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Trump’s tariffs could increase costs for Butte mining company

Posted at 8:43 PM, Jun 21, 2018
and last updated 2018-06-21 22:43:29-04

BUTTE – The Trump administration’s tariffs on steel and aluminum could have an effect on Butte’s mining industry.

Montana Resources in Butte said the tariffs will not affect copper exports with China, which is the Montana Resources’ biggest customer.

However, the tariffs are expected to increase the price of mining rods that the company buys from Canada.

“We spend about $175,000 a month on the rods, so we potentially could see a 25 percent increase in the rods,” said Mike McGivern of Montana Resources.

While this is a small part of the company’s overall expenses, the increase could force the company to look at other places to buy the rods at a cheaper cost.