Brothers Mining Services, LLC Noble Excavating Inc. Northside Welding & Fabrication, Inc. Northwest Mine Supply Northwest Pipe Company Outotec North America Pierce Leasing Revett Minerals Richwood Rio Tinto Minerals Ruen Drilling Incorporated Small Mine Development Spring Valley Drilling Starfield Resources Inc. Stillwater Mining Company Stone Raven Resources, LLC Tetra Tech The Whitmore Group Thiessen Team USA, Inc. Tractor & Equipment Co. Westate Machinery Company Western States Insurance – Missoula Western Wyoming Community College WWC Engineering 18 22 56 67 59 52 46 35 58 IBC IFC 42 71 11 47 23 30 20 33 17 37 65 21 12 MONTANA MINING is published by DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 President David Langstaff Publisher Jason Stefanik Managing Editor Katrina Senyk [email protected] Advertising Account Executives Cheryl Ezinicki, Jennifer Hebert, Ross James, Michelle Raike Contributing Writers Susan Barth, Anika Hanisch Ross Johnson, Kreta Zackus L’Heureux, Robin McCulloch, Mike McGivern & Tad Tale, Nicole Ritter, Debbie Shea, Laura Tode, Gary Tomaino & John Parks Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director Kathy Cable Layout & Design Dana Jensen Advertising Art Deryn Bothe © Copyright 2011 DEL Communications Inc. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications mail agreement #40934510 PRINTED PROUDLY IN MONTANA by ARTCRAFT PRINTERS of BILLINGS, INC. Mailing provided by Helena Industries, Inc., Helena, MT PRINTED | 05/2011 DEL Communications Inc. Cover Photo: PHOTO COURTESY OF BARRICK GOLDEN SUNLIGHT MINE. President’s Message MIKE MULLANEY President, Montana Mining Association I ’ve been honored to take on the responsibility of being president these past four years. It has been a rewarding learning experience, working with board members and the association staff. We have set up a team-type association that actively listens to feedback, and then makes sound decisions on a consensus basis. Over these past four years, the largest milestone achieved has been creating active committees within the association. Commitment to these committees is essential to our success – that success being a strong safety culture both on and off the job; active involvement in the legislative process; environmental stewardship and compliance with reasonable rules and regulations; spreading our message through increased membership; and educating people of all ages about the importance of our natural resources. The foundation has been put in place for a bright future for this association. Safety is a top priority and we need to have the appropriate behavior instilled in us – on and off the job – to ensure no one is injured. The safety committee, led by Jerry Laughery, continues to be very active. Committee members have been meeting monthly and quarterly at mine sites to share incidents and best practices, and to discuss on-going MSHA regulatory changes and how to best deal with them. The legislative committee, chaired by Bruce Gilbert, is active and staying on top of issues such as the nutrient criteria standards, the wilderness bill, proposed mining law changes, etc. In addition, an environmental committee was started last year, which is being led by Tad Dale. Both of these committees worked very hard before and during the legislative session drafting and editing MMA bills. There were long hours and many conference calls put into these bills. Thank you all for your hard work on this important process. The membership committee was formed last year and is led by Mark Redfern. This committee has come up with some great ideas and made them a reality in order to increase both individual and associate membership. Thanks to the individuals involved in this committee for your contributions. It is a privilege to be part of this mining industry. We work so hard in our typical day’s work that we take little time to reflect on our accomplishments and to tell our stories. By putting out our annual magazine, we have been telling our stories and communicating what we are doing. I thank the board for the opportunity to serve as president of the Montana Mining Association. Please continue to give feedback and ideas to Debbie, Laura and the board in order to help us continue achieving our objectives. ✦ Montana Mining Association Mission Statement The Montana Mining Association (MMA) is a Montana trade association dedicated to helping mining companies, small miners and allied trade members succeed, understand, comply and function in a complex business 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 information and education for its members and distributes information to the general public about the contribution of minerals and mining to our economy and well- 6 Montana Mining Association — Montana Mining 2011 being. One of the MMA’s primary functions is to promote and enhance the image of the mining industry. The Montana Mining Association works in cooperation 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 subjects through the expertise of its members. Many of the MMA’s activities are conducted by various committees. The association has many active associates. Committees 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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ċDFBQQMJDB UJPOT3BUIFSUIBOJOTUBMMJOHPOMZBWPJDFDPNNVOJDBUJPOTZTUFN$BUUSPOT 4*".OFUNBLFTJUQPTTJCMFUPJOTUBMMPOFTZTUFNUIBUXJMMTVQQPSUDVSSFOU EBUBDPNNVOJDBUJPOOFFETBTXFMMBTUIFFYQBOEJOHEBUBDPNNVOJDBUJPO OFFETPGUIFGVUVSF "USBEJUJPOBM'JCFS0QUJD4ZTUFNJTQFSGFDUGPSUSBOTQPSUJOHMBSHFBNPVOUT PGEBUBPWFSMPOHEJTUBODFTCVUXIFOEBUBOFFETUPCFUSBOTQPSUFEUP NVMUJQMFMPDBUJPOTUIBUBSFSFMBUJWFMZDMPTFUPFBDIPUIFSB'JCFS0QUJD 4ZTUFNCFDPNFTFYQFOTJWFBOEMFTTWFSTBUJMF*OUIFFWFOUPGBOFYQMPTJPOPS EBNBHFGSPNBWFIJDMFUIFmCFSDBCMFJTEJċDVMUUPSFQBJSDBVTJOHMFOHUIZ EFMBZTBOEMPTUDPNNVOJDBUJPOXJUIZPVSXPSLGPSDFɨFPQUJPOPGCVZ JOHTQBSFDBCMFTUPSFQMBDFEBNBHFEPOFTJTDPTUMZBOEJOWPMWFTEPXOUJNF BOEMPTUDPNNVOJDBUJPOEVSJOHJOTUBMMBUJPO"'JCFS0QUJDTZTUFNJTBMTP VOBCMFUPUSBOTQPSUUIFFMFDUSJDBMFOFSHZUIBUEJĊFSFOUBQQBSBUVTOFFEUP PQFSBUFOFDFTTJUBUJOHFJUIFSBTFQBSBUFFMFDUSJDBMOFUXPSLJOQBSBMMFMXJUI UIFm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xecutive Director’s Message DEBBIE SHEA Executive Director, Montana Mining Association T his has been a year of change and growth for the Montana Mining Association. In early fall of 2010, we moved our office back to the Colonial Inn, which was home to the MMA for many years. We are enjoying our new space on the first floor, Suite 3A. We also recently welcomed a new staff member, Laura Feist. In addition, our membership has grown considerably over the last year, and with that growth has evolved new energy and new ideas. As a voice for the mining industry, we promote every part of what responsible mining entails, from innovative technology and environmental responsibility to community involvement, education and economic development. A key factor in all of this is the committees that serve the MMA. I am grateful to the chairs and committee members for their valuable time in advancing very ambitious and worthwhile ideas. Safety and Health Committee: Chaired by Jerry Laughery, the Safety and Health Committee continues its monthly conference calls (quarterly on site), where members review MSHA activities and information, share safety alerts and offer monthly training and available resources that can be shared with various mines. Under the committee’s leadership, our 2010 and 2011 annual meetings have introduced highly rated speakers, who offer expertise in the mining arena to attendees. Legislative and Environmental committees: These two committees (separate in their makeup, but similar in their direction), chaired by Bruce Gilbert/John Beaudry and Tad Dale respectively, have had a very busy and successful agenda over the last year as they worked together to advance some very important legislation (see the Legislative Report in this issue for further details). Membership Committee: This important committee is chaired by Mark Redfern. The direction of the Membership Committee is to promote membership in the MMA through various forums while defining the opportunities and advantages of being a member. The committee is highly engaged in putting together a package of materials that describe the MMA and the opportunities the association offers to perspective members. Education Committee: The Education Committee oversees the Gary Langley, Don Lawson and Mike Ivins memorial scholarships. The goal of this committee is to educate all Montanans where we get our “things”, as well as to inform them of the efforts the mining community has taken to ensure environmental regulation and adequate bonding. It is my personal goal to advance this committee’s agenda and direction over the next year. Any member wishing to join this effort, please contact me at the MMA office. Others items of interest to MMA members: RAC: Self-employed exploration geologist and MMA member Ted Antonioli was appointed to the Western Montana Resource Advisory Council (RAC) and MMA director Bruce Gilbert, from Stillwater Mining, was appointed to the South Central Advisory Council (RAC) for the USFS. The RAC is an official federal advisory committee that provides advice and recommendations on all aspects of public land management to the Bureau of Land Management. Congratulations to both Ted and Bruce; the RAC will be well-served by these outstanding appointments. MMA Display: After months of research and planning by board members, and with assistance from the Bureau of Mines and Geology at the Montana Tech campus, the Montana Mining Association unveiled its new display at the Northwest Mining Association convention in Spokane Washington. Our plans are to reintroduce the MMA in many such forums over the next year, thereby promoting Montana and the Montana Mining Association. Website: Last but not least, our website has served to promote mining and educate the hundreds of people who visit us online daily. Features include mining facts, community involvement, environmental advances and stewardship, scholarships, newsletters and a directory of our membership that can only be accessed by members of the association. Within our ‘members’ only’ directory is also a search feature that enables you to enter a keyword to search our members by name, company, or nature of business. We have also added a ‘preferred member’ list. We believe all of these features are important tools in uniting members and promoting business opportunities among them. Finally, I would like to offer a special thank you to Mike Mullaney for his leadership as president of the MMA over the last four years. Mike’s vision for the MMA has been inspirational to all who worked with him. Tap ‘er light! Debbie Shea 8 Montana Mining Association — Montana Mining 2011 ✦ Reclaimed waste rock facility, Golden Sunlight Mine, July 2010 Responsible Mining in Montana The employees of Barrick’s Golden Sunlight Mine are proud to resume gold production in Jefferson County. We thank all of our neighbors and partners for their support and confidence as we safely bring new prosperity to the Great State of Montana. Gold pour, Golden Sunlight Mine, March 2011 2011 Montana Mining Association Board of Directors Mike Mullaney, President ................................O (406) 285-4970 Holcim (US) Inc. 4070 Trident Road, Three Forks, MT 59752 Email: [email protected] Doug Miller, Vice President.....................O (406) 295-5882 x 222 Troy Mine – Revett Genesis PO Box 1660, Troy, MT 59935 Email: [email protected] st Mark Redfern, 1 Vice President .......................C (406) 671-4105 Brenntag Pacific 123 West Boulevard, Lewistown, MT 59457 Email: [email protected] John Junnila, 2nd Vice President........................O (406) 373-6010 Westate Machinery Company P.O. Box 50370, Billings, MT 59105 Email: [email protected] Tim Smith, Past President................................O (406) 495-2803 Montana Tunnels Mining Inc. PO. Box 176, Jefferson City, MT 59638 Email: [email protected] Matt Wolfe, Secretary / Treasurer .....................O (406) 932-8259 Stillwater Mining Company 536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019 Email: [email protected] Mark Cole, Director .........................................O (406) 434-5583 Dick Irvin Inc. P.O. Box 950, Shelby, MT 59474 Email: [email protected] Tad Dale, Director ...........................................O (406) 496-3200 Montana Resources 600 Shields Ave, Butte, MT 59701 Email: [email protected] Tim Dimock, Director ......................................O (406) 287-2046 Barrick - Golden Sunlight Mine 453 MT Hwy 2 East, Whitehall, MT 59759 Email: [email protected] Jason Ellis, Director .........................................O (406) 266-5221 Graymont Western U.S. Inc. P.O. Box 550, 450 Indian Creek Road, Townsend, MT 59644 Email: [email protected] John Fitzpatrick, Director.................................O (406) 442-5032 Fess Foster, Director ........................................O (406) 287-3261 Geological & Environmental Consultant 21 Paul Gulch Road, Whitehall, MT 59759 Email: [email protected] Bruce Gilbert, Director.....................................O (406) 322-8700 Stillwater Mining Company 536 East Pike Avenue, P.O. Box 1330, Columbus, MT 59019 Email: [email protected] Dick Johnson, Director.....................................O (406) 442-8855 Ashgrove Cement 100 MT Hwy 518, Clancy, MT 59634 Email: [email protected] Jim Liebetrau, Director.............................O (406) 563-8494 x 11 AFFCO ..............................................................C (425) 210-3653 1015 East Sixth Street, Anaconda, MT 59711 Email: [email protected] Robin McCulloch, Director ...............................O (406) 496-4171 Montana Tech W. 1300 Park Street, Butte, MT 59701 Email: [email protected] Gene Nelson, Director......................................O (406) 549-8856 Yellow Band Gold Inc. 3926 Bellecrest Dr., Missoula, MT 59801 Email: [email protected] Fred Panion, Director ......................................O (406) 285 5303 Rio Tinto Minerals 767 Old Yellowstone Trail, Three Forks, MT 59752 Email: [email protected] John Parks, Director ........................................O (406) 683-3324 Barretts Minerals 8625 Hwy 91 South, Dillon, MT 59725 Email: [email protected] Roger W. Rohr, Director ...................................C (406) 698-1563 Tractor and Equipment Co. Major Accounts Manager Email: [email protected] Jim Volberding, Director ..................................O (406) 538-2501 ATNA Resources, LTD. P.O. Box 799, Hilger, MT 59451 Email: [email protected] Debbie Shea, Executive Director.......................O (406) 495-1444 Montana Mining Association P.O. Box 5567, Helena, MT 59604 Email: [email protected] Laura Feist, Director of Member Services..........O (406) 495-1444 Montana Mining Association P.O. Box 5567, Helena, MT 59601 [email protected] www.montanamining.org 10 Montana Mining Association — Montana Mining 2011 The Montana Mining Association recognizes the following committee members: Environmental Committee Alan Holubec Allan Kirk Bruce Gilbert Brian Schrage David Mott Debbie Shea Dick Johnson Doug Parker Fess Foster Fred Panion Greg Gannon Hal Robbins Jason Juntunen Jeff Briggs Jeff Chaffee John Parks Laura Skaer Mark Thompson Matt Wolfe Mike Mullaney Paul Kukay Tad Dale Terry Grotbo Membership Committee Bill Mack Carole Armstrong Debbie Shea Jason Nelon John Hinther Mark Redfern Mike Mullaney Roger Rohr Terry Larson Legislative Committee Alan Jocelyn Allan Holubec Allan Kirk Bruce Gilbert David Mott Debbie Shea Dick Johnson Doug Miller Doug Parker Fess Foster Fred Panion Gene Nelson Greg Gannon John Hinther Mike Mullaney Hal Robbins John Junnila Paul Kukay Jackie Clark John Parks Roger Rohr Jason Ellis K.D. Feeback Shirley Hartley Jeff Briggs Laura Skaer Sonya Rosenthal Jeff Chaffee Leo Berry Tad Dale Jim Daley Mark Cole Tammy Johnson Jim Liebetrau Mark Compton Ted Antoniolli Jim Volberding Mark Redfern Terry Grotbo John Beaudry Mark Thompson Tim Dimock John Fitzpatrick Matt Wolfe Tony Panchyshyn Safety and Health Committee Brett Clute Jeff Briggs Kelly Stolp Dave Corner Jeff Franke Larry Goroski Debbie Shea Jerry Laughery Larry Hoffman Dirk Nelson Jim Waldbillig Matt Wolfe Jason Ellis John Hinther Mark Cole Jason Franke John Parks Mark Thompson DII Dick Irvin, Inc. Transportation Mike McGivern Mike Mullaney Pete Steilman Randy Waits Ron Hyatte Ronald Dorvall Shane Hanninen U.S./Can. 800-332-5131 INTERNATIONAL MOTOR CARRIER P.O. Box 950 575 Wilson Avenue Shelby, MT 59474 Phone: (406) 434-5583 Fax: (406) 434-5505 Cell: (406) 450-1127 Ray Irwin Vice President Explorations 420 Alvarado Dr, NE Albuquerque, NM 87108 Tel: 505.266.6340 Cell: 505.217.5877 120 Adelaide Street West, Suite 900 Toronto, ON M5H 1T1 Tel: 416.860.0400 Fax: 416.860.0822 Toll Free: 1.877.233.2244 Email: rirwin@starfieldres.com www.starfieldres.com Digital copy available online at www.montanamining.org 11 Introduction to The MMA introduces Laura Feist By Debbie Shea aura Feist came to the MMA by way of the Western Environmental legislative process renewed, in “old guards” like me, an appreciation Trade Association. Born and raised in Great Falls, Montana, Laura of a citizen’s legislature and the contributions we all can make to it. L and her husband Steven moved to Helena with their two children Along with Chairman Redfern and the membership committee, Morgan and Joe in the spring of 2010. Her outstanding office skills and Laura has taken on the job of advancing membership within the asso- welcoming personality secured for her a part-time position with WETA ciation. Their work together has advanced membership and offered and an opportunity to work for the MMA, as well; good fortune for additional benefits to members. both associations. Laura’s contribution to MMA office management has been signifi- It was baptism by fire, as Laura’s employment almost immediately cant, and her enthusiasm for her work with the association, in pro- threw her into the 62nd annual Montana legislative scene. Her enthu- motion of the mining industry, has made her a welcomed addition to siasm for natural resource legislation and her curiosity regarding the the MMA family. ✦ Fickler Oil Company, Inc. Dave Cerise Lubricants Sales Manager 1480 Continental Dr. Butte, MT 59701 Phone: (406) 782 0616 Fax: (406) 782 0260 Cell: (406) 490 3891 [email protected] ȱȱȱ ȱȱ¢ȱȱȱȱŗşŞŖ ǰȱ¢ȱ ǰȱ¢ȱ ǰȱ¢ȱ řŖŝǯŝŚŘǯŖŖřŗȱ řŖŝǯŜŝŘǯŖŝŜŗȱ řŖŝǯŚŝřǯŘŝŖŝȱ 12 Montana Mining Association — Montana Mining 2011 ǰȱ ŚŖŜǯŚŚřǯřşŜŘ ǯ ǯ Engineering excellence from concept through closure Bring AMEC’s experience to your project in: front-end studies metallurgical process development facility and plant design geotechnical engineering and environmental services More than 200 offices worldwide including: Helena Elko Reno Denver Phoenix (406) 449-6009 (775) 778-3200 (775) 331-2375 (303) 935-6505 (480) 830-3700 project and construction management permitting and closure expertise amec.com/mining Digital copy available online at www.montanamining.org 13 Mining and exploration in Montana: 2010 review By Robin McCulloch, Mining Engineer - Montana Bureau of Mines and Geology his past year saw many extremes in the minerals industry. In spite of high commodity prices, there was a continuing scarcity of venture capital and exploration companies. For the most part, industrial mineral companies experienced steady growth, and even hired a few employees to replace those lost during the business decline of 20082009. However, the crash of the housing market had severe implications for the Portland cement industry; capital investments in infrastructure were delayed or reduced. Although the industrial use of cement has recovered steadily, the housing industry is not expected to show any significant change until 2013 or later. This has resulted in an oversupply, and has caused temporary closures at local plants. The metals portion of the mining industry has enjoyed high demand and spectacular prices. However, as costs have risen steadily for energy, steel and equipment, company profits have not been as high as one would have expected. T Mines Troy (Cu, Ag) - Genesis, Inc., a subsidiary of Revett Silver, Inc., maintained steady production at its Troy mine (Lincoln County). Labor has been steady and mine ore grade and commodity prices have increased. The company has continued to expand the reserve base, with discoveries in underlying quartzite beds. A 3,000-foot decline has been completed to the “C” bed, where substantial reserves have been delineated. The company has reduced production costs and will continue to expand its reserve base as they wait for the permitting of the Rock Creek mine to be completed. Rock Creek (Cu, Ag) - The development of the Rock Creek mine (Revett Resources, Inc.) (Sanders County) was delayed yet again as U.S. District Judge Donald Malloy retracted earlier permits based on discrepancies in prior records of decision. However, earlier 14 critical analysis was deemed adequate. The issues to be corrected are minor and will be resolved with a Supplementary EIS, expected to be completed in the current year (2011). A final determination for production is likely to occur in the near future. Montanore (Cu, Ag) - Mines Management, Inc. has continued to work through the repermitting of the Montanore mine (Lincoln County). A grizzly bear study has shown that the ecosystem around the mine site contains more bears than originally thought, and that they may be at or near the limits of the system. The permitting agencies have also chosen a preferred alternative for the power corridor. Although the Montana Department of Environmental Quality (DEQ) and the U.S. Forest Service appear to be working together through this process in a relatively efficient manner, the speed of completion has been slowed by the Corps of Engineers and the Environmental Protection Agency. Lyons Gulch Placer (Au) - Near Trout Creek, on the Vermillion River, John Cochran and Jim Williams mined placers near the mouth of Lyons Gulch (Sanders County). Cochran’s deposit was nearly depleted at the end of the summer. The pay gravel consisted of a relatively tabular zone, four- to five-feet thick, lying above barren gravels and overlain by one to two feet of silty sand and organic silt. Numerous two- to four-foot diameter boulders of the Pritchard Formation were found within the pay gravels. The pay zone has distinct limits, and appears to be nearly exhausted. Limited potential exists on the south side of the river and the next bench downstream below the falls. Existing workings indicate the pay zone has its origins in the Lyons Gulch drainage. An adit located on the Vermillion River road contains a gold-bearing quartz vein approximately 20 inches wide at the portal and pinching to less than six inches at the face. Montana Mining Association — Montana Mining 2011 There is limited alteration of the wall rock, and the vein appears to be formed along a bedding placer within the Pritchard shale. This lode property is not likely the source of the placer deposit. Jim Williams has mined for a number of decades on the Vermillion River placer. During the past year, he identified limonitic gravels in the