Who is Hecla?

Revett Mining Inc. and Hecla Mining last month announced an agreement reached March 26 under which Hecla will acquire Revett and all its assets. The $20 million agreement still requires regulatory filings and final approval by Revett shareholders, but is expected to close some time in June.

Revett has a long history in Lincoln County. The company bought the Troy Mine in 1999, which was at the time in shut-down status. Rising mineral prices in 2003 motivated the company to put the mine back into production.

Between ramping up to full production in 2004 and closure due to seismic activity in late 2012, the mine produced more than eight million ounces of silver and 70 million pounds of copper and employed nearly 200 people. During the mine’s productive heyday, Revett management and employees became deeply involved in the communities of south Lincoln County.

“Revett has had a very good sense of community and have contributed in numerous ways,” said Lincoln County commissioner for the Troy district, Greg Larson. “In addition to keeping employees on the payroll as long as possible, they also contributed to the schools and other community events and groups. They’ve been great community partners.”

Hecla vice president of external affairs Luke Russell said Hecla shares the same sense of community values held by Revett.

“Hecla has a similar dynamic,” he said. “We hope that we can do nearly as well as Revett has done in this community.”

Revett ran into difficulty in December 2012.

The company voluntarily chose to suspend operations at the Troy Mine following a report of unusual seismic activity at the site. They made the difficult decision to stop production and dig a new adit from which to access the main ore beds, incurring significant development costs without the benefit of revenue generation from production to offset those costs.

For nearly two years the company continued to invest in the mine and the community, and had just begun the process of bringing the mine back up to full production when global metal prices, especially copper, collapsed. Those prices forced Revett to place the mine on long-term care and maintenance status in January of this year to preserve company assets required for the permitting and development of the Rock Creek Mine.

“Things move when you least expect it,” Revett chief executive officer John Shanahan said in January. “We just don’t know what will happen. We didn’t see this coming, but it did.”

Revett’s decision to suspend operations at Troy left many wondering about the company’s ability to bring Rock Creek to fruition. The acquisition of Revett, and by extension Rock Creek, by Hecla allays those fears for many.

“Hecla is a fine company, a solid company,” Shanahan said. “They have the history, the experience and the resources to carry this thing across the finish line.”

Hecla, founded in 1891, is the oldest American-based mining company operating in North America and the largest silver producer in the United States. The company’s 2014 annual report lists a cash balance of nearly $210 million with total assets valued at more than $2.2 billion. Hecla posted a net profit of $17.8 million last year after investing more than $150 million on capital projects.

Russell, who visiting Libby this week to start the introductory process, said the company is committed to a long-term relationship with the communities of south Lincoln County and the Rock Creek Mine is an integral component of that relationship.

“We see this as a long-term investment,” he said. “This is potentially a foundational asset for Hecla for the next 30 to 50 years.”

Shanahan said Hecla’s investment and commitment will mean jobs for Lincoln County’s people and families.

“They have committed to hiring locally, to train locally,” he said.

Russell said Hecla’s long-term commitment goes beyond just operating the mine. Projects of this magnitude, he said, impact entire communities, especially smaller ones like Troy and Libby.

“Our mine is their mine,” Russell said. “When good things happen to the mine, good things happen to the community. When bad things happen to the mine, bad things happen to the community.”

Hecla opened a charitable foundation in 2008. The foundation, according to Hecla’s social responsibility report, has contributed $1.5 million to community projects since that time.

Hecla’s 124-year history, however, has not been all roses. Russell acknowledged a few “warts,” as he called them, on the company’s complexion.

One of those warts is the $263 million settlement between Hecla and the Environmental Protection Agency in 2011. The settlement addressed financial responsibility for the cleanup of the Coeur d’Alene basin, work that began in the early 1980s.

Russell said the settlement is reflective of Hecla’s commitment to social and environmental responsibility. The environmental damage to the basin, he said, was the result of activity pre-dating the 1972 Clean Water Act.

“We made the final payment on that settlement in 2014,” Russell said. “We accepted responsibility for cleaning up the mess from activity that was perfectly legal at the time.”

Russell also referenced a property Hecla acquired in South Dakota. The property was later included as part of a federal Superfund site as a result of the previous owner’s mining practices but Hecla assumed responsibility.

“We have to accept that,” he said. “We deal with the problem and fulfill our obligations.”

Hecla currently operates the Greens Creek Mine, inside the Admiralty Island National Monument in Alaska. Both Russell and Shanahan touted the company’s experience at Greens Creek as an indication of their ability to successfully and responsibly operate Rock Creek in Lincoln County.

Russell said Hecla will show their commitment to environmental responsibility in the process of closing and reclaiming the Troy Mine. Hecla announced their intention to move the mine from care and maintenance to closure and reclamation immediately upon the acquisition of Revett.

“The reclamation of the Troy Mine will demonstrate what good reclamation can look like,” Russell said.