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U.S. & Hecla Mining Co. Reach Proposed Settlement Framework With a 30 Year Horizon for Cleanup Costs in Idaho

Release Date: 8/20/2001
Contact Information: Mark MacIntyre
[email protected]
(206) 553-7302

August 20, 2001 - - - - - - - - 01-028


The U.S. Department of Justice announced today that the Hecla Mining Company has reached an agreement-in-principle with the U.S., on behalf of the Environmental Protection Agency, the U.S. Department of Agriculture-Forest service, and the Department of the Interior, to settle currently unresolved claims against the Company for cleanup costs associated with mine waste contamination in the Coeur d’Alene Basin and two other sites in Idaho. While the agreement-in-principle is not a final, binding agreement, it contains specific terms that the United States and Hecla intend to include in a settlement document that they will immediately begin negotiating.

The agreement-in-principle calls for Hecla to make, at a minimum, fixed annual payments of $5 million for the first two years; $6 million for next eight years; and $4 million for the next 20 years. The agreement-in-principle also calls for Helcla to provide a guarantee of the fixed payments for the first eight years and to make additional, variable payments over thirty years, in amounts tied to the Company’s financial performance. The total amount paid by Hecla, expected to be in excess of $138 million and potentially considerably more, will be allocated by government agencies to undertake cleanup or restoration activities at the Bunker Hill Superfund site and the surrounding Coeur d'Alene basin, as well as at the Company's Stibnite and Grouse Creek mines in central Idaho.

According to Chuck Findley, EPA's acting regional administrator in Seattle, today's agreement is based on a balance between what's required for cleanup and what's possible given the economic reality of the mining industry in general, and Hecla in particular.

"The bottom line of this agreement is far short of what the actual cleanup costs will be," Findley said. "But due to metals markets and Hecla's current financial condition, we're faced with the reality of obtaining what we can in a way that enables Hecla to remain viable and producing a cleanup resource stream for the future. Our goal is to protect human health and the environment and we believe this agreement is a step in that direction."

John Cruden, Acting U.S. Assistant Attorney General for the Environment and Natural Resources Division, stated “The proposed settlement terms are the best outcome for the public, given the realistic limits on what Hecla can afford.” Mr. Cruden credited Idaho Governor Dirk Kempthorne and Department of Environmental Quality Director Steve Allred for helping facilitate the proposed deal. “State officials played a key role in bringing the parties together,” Cruden said.

Idaho’s Governor Dirk Kempthorne welcomed the announcement as a step forward for the state and citizens of Idaho.

“This is an important milestone in Idaho’s effort to clean up the Coeur d’Alene Basin. It’s time to move this from the courts and begin our work on the ground,” said Governor Kempthorne. “I appreciate the efforts of Hecla and our federal partners to reach a resolution.”

The agreement-in-principle must yet be incorporated into a proposed consent decree, which the parties will release for public review before the final settlement can be approved by a federal judge later this fall.