Glacial Lake Missoula remnant fill of the drainage. Gold values appear to be quite promising, and further exploration is planned for the coming year. Bearmouth Placer (Au) - Near Drummond, Les Towner completed testing of the placer deposit in Bear Gulch and began mining. Excavation started immediately upstream from the end of the bucket-line dredge piles. Initial work outlined six feet of pay gravel covered by eight feet of overburden that was, in turn, covered by 35 to 40 feet of topsoil. The gold was bright, flat and disc-like in a debris-flow deposit. Mining has exposed numerous mined-out stopes where gravel was mined and hoisted to the surface for processing. Mining is scheduled to continue in the spring. Deep Creek Placer (Au) - Closer to the Garnet ghost town (Granite County), Randy Rice and Ralph Smith continued mining the upper Deep Creek gold placer. The majority of the existing alluvial placer between the Forest Service roads has been exhausted. Operations were focused on mining the remaining alluvial values, as well as a residual gold deposit in the hydrothermally altered Jefferson Formation. Much of the alteration has reduced the limestone/dolomite to calcareous sand with remnant bedding features. Limonite pods and zones are likely the source of the gold. Pioneer Placer (Au) - The Golden Rule Mining Company mined placer remnants at Pioneer in the Gold Creek drainage near Garrison (Powell County). Utilizing two trom- mels, the company processed the remaining resources under dragline spoil piles. In addition to gold, the company produced an impressive number of stulls from earlier drift mining. As they rapidly expanded to their five-acre limit, the company has applied for an operating permit. It was rumored that they were operating through the subzero weather of the winter of 20102011. Continental Pit (Cu, Mo, Ag) - In Butte (Silver Bow County), Montana Resources maintained steady production while enjoying elevated copper and silver prices. Molybdenum prices fluctuated but were still very good. The company did not make any major purchases of production equipment, but continued with their three-year program of upgrading the control system within the mill. They initiated a reserve expansion drilling program on the pit limits that is expected to continue over the next three years. Initial results have been promising. Operations are steady, with low employment turnover. Madison Project (Cu, Au) - West of Silver Star (Madison County), Coronado Resources maintained production for many months of high-grade copper ore and gold ore that could be direct-shipped to a smelter. The copper grade declined in the fall, and operations closed until milling problems with pyrite suppression could be worked out. Glen Mill (water-jet cutting media, scheelite) - South of Melrose (Beaverhead County), Apex Abrasives completed the production circuit of their mill and started bagging and shipping water-jet cutting media. Apex Abrasives fine-tuned its scheelite-recovery circuit, as well as the drying circuit. The market softened early in the year, when suspension of deep-water drilling in the Gulf of Mexico, as a reaction to British Petroleum’s blowout, caused garnet supplies to be shipped inland rather than be used in Gulf operations. Red Wash Quarry (Garnet Products) - Near Alder (Madison County), Ruby Valley Garnet, LLC exhausted its available reserves of placer garnet in their Red Wash alluvial deposit. They closed at mid-year to convert to mining their lode garnet deposit. The mill will be redesigned with a crushing and grinding cir- cuit, along with modifications to improve recovery and efficiency. Production is expected to resume early in 2011. Trident Quarry (Portland cement) Trident Holcim Inc. (Gallatin County) continued with planned improvements at the plant. The clinker cooler and crushingscreen circuits were modified to decrease energy consumption. Transportation costs were steady. Industrial consumption increased slightly, but the domestic building industry is slow to dead, and is expected to remain so until after 2013. Regal (Talc) - East of Dillon (Madison County), Barretts Minerals completed a new shop and facilities at its Regal mine. They have continued to upgrade the main plant, and have purchased some support equipment. Exploration to expand the reserves has continued with success. In general, both demand and the workforce have increased, but not to levels prior Digital copy available online at www.montanamining.org 15 to 2008-2009. By doing more with fewer employees, Barretts has broken a number of production records. Yellowstone (Talc) - South of Ennis (Madison County), Rio Tinto Minerals continued production at the Yellowstone mine. Capital improvements included completion of energy-efficiency upgrades in one processing circuit. Demand increased modestly, somewhat in line with overall industry recovery, and the company hired a few staff in response. Prices have been steady. Rio Tinto continues to explore the divestment of its talc business. The Behre Dolbear Group, Inc., mentioned a possible purchase by Imerys in their newsletter a couple of times, but since the price changed between articles, it appears they are in negotiations. Rio Tinto Minerals has made no announcements. Drumlummon (Au, Ag) - North of Helena (Lewis and Clark County), RX Exploration initiated limited production from the Drumlummon mine in the form of a metal- Every Ton. ™ No matter what you’re mining, Cummins provides your business with clean power, every ton. We provide on site certified Cummins technicians to service all your equipment providing greater levels of productivity, efficiency and durability. Montana Branch 5151 Midland Road Billings, MT 59101 1 800 332 7788 www.rockymountain.cummins.com 16 Montana Mining Association — Montana Mining 2011 lurgical bulk test. Initial mill recoveries were 92 percent for gold and 87 percent for silver. Production from the test was 2,584 ounces of gold and 54,698 ounces of silver over two months. An internal decline was driven on the Charley vein from the main haulage on the 400 level to the 500 level. The company resumed development of the external decline, and plans to connect the two declines at the 600 level providing an alternative escape route. Exploration is continuing on the many epithermal veins within the property. Selected drill intercepts on the Dblock ranged from eight to 22 feet and grades ranged from 0.28 to 0.84 opt Au. Silver values ranged from 1.69 to 7.31 opt Ag. Intercepts on the Charley vein ranged from two to 14 feet, with grades of 0.22 to 2.23 opt Au. Silver values ranged from 6.30 to 90.7 opt Ag. Although there were spectacular intercepts, most reported holes appeared to have a 0.1 to 0.5 opt Au flavor on intercepts over two to five feet in width. Pumping of the workings was delayed briefly, as the chemistry of the water had changed with pumping and modifications to the water treatment plant were necessary. Montana Tunnels (Pb, Zn, Au, Ag) - Near Boulder (Jefferson County), Elkhorn Goldfields has continued to search for funding for their Montana Tunnels mine and Golden Dream project near Elkhorn. Permits are in hand but venture capital has been limited. Indian Creek (Burnt Lime) - Near Townsend (Broadwater County), Graymont Western U.S.A. continued burnt lime production in a slowly improving market. The company reported fierce market conditions and intense competition. Prices have been stable, and the company has hired a few new employees. Graymont has initiated some development on its southern claims, and reports a high-quality deposit that has been exposed. Golden Sunlight (Au, Ag) - Near Whitehall (Jefferson County), Barrick Gold’s Golden Sunlight mine received a permit to mine an ore body adjacent to the crushing circuit at the mill. This will allow the mill to open eight months earlier than projected. The development for the Stage 5B optimized pit is on schedule and possibly a little ahead of schedule. The company has aggressively explored the mine area in search of satellite ore bodies, and has identified three potential zones. One is very promising and funding has been secured for the coming year. Production will resume early in 2011. Stillwater Mining Company (Pd, Pt, Ni, Cu, Rh, Au, Co) - Near Columbus, Stillwater Mining Company has had a banner year, announcing a $50-million profit for 2010. Stillwater initiated its “Blitz” project at the Stillwater mine (Stillwater County) to expand their reserve base. They will extend the 5,000 and 5,600 levels east 13,500 feet, in search of higher grades and production. The company expects to develop 9.5 million tons of resources grading 0.71 opt PGM group metals. The project is expected to cost $60 million. The company is actively hiring miners, as well as strengthening its miner-training program. Stillwater has experienced a five- to six-percent employee attrition rate due to retirements and those leaving for other opportunities. The company has also been developing the mine for a Kiruna electric-truck system. These 35-ton trucks will operate on a mainline trolley system with a diesel-electric auxiliary for dumping. The haulage levels will be paved to sustain production at optimum speed. Many levels have been rehabilitated to resume production. Costs are up slightly, but commodity prices are up more. To operate effectively with MSHA safety rules, the company assigned haulage and infrastructure levels to managers and miners for safety compliance. It appears the strategy is working. At Columbus (Stillwater County), the company completed the second furnace at the smelter. Stillwater has also completed a new Catalytic Converter Recycling and Sample Plant, which contains an automated X-ray system for assay of catalyst material. South of Big Timber, the company continued production at its East Boulder mine (Sweetgrass County). They initiated the Graham Creek project, which will advance the mine 7,900 feet to the west, where they will develop an additional ventilation raise. Stillwater anticipates finding increased values and ore-zone thickness. They expect to develop six million tons of ore grading 0.41 opt PGM metals over the next five years. The project is expected to cost $8 million. The company has increased the labor force by 15 employees and has completed both of their life-of-mine ore passes. Production at the mine has been sustained with rampand-fill and sublevel mining methods. Exploration Lower Meadow Creek Placer (Au) - Near Superior (Mineral County), Ken Miller finally received permission to explore the placer gold deposit in Lower Meadow creek. He first constructed a new stream channel to divert floodwaters from the process site. After completing his pond area and process site, he then excavated a small area near the old drift mine from the 1930s. Some values have been identified on the north side, but the south side of the drainage is yet to be explored. Digital copy available online at www.montanamining.org 17 Further work near the old drift mine is planned in the coming year. and flaky. Substantial values were found in both the virgin ground Calumet Placer (Au) - In Quartz Creek (Mineral County), Shannon and the old tailings. Komberec will complete defining the pay zone Anderson continued to define the pay zone on the Calumet claim, limits in the coming year and prepare for mining. Highland (Au, Ag) - In the Highland Mountains south of Butte (Silver Bow County), Timberline Resources and Small Mines Development continued work on their Highland joint venture. They drove the decline 1,700 feet and developed another 800 feet of workings for diamond drill stations. These were developed in both the hanging wall and the footwall. They have applied for an operating permit. They developed a dewatering well that will be tested in early 2011. A bulk test is also anticipated early in 2011. Drill results are anticipated shortly into 2011. Grant (Au) - Near Virginia City, Madison Mining Company continued work in the Grant mine (Madison County) on an intermittent basis. Bald Butte (Au) - Near Marysville (Lewis and Clark County), RX Exploration drilled seven holes on narrow gold structures at the old Bald Butte mine. Results were not as good as they had hoped, but then again they did not complete their planned program. They were snowed out but plan to continue drilling in the spring. Sheep Creek (Cu, Co) - North of White Sulphur Springs (Meagher County), Tintina Gold Resources, Inc. continued re-drilling holes on the former Cominco American Sheep Creek property. The property contains sediment-hosted zones of massive sulfide mineralization (copper-cobalt) in the lower part of the Precambrian Belt Supergroup. The land package currently held comprises 5,775 acres. The company will continue to verify the presence of high-grade coppercobalt deposits to become 43-101 compliant. After that is accomplished, drilling will continue to expand available resources and explore for additional deposits. Upper zone intercepts ranged from 22- to 34-feet in thickness, containing 3.0 to 3.4 percent copper and 0.15 to 0.36 percent cobalt. The lower zone appears to range from 5.6- to 20.8-feet-thick, with copper at 3.24 to 10.84 percent and cobalt at 0.03 to 0.11 percent. Stillwater Complex (Cr, Cu, Ni, PGM) - Starfield Resources has a substantial land package in the Stillwater Complex near Nye (Stillwater County). They did not initiate exploration after buying out Nevoro, but anticipate further exploration in 2011. which is in drainage adjacent to that of the Lower Meadow Creek Placer. The zone appears to have been buried by material flowing out of drainage on the north side. Gold values are typically 25- to 28-feet deep on the claim. Under the alluvial fan, values may be in excess of 40- to 45-feet deep. Garnet (Au, Ag, Cu) - Along the crest of the range near Garnet (Granite and Missoula Counties), Grant Hartford Corp. continued defining its deposits by drilling with 67 reverse circulation holes (34,848 feet) and four NC core holes (1,699 feet). The drilling program identified 940,298 tons grading 0.222 opt Au or 208,753 ounces of gold. They are preparing to submit an operating plan to the Montana DEQ. Preliminary estimates and mine development and production costs for a 250- to 300 tpd mill have been completed. They appear to have gathered enough data to reliably predict the locations of the ore zones. The company appears to be approaching the development stage of its program. Reynolds City Placer (Au) - Near Garnet, at the head of Elk creek (Powell County), Richard Komberec tested gravels from 1800’s workings. The 10-foot-thick gravel contained a few cobbles but not many boulders, and the majority of the recovered gold was coarse Coal Coal mines in the Powder River Basin again dominated Montana’s coal production, which increased 12.8 percent to 44,711,771 tons. The most significant changes were at the West Decker and Signal Peak Energy mines. Decker - Decker Coal company reduced production at the East Decker mine by 5.8 percent to 2,699,951 tons. Production at the West Decker mine was reduced by 86.8 percent to 228,006 tons. This is the second year of massive reduction from a production level of 6.4 million tons in 2008. Spring Creek - Near Decker, Cloud Peak Energy, Inc. increased production at its Spring Creek mine by 9.86 percent to 19,345,61 tons. 18 Montana Mining Association — Montana Mining 2011 Savage - Westmoreland Savage Corporation increased production Otter Creek - After purchasing the Otter Creek (Powder River by 4.28 percent at its lignite mine near Sidney. Production of 351,502 Basin) coal leases on 572 million tons, Arch Coal, Inc. is permitting tons was well within their normal fluctuation levels of production. 44 confirmation drill holes. The company is anticipating a full min- Coalstrip - At Colstrip, Western Energy Company increased pro- ing permit within a year, and an operating mine within the decade. duction by 18.3 percent to 11,957,340 tons. The waste coal plant Carpenter Creek - Near Melstone (Musselshell County), Maple Carpenter Creek, a subsidiary of Maple Energy, has a permit appli- production was up by 20.5 percent to 273,006 tons. Absaloka - Near Hardin, Westmoreland Resources, Inc. decreased production at its Absaloka mine by 7.5 percent to 5,467,954 tons. Signal Peak - Near Roundup (Musselshell County), Signal Peak Energy increased production from its underground coal mine by 406.3 percent to 4,388,851 tons. This change has come with the first full year of production with the new longwall in place. cation for a 300,000-ton test pit pending before state regulators. The company is anticipating a producing underground mine by 2013. They are also considering a second underground mine, known as Snider Ranch, by 2014. Bridger - Management Energy, Inc. is working on the BridgerFromberg-Bear Mountain project near Bridger (Carbon County). This project could encompass more than 56,000 acres of coal-bear- Coal Exploration ing land. In September, the company merged with Maple Carpenter Coal exploration is slowly grinding through the permitting phase of operations. Creek Holdings, Inc. and then changed its name to MMEX Mining Corporation. No additional fieldwork has been detected. ✦ Improving your world by responsibly meeting society’s needs for quality lime & stone products Graymont Western US, Inc. 4 1/2 Miles West of Townsend P.O. Box 550 Townsend, MT 59644 Phone: (406) 266-5221 Fax: (406) 266-3079 www.graymont.com www .graymont.c com www.graymont.com Digital copy available online at www.montanamining.org 19 Montanans’ mode uncovered in Chamber’s poll By Jon Bennion T he results of the 2010 Montana Chamber’s annual poll of Montana voters are in, and they reveal some interesting new political and economic trends. The Power Base (P-base) is an annual scientific of 600 Montana-likely voters 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 As you would imagine, the unemployment levels are a top concern for Montanans. 20 48 percent listed it as the top problem facing age more timber; 79 percent want more oil our state, and the next highest problem, and gas development; 73 percent want taxes, was a distant 11 percent. Montanans more coal development; and 73 percent want to get back to work, and they are look- want more mining. In fact, the support ing for businesses to provide the jobs. For comes from majorities of Republicans, their top pocketbook concern, healthcare Democrats and Independents polled on costs continue to dominate with a plurality of every industry category. 30 percent. Montanans are still pessimistic about As in prior Montana Chamber surveys, the national economy. Sixty-one percent of the P-base shows Montanans want to see voters believe the U.S.’s economy is on the more business growth, especially in high- wrong track, as opposed to 23 percent who wage businesses like the natural resource think we are on the right track. Voters industries. For example, 83 percent of believe the state’s economy is better off, Montana voters want the state to encour- with 42 percent saying we’re on the right Montana Mining Association — Montana Mining 2011 track versus 31 percent saying wrong track. Strong majorities of voters believe businesses can be trusted to make important decisions in treating workers fairly when it comes to benefits, hiring and firing employees, and protecting the environment. Only 17 percent of Montana voters support raising taxes on business, compared with 62 percent who want to see taxes decrease or stay the same. State Issues Respondents in the poll expressed strong dissatisfaction with Montana’s medical marijuana laws, with twothirds saying the laws have gone too far. A majority of voter would require the Legislature to consider the impacts to small businesses before new laws or rules are passed. And a plurality of Montanans (47 percent) believe school funding levels are currently adequate, while 38 percent would like increases. Federal Issues If the presidential election were held today, 63 percent of Montanans would prefer someone new over President Barrack Obama. Around 60 percent of respondents disapprove of the federal healthcare reform bill, with 44 percent of those folks “strongly” disapproving of the bill. In addition, a majority of voters would like Congress to reign in or stop the EPA from implementing new regulations that affect timber, mining, agriculture and energy industries in Montana. 