Montana’s Department of Environmental Quality secured $20.78 million toward reclamation work at the Montana Tunnels Mine near Jefferson City, with the money flowing from a bankruptcy proceeding and structured property sale involving the idled site.

The mine has sat dormant since 2008. Regulators pulled its permit in 2018 when the operator failed to maintain a sufficient reclamation bond, and the bond that had been in place was forfeited in 2024. The new payment covers the gap between what had been bonded and what DEQ estimates full reclamation will actually cost, and it allows the agency to release property bonds previously held by Montana Tunnels Mining Inc.

The funds arrived through a bankruptcy filing by Montana Tunnels Mining and a sale of the property to Silver Bow Mining Corp. and Silver Bow Tunnels Corp. DEQ Director Sonja Nowakowski described the outcome as a “huge win for Montana taxpayers,” saying it puts the agency in a position to fulfill its reclamation obligations at the site.

The transaction does not close out the state’s legal exposure to those who ran the mine. DEQ is pressing forward with an enforcement lawsuit naming Montana Tunnels Mining, Patrick Imeson, and Robert Trenaman as defendants. The new owners, Silver Bow Mining and Silver Bow Tunnels, may eventually seek permits to resume operations at the property.