The Bunker Hill Mine in Kellogg, Idaho, reached a major milestone Monday when it produced its first mineral concentrate in 45 years, marking a turning point in one of North Idaho’s most ambitious industrial revivals. The historic Panhandle mining operation, which shut down in 1981 after nearly a century of production, is now processing ore at its on-site mill and moving toward full commercial output before the end of 2026.
A Long Road Back to Production
Sam Ash, President and CEO of Bunker Hill Mining Co., has led the mine’s restart effort for more than six years — a stretch that included pandemic-era restrictions, significant financial obstacles, and a demanding regulatory approval process. That persistence paid off this week with the first concentrate emerging from the mill.
The processed concentrate will be trucked north to British Columbia for smelting, while the company pursues the benchmarks required to declare commercial production. Under the company’s definition, commercial production means sustaining at least 65 percent of the mill’s design capacity — roughly 1,170 tons per day — for 90 consecutive days. The mill is built to handle 1,800 tons per day.
“This is a defining moment for both the new Bunker Hill and the communities of Kellogg and Wardner,” Ash said in a public statement. “We are now firmly back in business, employing world-class local labor, and supplying these critical metals safely into the U.S. domestic supply chain.”
Historical Weight Behind the Milestone
Bunker Hill’s legacy in the Silver Valley runs deep. Over its nearly century-long operating history, the mine produced more than 165 million ounces of silver and 4.5 million tons of base metals before closing in 1981. Its restart carries both economic and symbolic significance for a region that has long sought to reclaim that industrial heritage.
The operation currently employs more than 200 local workers, a payroll that represents meaningful economic activity in a part of the Idaho Panhandle that has watched mining jobs disappear over the past four decades. Beyond its local workforce impact, the mine’s revival contributes to domestic critical minerals supply — a growing national priority as the U.S. works to reduce dependence on foreign metal sources.
What Comes Next for Bunker Hill
With concentrate production now underway, the company’s near-term focus shifts to ramping operations toward commercial production thresholds by year’s end. Looking further ahead, Bunker Hill Mining is also exploring an expansion of the processing facility’s capacity from its current 1,800 tons per day to 2,500 tons per day — a move that could substantially increase both output and employment in the Kellogg area.
The broader North Idaho economy has shown resilience across multiple sectors in recent months. Real estate values in the Coeur d’Alene metro area have climbed significantly, with Hayden Lake home values surpassing the $1 million typical price mark, reflecting continued demand for property throughout the region.
For residents of Kellogg, Wardner, and the surrounding Silver Valley communities, Monday’s milestone represents far more than a technical production figure — it is the first concrete proof that one of Idaho’s most storied mines is genuinely operational again after more than four decades of silence.