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. Encourage lawmakers during the next legislative session to pursue common sense, pro-growth policies that will put Montanans back to work. ✦ Meeting Workforce Training Needs for the Oil & Gas Industry 3URJUDP%HQH¿WV Call today to learn more DERXWFRXUVHVFHUWLÀFDWHV and degree programs ,QGXVWU\3DUWQHUVKLSV 6FKRODUVKLSV$YDLODEOH 2QH\HDUFHUWLÀFDWHRUWZR\HDU $VVRFLDWHRI$SSOLHG6FLHQFH'HJUHH 6WDWHRIWKHDUWWUDLQLQJIDFLOLW\ &XUULFXOXPGHYHORSHGLQSDUWQHUVKLS ZLWKLQGXVWU\OHDGHUV 2QO\FROOHJHOHYHOSURJUDPIHDWXULQJ DIXQFWLRQLQJRLODQGJDVSURFHVVLQJ IDFLOLW\ 1-800-226-1181 www.wwcc.wy.edu [email protected] INDUSTRIAL EQUIPMENT, SERVICE, AND SUPPLIES • Pump Service and Repair • • Compressor Service and Repair • • Conveyor and Conveyor Accessories • • Road Dust Control • • Wear Products • Serving the Mining Industry for 65 Years 2549 Enterprise Avenue Billings, Montana 59102 Phone: (406) 655-7828 Toll Free: 1-800-568-8881 Digital copy available online at www.montanamining.org 21 Report on the 62nd Montana Legislative Session By Debbie Shea T he 62nd Montana Legislature assembled January 3, 2011 with 52 new members, just a little over one-third of the legislative body new to the process. Since statehood, the Montana legislature has been consistently split along party lines; this session found the Republican Party in control of both houses, with Governor Brian Schweitzer, a Democrat, at the helm in the executive office. As the last days closed in, state budget, medical marijuana, school budget and eminent domain proved to be a major standoff between the legislature and the executive office. Key pieces of mining legislation had great legislative support, as pro-mining activists channeled these pro-job/pro-mining bills from introduction to the governor’s desk. The main message restated as each mining bill was introduced came from a poll conducted by the Montana Chamber of Commerce. The poll confirmed Montanans agree that properly regulated natural resource development can go hand-in-hand with strong environmental protection. When asked, “Do you think state and federal government should encourage and promote these industries because of the jobs and economic benefits provided, or restrict and discourage these industries because of potential environmental impact?”, 73 percent of Montanans answered that they wanted to promote mining, and only 17 percent said they wanted to restrict or discourage mining. Legislation sponsored or supported by the MMA included: • HB 422 (Rep. Hale) allowing for third-party contractors to directly bill mining companies. It was signed into law by Governor Schweitzer. • SB 312 (Sen. Vincent) revises the permitting process in Montana’s Metal Mine Reclamation Act to provide some predictability and certainty for applicants. SB 312 requires that the applicant and the DEQ conduct considerable upfront work during the application submittal and review process, before committing to a lengthy and costly MEPA review. The applicant will be required to invest additional time and money to prepare a detailed application with complete technical data and analyses. The DEQ will be required to conduct a stringent review of the application and make a determination whether the project will indeed comply with all substantive laws and rules that govern mining. After a determination of completeness and compliance, a draft permit will be issued and will serve as the basis for MEPA review. The DEQ cannot attach stipulations or make modifications, during or after the MEPA review, without approval of the applicant, except in the case where a stipulation is required to ensure compliance with a substantive law. This legislation will also reduce the burden on DEQ to produce redundant and unnecessary MEPA documents for insignificant modifications to existing operating permits. SB 312 returns administration of MEPA to its role as a procedural law with emphasis Supporting The Mining Industry Since 1993 • Bold Innovation • Expert Knowledge • Extraordinary Results • Pre-placement Exams • Annual Physicals • DOT Exam • Drug Screening • Pulmonary Function Testing • Surveillance Exams • Workplace Safety Assessments For more information, call (406) 247-6200. Phone (406) 293-8824 22 Montana Mining Association — Montana Mining 2011 Occupational Health Working to keep you healthy. on public disclosure of what the DEQ considered when making a decision on a particular project. There are also safeguards built into the bill for the unforeseen possibility that the MEPA process reveals a deficiency in the draft permit that does not comply with the laws and rules as set forth. However, SB 312 clarifies that the application belongs to the proponent. As such, should a provision of the application not meet with the laws or rules, the applicant has the option to revise its application to ensure that the proposal is brought into compliance. Alternatively, the applicant can agree to a specific mitigation or stipulation that will bring the proposal into compliance with the law. As has always been the case, a final permit may not be issued if the permit is not in full compliance with all substantive laws (and rules) of the state of Montana. SB 312 revises the permitting process in Montana’s Metal Mine Reclamation Act to provide some predictability and certainty for applicants. The bill was approved by the Senate and the House and was signed by Governor Schweitzer. • SB 367 (Sen. Vincent) allows the Department of Environmental Quality to grant individual, general and alternative variances from numeric nutrient standards upon adoption of those standards in rule. This legislation was the product of a year's work on the part of DEQ, industry, municipalities and the environmental community. SB 367 passed out of the House and Senate with bi-partisan support, and Governor Schweitzer signed this legislation into law. • SB 306 (Sen. Murphy) served to clarify mining laws regarding cyanide heap and vat leaching of open-pit ores. SB 306 would have allowed ore to be shipped to facilities that past initiatives have lawfully permitted to use cyanide. After meeting with the DEQ and addressing, through amendments, their concerns, and with no opposition in the last hours from the DEQ, the legislation passed through the Senate and the House; but sadly, the bill was vetoed by Governor Schweitzer. • SB 233 (Keane) and SB317 (Vincent) were the two major MEPA revision bills introduced in the session. SB 233 served to clarify the purpose of the Montana Environmental Policy Act, inform the public, administration and legislature of potential impacts of a project, clarify alternatives on impact analysis and narrow the focus to Montana borders (with minor exceptions). SB 233 became the vehicle for MEPA reform. It was amended to include, from Senator Vincent’s MEPA bill (SB317), the provision that if the court finds the remedy in SB 233 invalid, the remedy from SB 317 goes into effect. The remedy in SB 233 only allows the court to remand an inadequate EIS back to the agency to be fixed, and prohibits the court from invalidating the permits. The SB 317 remedy allows the court to suspend or invalidate the permits, but makes it more difficult than current law to do so. The environmental groups, in their continued stand to oppose any changes to MEPA, said that the bill takes away the ability to have public input and private property rights. DEQ director Richard Opper weighed in, offering informational testimony and informing the House FRET Committee that neither allegation by the environmental group was true. SB 233 passed handedly out of the Senate and House and was sent to the governor. It became law without the governor's signature. The MMA legislative team included: Tammy Johnson, Doug Parker, Mark Thompson, Tim Dimock, Terry Grotbo, Fess Foster, John Schaffer, Tad Dale, Ted Antonioli, Don Serba, John Beaudry, Leo Berry, Debbie Shea, and Don Allen from the Western Environmental Trade Association. Their efforts included meetings with DEQ director Richard Opper and staff, chief business development officer Evan Barrett and Governor Brian Schweitzer. The objective was to work in partnership with all entities to ensure positive and progressive legislation for the industry, as well as the state of Montana. Many of our team members were seasoned in the legislative arena, while others were new to the process. GARDAR G. DAHL JR. 1595 Riverbend Road Superior, MT 59872 Tel: 406.822.0027 Fax: 406-822-0027 Email: [email protected] Digital copy available online at www.montanamining.org 23 Shown in the Montana House of Representatives gallery (left to right): Mark Thompson, Don Allen, Fess Foster, Tammy Johnson and Terry Grotbo. Posing before House Natural Resource Committee meeting are (left to right): Mark Thompson, Rep Alan Hale, John Schaffer, Fess Foster and Tammy Johnson. The following comments come from varied perspectives. As the 62nd legislative session winds to a close, we will have achieved some very positive victories. The association members should be proud of the work they have accomplished. A huge ‘Thank You’ is due to the many who did their part to shepherd the process along. Some served by offering the genesis of ideas for legislation, while others worked tirelessly crafting and reviewing language; some assisted with laying an important foundation at the Jobs Listening Session, while others were always willing to show up in Helena to offer important testimony or to visit with the administration and communicate with legislators. Many mine employees and supporters faithfully sent messages of support and offered the legislators much-appreciated thank-you notes. I would like to tip my hat to all who contributed. Without you, there would be no legislation, no success, and no forward progress. A sincere and hearty ‘thank you’ also goes out all the legislators who took the time to understand our concerns, issues and proposed solutions, and especially to those who pushed “the green light” for responsible reforms and clarifications. Additionally, special appreciation is due to those who carried key legislation in the Senate and the House and without whom, no idea takes flight or finds the necessary champions to achieve success in the legislative process. Primary sponsors included Senator Terry Murphy (Cardwell) – SB 306; Senator Chas Vincent (Libby) – SB 312, SB 317, SB 367; Representative Alan Hale (Basin) – HB 422; and Senator Jim Keane (Butte) – SB 233. Those who carried legislation after transmittal to the other side of the body are Representative Jerry Bennett (Libby) – SB 312, SB 367; Representative Duane Ankney (Colstrip) – SB 306; Representative Harry Klock – SB 233; and Senator Chas Vincent – HB 422. Please take time to celebrate these victories. Begin the process anew with faith and hope that responsible and necessary reforms are possible with time and energy. I am convinced the best people I know are those who come from our rural, resource-providing communities. It has been my distinct pleasure to have worked with you all. Illegitimi non carborundum! ~Tammy Johnson – Environomics, Inc. The legislative process is neither swift nor certain, but the Montana Mining Association has every reason to be very pleased with what has been accomplished thus far. The Montana mining community vigorously supported a package of legislation that was designed to improve the permitting process; limit opportunities for litigation and project injunctions; improve the accounting functions for those who perform necessary environmental analysis for a project and the regulatory agencies; address nutrient water standards; and hopefully encourage others in the mining sector to consider Montana as worthy of investment. The 2011 legislative session was my first involvement in governmental affairs. Fortunately, I had the privilege to work with some excellent people and it became a tremendous learning experience for me. The greatest lesson I learned was how organized, well funded and deep- 24 Montana Mining Association — Montana Mining 2011 rooted in the legislature our opposition is. Without the Montana Mining Association and active participation by its membership, the future for mining opportunities in Montana would be very different than it is now. I thank everybody that worked so hard and can share in the victories as well as the disappointments. ~Mark Thompson – Environmental Superintendent, Barrick Golden Sunlight Mine. This was my first involvement with actually participating in the modification of existing laws. It was quite the process, and not for the faint-of-heart. The perspective provided by various people on word changes and tweaking to ensure that the revision to the law (in this case the MMRA) met the general intent of modification was invaluable. Thanks to all who participated in this effort. ~Terry Grotbo – Consultant, AMEC. I’ve worked on the nutrient legislation and provided some support to Debbie, Tammy and the others working on the other bills. It’s amazing the amount of effort it takes to get a few lines of legislation pulled together, and how many late-night emails it takes to get everyone to agree to the wording. ~Doug Parker – Consultant, Hydrometrics. This was a very active legislative session for the MMA. We decided late last fall to mount a strong effort due to the pro-industry makeup of the legislature. A number of individuals and companies rose to the task, working for free or working on days off. I would like to thank Golden Sunlight, in particular, for all of their efforts; we would have been far less successful without them. I think this session shows what we can accomplish if we start working on legislation early, and all work together. I hope that in the future, more individuals and companies will become involved in these efforts. ~Fess Foster – Independent Consultant. I have been impressed with the level of commitment and effort that is required to make our system work – not only on the part of the legislators, but also on the part of the associations, the lobbyists and Joe Public. I have also learned that there is no such thing as a “simple change”, especially when your adversaries are so good at fear-mongering and putting out half-truths. Finally, I have learned that I never want to go into politics. ~Tim Dimock – General Manager, Barrick Golden Sunlight Mine. It was great to see the Montana Mining Association go on the offensive in seeking some important changes in the 2011 Legislative Session. Much of the success of WETA as an umbrella organization is due both to our members’ efforts on behalf of their own industries, and also that everyone then joins together on issues of common interest. The MMA’s active involvement is valuable, not only to their members, but also to other natural resource industries as well. ~Don Allen – Executive Director, WETA. A day at the Capitol pictures (left to right): Senator Terry Murphy, Bruce Vincent, Senator Chas Vincent, John Shanihan, Tammy Johnson, John Beaudry, Senator Jim Keane, Tim Dimock and Tad Dale. Like most prospectors and miners, I, too, am an optimist. The discovery of the huge Revett-hosted copper-silver deposits of Montana at Troy, Rock Creek and Montanore by geologists – and loggers – is exactly in the tradition of the pioneering prospectors of Montana. But all the effort, expense, ingenuity, and insight of discovering minerals is wasted if these discoveries are not [actually] mined. Take careful note of the word “waste”. Placing our mineral resources beyond reach is not conservation, but rather waste; just as much of a waste as leaving forests to burn or become food for pinebark beetles. Teddy Roosevelt said it best this way: "Conservation means development as much as it does protection." In Roosevelt's mind, the center principle of conservation is that we avoid waste. ~Ted Antonioli’s remarks to the mining rally in Libby, Montana. ✦ Intermountain West Energy 150 Sheep Camp Road Whitehall, MT 59759-9647 Phone: 406.287.3229 Chris Hyle Technical / Sales Representative Cell: 406.490.3059 [email protected] Digital copy available online at www.montanamining.org 25 Educating local teachers for more than a decade Minerals Education Workshop going strong in Montana Operations E very year in July, 90 miles from Yellowstone National Park, the annual Teachers’ Minerals Education Workshop takes place. This three-day event, hosted by Rio Tinto Minerals and led by Dave and Doug Scott of DST Associates, educates up to 40 local teachers about minerals and mining. The idea for the workshops began in 1996, when the U.S. Bureau of Mines was closed and Dave and Doug decided to continue educating teachers in Colorado, Washington and Montana. The exclusive partnership with Rio Tinto Minerals in Montana was formed in 1998, and has become so popular that, today, 50 percent 26 of attendance is by word-of-mouth. While most of the teachers are from southwest Montana, there have been some from as far away as southern Idaho and California. Twin brothers Dave and Doug Scott, geologists by profession, work for the federal government. From a very young age, they had a fascination with rocks (being fourthgeneration miners and rock-shop owners, this runs in their family). This passion has been carried through to the workshops they organize. Teachers who attend the workshop gain continuing education credits each summer when they participate; then they teach children between kindergarten and Grade 12 Montana Mining Association — Montana Mining 2011 what they learned in the workshops. Several teachers from the region now include field trips to the mine or milling operations as part of their rocks and minerals modules. Linda Perlinski and Patty Bartholomew, third-grade teachers in Bozeman, have been bringing their students for tours for several years running. The workshop begins in the classroom, with two days of instruction covering identification of minerals; geology; various mining methods; reclamation; reasons why we need to mine commodities; and hands-on activities that encourage learning at all levels. Day three consists of a tour of Yellow- Photos courtesy of Luzenac America, a division of Rio Tinto Minerals. stone mine, the largest talc mine in North America. The day begins with a comprehensive safety briefing held by the mine team, and teachers are fully outfitted with safety equipment. A few are selected to initiate a blast in the mine or ride in a haul truck – exciting activities that teachers later share with their students. They have a barbeque lunch with the mine crew, followed by “Talc 101”, an introduction to talc and its many applications in paper, paints, rubber, plastics, ceramics and agriculture. After a visit to the lab, they attend a debriefing session to share lessons learned, followed by one final stop to pick talc and crystal specimens to take back to the classroom. Belgrade teacher Joe Rossman has attended seven workshops and learns something new each visit. “Getting to know tools and techniques to help educate the children is the best part of the workshop,” Rossman states. Rossman also helps teach one of the modules in the two-day classroom section of the event. Dan Northway and Marsha Mellon, long-time employees at Yellowstone Mine, have been part of the workshops since their inception and both look forward to the event every year. “I love to showcase the mine and what we do here. It’s always great to see the surprise on teachers’ faces when we explain how much the world relies on talc,” Northway remarks. “I get a great sense of achievement from introducing non-technical people to mining, and proving there are great roles for women in the mining industry,” Mellon states. For more information about Montana Operations’ Minerals Education Program, please contact Pat Downey at [email protected], or Dave Scott at [email protected]. ✦ Digital copy available online at www.montanamining.org 27 Mr. Ambassador Through dedication, proven knowledge, and the occasional wisecrack, Robin McCulloch of the Montana Bureau of Mines has earned the respect and trust of the industry. By Nicole Ritter R obin McCulloch describes his typical workday as “herding cats.” As a research mining engineer and staff field agent for the Montana Bureau of Mines and Geology, McCulloch visits mining and exploration operations across Montana, helps small mines get started, coordinates information for large mines, and serves as an informal ambassador for the mining industry. He calls the position – which he has held for the past 23 years at Montana Tech in Butte – a good match for his personality. “I work with people all the way from education to reality,” he explains. “I help with feasibility and where the costs should come in, try to educate them on the most environmentally sound techniques, assist them through permitting… Basically, I do a little bit of everything you can possibly imagine – 20 or 30 things at a time.” He deadpans that the pace means he sometimes can’t wait for five o’clock to arrive – but only because it will mean the first bathroom break of the day. McCulloch’s hard work, deep knowledge and vast experience with the mining industry were just part of what led the Montana Mining Association last year to present McCulloch with the Montana Mining Association's 2010 Award of Excellence. “He is such an advocate for mining and such a knowledgeable guy,” enthuses Debbie Shea, executive director of the Montana Mining Association. “He really has his hand in things, and has a sense of where it all fits together.” Shea adds that the award signifies an exceptional level of contribution to the mining industry in Montana. “We don’t give out awards all the time,” she says. “It really is only for people who have given a lot of time and really advanced the industry.” THE C EN T ER F OR ADVANCED MINERAL AND METALLURGICAL PROCESSING “Providing High Quality Minerals, Metals & Materials Solutions to Industrial Clients Worldwide” CAMP MINERAL PROCESSING — Mineral Processing and Hydrometallurgy • Pressure Leaching • Copper Leaching, SX-EW Applications • Process Simulation and Modeling • Wastewater Remediation (As, Hg, Se, etc., Removal) Applications • Coal • Resource Recovery • Cyanide Leaching • Flotation Testing • Pyrometallurgy METALS — Precious Metal Recovery & Refining Testing • Nickel/ Cobalt Applications • Arsenic/Antimony Applications • Gold • Silver • Copper • Iron • Titanium • Zinc • Lead • Nickel • Cobalt • Uranium • Rare Earths • Platinum • Palladium • Tungsten • Arsenic • Antimony • Molybdenum ANALYTICAL — XRD/XRF/ICP/SEM-EDX • Mineral Liberation Analysis (MLA) • Metallography and Petrography • Fire Assay Analysis CAMP is located on the campus of Montana Tech of The University of Montana 1300 West Park Street • Butte, Montana 59701 Phone: (406) 496-4875 • Fax: (406) 496-4512 E-Mail: [email protected] www.camp-montanatech.net 28 Montana Mining Association — Montana Mining 2011 MATERIALS — Composites/Metals • Thermo-Mechanical Analysis • Mechanical Analysis • DMA, TGA, DSC, STA • Mechanical Analysis • Strengths and Failure Analysis • Fatigue Analysis • Image Analysis • Corrosion Analysis Gold • Silver • Copper • Iron • Titanium • Zinc • Lead • Nickel • Cobalt • Uranium • Rare Earths • Platinum • Palladium • Iron • Coal • Tungsten • Arsenic • Antimony • Molybdenum • Gallium • Selenium For his part, McCulloch says that the award left him “absolutely speechless” – joking that the award might have come sooner if the association “had only realized something like that would shut me up.” He then turns serious, adding that the award was a complete surprise. “I definitely didn’t expect it, and I am really appreciative,” he says. McCulloch’s roots in the industry – and Montana – run deep. He grew up in northwestern Montana and turned toward mining after a degree in fisheries management from North Dakota State University didn’t lead to a job in that field. He worked with the U.S. Bureau of Mines, then went back to school, ending up at the University of Idaho for another undergraduate degree, this one in mining engineering. Ultimately, he would earn a graduate degree from Montana Tech in the same subject. Before returning to Montana in 1988, he worked for 12 years in Spokane as a mining engineer with the U.S. Bureau of Mines, a position that took him into projects in pro- posed wilderness areas in six western states and gave him a broad base of knowledge for his work in the mining industry, not only in Montana but throughout the northwest. He says that the work he does at the Montana Bureau of Mines is similar to what he was doing in Spokane – but with one important distinction: “I have this horrible disease, you see,” he says with mock solemnity. “I love hunting elk, and I need to have time off in the fall to do that.” Of course, McCulloch’s vision for Montana – and especially rural Montana, where he makes his home – is far more than herds of elk. Living about 1,000 feet on a ridge above Butte, where he and his wife raise a few head of cattle, McCulloch says that he cherishes his “rural existence” but states that he wants more prospects for others there. “I’d like to see opportunities developed to bring more business into the rural parts of Montana,” he explains. “I would love to see two to three new major mines show up, and I think that there is a real vacuum in medium-sized, underground operations. I think we could bring on 20 to 40 mines in the 500- to 1,000-ton per day range, for example. 