Decision looms on reopening Troy Mine

Revett Silver Co. anticipates a decision as early as next month on whether it will reopen the Troy Mine.

Low metals prices closed the copper-silver mine in northwestern Montana in 1993. Revett Silver of Spokane, formerly known as Sterling Mining Co., bought the mine from Asarco in 1999.

A recent surge in metals prices has improved the Troy Mine’s economics. Copper is trading above $1 per pound, and silver is trading above $6 per ounce.

The mine is located about 10 miles south of Troy. Re-starting it could bring 150 jobs back to the area, Frank Duval, assistant to Revett’s chief executive officer, said Thursday. However, a decision is probably at least three to four weeks away. At this point, “We don’t have approval from the state,” he said.

The state of Montana is reviewing the operating agreement between Revett and Asarco, which holds the mine’s permit and its $10.5 million reclamation bond.

“Asarco holds the bond, that’s why the operating agreement is so important,” said Jan Sensibaugh, director of the Montana Department of Environmental Quality. “The operator has to hold the bond.”

Sensibaugh said she knows of only one situation in Montana where a second party ran a mine under another company’s permit.

The Forest Service is also reviewing Revett’s plans to ensure that the mine wouldn’t harm bull trout or lynx. Both species were listed under the federal Endangered Species Act after the mine closed.

Reopening the mine would cost about $7.5 million, Duval said.