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Schweitzer a no-show at mine tunnel opening

| August 4, 2006 12:00 AM

By GWEN ALBERS Western News Reporter

Gov. Brian Schweitzer didn't make a planned visit to Libby Wednesday to celebrate the reopening of the exploration tunnel to the Montanore Mine.

"We have a lot of stuff going on with fires and we decided it was better if he stayed here," said Sarah Elliott, who is Schweitzer's press secretary in Helena.

Mines Management, developer of the $400 million silver and copper mine in the Cabinet Mountain Wilderness, announced Monday Schweitzer would attend.

At the time, the governor's office could not confirm the visit. Seven major wildfires around the state, including one east of Glacier National Park and others near Missoula and Livingston, were the reasons.

"We figured it was best to keep him here," Elliott said.

Evan Barrett, chief of the state's office for economic development in Helena, flew in for the ceremony.

Barrett was impressed with the site 15 miles south of Libby. He also said he is working with Job Service, Department of Commerce and Flathead Valley Community College to make sure money is provided for training workers for the mine.

"We want to get a job training regime ahead of time," Barrett said.

Mines Management by 2008 expects to need 500 construction workers to develop the mine. Some 250 to 300 permanent employees will operate the mine for an expected 15 to 20 years. Jobs will pay $40,000 to $50,000 a year and include benefit packages equal to 30 percent of the salary.

Mines Management in August 2002 began the process of re-permitting the Montanore Mine. It's located near Forest Service Road 278 off Bear Creek Road.

The Spokane company in May 2006 acquired Noranda Finance Inc., including Noranda Minerals Corp., and Normin Resources Corp. This gave Mines Management the ability to explore and evaluate the underground deposit in hopes of making a production decision by 2007.

Mines Management in July obtained the permits from the state to reopen the tunnel.

The governor has been working with the company on the mine project.

"The governor's economic development plan is to strengthen and diversify the economy in a number of sectors," Barrett said. "It's very important to increase the quality of jobs in terms of salaries and benefits so one can raise a family on a paycheck."

He noted that Montana is the fourth least costly out of the 50 states for doing business, has the ninth best tax structure and the 12th lowest state and local tax burden. The state also has the fifth fastest growing economy over the last three years. Last year's 4 percent unemployment was the lowest ever in Montana.

At the same time, Montana has the lowest wages in the nation and ranks 40th for per capita income.

"That quality job gap has to be met by these better paying jobs in Montana," barrett said. "The number one job as far as the value of the job is always mining. They pay the best in the state."

Noranda, the mine's former owner, was fully permitted and ready to start when it pulled the plug and shut down the project because of low metal prices in late 1994.

At the time, silver sold for $4 an ounce and copper, 60 cents a pound. As of June, silver sold for $14.10 per ounce and copper, $3.10 a pound.

Noranda in the early 1990s had completed 14,000 feet of tunneling beneath the Cabinet Mountains toward the silver and copper deposit. That tunnel begins where Libby Creek exits the Cabinets. It is estimated to be 2,000 feet short of the deposit.

Once construction of the mine begins, two parallel tunnels will be dug beginning at the mouth of nearby Ramsey Creek. The tailings will be piled between Cherry Creek and Bear Creek to the north.