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We’ve been writing insurance in Montana for over two years now, but we’ve specialized in providing insurance protection to the mining industry since 1989. As American Mining has grown and expanded geographically, it has become the preferred provider of insurance to many within the mining and aggregates industries. Offering primarily workers’ compensation, American Mining also pro- American Mining Insurance Company's CEO Chandler Cox, Jr. (center) preparing to accompany reinsurance agents into an underground coal mine. vides general liability, 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 Corporation, American Mining Insurance Company has superior financial strength, an A. M. Best Company rating of A+ (Superior), and the TETRA TECH How can we help you? 30 Surface Water & Groundwater Management SPCC Plans Stormwater Pollution Prevention Plans Environmental Compliance Audits NEPA Compliance www.jbrenv.com Mine Closure & Reclamation Planning Supporting the Mining Industry in Montana and Around the World Soils & Groundwater Investigation & Remediation Geoprobe & Mobile Lab Services Air Quality Permitting Phase I & II ESAs Butte, MT Division JBR Environmental Consultants, Inc. Ed Handl I Division Manager Dave Lambrecht I Butte Project Manager [p] 406.723.7980 Montana Mining Association — Montana Mining 2011 Environmental Engineering Consulting Billings Bozeman Helena Missoula 406.248.9161 406.582.8780 406.443.5210 406.543.3045 ability to grow and expand into additional states. That expansion includes significant growth in the Western United States, including Montana. We’ve recently opened a claims office in Nevada, and continue to work to provide excellent support throughout the U.S. American Mining’s leadership has a longterm 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, each have nearly 30 years of experience in the insurance industry and co-founded American Mining in 1989. American Mining has added substantially to our senior management since becoming part of the W. R. Berkley Corporation, significantly increasing our already extensive experience in both the insurance and mining industries. This expertise continues to extend throughout the company. Many employees have been with American Mining since 1989, while others have been in the insur- ance industry for decades. Still others have experience with both mining and insurance, having worked in the mining industry before joining American Mining. As well, many employees have taken mine tours to better understand the complex world of both surface and underground mining. work 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, American Mining Insurance Company distributes insurance products through a net- “insurance from people who know mining” vice president of marketing at 800.448.5621, ext. 249 to learn more. ✦ Does Your Current Insurance Company Understand YOUR Needs? Fast and Fair Claims SerÛViÊUÊExcellent Customer Service Extensive Industry KnoÜi`}iÊUÊ°°ÊBest A+ Superior Rating Serving the Mining Industry for over 20 years For more information, contact your local Independent Insurance Agent or call 1.800.448.5621, x 249. WE DO! WWW.AMERICANMINING.COM Digital copy available online at www.montanamining.org 31 Kendall: past, present and future O ver 100 years ago, gold mining began in the mineral-rich hills outside Lewistown, Montana, in an area known as the Kendall Mining District. For more than 40 years, mining activity flourished in this district with a fervor similar to many of the Old West’s mining camps. The Kendall District, located in the North Moccasin Mountains, produced 450,000 ounces of gold between 1900 through 1942 from ores averaging 0.20 ounces of gold per ton. Named after Harry T. Kendall, a prospector and mining innovator, the district was the site of furious activity at the end of the 19th century. The town of Kendall, first formed in 1900, quickly grew into a booming mining camp with a population of 1,400 by 1910. Nestled in a sloping valley between two mountain ridges leading up to the mining district, Kendall boasted a 23-bedroom hotel, two churches, a blacksmith’s shop, Jones’ Opera House, general and drug stores, cafes, and of course, several saloons and the occasional “sporting house”. The miners participated in “double jack” drilling contests, and on weekends, members of the Knights of Pythias Band serenaded the community from a bandstand that still remains. By 1912, miners began to encounter ores that were increasingly difficult from which to extract gold, and as a consequence, mining MDM Dale Person Sales Representative Kendall today: the original bandstand visible in the distance. activity began to fade. By the early 1920s, the once prosperous community had dwindled to just a few inhabitants. Devastating fires swept through the now largely abandoned town, reducing most of the wooden structures to ashes and leaving only stone foundations in their wake. Today, these foundations, the old bandstand, and the graves of miners and their families are the only remains of the once picturesque and thriving community. With rising gold prices and the advent of modern mining and mineral processing techniques, mining the Kendall District revived in the early 1980s and continued until near-surface ores were Moore Oil, Inc. Wholesale Distributing Moore Transportation, Inc. S U P P L Y Bulk Fuel Transport A Montana Company Res: (406) 227-5674 Cell: 1-439-0169 [email protected] MDM Supply Company 2609 Bozeman Avenue Helena, MT 59601 Phone: (406) 443-4012 Fax: (406) 442-4536 1-800-697-0005 “Wholesale Distributors of Plumbing, Heating, Pipe, Valves and Fittings” 32 Montana Mining Association — Montana Mining 2011 Bary Moore P.O. Box 1057 2718 Tradewinds Way Thompson Falls, MT 59873 (406) 827-4314 FAX: (406) 827-4791 Town of Kendall, circa 1910. exhausted in 1995. During this time, the Kendall Mine, operated by CR Kendall Corporation, produced 50,000 to 55,000 ounces of gold per year, for a total production of approximately 330,000 ounces. Reclamation of the site, including clean up of historic mine tailings, has proceeded since that time. In November of 2010, CR Kendall Corporation, now a subsidiary of Atna Resources, Ltd., completed the transfer of approximately 58 acres of land containing a large portion of the old Kendall town site to the Montana Council of the Boy Scouts of America. The Montana Council owns the adjacent property on which it operates the K-M Scout Ranch. Of the transfer, Jim Volberding, manager of Montana Operations for Atna Resources, said, “This donation stems from CR Kendall’s desire that the Boy Scouts have this property for use with their camp, and his desire to preserve this historically significant site for future generations of Montanans.” “The Montana Council now owns this entire historic site, and will preserve and protect it while allowing public access for future generations to study and enjoy,” stated Ray Wahlert, president of the Montana Council, while accepting the property. With the transfer, the K-M Scout Ranch became the only Boy Scout Camp in the nation to own a ghost town. Through the years, a campout has been conducted at the old town site. Those Scouts who stay the entire night unscathed earn the honor of wearing the “Ghost Badge”. ✦ Jim Volberding (right) presents a photo of Kendall during its heyday to Ray Wahlert, Montana Council of the Boy Scouts of America. Thiessen TEAM Rock Solid Solutions SHOTCRETE • SHOTCRETE SERVICES • ROCK BREAKERS VENT TUBING • CELLULAR CONCRETE SHOTCRETE & GROUT PLANTS Anaconda Foundry Fabrication Company, Inc. For all your mining needs WDTG]EVDC_B F\V^C_C_BC_]GEFDATDTVDV[DE# Phone: 406-563-8496 Fax: 406-563-3368 Contact Vince Mendive | Phone (406) 321-0335 or Toll Free 1-866-777-1205 Jim Liebetrau 425-210-3653 Ron Vetter 406-560-8496 | Don Clark 406-560-2797 www.thiessenteam.com Digital copy available online at www.montanamining.org 33 Taking ownership of safety F or the workers at Revett Mineral’s Troy mine, safety is a passion. The vast majority of workers at Troy moved into the world of mining when their northwest Montana timber jobs were lost. Training in the art and science of safe mineral production is a huge part of each miner’s introduction to the world of mining underground. In “the good old days”, mining’s reputation as a dangerous occupation was rightfully earned. One hundred years ago, over 2,500 miners being killed per year was considered “normal". After December 1907 – the deadliest month in American mining history, with over 700 fatalities across the nation – the culture of mining and the issue of mine safety became the subject of a national debate. Starting with the 1910 formation of the federal Bureau of Mines, the role of safety in the miner’s workplace began to evolve. The 1952 Coal Mine Safety Act and 1969’s Coal Mine Health and Safety Act were precursors to the all-encompassing Mine Safety and Health Act of 1977. Modern miners – both coal and hard rock – are served well by the lessons learned over the last century. While the occupation can still be regarded as dangerous, the goal to have each and every miner return home safely, each and every day, moves ever closer to a reality. 2009 was the safest year on record for mining, with 16 fatalities in metal and non-metal mines and 18 in coal mines. In 2010, the latest year of records, mining fatalities nationwide increased to 23 in metal and non-metal mines and 48 in coal mines. Clearly, there is more work that can, and should, be done concerning mining safety. Ernest K. Lehmann & Associates of Montana, Inc. Mineral exploration Deposit development Consulting to the mineral industry Contact Ernest Lehmann at: JHRPLQH#DWWQHW 34 Montana Mining Association — Montana Mining 2011 Recognition of the need to improve should not, however, diminish the decades of incredible work that has been accomplished in mine safety. Today, most Americans would be surprised to learn that decades of diligent focus on safety has produced a coal, metal and non-metal mining industry that is not even in the top ten “most dangerous” occupations. In fact, fisherman, loggers, airline pilots, farmers and ranchers, roofers, ironworkers, sanitation workers, industrial machinists, truckers and drivers/sales workers and construction workers are consistently more dangerous occupations than mining. Safety is paramount at Revett’s Troy Mine, and individual responsibility is coupled with teamwork to assure that safety makes it out of the training room and into decision making on the job. Revett’s management assisted in the formation of a worker-elected safety committee in 2007. “We wanted to ensure that the worker’s voice in safety had a clear and open pathway throughout our corporate structure,” says Doug Miller, general manager at Troy. Six workers and three alternates are elected to be members of “The Safety Committee” to represent each of the mine areas, including the mine, the mill and equipment maintenance. “The committee is responsible for ongoing communication between the workforce, the safety team of the mine and the mine’s management,” says Kevin Goe, a committee member, adding that “Anonymous reporting of safety questions and concerns are handled through the committee.” Committeeman Chris Johnson says, “Our committee works with the safety managers to ensure that day-to-day issues are dealt with and that worker needs concerning training and equipment are met. We also participate in safety audits, and work with management in resolving MSHA citations.” The workforce knows that they are supported in their efforts by the company at all levels. In fact, Revett Minerals’ president and CEO, John Shanahan, has given his phone number to each and every worker at the mine. “All of us have John’s number with the understanding that if a worker wants to discuss a safety issue or any other matter, they know they can phone John,” explains Mike Roby, a safety committee member. In early 2009, during the darkest days of collapsing copper prices and rocky economic times for the mine, a worker in Troy called his CEO in the middle of the night with a concern. Mining in Sanders County, Montana, circa 1908 Photo: Northwest Museum of Arts & Culture Times have changed. So has mining. Montana has made a lot of progress over the last 100 years. Mining has progressed, too. In the old days, miners focused solely on recovering valuable ore and metals. In fact, the state motto is “Gold and Silver” and Montana is known as “The Treasure State.” But this historical single-minded approach is no longer acceptable to society or modern mining companies. Today, the old ways are gone, replaced by modern technology, science, and environmental protection. Modern mining projects are closely monitored by regulators and comply with thousands of pages of federal, state, and local regulations to ensure that the environment is protected. In addition, mining geologists and engineers utilize advances in science and technology that were unknown in the old days. Key among those improvements is our ability to protect water quality. Today’s mining projects are designed with multiple layers of environmental protections that must be approved before a single spade of dirt is turned. For example, all of the water at The Rock Creek Project – whether natural ground water, processing water, or rainwater that has fallen on the tailing facility collected through an under drain system – will go through a dual water treatment process to ensure that it exceeds drinking water standards. In addition, we will protect water quality by ensuring that the tailing created by processing the quartzite ore – actually just beach sand – remains within the designated storage area to be covered and landscaped to mirror the surrounding habitat both concurrently and at the conclusion of the Rock Creek Project. To guarantee that this protection extends long after projects are completed, modern mines fund multimillion dollar bonds set by Montana’s Department of Environmental Quality and the U.S. Forest Service. A lot has changed over the years, but one thing hasn’t changed: mining provides good paying jobs. For example, The Rock Creek Project will provide 300 jobs paying $50,000 a year, and over its life, Rock Creek will contribute $400 million in salaries, $50 million in tax revenue, and $200 million in revenue for local businesses. Mining helped build Montana in the past. With care and commitment, it can help build Montana’s future. For more information, call 866-921-2294 “After the mine was shut down for four To broaden the base of safety resources and expertise. Revett has also ongoing rela- long days, the concern was answered as a and response potential, Troy’s managers tionships with local volunteer ambulance result of a thorough review, and education of long ago forged civic and industry partner- and search and rescue services, as well as the miner, and thankfully it was not a real ships. For instance, Revett’s mine rescue local hospital and emergency services. safety issue,” Roby states. “We acquired proof team is a member of Central Mine Rescue, an Revett workers have also found that that management’s dedication to safety is as organization through which inland north- their voice is important in the national dis- deep as our own,” he adds. west mines share rescue training exercises cussion of mine safety. When California’s BISON ENGINEERING Always Looking Out For You! GHG - PM2.5 Your Montana Air Quality Experts Permitting • Testing • Monitoring Located in Helena - Billings 406-442-5768 www.bison-eng.com 36 Montana Mining Association — Montana Mining 2011 Representative George Miller used an aging MSHA report to denigrate the safety of the Revett operation in Troy, the workers took the slight personally. In the summer of 2010 Rep. Miller, then-Chairman of the powerful House Subcommittee on Education and Labor, proposed legislation that seemed to do little to assist in preventative actions on the job, and the miners took offense. In response, the Revett Worker Safety Committee initiated communication with Representative Miller. “We thanked him for his concern about miners’ safety, and invited him to discuss safety with those of us most impacted by the discussion and his proposed legislation – the miners,” recalls committee member Don Wallace. “We also asked that the representative assist us in building a healthy relationship with the MSHA, so that we could work as a team with a common goal of safety, rather than forge antagonistic postures that do nothing for worker safety,” explains Robert Garcia, another committee member. The committee and worker voices from Troy were shared with Governor Schweitzer, senators Baucus and Tester, Representative Rehberg and President Obama. The worker’s voice had a significant impact. Rep. Rehberg met with the safety committee and hand-delivered workforce letters to Miller. Prior to offering his bill in the House, Representative Miller stripped hard-rock mining issues from the legislation and the safety committee wrote the chairman and thanked him for his consideration. When a similar bill was introduced in the Senate, the safety committee met with Senator Tester and received praise for their efforts, along with a promise from the Senator to relay their voices in the discussion of the (ultimately stalled) senate bill. Revett’s Troy workforce and their elected safety committee members are proud of what they have accomplished. They are also aware that a commitment to safety means there can never be an end to “doing more and doing better.” A fatality suffered several years ago still serves as a reminder of the need for this ongoing commitment. “We know that success depends upon individual dedication to being a safe worker, and being a safe partner for fellow workers,” Goe states. “We pride ourselves in working on safety like we own it,” he explains. Tim Lindsey, Chairman of Revett Minerals, Inc. sums up the issue succinctly. Lindsey was raised in the Troy area, and loves both the environment and the culture of northwest Montana. When discussing Revett Minerals and the Troy Mine with Lindsey, it is clear he understands the value of the ore body in Troy and the need to care for the environment while accessing that ore body. Lindsey flatly states that, “We must make a profit to operate – but the most important resource in and on the mountains we love are the people who go to work every day with us and who comprise the family we call Revett.” “Our most important goal is to ensure that each member of our work family is delivered safely to their family at the end of every shift,” Lindsey states. ✦ Maximizing Performance Nordberg MP Series Cone Crushers With field-proven technology in demanding mining operations, the MP800 and MP1000 provide higher productivity and efficiency: • Adaptability – operates at various speeds and cavity combinations • Reliability – hydraulic cavity clearing and setting adjustments minimize downtime • Simplicity – push-button disassembly for routine maintenance Call Westate Machinery today for more information www.metsominerals.com • Uniformity – rotating bowl compensates for uneven feed rates P.O. Box 50370 • Billings, MT 59105 1-800-999-6676 www.westate.com Digital copy available online at www.montanamining.org 37 Geology (and mining) rocks! The Montana Bureau of Mines and Geology By Susan Barth, Editor, MBMG What is the MBMG? The first time you hear about the Montana Bureau of Mines and Geology ("the Bureau", or the MBMG), it might sound like just another government agency, working away on obscure projects. False! The work of MBMG scientists and staff directly affects you: your everyday life, your safety – and particularly, your industry. The information and support we provide have assisted thousands of miners and mining, construction and energy companies to find and extract Montana's resources, safely and effectively. When you add the information delivered to private citizens and various agencies, it’s a monumental pile of data. When the MBMG was established by the Legislature in 1919, as a public service and research agency, we were given a mission: to conduct and publish investigations of Montana geology, including mineral and fuel 38 resources, geologic mapping, and groundwater quality and quantity. We don't have any regulatory power – we simply provide unbiased scientific information and support. Over the years, our programs have expanded as groundwater and resource issues have become critical in many areas of Montana. We currently have approximately 60 full-time staff at our offices in Butte and Billings. But What Do You Do? Lots – our scientists travel all over Montana performing investigations on groundwater, geology, energy, and mineral resources. Our network of 38 seismic stations provides information on earthquakes in Montana and neighboring states – and is the only source of seismic information in Montana! We cover natural resources pretty well, but the programs below probably affect the min- Montana Mining Association — Montana Mining 2011 ing industry the most. Geology and Mapping - Geology is in our name, and it's fundamental to what we do. Since the 1980s, we have mapped 77 percent of Montana at the 1:100,000 scale, and all of these maps are available digitally to the public at no cost. More detailed maps are available for selected areas. We also publicly release geologic maps produced in Montana by university students. But what are all those maps used for? The first uses that generally come to mind are in locating mineral deposits and finding reserves of coal and other fossil fuels. But geologic maps serve as the “road map” for any geological investigation, from evaluating the potential for geologic hazards such as earthquakes, unstable slopes, or materials prone to shrinking and swelling that result in foundation damage; engineering applications, such as location and platting of roads and waste-disposal and power facilities; or groundwater investigations, which may range from locating an individual well to evaluating an aquifer for water resources or pollution. Residual soils are directly derived from the underlying rocks, so the implications of geologic maps to agriculture are immense. Scientists in non-geological fields commonly find that geologic maps have answers to questions on topics from variations in forest vegetation to fish habitats; and the list goes on. Mining Assistance Program - The MBMG program that is most visible and has the most direct impact to the mining industry is the Mining Assistance program, administered by our mining engineer, Robin McCulloch – you probably know about that one already! Through this program, we: • assist companies and individuals in finding information on properties, contacts, exploration targets, consultants, and occasionally employees; • aid all of the players in permitting, from the agencies to individual miners; Robin McCulloch speaking to a group at Indian Creek. • help in designing exploration, mining, and reclamation plans for smaller projects; • provide archival data on mines and exploration from our dynamic collection; • gather mineral statistics and answers questions for industry, individuals, and state and federal agencies; • gather field data on various properties and deposits while we assist with projects on-site; and • perform basic metallurgical research on free-milling metallic deposits. Our data are shared through publications, numerous talks, and personal field visits. In 2010, Robin was recognized for his contribu- Holland & Hart has provided comprehensive representation for the mining industry for more than 60 years. Q Q Q Q Q Q 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 Q Q Q Q Q Q Access, surface/mineral owner, and royalty dispute resolution Environmental, public lands, and NEPA issues Litigation and