Sandfire Resources America Triumphs in Montana Supreme Court for Black Butte Copper Project
In a significant legal victory, Sandfire Resources America witnessed a surge in its stock following the Montana Supreme Court's decision to reinstate the permit for its flagship Black Butte copper project. This ruling reverses a prior district court decision, reigniting the project that had been under scrutiny due to environmental concerns.
The Black Butte copper project, located near the Smith River in central Montana, has been a topic of debate among local communities due to potential environmental impacts. Despite these concerns, the Supreme Court's decision on Tuesday favored Sandfire Resources, granting the company the green light to proceed with the construction of its underground copper mine.
The lawsuit, initiated by local conservation groups in June 2020 against Sandfire’s subsidiary Tintina Montana and the Montana Department of Environmental Quality (MT DEQ), challenged the project's environmental compliance. However, the Supreme Court's 5-2 ruling affirmed the MT DEQ's 2020 decision to permit mining activities at Black Butte, highlighting the comprehensive review process the project underwent.
Sandfire America CEO Lincoln Greenidg emphasized the exhaustive examination the project has received, with the court record comprising over 90,000 pages of testimony, information, and analysis. He hailed the Supreme Court's decision as a testament to Sandfire America's commitment to designing an environmentally safe mining operation.
The Black Butte copper project, underpinned by the large Johnny Lee deposit, is expected to produce 23,000 tonnes of copper annually over an eight-year lifespan. With all necessary permits now in place, including finalized agreements on water rights with the Montana Department of Natural Resources and Conservation (MT DNRC), Sandfire Resources can move forward with the project.
An ongoing challenge to the Montana Constitution’s definition of the “beneficial use of water” related to Black Butte’s water use permit remains, with a hearing scheduled for March 29, 2024, by the Montana Supreme Court. However, this legal matter does not currently impact the project's water rights package.
The news of the Supreme Court win propelled Sandfire America's shares up 75% to a new 52-week high, reflecting investor confidence in the project's future and its contribution to the company's market capitalization of C$143.3 million ($105.8m). This development marks a pivotal moment for Sandfire Resources America, underscoring its ability to navigate complex legal and environmental challenges while pursuing its mining objectives in Montana.
