Idaho mine expansion boon to local economy

Two years ago, the Lucky Friday mine appeared to be heading for closure, but owner Hecla Mining Co. says higher silver prices and higher productivity mean expansion will occur instead.

Associated Press deseretnews.com

Shift boss Jim Angle said the town was anxiously awaiting news on Hecla’s next step. It finally came.

"I’ve seen people from the community coming up to the mine every day, just checking in," he said. "A lot of the guys have 20, 25 and even 30 years at the mine, and they want to retire there."

Silver traded at $5.40 per ounce recently, up more than a $1 over prices two years ago, company spokeswoman Vicki Veltkamp said. Worker productivity also is up.

Shoshone County’s 10 percent unemployment rate is one of the highest in the state. The mine hopes to hire 45 additional employees by 2005, besides the current 94 workers.

"It’s definitely, without a doubt, the best news we’ve had in several years," Mullan School Superintendent Robin Stanley said.

The Lucky Friday is the school district’s largest taxpayer, and the schools were hard hit in 2001 when the mine cut back production and laid off workers.

Construction at the mine will begin in January. Hecla officials estimate the new area contains 28 million ounces of silver. Mining should begin in that portion by late 2005.

Chief Executive Officer Phil Baker Jr. expects to double annual production through 2011, eventually mining 4 million ounces of silver per year at costs of $4.50 per ounce.

Mining is one of the highest-paid jobs in northern Idaho.

http://deseretnews.com/dn/view/0,1249,565038252,00.html