arbitration Corporate compliance Governmental investigations Indian law Larry W. Petersen [email protected] William W. Mercer [email protected] Charles W. Hingle [email protected] 401 North 31st Street, Suite 1500, Billings, MT 59101 (406) 252-2166 www.hollandhart.com Digital copy available online at www.montanamining.org 39 Geologists working in the field. tions to the mining industry with the Award of Excellence from the Montana Mining Association. Energy Resources - MBMG staff deal with many types of energy resource issues, including oil and gas, coal, coalbed methane, and geothermal energy. We are currently working on: • mapping deep coal (underground coal gasification) – at least 60 percent of Montana’s vast coal resources lie more than 500 feet below the surface; • identifying geologic sites that might provide permanent storage and use of CO2 to reduce greenhouse gases; • providing geologic data, maps, and other information to industry, legislators, and the public for oil, gas, and coalbed-methane studies; • monitoring springs and wells within and near areas of coalbedmethane development, to evaluate impacts on Montana’s water; and • working with the U.S. Department of Energy in a national effort to compile Montana’s geothermal data and use oil-well logs to map subsurface temperatures in eastern Montana. Groundwater Issues - The MBMG has two major programs that deal with groundwater issues across Montana: the Ground Water Assessment Program (GWAP) and the Ground Water Investigation Program (GWIP). The GWAP is designated as a regional assessment of Montana’s major aquifers, including a statewide monitoring network, whereas the GWIP focuses on more limited areas where specific groundwater issues, usually contentious, have been identified. GWIP work is particularly relevant to the mining industry, as it investigates issues that affect water rights and availability. Mineral Resources When mineral resources are mentioned, usually metallic deposits come to mind. In spite of the current slowdown in the housing market, recently the demand for sand and gravel has grown. Conflicts between gravel companies and residents have increased, because both usually reside in the same area of the valley. HB 486, passed by the 61st Montana Legislature, amended MCA 6-1-601 to include “sand 40 Montana Mining Association — Montana Mining 2011 and gravel resources” in growth policies that will be written and established by individual counties in Montana. SB 297 established a sand and gravel mapping program in the MBMG, and directs us to evaluate and report on sand and gravel resources in Montana. The new program is intended to provide a greatly needed uniform set of information for state agencies, individual counties, and sand and gravel operators. Permitting, planning, and resource evaluations should be greatly enhanced by this effort. (Note: no funding was attached to the bill for actually doing the work, so this is moving slowly.) The MBMG also has a continuing program of research into mineral commodities that are being mined or have the potential to be mined in Montana. In recent years, the results of investigations on barite, talc, chlorite, vermiculite, and zeolites have been released. Research is also focused on metallic districts and gold placers. Curiously, Montana has been the leading producer of sapphires for many years in the U.S. – known deposits have produced more than 50 tons of sapphires. Yet except for the famous Yogo deposit, little was known of the origin of these deposits. Dick Berg’s research has revealed that these sapphires probably were transported to the surface in volcanic rocks before being concentrated in gravel deposits. So How Do I Get Hold of All This research? The MBMG distributes most of our data through our website, http://www.mbmg.mtech.edu/. Much of it is downloadable for free, or available at a minimal cost. In the past year, alone, we sold over 1,000 different reports, more than 5,500 copies, through our website and sales office. In that same time frame, nearly 127,000 reports or maps were downloaded. You can stop in and visit us at our new home, the Natural Resources Building on the west side of Montana Tech’s campus, or at our Billings office, located on the MSU-Billings campus at 1300 N. 27th Street. We are always happy to assist with questions or information. Or please feel free to call at 406-496-4180, or email us at [email protected]. ✦ Successful mining starts with successful exploration G olden Sunlight’s exploration program is simple: deliver resources and reserves in a safe and environmentally responsible manner. With over a century of mining in the district, there is still a golden opportunity for exploration and discovery at the mine site. Although Golden Sunlight’s mill has been shut down for 18 months while overburden was removed from above the Mineral Hill ore, gold production has recently resumed with ore from the small satellite pit called the East Area Pit. GSM’s current exploration program aims at bringing more of these satellite resources into reserve and production before the current Mineral Hill reserve is exhausted. Although the window for exploration, feasibility analysis, and per- Building & Operating America’s Underground Mines For more information visit our website at www.undergroundmining.com or call 775-635-2095 42 Montana Mining Association — Montana Mining 2011 mitting is short, Golden Sunlight believes that with careful planning it will be successful at extending its mine life and maintaining safe responsible employment for more than 250 employees and contractors beyond its current 2015 mine life. Safety is ‘Job One’ At the core of Golden Sunlight’s exploration program is safety. The mine considers that “No job should be done if it isn’t safe – None”. Starting with Barrick leadership right through the Golden Sunlight’s site leadership, employees, and contractors, safety is the responsibility of each and every employee and contractor at the site. Environmental Commitment Golden Sunlight’s commitment to managing its impact on the environment and community begins with its exploration program. Every drill site is evaluated for potential environmental impacts from the drilling process and steps are taken to mitigate those impacts, whether it is providing water to eliminate dust or establishing sumps and erosion control to mitigate the impacts of drilling fluids. Golden Sunlight is also aware that its $3-million dollar exploration program has significant potential to help ensure that the benefits of our activities at GSM are realized in the local communities. Consequently, a concerted effort is made to obtain local contractors and supplies. Brenntag Pacific, Inc. 7535 Mossmain Lane, Billings, MT 59106 J. Mark Redfern Telephone: (406) 628-3640 | Fax: (406) 628-2072 Cell Phone: (406) 671-4105 | Email: [email protected] “Chemicals for the Mining Industry” Geologic and Mining Picture Golden Sunlight (named after the Golden and Sunlight mines) has seen operations since 1890. Through the 20th century, early highgrade miners tapped into gold ores throughout the district. In the 1940s, a large deposit of low-grade ore (called breccia) was recognized. In the 1980s, the modern Golden Sunlight mine started production and has been operating continuously ever since, providing employment opportunities and revenue for the local community for 30 years. However, mining of the main ore body is currently scheduled to end in the fourth quarter of 2012, with ore being provided from stockpiles until 2015. To extend the mine life beyond 2015, an aggressive exploration program is in progress. This year, $3 million will be used to explore nearby "satellite" deposits. These satellite pitsare planned on the south edge and just northeast of the main Mineral Hill pit. The objective is to develop and permit these areas for mining by 2013. If these deposits can be mined successfully, GSM will also gain the time it needs to explore for larger targets that could further extend the mine life. In addition to these surface mining areas, GSM is investigating a third phase of underground mining of the remaining Mineral Hill resource. Additionally, Golden Sunlight has actively pursued purchasing of outside ores from nearby underground mining and tailings reclaim projects in order to help sustain its milling operations; GSM is currently contracted to purchase ores from a number of local sources. This process not only helps to extend the profitable mill life of GSM, but also helps to stimulate entrepreneurial development and reclamation of resources and abandoned mine tails that would otherwise lie dormant underground or remain in uncontained facilities on the surface. short period, in order for GSM to successfully extend its profitable mine life, it has been working hard with both the Montana Mining Association and Western Environmental Trade Association to establish some new laws that may help to streamline both its ability to permit projects in a timely manner and to purchase and process ores from outside sources. The Golden Sunlight has been in operation for some 30 years, struggling through a decade of low gold prices and a challenging regulatory climate. However, the employees of GSM have a high degree of ownership in their mine and they are survivors. They have been working diligently to take advantage of the current positive markets to continue the safe, profitable, and socially responsible operation of GSM into the future. Golden Sunlight believes that successful exploration will pave the way for new gold discoveries and continued mine operations. Golden Sunlight hopes to make a “golden” future for generations to come. ✦ We Could Use Some Help! Given the large amount of permitting that will be required over a Ezzie’s Wholesale, Inc. Lawrence R. “Lary” Poulton Bus. Ph. (406) 654-2331 Cell Ph. (406) 390-8056 • Diesel Fuels • Propane • Motor Oils • Gasoline • Bulk Oil WATS 800-892-6874, FAX 406-654-2887 Box 1770, Malta, MT 59538 Digital copy available online at www.montanamining.org 43 A trusted authority for both private industry and public agencies (Left to right) Terry Grotbo, Bruce Gilbert and Doug Parker swap mining stories at the Montana Mining Association’s 2010 Annual Meeting at Fairmont Hot Springs. Doug Parker helps research proposals and has assisted dozens of clients in the permitting process By Laura Tode I t would be hard to find a mining operation in Montana that hasn’t tapped the expertise of Hydrometrics Inc. Whether it’s in the early stages of permitting for a startup or the monitoring of a long-retired facility, the consultants at Hydrometrics have been moving Montana mining forward for the past three decades. Hydrometrics is headquartered in Helena, and serves the region with offices in Billings, Missoula, Kalispell, Whitefish, Colstrip and Coeur d’Alene, Idaho. at Meetings “Just For Gre Add Water ” Banquet, Meeting and Convention Facilities *Meeting Space for up to 400 *153 Guest Rooms and Suites *Group and Corporate Rates *Four Hot Springs Pools *Five Story Enclosed Waterslide *18-hole Golf Course *Miniature Golf *Massage and Spa *Casual and Fine Dining Visit V isit us at www www.fairmontmontana.com .fairm montmontana.com or call 1.800.332.3272 1..800.332.3272 * I-90 Exit 211, 211, 15 miles west of Butte, Montana Mo ontana 44 Montana Mining Association — Montana Mining 2011 While the company’s name might allude to a focus on water, the 40 employees at Hydrometrics are a mix of environmental scientists and engineers. With a strong emphasis on teamwork, company expertise includes civil, environmental and geotechnical engineering, hydrology and hydrogeology, chemistry, biology, data management and computer science. The company’s mission is to provide cost-effective and practical scientific and engineering services to clients. “Our role is a supporting role,” says company vice president Doug Parker. “We provide services that a company might not have the expertise or resources to provide itself.” With an interest in mining and degrees in geology and environmental sciences, Parker’s work centers on soil science and hydrology. Parker, who was among the founding partners of Hydrometrics, has helped research numerous proposals and has assisted dozens of clients in the permitting process. On water issues, Parker has become a trusted authority for both private industry and public agencies, says Don Allen, executive director of the Western Environmental Trade Association. “His vast knowledge of water issues, at both the state and federal levels, enables him to provide valuable responses to pro- While the company’s name might allude to a focus on water, the 40 employees at Hydrometrics are a mix of environmental scientists and engineers. Stream flow measurement. posed rules and legislation,” Allen added. This past year, Parker helped to coordinate Montana mining’s interest in a proposed state law that establishes numeric water quality standards for nutrients such as nitrogen and phosphorus. Senate Bill 367 easily passed through the 2011 State Legislature and the proposed standards are expected to be adopted by the Montana Environmental Protection Agency. The regulation includes a variance process for water discharge permits with regard to nutrients, Parker explains. Variances will be available for mining operations and other industry players for 20 years, which will give present water treatment technology the chance to catch up with the new standards. Dave Galt, executive director of the Montana Petroleum Association, sat on the legislative work group with Parker and states, “He’s the guy you want in your camp when you’re working on this stuff. He’s extremely capable on the technical side, and he recognizes the political side as well.” In addition to his public service work, Parker and Hydrometrics assisted with several projects across the state. In 2010, Hydrometrics continued to offer its water quality monitoring expertise to operators in Montana, including the Montana Tunnels Mine, Troy Mine, Barrett’s Minerals and Stillwater Mining Company. Work also included consulting for remediation at the East Helena smelter site, Mike Horse Mine site and several abandoned coal mines east of Great Falls. Additionally, Hydrometrics helped with permitting for the Revett Rock Creek property and began closure work for the Kendall mine property north of Lewistown. ✦ Stream flow monitoring by a mountain stream. Wilderness dam reconstruction with mules and muscle power. Hydrometrics, Inc. Consulting Scientists and Engineers Founded in 1979, Hydrometrics provides an expansive range of science and engineering services. We have serviced many projects, large and small, for the mining and smelting industries, ranging from the Arctic Circle to South America. For more information, contact: Billings, MT - Al Hilty, P.G. (406) 656-1172 [email protected] Helena, MT - Mike Wignot, P.E. (406) 443-4150 [email protected] Missoula, MT - Doug Parker, P.G. (406) 721-8243 [email protected] Mine Permitting Reclamation Plans Baseline Investigations Operating Plans Acid Drainage Control Stormwater and Sediment Control Abandoned Mine Reclamation Water Supply Development Wastewater Treatment and Disposal Property Audits Wetland Delineation Digital copy available online at www.montanamining.org 45 Stillwater Mining Company advances growth and diversification goals for sustainable development S tillwater Mining Company has plans to proceed with two mine resource delineation and development projects along the Stillwater Complex: the Graham Creek Project, immediately to the west of the company's East Boulder Mine, and the Blitz Project, immediately to the east of the company's Stillwater Mine. Both projects lie within the boundaries of existing mining permits, and each would initially be serviced from existing mine infrastructure. Based on indications from historical surface delineation drilling in these areas, both proposed projects are viewed by the Stillwater as having a high 46 probability of ultimately adding significantly to the company's probable PGM reserves. Over the next several years, the Graham Creek project aims to extend development of the East Boulder Mine ore resource about 7,900 feet further to the west. East Boulder Mine's tunnel boring machine (TBM), which was used about a decade ago to develop initial access to the JM Reef and then the west footwall lateral access paralleling the mineralized JM reef, has recently been recommissioned for this new project. Initial work will assess the continuity and structural controls related to the JM Reef in Montana Mining Association — Montana Mining 2011 this area on the far western end of the Stillwater Complex. Based upon historical surface drilling and production experience to date at East Boulder, the project potentially could develop over time up to six million additional tons of ore grading on the order of 0.41 in-situ ounces per ton. Once the initial development is completed, any future mining in this area would require adding ventilation raises and additional infrastructure prior to beginning ore production. Costs to complete the TBM development drive and assess the PGM resource for the Graham Creek area are projected at about $8 million over the next five years. The project is expected to yield information on the Graham Creek resource as diamond drilling work is completed behind the TBM drive. The Blitz project at the Stillwater Mine is designed to explore and define the PGM resource along the far eastern extent of the JM Reef. It will extend some 13,500 feet to the east of the existing Stillwater Mine, via two conventionally driven footwall laterals from the 5,000 and 5,600 levels. Diamond drilling and geologic evaluation will be concurrent with footwall lateral advance on both levels. Once the Blitz assessment project is completed, additional development will require excavating new ventilation raises to support bulk sampling, final pre-production development and eventual ore production. Based upon production experience to date and historical surface drilling, Stillwater believes the project has the potential over time to define up to 9.5 million additional tons of resource grading on the order of 0.71 ounces per ton. The project will begin to yield resource results within its first couple of years. Initial development and resource evaluation costs for the Blitz area are expected to total about $60 million, to be spent over the next five or six years. These two projects, coupled with the recent acquisition of the Marathon PGM/Copper project in Canada and the new recycling facilities commissioned in 2010, provide a robust growth profile for Stillwater over the next few years. The delineation and development projects in Montana fit well with the company's acqui- only united states producer 1321 Discovery Drive Billings, MT 59102 406.373.8700 Tel. | 406.373.8701 Fax www.stillwatermining.com Digital copy available online at www.montanamining.org 47 sition of the Marathon PGM/Copper project, located near the town of Marathon, Ontario, Canada, at the north end of Lake Superior. Completion of planned permitting and development efforts at Marathon is expected to take about three years. The Marathon project not only brings Stillwater a financially attractive growth opportunity, but it also advances the company’s diversification efforts on several fronts. With most of the world's PGM production coming from Russia and South Africa, Stillwater views the acquisition of a Canadian PGM property as offering the company operating and geographic diversity within another very stable political environment. While the Marathon project certainly falls within 48 Montana Mining Association — Montana Mining 2011 Stillwater’s core focus of palladium and platinum, it also offers involvement in the copper market, which has strong fundamentals of its own at this time and is an area where Stillwater’s management group has substantial experience. The PGM cost structure of the Marathon project, with the potential for copper credits, at recent metal prices would reduce Stillwater’s average corporate PGM cash cost per ounce. The Marathon project is expected to increase Stillwater's annual platinum and palladium production by approximately 40 percent within three years. Based on PGM and copper prices as of September 3, 2010, the transaction was immediately accretive on a net asset value per share and reserve per share basis, and is expected to be highly accretive to Stillwater's cash flow once the Marathon PGM/Copper Project begins production, which as noted is planned to occur within three years. Stillwater intends to fund the development of the Marathon PGM/Copper Project with current cash balances and future free cash flow, but may seek long-term financing if conditions and opportunities so warrant. The Marathon PGM/Copper Project reserves are situated on one of Canada's largest PGM-Cu resources, which Stillwater believes hold significant potential for further growth in reserves and future production. Along with the Marathon project, the company also acquired from Marathon PGM Corporation the Geordie Lake property, a promising, partially explored PGM prospect about eight kilometers to the west of Marathon, along with an interest in an exploration property in Manitoba known as Bird River. Following the completion of the Marathon transaction, Stillwater also acquired other exploration properties between Marathon and Geordie Lake from Benton Resources Corp. To facilitate exploration of all these properties, Stillwater recently organized a dedicated exploration team comprised of geologists from the company’s own operations and from Marathon. Stillwater expects to spend between $4 and $5 million in 2011 on exploring these Canadian properties and conceivably others. Stillwater Mining Company is the only U.S. producer of palladium and platinum, and is the largest primary producer of platinum group metals outside of South Africa and the Russian Federation. Stillwater's shares are traded on the New York Stock Exchange under the symbol SWC. Information on Stillwater Mining can be found by visiting the website: www.stillwatermining.com. ✦ Digital copy available online at www.montanamining.org 49 Ash Grove Cement’s Montana City Plant anticipates business for many years to come Ash Grove’s Montana City quarry. A sh Grove Cement’s Montana City Plant and quarries are located in and around the Montana City area in Northern Jefferson County, a few miles South of Helena MT. The facility quarries limestone, shale, and silica on-site, and combines them with an iron source to manufacture Portland cement. The plant, built in 1963 by the Kaiser Cement Corporation, was constructed to supply cement for the Yellowtail and Hungry Horse Dam project, as well as to meet the expanding need for concrete in Montana and the Northwest. In 1987, the facility was bought by Ash Grove Cement, a familyowned business out of Overland Park, Kansas, during the company’s expansion into the western United States. Ash Grove currently manufactures cement at nine locations in the West and Midwest and is the largest U.S.