New kid in town isn't so new

The year 1891 was a year of many firsts in America. Thomas Edison patented the first radio signals, Stanford University opened its doors to students for the first time and the concert venue later renamed as Carnegie Hall hosted its first performance, with Pyotr Tchaikovsky conducting the orchestra. The Wrigley Company was founded in Chicago, Ill., and a little closer to home Hecla Mining was incorporated.

In the 125 years since that time, markets have fluctuated, commodity prices have gone way up and way back down. Mining science, technology, practices and regulations have evolved, changed and been completely overhauled, several times over. Through it all, though, Lincoln County’s newest economic player has persevered.

Hecla, now headquartered in Coeur d’Alene, Idaho, last year purchased Revett Mining and with it the Troy and Rock Creek mines. Commodity prices have made the Troy mine non-viable economically and the company has made the decision to move the mine into reclamation status. Rock Creek, however, has now entered the late stages of the permitting process and company officials see the mine as one cornerstone of the company’s next century of operations.

“We see Rock Creek as being a big part of our future for the next 100 years,” Hecla’s vice president of external affairs Luke Russell said.

Russell said the company decided 125 was a big enough milestone to dedicate the entire year to celebration. The company, he said, while old enough to understand its history and be prepared for the inevitable economic ups and downs associated with mining and minerals prices, is really a new company as their philosophy is one of continued development and innovation.

“We’re old, but we’re also a new company,” he said. “It’s part of our continued commitment to safety and innovation. We’re always changing.”

Phillips Baker, Jr., Hecla’s chief executive officer, said there are three keys to longevity for companies.

First, he said, is continuity in management, direction and staff, along with “a strong culture of being part of the community.”

He credits Russell for defining that relationship: “A mine’s relationship with a community over a long period of time goes from often opposition, to acceptance, to ownership,” he said.

Libby’s state senator, Chas Vincent, said he is impressed by the company’s longevity and commitment to the communities in which it operates.

“A hundred and twnty-five years is a long time for any company to stay in business, but it’s incredibly rare to find a mining company that can accomplish a milestone such as this,” he said. “It’s clear that they are a company with an incredibly resilient corporate culture. What’s even more impressive is how hard they strive to be pillars of economic stability in the communities that they operate in regardless of how commodity markets are performing – and they’ve been doing it for over a hundred years.”

The second key, Baker said, is being in the game for the long haul.

“This requires tough decisions, risk taking, good judgment, some failure and lots of criticism,” he said. “But it can pay off.”

He praised Bunker Hill’s mine near Kellogg, Idaho, as such a long-term project. 

“It took nine years for them to complete it, and in the meantime, prices went up, went down, there was a financial crisis, there was criticism, but they kept going,” he said. “And it paid. The Bunker ended up being one of the largest producers of lead and zinc for almost 50 years because of that tunnel.”

The final key to longevity in the mining business, Baker said, is the possession of strong assets. “And we have them,” he added.

Hecla is currently operating mines in Alaska, Idaho, Canada and Mexico. Greens Creek, on Admiralty Island, Alaska, has been in operation since 1989 and has produced 200 million ounces of silver and 1.5 million ounces of gold. The Lucky Friday Mine in Mullan, Idaho, has produced 155 million ounces of silver and is expected to continue producing for another 20 years, due to the company’s recent investment of $225 million to drill the No. 4 shaft. The Casa Berardi Mine in Quebec, Canada, has about another 10 years of productive life remaining in which to add to its 1.9 million ounces of gold produced. San Sebastian, in Mexico, is expected to be a shorter-lived mine, but is generating 400 percent returns currently. Baker said he believes the mine could eventually become a long-term asset.

Hecla employs 1,400 people worldwide, with 380 in north Idaho. Russell said the Idaho payroll was about $37.5 million in 2015, estimated at $54 million after benefits were calculated. The Rock Creek project is expected to generate 340 full-time equivalent positions in northwest Montana when it hits full production.

Russell said it is the long-term support the company has enjoyed from the surrounding communities that has enabled 125 years of success. It’s a track record he’s looking forward to continuing in northwest Montana.

“We appreciate the support we have in northern Idaho,” he said. “And we look froward to those relationships in northwest Montana.”

Mike Patrick of the Coeur d’Alene Press contributed to this report.