-owned cement manufacturer. Limestone is the major ingredient in the process with silica a distant second. The process takes the calcium from the limestone reacting it with the silica to form calcium silicates, the major constituents of cement. The formation of this reaction is controlled by the ratio of calcium to silica; the shale also provides silica, but contains the aluminum that forms the other basic ingredient of cement calcium aluminate. The iron provides flux for the process, as well as a control for the calcium aluminate reaction, and gives cement and concrete its grey color. The process at Montana City begins with the drilling and blasting of the limestone. The limestone rock is hauled to a primary crusher and crushed to a two-inch minus rock; it is then passed through a secondary 50 crusher, in an effort to achieve at least a ¾inch (minus material), which is then stored in a silo to be fed to a grinding mill. Ash Grove occasionally drills the silica, but more often than not, the silica and clay are ripped, hauled and passed through the same crushing process. The iron is passed through the secondary crusher only. The mineral makeup of all four constituents is quite stable; however, the ability to control the quantity of each element into the next grinding step is critical. The next step is to grind a precise mineral composition of the rock into water-based slurry of around 70 percent solids (by weight). The slurry needs a fineness of around 65 percent, passing 200 mesh to facilitate proper processing; this is done in a ball mill. The slurry is then pumped into large storage tanks with agitators, to keep the rock from separating from the water, and to uniformly mix the “mud” before introducing it into the kiln, where the reaction of the original minerals to the proper silicates will take place. The kiln is a long (450-foot) rotating steel cylinder, internally lined with refractory, and fired counter current to the introduction of the slurry. The kiln has a slight slope, so as it rotates, the slurry slowly moves from the feed end to the end being fired. First the water is evaporated; then the limestone is calcined. As the temperatures increase, the balance of reactions begins to take place, with the quantity of each reaction product being determined by the original mineral composition. The final reaction is to a mineral called tri-calcium silicate, the major constituent of most cements; the reaction is Montana Mining Association — Montana Mining 2011 actually exothermic, allowing for significant energy recovery. This exothermic reaction, along with the fuel, creates a “burning zone” in the kiln that can typically exceed 2,500 degrees Fahrenheit. The new minerals are now in a molten state, and form balls called “clinker” before being discharged from the kiln into a cooler. The cooler is a refractorylined piece of equipment that forces large amounts of air through steel grates and hot clinker, thereby cooling the hot material as it is transported. Typical temperature reductions in a clinker cooler are from around 2,000 degrees Fahrenheit to 200 degrees Fahrenheit. The cooler is a major source of heat recovery, as it supplies the pre-heated combustion air for the kiln. The clinker is mixed with gypsum, and then ground to a very fine powder (cement) in a ball mill. A large portion of the cement particles are smaller than 45 microns. Mineral constituencies and fineness determine the type of cement made, as different cement types can have different applications. The milling circuit has an adjustable separator for precise control of the product fineness. The cement is then pneumatically pumped into storage silos for gravity loading into trucks and rail cars. The main use of cement is in the making of concrete. Concrete is a mixture of properly sized sand and gravel mixed with cement and water. A typical “mix design” for concrete is around 12 percent cement, eight percent water, 30 percent sand, and 50 percent gravel. The water causes the cement minerals to hydrate bonding to the sand and gravel, and over time, the concrete becomes stronger. The addition of gypsum Montana City kiln. Kiln feed slurry. to the ground cement actually slows the reaction down, which enables the concrete to be transported, placed and finished in many different environments, shapes and sizes. Tests have shown that concrete in the proper environment can continue to gain strength for many years. Cement is also used in securing pipe in many oil-well applications. Additionally, cement can be mixed with soil and fill material to make a strong and stable base called cement-treated base (“CTB”) for many construction applications. Cement can be mixed with mining waste and pumped back into underground mines to fill and stabilize the shafts, thus enabling mining to take place near the previously mined area. Cement has been used in leach pads for stabilization, and to help keep a good porosity in the pad. Finally, cement is used in many masonry applications, from the stucco that sides houses to the bonding agent for tile, rock, and brick. Over the years, the cement from Ash Grove’s Montana City Plant has been used in all of these applications, and many more. New and unique applications for this versatile material are constantly being developed and presented to potential markets. With these new markets and all the successes of the current applications, Ash Grove hopes to be in business for many years to come. ✦ STRONG AMERICAN FOUNDATION For nearly 130 years, Ash Grove Cement Company has manufactured high-quality products that build America’s highways, homes and high-rises. From a dedicated technical services laboratory, to ISO 14001-certified environmental control technology, Ash Grove has the tools and talent to reliably deliver high-quality, consistent, American-made materials that meet customer deadlines and project owner specifications. Contact Mike Wood, 208.376.0650, for more information. Strong Foundations. Strong Future. www.ASHGROVE.com SERVING: ALASKA • ARKANSAS • COLORADO • IDAHO • IOWA • KANSAS • LOUISIANA • MISSISSIPPI • MISSOURI • MONTANA • NEBRASKA NEVADA • NEW MEXICO • OKLAHOMA • OREGON • SOUTH DAKOTA • TENNESSEE • TEXAS • UTAH • WASHINGTON • WYOMING Digital copy available online at www.montanamining.org 51 H-E Parts Crown: Thriving in Montana, serving mines across the globe T he prospect of Eastern Montana becoming the “next energy capital of the world,” which boded well for the Montana mining industry, lured Paul Hatzell to uproot his family from California in the early 1970s to Billings, with the intention to start Crown Parts & Machine Inc. (www.crownparts.us), a manufacturer of aftermarket parts for heavy haul trucks, shovels and specialty equipment for the mining industry. In 1975, however, the Montana legislature passed the Coal Tax Trust Fund Act, enacting the highest severance tax in the nation. “Unfortunately, many mining companies moved across the border to Wyoming because of the severance tax,” Hatzell laments. Despite the tax law, Hatzell stayed the course and launched the company in Billings in 1976. An avid hunter, Hatzell fell in love with Montana, and he and his wife thought it would be a great place to raise their family. “We never regretted the decision,” he says. And with good reason. Crown has flourished in Montana, having grown to become the largest global manufacturer and re-manufacturer of aftermarket components for heavy equipment for the min- 52 Montana Mining Association — Montana Mining 2011 ing industry. Today, the company employs 130 people worldwide, with warehouse operations in Wyoming, Nevada and Arizona, West Virginia and global facilities in Mexico, Chile, Peru, Venezuela, Zambia, Brazil, China and India. OEM-Spec Parts, Sold Direct to Mines A primary driver for this growth, according to Hatzell, is Crown’s unique direct sales model that eliminates the middleman, offering mining companies a lower cost alternative to original equipment manufacturers (OEMs), including Caterpillar, Komatsu, P&H and others that sell replacement parts through dealers. “When you deal with Crown, you’re dealing direct with the manufacturer. There’s no middleman mark-up,” says Hatzell. “Crown controls the entire manufacturing process, from engineering and material purchasing to final quality control, ensuring that the aftermarket parts mining companies receive are built to OEM specifications, the highest standards of quality, at the lowest cost possible for customers.” New Name, Expanded Product Line, More Options for Mines It was Crown’s direct sales model, product line and reputation for quality that caught the eye of H-E Parts International (www.h-epartsinternational.com), an Atlanta-based independent supplier of parts, remanufactured components and equipment to the global mining, quarry and heavy construction industries. In December 2008, H-E Parts acquired Crown Parts and Machine, and 18 months later renamed the company H-E Parts Crown. “We were looking to broaden our product offerings and improve the value we provide our customers, and we saw a perfect fit with Crown’s products and potential synergies with our other companies,” says Michael Coffey, chief operating officer Americas, H-E Parts International. “Now, Crown has the ability to bring global resources and technology to customers while still leveraging Montana labor and expertise.” Hatzell, executive vice president of H-E Parts Crown, agrees. “By joining the people and resources of Crown and H-E Parts, we’re able to give our customers even more options. Our companies share similar convictions and passions in caring for our mining customers, which makes our combined growth aspirations all the more obtainable.” The H-E Parts family of companies, including Crown, Birrana (www.birrana.com.au), Dom-Ex (www.dom-ex.com), Crushing & Mining Equipment (www.crushingandmining.com.au) and H-E Parts Distribution (www.h-eparts.com), has over 200 years of combined his- tory in the mining and construction industries. Together, these companies offer solutions in support of surface mining equipment fleets, crushing and materials processing and mobile construction equipment fleets. What does this mean for Montana mining companies? A wider range of OEM-spec parts from which to choose. For example, as a division of H-E Parts International, Crown is an exclusive distributor of Birrana’s line of aftermarket wheel groups for Komatsu and Caterpillar equipment, giving mines a quality alternative to OEM final drives at a considerably lower operating cost. Thriving in Montana Despite no shipping ports in Billings, a challenge traditionally viewed as a barrier to growth for most global manufacturers, H-E Parts Crown is thriving in Montana because of the caliber of employees they’ve been able to find in the state. “We’re proud to call Montana home,” says Coffey. “As a state, we may be short on population, but we’re long on talented and committed people. They possess that rare ‘whatever-it-takes’ attitude, which is a perfect fit with our culture at H-E Parts Crown. The values of hard work, exceptional service to customers, and the pursuit of achieving the highest standards of quality are precisely what we look for in employees to give us a competitive edge in the global marketplace – and that’s the caliber of people we’re able to find here in Montana.” ✦ Bringing IInnovative Innovvative Technology Technology echnology tto Montana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arts arrts Crown Crown 1733 Highway Highway 87 East, E Billings, Billings, MT 59101 3+ 3+3+)D[VDOHV#FURZQSDUWVXVZZZFURZQSDUWVXV 3+)D[VDOHV#FURZQSDUWVXVZZZFURZQSDUWVXV Digital copy available online at www.montanamining.org 53 The more you dig – It all starts with mining O ver the past year, the Northwest Mining Association (NWMA) has been developing a comprehensive pro-mining public relations campaign targeted to college students and young congressional staffers (18 to 30 years old). The More You Dig – It All Starts with Mining is a website-based, grassroots campaign that relates mining to lifestyle and standards of living using the communication platforms and tools of the 21st century, such as an interactive website, Facebook, YouTube, Twitter and college campus outreach events and contests with our miner mascot, Digger. At its core, the campaign starts the conversation with young adults about the importance of mining and the connection of mining to their daily lives. Thanks to the hard work of NWMA trustee Leslie Olmstead, the NWMA became a client of the Reynolds School of Journalism at the University of Nevada-Reno (UNR) to help us develop the campaign. The student professionals at UNR spent several months surveying some of our members, trustees and college students; performing in-depth research; studying demographics and consumer and voter behavior; and focus-group and fieldtesting their ideas. Our student team did an outstanding job! They presented the plan to several NWMA trustees and Public Outreach Committee members in May 2010, all of whom enthusiastically supported the campaign concepts. At their summer meeting, the Board of Trustees authorized the Public Outreach Committee and staff to move forward with plan implementation. To assist with implementation, the NWMA retained recent UNR graduate and freelance writer Isabelle LaBranch (Izzy) to work with our Public Outreach Committee. HDD MINING & WATERWELL GROUP Whatever your drilling challenge, we’ll rise to it. We bring the highest levels of service and fluids expertise to your drilling challenge, no matter what the scale. Wherever you work, you can depend on M-I SWACO HDD Mining & Waterwell specialists to keep your projects on target. As industry-leading providers of drilling fluid systems and additives, solids control equipment, and engineering services, we custom-design solutions to meet your unique requirements. Our highly-trained drilling fluid specialists have worldwide experience in delivering 24-hour onsite engineering services that no competitor can match. Whatever the scale, we’re up to the challenge. 54 Montana Mining Association — Montana Mining 2011 www.drilling-fluids.com The More You Dig – It All Starts with Mining officially launched at NWMA's 116th Annual Meeting in Spokane in December 2010. The interactive website (www.themoreyoudig.com) is up and running with an informative blog, minerals spotlights, videos, contests and more. Monetary prizes will be awarded to photo and video contest winners. The campaign’s mascot, Digger, recently hosted two successful campus events at UNR and the University of Arizona. Prizes were offered to students who answered trivia questions about mining and could name minerals in items around campus. The More You Dig earned more than 250 new Facebook fans through these campus events, and passed out information about mining to students. As of this writing, another campus event is planned at the Colorado School of Mines, and several more will take place during the fall semester. (If you are interested in partnering with us to have Digger come to a campus near you, please contact Izzy at [email protected].) Izzy attended SME’s Annual Meeting and presented the public awareness campaign to 300 students at the Student Forum. She networked with several students who pledged to help throw events on their campus to teach their peers about the importance of mining, truly making this a grassroots movement in action. The Mineral & Metallurgy Society of America (MMSA) awarded a $25,000 grant to the NWMA at their annual dinner in February to help us implement the The More You Dig campaign on college campuses in 2011. We want to thank the MMSA for their generous support. Join the conversation! Please visit the website and comment through the blog. Become a "friend" of Digger on Facebook! Help with a campus event. Your active participation will help educate young adults, accentuate the many positive aspects of the mining industry, promote careers in mining, and help renew mining’s social license with the American public. ✦ Industry profile: John Hinther Dedicated maintenance supervisor kept equipment – and industry relationships – in good working order By Anika Hanisch T he vendor list was a mile long when John Hinther began working as maintenance supervisor at the Graymont Western U.S. Inc. Indian Creek lime plant in Townsend, Montana. Hired in 1990 to oversee the maintenance schedule and budget for the mine’s equipment, Hinther quickly learned that his real task was far more involved. While upholding a safety-first ethic, he needed to increase efficiency across the board. Of course, maintenance directly affects efficient operation. But, Hinther discovered that a greater key to productivity was found in honing the human element. It began with that vendor list. Hinther was spending a lot of time tracking down equipment orders and parts. So, priority one was to cultivate a core group of suppliers he knew he could depend upon. “You place an order, and you don’t have to worry about it,” says Hinther of his best vendor relationships. “That opened up a lot of time to spend with the crew out in the field.” Hinther began to focus on his interactions with plant workers, “getting to know them… and what they need to do their job efficiently.” He made sure workers had needed supplies and also felt valued by their company. Elton Chorney, who was plant manager at Indian Creek at that time, was constantly impressed with Hinther’s trouble-shooting innovation. When a major customer decided to set up its own lime plant in 1999, Hinther stepped up to the plate. “John worked with both production and maintenance to keep the company going,” explains Chorney. Likewise, Hinther says he’s grateful to have worked for a company that was open to his ideas. “We’ve always been allowed to work outside the box,” he states. He remembers collaborating with Chorney to create and implement a proposal to blend solely Montana coke and coal in the preheater kilns, in lieu of shipping coal from Utah. Hinther also brainstormed with select vendors to develop new projects with cost-saving strategies. Over and above their job descriptions, Chorney and Hinther took leadership in community involvement – whether providing rip rap for river stabilization, donating power credits to an energy assistance program, or rallying support for a community member with a medical crisis. In 2002, Hinther and other industry members led efforts to clean up Crow Creek Falls. The reclamation project involved building a safe road (including a stretch along a shale-strewn slope with a 35-percent grade), removing old equipment from an abandoned gold-mining operation, restoring the site, and reclaiming the roadbed on the way out. The group earned a Wildlife Conservation Award for its efforts. Such good deeds are rewards in themselves. “You build trust and respect, and it makes your job so much easier; you wake up wanting to go to work,” says Hinther. Jason Ellis, current plant manager at Indian Creek, admires Hinther’s approach to keeping relational gears turning smoothly, both internally and with the community. “Obviously, we leave a major footprint... We focus on reclamation,” Ellis explains. “If the community is not an ally with us, they can really impact our ability to do business.” Ultimately, all Hinther’s efforts had a definite impact on the plant’s bottom line. “You get paid back ten times whatever you give,” Hinther says. Chorney affirms this. “We went from being the highest-cost (industrial lime) producer in the U.S., to the lowest-cost producer,” he states, regarding Hinther’s involvement in the plant’s evolution from the 1990s to the early 2000s. When producing a freight-sensitive product far from major freight corridors, the only way to stay in business is to keep in-cost down. That’s been Hinther’s focus from day one. Hinther has also acted as treasurer for the MMA and frequently chaired its suppliers’ group. For years, he’s hosted weekly after-hours “sales meetings” for industry members. Now semi-retired, Hinther says he honestly misses his job. Ellis appreciates that Hinther keeps in touch. “He took me under his wing… so I understood the importance of maintenance and how it related to the viability of the facility,” Ellis says. “We still draw on him as a resource, for his knowledge about the plant.” Glad to help, Hinther stops in from time to time. It’s no trouble, he says and laughs. “It makes you feel you’ve still got some value there.” ✦ Digital copy available online at www.montanamining.org 55 MTI invests in hydrogen technology for underground mining equipment B lutip Power Technologies (blutip Power), a division of Hy-Drive As a result of this agreement, MTI will be licensed to manufacture Technologies, has announced that its mining partner, Mining and supply the current Hy-Drive HGS, and all of its associated sub- Technologies International (MTI), has agreed to purchase an exclu- assemblies, to the worldwide off-road heavy equipment market, as sive manufacturing and marketing rights agreement for the compa- defined above. ny’s patented Hydrogen Generating System (HGS). The agreement “In December, we announced our plan to reorganise our channels will see MTI pay $2 million to blutip Power in quarterly instalments of distribution to better meet customer needs, as we intended to in exchange for the exclusive manufacturing and global distribution aggressively expand our product offering. This agreement is another licensing rights for Hy-Drive’s Hydrogen Enhanced Diesel important step of our realignment,” states Robert Bucher, president Combustion technology, for use with direct-driven rolling equipment and CEO of Hy-Drive Technologies. “For many years, MTI has been applications in the surface mining, underground mining, tunnelling, very supportive of Hy-Drive and its H2 technology. This commitment construction mining and off-highway market sectors. is yet another indication of MTI’s willingness to work alongside us; N0RTHSIDE WELDING & FABRICATION, INC. Quality Mining Construction For All Your Mining Needs Mining Technology Ingenuity Steel Fabrication • Mine Maintenance & Repairs Crane Service • Commercial Concrete & Construction T: 406.442.5150 • F: 406.442.4352 Visit our website to view our qualifications and line card. Electric Mining Shovels Our electric mining shovels have the most advanced technology available today. Through an ingenious combination of superior digging force and rapid cycle times, it offers the extreme levels of productivity and cost-effectiveness that our global customers demand. www.bucyrus.com www.NorthsideWelding.com 56 Montana Mining Association — Montana Mining 2011 Reliability at work providing us the necessary capital to advance our technology with them and expand into new, exciting markets,” he continues. MTI will have the “first right-of-refusal” on all potential heavyequipment customer inquiries as defined within the agreement. In the event MTI is not interested in pursuing the opportunity, blutip Power will have the ability to execute through its other channels of distribution. “As I have been on a personal crusade to find innovative ways to reduce emissions for our miners in the underground mining environment, I have been a big supporter of Hy-Drive and its hydrogen technology,” says Robert Lipic, president and CEO of MTI. “This agreement makes a lot of sense. It enables each of us to do what we do best to meet the needs of the heavy equipment market; MTI knows how to manufacture, leaving blutip to focus on delivering the next break-through in emissions-reduction solutions.” Not included in the license is blutip Power’s proprietary controller software, which will be supplied directly to MTI by blutip Power for each application of the HGS product. Blutip Power retains all rights and ownership over all of its intellectual property, manufacturing schematics and product specifications of the Hy-Drive HGS in its entirety. Under a separate agreement, MTI will also act as a distributor for the blutip Power3 Savings Share Program, on a non-exclusive basis, for the diesel power generation market. All future development work between the two companies will be performed on an individual basis with separate terms and conditions. ✦ SERVING THE OIL AND GAS INDUSTRY SINCE THE DISCOVERY OF ELK BASIN ATTORNEYS Adam Olschlager Christopher D. Friez Craig C. Smith Garth Sjue John R. Lee Joshua B. Cook Kristin Sjue Steven Ruffatto Brian R. Bjella Colby L. Branch Denise D. Linford Gary G. Broeder John W. Morrison Ken Hedge Molly A. Litzen Trent J. Oram Chris Mangen, JR Craig B. Burns Fred C. Rathert Jennifer M. Nasner Jon T. Dyre Kristin L. Omvig Shane A. Hanson Wade C. Mann LOCATIONS BILLINGS BISMARCK 490 North 31st Street, Suite 500 Billings, MT 59101 Phone: (406) 252-3441 400 East Broadway, Suite 600 Bismarck, ND 58502 Phone: (701) 223-6585 BOZEMAN WILLISTON 45 Discovery Drive Bozeman, MT 59718 Phone: (406) 556-1430 111 East Broadway Williston, ND 58801 Phone: (701) 572-2200 CROWLEYFLECK.COM I Underground Mining Equipment I Portable Align-Boring I Heavy Equipment Repairs/Rebuilds I Cylinder Rebuilds I Welding/Fabrication I Bucket Rebuilds Authorized Spicer Off-Highway Service Center Repairs to Axles, Transmissions and Torque Convertors Genuine Spicer Products Dana Certified Mechanics www.mti.ca 1124 Main Street, Billings, MT 59105 Phone: 406-256-1179 I Fax: 406-256-2088 Toll Free: 1-888-909-4684 Digital copy available online at www.montanamining.org 57 Northwest Pipe Fittings, Inc. proud to be serving Montana’s mining industry N orthwest Pipe Fittings, Inc., which was founded in 1957, distributes a full line of commercial and residential plumbing and heating products, underground water and sewer products, industrial and domestic water pumps, and industrial pipe, valves and fittings. Located at 33 South Eighth Street West in Billings, Montana, we also have branch operations at 404 17th Avenue Northeast in Great Falls, Montana, 1901 Meadowlark in Butte, Montana, 1780 HWY 35 in Kalispell, Montana and 360 Floss Flats Road in Belgrade, Montana. Gough, Shanahan, Johnson & Waterman, PLLP 33 S.Last Chance Gulch P.O. Box 1715 Helena, Montana 59624-1715 Tel. 406 442-8560 Fax 406 442-8783 email: [email protected] website: www.gsjw.com Serving Montana’s Natural Resource Industries Since 1879 Our staff of 135 employees conducts business from our facilities in Billings, Great Falls, Butte, Kalispell and Belgrade, Montana. We have in excess of $11 million dollars in inventory at our five respective locations. Our company has enjoyed a history of success, and has grown to be the largest wholesale distributor of our kind in the market region. We have a fleet of trucks delivering material between our branches and on a regular, weekly basis to our customers throughout the whole state of Montana and Northern Wyoming. Our aggressive management team is devoted to maintaining our productive staff, service, and inventory. Northwest Pipe Fittings Inc. Industrial Sales has an excellent team of sales professionals with nearly one hundred years of combined experience. Our team consists of some of the most knowledgeable individuals in the piping, valve, pump and process equipment markets in the industry today. We are ready, willing, and able to review your most difficult problem applications and recommend the best solutions to meet your needs. Protect Pr rottect yyour o our load zone zoness from impac impactt da damage! amage! Heavy tonnages, Heavy tonnaages, tramp tramp metals metals,, and other materials give o ther jagged jagged ma ter ials can g ive yyour our load zones zones a beating. beating. Protect them Protect them! m! Trust Trust the dependable dependable,, ttough ough IImpact mpacct SSaddle™ addle™ from from Richwood. Richwood. TThe he busiest mines in the w world orld rely rely on IImpact mpact SSaddles™ add dles™ to to protect protect their load zzones ones from from impact. i impac t. Call C all today today ffor o or experienced experienced assistance assistance with your your application. ap pplication.1.800.237.6951 1.800.237.6951 1. ©20111 RICHWOOD ©201 D 58 Montana Mining Association — Montana Mining 2011 www.richwood.com/saddles dles RICHWOOD We have a fleet of trucks delivering material between our branches and on a regular, weekly basis to our customers throughout the whole state of Montana and Northern Wyoming. Northwest Pipe Fittings Inc. offers steel pipe cutting, threading, pipe grooving and polyken pipe coating. Northwest Pipe also offers custom HDPE pipe and fitting fabrication, as well as McElroy Fusion Machine rentals for HDPE pipe to 18 inches. Northwest Pipe Fittings offers valve automation packages including mounting, calibration, testing, pneumatic, electric or instrument control. ✦ Northwest Pipe Fittings is proud to be the distributor for major manufacturing brands including: Digital copy available online at www.montanamining.org 59 Holcim (US) Trident Plant: 100 years of production and community building By Kreta Zackus L’Heureux M ontana: Under our big blue sky thrives dreamers and achievers – men and women who know how to get things done. This land beckoned the strong, from the indigenous tribes that first relied on the bounteous provisions here, to the cowboy with his massive herds of cattle brought such far distances to form our great Montana ranches. Homesteaders came; they built up the hills and prairies, farmed them into sustaining crops. But it was Montana’s mining industry that bore communities. Towns were founded when treasures were uncovered. Montana’s mass of land stretching from rugged horizon to rugged horizon was transformed from sparse settlements into the mountains of society when the earth bore resources to our miners. From copper to coal, and gold to talc, Montana is abundant with raw material. According to the U.S. Geological Survey, Mineral Industry Surveys (2004), Montana produced nearly $2.3 billion in output revenue from the direct and indirect mining industry. The Bureau of Labor Statistics reported that approximately 5,500 people were directly employed by a mine in Montana with another 11,000 men and women employed indirectly by the Montana mining industry [2004, statistics]. There might just be more cows than people in Montana, but those people might just be fed by the mining industry, because in Montana, it is mining that founded many strong communities. One example that embodies this concept perfectly is the Holcim (US) Inc. Trident Plant. “Common Chemicals With Uncommon Service” LOCALLY OWNED & OPERATED Chemical Montana Company 2000 Boulder Avenue Helena, MT 59601 (406) 442-8900 • Fax (406) 442-8035 Greg Peterson - PRESIDENT Mark McAlmond - OPERATIONS MANAGER Toll Free 1-800-242-6515 60 Proudly serving the mining industry with a full line of chemical reagents, water treatment, refinery and speciality chemicals. Make us your one stop shop for all your chemical needs. Total inventory management and technical services available. One drum or one truckload give us a call we are ready to serve you. email: [email protected] Montana Mining Association — Montana Mining 2011 In 1805, Meriwether Lewis observed the quality of limestone in the area. But it wasn’t until 1908, tucked close to the birthplace of the great Missouri River, that construction began on the Three Forks Portland Cement Company. Construction of the plant was complete in 1910. In 2010, the plant celebrated its centennial anniversary with about two hundred people; local and state representatives, customers, vendors, and employees and retirees and their families under the name of Holcim (US) Inc. Trident Plant. Of course, Trident was more than just a cement plant – Trident was a community that was founded by the cement company. Although the village died out by the 1970s, when workers were more inclined to commute than rent in the company town, it was an affordable place to live for many years. The community was originally named Cementville. A worker could rent an apartment for $12 a month, or a family could rent a four- or five-bedroom home for only $15 to $17.50 a month. That offer remained fixed until the community finally dwindled several decades after its founding. The plant has changed owners a few times. Its moniker changed from the Three Forks Portland Cement Company to the Ideal Cement Company in 1924; renamed Holnam, short for Holderbank North America, in 1990; to its current name, Holcim (US) Trident Plant, in 2002. This plant has helped transform the limestone found in the earth into monumental dams like Holter Dam, Morony Dam, Fort Peck Dam, Grand Coulee Dam, and Polson Dam. Although the Holcim (US) Trident Plant has known its share of changes and challenges, it embodies the Montana spirit. The plant is strong and it holds to its community. Trident plant manager Eric Ervin comments, “We are proud of our long-standing participation in this community.” And Holcim (US) president and CEO Bernard Terver says, “The cement industry has seen many changes over the past 100 years, but one thing remains consistent, and that is the dedication of our employees.” Through all the turmoil the Trident Plant has faced in the past century, from American economic uncertainties to regional natural hazards like floods and fires, the plant still produces approximately 350,000 tons of cement a year. Thus, it is accurate to say that the Holcim Trident Plant is still, quite literally, building communities in and around Montana. ✦ Digital copy available online at www.montanamining.org 61 Montana Resources LLP Exploring for the future while maintaining a focus on safety By Mike McGivern and Tad Dale Exploration The Continental Pit at Montana Resources was first mined by the Anaconda Minerals Company (ACM) in 1980. In 1986, when Montana Resources took over operations in Butte, the Continental Pit mine plan and reserves were based primarily on TAC (The Anaconda Company) exploration drilling conducted in the mid- 62 Montana Mining Association — Montana Mining 2011 1960s. Throughout the years, there has been intermittent exploration and development drilling to replace tons and predict ore zones; however, in 2010, Montana Resources began a comprehensive development and exploration drilling program that will continue through 2012. The current plan is to define depth and quantity of ore zones in the Continental Pit. According to the Bureau of Labor’s statistics, the mining industry is not in the top-40 highest-incident rates. Two types of drilling are being conducted in the exploration program: reverse circulation and core drilling. O’Keefe Drilling from Butte has two reverse circulation drills operating, and is drilling at depths of 800 to 1,000 feet. AK Drilling from Butte, along with Boart Longyear, has been core drilling at depths of 1,000 to 1,200 feet. In 2010, 72 drill holes were completed for a total of 68,000 feet of drilling. The drilling for 2011 is forecasted to be 61,000 feet. While results are preliminary, 180 million tons of ore reserves have been added to proven and probable reserves; this equates to approximately ten additional years of mine life being added to the current reserves. The current results of Montana Resources’ drilling program, while only partially completed and yet to be completely analyzed, show positive results for continued mining in Butte for years to come. Safety Now and Into the Future As we explore for the future, Montana Resources continues to work toward ensuring each person goes home safe and healthy every day. In the mining industry, safety is the primary focus 24 hours a day. It has to be! Be it underground or surface mining, the work is hard, the equipment can be large, and rock is being broken and handled at a high rate of productivity. At Montana Resources, we focus on values, attitudes, behaviors, and leadership to drive our safety culture. We believe if we are aligned in our values and demonstrate safe behaviors, that it is possible to achieve our vision of having zero incidents. On March 7, 2011 MR achieved an internal record of 607 days without a lost-time incident, beating the previous record of 606 days set in 1996. This equates to 1.3 million person- hours worked without a lost-time incident. While we are proud of this accomplishment, we are not satisfied. Safety is not a job that is ever completed. Like the other mines in Montana, we continue to strive to eliminate injuries by identifying the hazards and controlling the risks. Safety at Montana Resources has come a long way since days gone by, and like all industries, can continue to improve because even one incident is too many. While the mining industry has a history of tragic disasters, it is often this history that paints the perception of the industry today. When there is a disaster in the mining industry, it is front-page news. That is why, when polled, most non-mining people believe mining is one of the top unsafe industries in our country; while in fact, mining is actually one of the safest. The most common measurement to compare the respective safeness of industries is to compare incidence rates; a measure of the number of reportable accidents divided by the total hours worked in the industry. The Bureau of Labor tracks each major industry and in 2009, the mining industry had a 3.1 incident rate. To compare this to other industry codes: farming has an incident rate of 4.7, a rate 52 percent higher than the mining industry’s; in fact, 50 people were killed in farm silos, alone, during 2010. Nursing homes have an incident rate of 8.0, or 2.5 times greater chance of being injured while being employed in a nursing home verse the mining industry. Some comparable industries with similar incident rates to mining are real estate agents and gas station workers, at rates of 3.0 and 3.3, respectively. The Bureau of Labor breaks down industries into about 100 different categories. The mining industry is not in the top-40 highest-incident rates. What all this means is that the mining industry has greatly improved its safety culture and the lower incident rates prove it. Putting safety first is how you ensure that every person goes home safe and healthy each and every day. Montana Resources continues to be a SAFE low-cost producer of copper and molybdenum. With these added ore reserves, Montana Resources will continue the “Tradition of Mining” in Butte for many years into the future. For more information, please visit www.montanaresources.com. ✦ Digital copy available online at www.montanamining.org 63 Talc in Montana: An important industrial mineral for the United States – and the world By Gary Tomaino and John Parks T alc – Mg3Si4O10(OH)2 – is a layered, hydrous magnesium silicate mineral. At the microscopic level, talc particles are typically platy, but other morphologies can occur in some deposits. Talc has a soft, soapy feel and typically a smooth texture. Talc, known for its insulation, heat resistance, chemical stability, oil absorption and strong covering quality, has a theoretical chemical composition of MgO at 31.7 percent, SiO2 at 63.5 percent, and H2O at 4.8 percent. However, talc’s chemical and mineralogical composition can vary depending on its geological history/parent rock association. These mineral associations and variable levels are usually chlorite, quartz, and carbonates (magnesite, calcite, and dolomite). Two key elemental substitutions that can occur in the talc crystal structure are iron for magnesium and fluorine for hydroxyl. These compositional differences may limit or enhance the talc’s usage in specific market niches. Production of Talc in the U.S. The United States, still remains self-sufficient in producing most grades of talc. There are seven talc-producing mines, located in four states, which account for the domestic production of talc in 2009. Domestic production is basically open pit mining. Crude ore 64 value is estimated at $15 million, as compiled by the USGS producer survey. Rio Tinto Minerals remains the top domestic, as well as is one of the world leaders in talc production. American Talc Company has mining and processing in Texas; Minerals Technologies Inc. through Barretts Minerals, a wholly-owned subsidiary, has mining and processing facilities in Montana and Texas; CIMBAR Performance Minerals owns a processing plant in Indiana; Protech Minerals Inc. has mining and operations in southern California; Alberene Soapstone Company has mining and operations in Virginia; Cal-Talc Company operates facilities in southern California; and IMI FABI has processing plants in West Virginia and New York (production volumes are in decreasing order of the above listing). In 2007, USGS reported that Steatite of Southern Oregon had ceased operations, but the company still had an active website as of 2009 and may be working off of stockpiled materials. For 2009, companies in the states of Montana, Texas, Vermont, New York and California account for the predominant share of actual domestic production, in decreasing order. Consumption of Talc Talc produced and sold domestically was Montana Mining Association — Montana Mining 2011 distributed as follows: ceramics (18 percent), paint (21 percent), paper (20 percent), roofing (eight percent), plastics (22 percent), rubber (three percent), cosmetics (three percent), and other (17 percent). The “other” section includes a variety of applications for pharmaceuticals, agricultural products, animal-feed, sealant, sculpturing, food and polishing. Uses, New Applications and Processing Technology Talc producers must continue to provide a functional and high-performance mineral additive that can increase the value of their products for the end-use customer. In specific cases, unique properties can be achieved by employing proprietary coatings or processing products to increase aspect ratio by delaminating, or increasing the overall talc purity by beneficiation. Silane/siloxane-based and directed surface treatments are commonplace. Nano-talc products (10 to 100 nanometers in one dimension) continue to be explored for their uses in various applications. There are a multitude of uses for talc such as plastics, cosmetics, flooring, health care, catalytic converters, animal feed, caulks, sealants, gaskets, belts, hoses, specialty antiblocking/anti-hazing in plastic films, auto body putty, asphalt shingles, joint com- Typical platy Montana talc. pounds, pharmaceuticals, ceramics and dimension stone bodies (Steatite). In ceramic applications of dinnerware, sanitary ware and hobby ceramics, talc provides low shrinkage as well as high brightness upon firing at various temperatures. In other applications, high-quality calcined-talc blends, which impart a controlled shrinkage and reduce firing time, can be tailored to each individual customer's specifications. The reduced firing time aids in processing and reduced energy costs for the customer. Another specialty usage for talc for which demand remains high, is when it is combined with kaolinite and other proprietary additives to formulate fired-cordierite bodies, used for catalytic converters in vehicles. In dimension stone applications, talc is used for countertops, sinks, mantels, fireplace surrounds, pavers and tile brick. In paints, talc is an economic extender and filler while providing brightness and durability to paint coatings. In rubber applications, talc provides reinforcement, UV radiation resistance, and it can be used as a processing aid for good extrusion rates, impermeability and improved surface finish. Future Trends Talc continues to face competition in the paper filler and niche paper coating sectors, from precipitated and ground calcium carbonates. Talc is still used in the paper-making process, especially as a pitch control agent. The plastics market continues to offer potential growth opportunities, especially in polypropylene. It is projected that increases in talc usage for lightweight and recyclable products will be the future needs of the automotive market. Here, the desire for compacted and sub-micron talc products provide high-performance end-use products. A potential upside for new uses may be in the area of Wood Polymer Composites (WPC), where talc will provide a functional filler role. For further information, please visit http://www.mineralstech.com. ✦ The Butte War Bonnet Hotel 2100 Cornell Ave ~ Butte, MT 59701 (406)494-7800 / (800)443-1806 www.buttewarbonnet.com Full Free Breakfast Buffet ~ Wireless Internet Classic Style, Classic Comfort Come Relax with us! Digital copy available online at www.montanamining.org 65 Holcim (US) continues commitment to educating our future leaders I n 1983, the Gygi and von Wyss Scholarship Foundation was established to recognize the accomplishments of the children of Holcim (US) employees. Gygi and von Wyss scholarships are given in memory of Dr. Hans Gygi, the founder and longtime chairman of Dundee Cement, and Mark R. von Wyss, Holcim’s former president and CEO. Since the foundation began 27 years ago, more than 100 children of Holcim employees have received the Gygi and Von Wyss Foundation Scholarship. The scholarship provides funds for tuition, fees and books. Gygi and von Wyss scholarship recipients are selected by an independent scholarship committee of the foundation. The committee is comprised of three members, all of whom are faculty or staff members at universities. Selections are based on character, SAT or ACT scores, high-school grades, curriculum, recommendations, extracurricular activities, and two essays the applicants are required to write describing their goals and character. There have been four children of Holcim (US) Trident Plant employees who have been awarded this prestigious scholarship and have Need electrical & mining wire and cable tomorrow? 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Northbrook, IL 3651 Commercial Ave. Northbrook, IL 60062 Toll Free: 800-451-7292 Fax: 847-291-9466 Houston, TX 8505 N. Loop East Houston, Texas 77029 Toll Free: 866-672-9473 Fax: 713-672-8872 Phoenix, AZ 5502 W. Buckeye Rd. Phoenix, AZ 85043 Toll Free: 800-451-7292 Fax: 602-233-9701 Visit our website at www.a-zindustries.com 66 Montana Mining Association — Montana Mining 2011 taken full advantage of the opportunity: • Darin Bessler (1991) – son of Paul Bessler, retired marketing manager. • Michelle (Mathison) Leardini (1996) – daughter of Tom Mathison, active maintenance technician. • Jill (Irey) Clark (2000) – daughter of Duane Irey, retired maintenance planner. • Sarah (Bouldin) Morace (2003) – daughter of Mark Bouldin, active driller/blaster. All four recipients attended Montana universities. Representatives from Holcim (US) recently made contact with these individuals to see how they have progressed in their careers and what the Gygi and von Wyss Scholarship meant to them. Each of the recipients responded that they were able to study hard without the additional stress due to financial burden. The application process was not too difficult and was well worth their time. One of the highlights was being flown to the Holcim (US) Corporate Office with their parents to receive the award. “It was a really neat event to share with my parents before heading out to college,” states Jill Clark. About The Recipients Sarah Morace graduated early from Montana State University, Bozeman with a degree in elementary education. With additional scholarship eligibility remaining, she pursued a second degree in nursing. Morace taught briefly after college, and currently is working in a medical office in Newberg, Oregon. She would like to pursue further education in the medical field. When asked about the benefit of receiving the Gygi and von Wyss Scholarship, Morace stated, “Wouldn’t have been able to afford college.” She is currently married and is expecting her first child. Clark graduated from the University of Montana, Missoula with a degree in business administration. While attending school, she was able to volunteer with AmeriCorps and study abroad in the Netherlands. Clark is a certified managerial accountant and is currently working as a project manager for an insurance company in Portland, Oregon. Last year, Clark took a month off of work to volunteer at a school in Uganda. When asked what the Gygi and von Wyss Scholarship meant to her, she replied, “I was really happy to make my dad proud as he was to really happy to enable me with the opportunity.” Clark is currently married and has one child. Michelle Leardini started in pre-vet and graduated from Montana State University, Bozeman with a degree in animal science, with the feed and health option. After graduation, she worked in Minnesota for several years as an artificial insemination tech at Genex Corporation. Holcim’s Trident Cement Plant: supporting education and youth development in the Gallatin Valley. Our products build foundations; our people build communities. The most important area of development in the Gallatin Valley takes place in the minds of our students. When asked how the Gygi and von Wyss Scholarship impacted her education, Leardini replied, “I was able to complete college in four years and not have to take time off to work. It lessened the stress of college life; and I didn’t have to worry about anything but studying.” She is currently a stay-at-home mom with two small sons in Plentywood, Montana. Darin Bessler graduated from Montana State University, Bozeman, with a degree in arts, painting and graphic design. While pursuing his degree, he participated in the National Student Exchange Program with Hunter College in New York City. Bessler is currently working for the company that he most admired throughout his life. When asked what the benefit of receiving the Gygi and von Wyss Scholarship meant to him, he replied, “I was free to fully explore both my artistic passion and a new, much more ‘career friendly’ discovery. This is, sadly, a luxury not many [people] are afforded due to financial constraints, causing many students to hastily gamble between a vocational path or a dream – what could be the most important decision in one’s life.” Darin resides in London, England. Most recently, Hunter Morrical, son of Steve Morrical, active senior technical service engineer, received this prestigious scholarship and is planning to attend Montana State University, Bozeman. When asked how receiving the scholarship may impact your education, Morrical replied, “It is giving me the motivation to do better in school.” In addition, it is a relief to Hunter, knowing that he can focus more on his studies and less on his finances. Hunter is planning to major in civil engineering. In addition to the Gygi and von Wyss scholarship program, the Trident Plant Donations Committee established the Worthy Student Scholarship program in 2001 for students from the communities in which Trident employees live. The original program was offered to three local schools and has expanded to include six local high schools: Three Forks, Manhattan, Willow Creek, Harrison, Belgrade, and Whitehall. Worthy Student scholarship recipients are awarded a scholarship based on the following criteria: 1. Must be a high school senior in one of the above listed schools; 2. Must be continuing their education in a four-year university, junior college, or vocational school; 3. Scholarship must be used beginning the fall after they graduate high school; 4. The school determines who receives the scholarship. Over the past 10 years, over $40,000 has been awarded to 48 students. Holcim (US) and the Trident Plant are proud to be involved in the process of educating our future leaders. ✦ 209 Cedar Street • Bozeman, Montana 59715 1-800-406-LIFT • www.montanacraneservice.com Digital copy available online at www.montanamining.org 67 Geometrics announces release of GPS interface program MagMap2000 V 5.0 By Ross Johnson, VP Sales and Marketing – Magnetometers T housands of teams operate G-856 Proton Precession magnetometers for geologic and mineral exploration surveys; this older-designed instrument does not have the capability of storing GPS positions, however. Fortunately, Geometrics announces the release of a new version of their venerable MagMap2000 data download and processing program (Win 7-compatible) that provides for the repositioning of magnetometer data (G-856 Proton, G-858 Cesium) from a hand-held GPS system operating on independent logging devices. The only requirement is that the magnetometer time should be synchronized to the local or UTC GPS time; this can be accomplished manually. The GPS tracks are then logged inside the GPS, and the magnetometer data logged inside the magnetometer. MagMap2000 interpolates and recombines the positions into a magnetometer, latitude, longitude and time file suitable for contouring and further processing. MagMap2000 uses a free conversion program from GPSBabel (www.gpsbabel.org) that converts waypoints, tracks, and routes between popular GPS receivers and mapping programs. It also has powerful manipulation tools for such data. GPSBabel downloads track data from popular Garmin, Magellan receivers and also opens GPS GPX XML file format offered on most modern GPS receivers. Many GPSs, such as the Garmin Oregon 450, have the ability to create and upload waypoints and routes, enabling the user to predefine survey grids and then use the GPS as an in-field steering device! This new facility gives users of older magnetometer equipment the ability to perform surveys with GPS accuracies (SBAS approximately two meters, Omnistart differential corrected accuracies of 1one meter or better) and to steer to waypoints in the field without laying out the survey grid prior to survey. MagMap2000 v 5.0 may be downloaded from Geometrics’s website (www.geometrics.com) under “Magnetometer Downloads”. The operator’s manual is included with the download. For more information, please contact [email protected]. ✦ 68 Montana Mining Association — Montana Mining 2011 The history of Apex Abrasives A pex Abrasives Inc. is a Montana corporation that is reprocessing and reclaiming old tailing ponds and producing waterjet garnet and tungsten concentrate. Apex, which maintains an office in Dillon, has its plant site located on the west side of I-15, near Glen on the eastern bench, below the Pioneer Mountain range. Apex employs up to six employees operating 12 hours per day. Apex Abrasives Inc., incorporated in Montana in 2005, was formed from a partnership between Gene Nelson, Dirk Nelson, and James Womack. James Womack grew up in Madison and Beaverhead Counties, joined the U.S. Army during WWII, and worked his way through the ranks, eventually retiring as Major General. He has been a long-time prospector, mine developer, and successful entrepreneur with broad diversification in business. Gene Nelson was born in Butte as a descendant of a Cornish mining family that first arrived in Bannack. Gene is an engineer and licensed professional geologist. Dirk Nelson, Gene’s son, is a licensed professional engineer. Together, they developed the Apex property, and they also hold nearby drilled reserves on the Lentung tungsten and Yellow Band gold properties in Beaverhead County. Gene and Dirk have been working together to open their mines since 1983. It has been a family dream. Unfortunately, “exploration success followed by permitting setback” has become all too familiar for new mines in Montana. After years of work developing the Yellow Band Mine, the final operating permit was essentially completed when the cyanide ban of 1997 narrowly passed and the permit was withheld. They redirected their efforts into garnet and tungsten; this time, permitting was quickly granted. Gene and Dirk, who have been operating the Apex Abrasives plant for nearly two years, are now reprocessing and reclaiming the tailings ponds of the old tungsten mines for garnet products and tungsten by-product. The garnet is sold primarily to the waterjet industry, which has been a growing market. Tungsten prices are climbing beyond all-time highs; together, tungsten and garnet make these exciting times. This plant is also proof for the future that the Nelsons’ vast hard-rock reserves will double the tungsten value due to garnet. There was not a market for garnet when the old tungsten mill was operating. However, new technology created demand and in the late 1980s, Cominco’s nearby ruby garnet operation drew attention to the new market for garnet, especially abrasive waterjet. Sandblasters suffering silica dusting were also eager to switch to garnet. Gene was intrigued by the combined profit potential of both tungsten and garnet from his properties, but the garnet performance had to be proven and developed. Following microscopic analysis, lab testing began in 2003 and pilot-plant testing in 2004 to produce a clean garnet abrasive. This garnet product was simultaneously tested at several independent waterjet labs to prove garnet’s performance. Final waterjet viability was established through Batelle’s Hanford lab, via a small business assistance grant. The crushed garnet performed well against competitors’ garnets as the surface smoothness of the cuts was superior. The mining and mill permits were granted through the MDEQ and BLM in 2007, in a little over one year under Governor Schweitzer’s favorable administration. Nowadays, permits have become the critical key to the feasibility study. Utilizing the old mill foundations that were preserved by the BLM for future use, mill construction was completed in a little over one year and the plant became operational in 2009. The tailing ponds hold about one million tons predominately composed of garnet ground to -48 mesh. The tailings are easily dug with a Cat 966, and are hauled less than 2,000 feet with a Kenworth dump truck. The process facility is single pass from the dump truck to the baggers. The plant is composed of a wet plant to separate, clean, and size garnet, magnetite, and scheelite; a dry plant for drying, additional cleaning, and sizing garnet; and a bagging plant producing 50pound bags or one-ton sacks of sized garnet abrasive. Garnet products are sold primarily to the waterjet and sandblasting industries, while scheelite is sold to a tungsten carbide refinery. Minor by-products of gangue sand and magnetite are also sold. The wet plant is primarily a gravity circuit using only water. It is a modular plant consisting of screens, hydro-cyclone, wet magnetic separator, density separator, spirals, and a concentrating table with a basement of slurry pumps. The dry plant is composed of a propanefired rotary dryer, rotary cooler, high-intensity magnetic separator, and bucket elevators filling silos. The bagging plant draws from the B ROWNING K ALECZYC B ERRY & H OVEN P . C . Bozeman . Great Falls . Helena . Missoula w w w. b k b h . c o m Serving Exploration and Production Companies, Pipelines and Refineries in Montana • Legislative affairs, including lobbying and public relations consulting • Regulatory compliance and contested cases • Environmental regulation and compliance • Civil litigation including commercial, royalty, and environmental matters • Commercial transactions • Land and lease acquisition • Tax matters, including income, property and severance taxes For additional information contact: Leo Berry, Steve Wade & Jessie Luther 825 Great Northern Blvd. Helena, MT 59601 (406) 443-6820 Catherine A. Laughner 801 W. Main, Suite 2A Bozeman, MT 59715-3358 (406) 585-0888 Digital copy available online at www.montanamining.org 69 silos onto screens and gravity baggers on scales. The plant is typically operated with one employee on a loader/truck, one employee operating the wet plant, one employee operating the dry plant, two employees operating the bagging machine, and one employee on maintenance or load-out. This total circuit has proven to be very efficient and when fed from the stockpile, the entire plant can be run to fill the silos with only two operators. The Apex mill today. Gene Nelson (left) and son Dirk. “Under construction”. 70 Montana Mining Association — Montana Mining 2011 Background and History This district has a colorful history. The gold stampede to the Pioneers Mountains put Montana territory on the map at Bannack. A decade later, the silver boom was bustling in the Pioneers. Numerous mines were opened in the Pioneers, and many became famous for a while; but after the silver crash in 1893, attention began to shift to non-precious metals. The skarns along the western front of the Pioneers first began producing copper ore at the Indian Queen Mine, which was first established by the Farlin brothers of Butte fame. This mine produced from 1903 until 1923 (the district was also a producer of gold, silver, iron, lead). The diversity of ores always captivated prospectors, and eventually interest shifted to tungsten. One of the reasons the U.S.A. prevailed in WWII was due to our vast natural resources, industrialization, and those who developed the natural resources. Blair Burwell was one of those who were commissioned during the war with the task of procuring uranium needed for the Manhattan project; he also supplied other “strategic metals” such as tungsten. When the Korean War erupted, the importance of these strategic metals increased. Burwell heard about tungsten discovered in the Pioneer Mountains. He formed Minerals Engineering Company, which built the mines and mill to supply tungsten concentrate to the government strategic stockpile. Later during the Vietnam War, high tungsten prices returned. The mill was rebuilt with General Electric funding. During the years that the mill ran, ore was produced along the Lost Creek Trend from the Utopia Mines, the Lost Creek Mines, and the Browns Lake Mine, as well as the Calvert Mine. The Lost Creek trend is about ten miles in overall length. Of the many tungsten mines developed along this trend, the biggest orebody was yet to be found. Gene worked at these mines during their heyday; he subsequently earned a degree in geological engineering and became exploration manager for Union Carbide Tungsten exploration. Gene developed an exploration program that in three years revealed the hidden Lentung orebody that dwarfed the combined reserves of the other mines. Over six million tons of tungsten reserves were drill-defined over 1,000 feet of strike length, with strike length still open. This exploration came to a premature halt under falling tungsten prices following the Vietnam War. The GE mill was also scrapped, and the millsite was partially reclaimed by the BLM. These properties were ultimately passed on to Gene Nelson. Waterjet Garnet Clean and efficient waterjets became popular in the early 1970s, initially for “soft cuts” such as in food processing. Abrasive waterjet machining began in the early 1980s. The concept of the abrasive in the water stream is to provide a hard, heavy, sharp particle that will cut through resistant materials that water cannot cut alone. Abrasive waterjet machining, which is popular in aerospace, automobile, and housing to create precision cuts, is versatile and it can cut almost any material – including hard stainless steel, soft aluminum, glass, rock, and composites. Waterjet typically pressurizes water up to 55,000 PSI and then forces it through a mixing tube at 2500 fps (mach 2.5). Garnet abrasive is then pulled into this high-speed stream of water and mixed with the water. A stream of abrasive-laden water moving at 1000 fps exits at supersonic speed, and the abrasive literally saws through the material to be cut. This cutting action is much like a grinding process, but rather than using a solid grinder, water and garnet sand are used. Waterjet cutting has a big advantage over conventional cutting methods because there is no heat damage. A quality cut will not leave burrs and will not require additional machining. Cuts can be very detailed Garnet micrograph. and intricate. The cut is typically drawn by the user in AutoCAD and precisely controlled with a computerized mechanical arm. The cuttings are neatly captured in a water tank for disposal or recycling. Apex garnet occurs primarily as calderite/andradite ((Mn,Ca)3Fe2(Sio4)3), but other elemental substitutions create other garnet species as well. Although colorful crystals of garnet are used for gemstones, most fine garnet is used for industrial abrasives. Garnet is hard and heavy, yet relatively common, which makes it ideal for waterjet and sandblasting. Crushing the garnet to produce sharp edges improves the quality of the cuts. The major suppliers of waterjet garnet in the U.S.A. produce from New York, Idaho, and Montana. Imports are becoming quite significant from Australia, India, and China. Tungsten Apex tungsten occurs as scheelite (CaWO4). Tungsten, which has the highest melting point of any metal and the secondhighest of all elements, is used to make light bulb filaments. Tungsten is used in steel to increase strength and make superalloys such as armor or armor piercing projectiles. Tungsten is most commonly alloyed into tungsten carbide for cutting edges in tools such as drill bits, saw blades, and scraper blades. Tungsten carbide is hard, high-temperature and impact resistant. Most of the world’s tungsten is supplied by China. Like the rare-earth elements, China has also been cutting back on tungsten exports, and prices have recently doubled and are climbing. ✦ Environmentally Responsible Drilling SPRING VALLEY DRILLING Hot Springs, Montana All aspects of mineral exploration: Ƈ Underground Ƈ Surface Drilling Ƈ Helicopter Portable Ƈ Consulting Services Ƈ Down Hole Surveying Ƈ Road and Drill Site Construction www.springvalleydrilling.com ph: 406-544-6401 Digital copy available online at www.montanamining.org 71 72 Montana Mining Association — Montana Mining 2011 The Montana Mining Association would like to thank the following members for their continued support: ASSOCIATE MEMBERS AFFCO AMEC Geomaterix Applied Industrial Tech Arcadis AWS Baroid Industrial Drilling Becker Wholesale Big Timber Reclamation Bison Eng. Boart Longyear Company Brenntag Pacific Browning, Kaleczyc, Buckley Powder Co. B utte War Bonnet CDM Berry & Hoven Champion Charter Sales Chemical Montana Chevron Childs and Associates Christenson, Moore Cockrell, Cummings & Axelberg, P.C. Continental Supply Cross Petroleum Crowley, Fleck PLLP Crown Parts and Machine Cummins Rocky Mountain Dick Irvin, Inc. Energy Labrotories Environomics Ezzle’s Wholesale F& H Mine Supply Fickler Oil Company GCR Tire Centers General Distributing Glacier HR Service Godwin Pumps Golder Associates Gough, Shanahan, Johnson & Waterman Guy Nielson Co. H & E Equipment Services Hallett Minerals HD Supply Holland & Hart Industrial Automation Intermountain West Energy Interstate Power JBR Environmental K & N Electric Inc. Lacy & Ebeling Engineering LeTourneau Technology Liberty Company McCloskey’s Auto Electric MDM Supply Metallurgical Eng. Mining Technology Modern Machinery Moen Builders Montana Bolt Company Montana Crane Service Montana Electric Motors, Inc. Montana Sales and Packing Moore Oil, Inc. Norco Inc. Northside Welding & Fabrication Northwest Mine Supply Northwest Parts & Equipment O’Keefe Drilling Pacific Steel & Recycling Payne Machinery Poore, Roth & Robinson, P.C. Power Service of Montana R. Dorvall & Associates Rain for Rent Red Lion Colonial Hotel Resource Management Sandvik, Inc. Spencer Fluid Power Spring Valley Drilling Sun Moutain Lumber Taylor Mine Service Techline Services Terex Mining The Archibald Company The Industrial Company Town Pump Inc. Tractor & Equipment Tri State Truck & Equipment Turkenburg Power Systems US Bearings and Drives Wesco Westate Machinery Whitewood Transportation Ziegler Sales, Inc. CHAPTERS AND CHAPTER MEMBERS Montana Mining Association - Missoula Chapter Montana Mining Association - Victor Chapter Zelda Davis Howard Lindsey HONORARY MEMBERS Courtney Young Tom Harrington INDIVIDUAL MEMBERS Alan Grant Alec Nys Bill Verrette Bob Moodry Brad Isbell Brian Roat Britt Babcock Carol Brown Cherie Tilley Danney Glaser David Armstrong David Stevens Dolores Rife Don Parsons Douglas Parker Ed Diekman Fess Foster Gary Benjamin James Collins Jason Nelson Jeff Welcher Jerry Hanley Joe Bardswich John Fitzpatrick John Witt Kenneth Hitron Kevin Johnson Larry Johnson Leora Bach Lynn Clark Mark Radcliffe Marko Lucich Mary Berg Mike Mullaney Mitzi Nelson Neal Hurni Pam Minerick Randall Pinocci Ray Connors Richard Berg Rick Strand Robb Rice Robert Routa Rod McElwain Scott Nielsen Scott Rosenthal Steve Fitzpatrick Time Lindsey Tom Harrington Tom Weitz Tracey Holeman Vernon Smith Wayne Wilson William Brooks Debbie Shea John Parks PRODUCERS, NON-PRODUCERS, SMALL & INACTIVE MINERS Apex Abrasivies, Inc. Gentor Resources Inc. Newmont Mining Barretts Minerals, Inc. Golden Sunlight Mines Northwestern Energy 74 Bigler Mines Granite Resources Company Revett Minerals Caboose Mining Co. Graymont Rio Tinto Montana Mining Association — Montana Mining 2011 Contact Mining Holcim Stillwater Mining Comp. CR Kendall Corporation Mines Management Inc. WCP Resources Ltd Ernest K. Lehamnn & Associates of Montana Montana Resources Montana Tunnels Big mine small footprint 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 to reduce energy use, water use and greenhouse gas emissions. To find out more about our big mine and small footprint, visit www.riotintominerals.com. Mines Management, Inc. Advancing the Unearthing Life’s Key Ingredients MONTANORE Silver-Copper Project Lincoln County, Montana Innovative and Responsible Natural Resource Development Northwestern Montana boasts host to some of the world’s largest deposits of copper and silver. Mines Management, Inc., are committed to advancing the development of such projects in a manner consistent to further the interests of the local community and the long term preservation of the environment. Toronto Stock Exchange: NYSE Alternext US: MGT MGN