This is a developing story.
A final decision extending production at the Hecla Greens Creek Mine for 12 to 18 years — selected from alternatives that could have extended production up to 40 years — was announced Thursday by the U.S. Forest Service.
Production at the 35-year-old precious metals mine at the northern end of Admiralty Island National Monument will therefore be extended past 2031 until at least 2043. The final notice of decision also states there will be “additional capacity for disposal of mining waste material and increased measures to protect nearby habitats.”
“This decision best addresses the diverse interests and values we heard from (the) public,” said Acting Tongass National Forest Supervisor Clint Kolarich said in a prepared statement. “From the initial comment period to the formal objection period, and through tribal consultation, we received valuable input to help inform the final decision for this project. This input is clearly reflected in our phased approach to implementation and in the Collaborative Integrated Monitoring Panel we will establish.”
The first phase of expansion will begin immediately and provide the mine about 1.9 million cubic yards of additional tailings disposal capacity over the first three years, according to a Forest Service press release. The second phase will provide an additional 2.7 million cubic yards in years eight through ten, but that phase cannot begin until certain steps including implementation of small particle dust mitigation and a review of environmental effects occur.
“The Selected Alternative will generate up to 10.6 acres of new surface disturbance on National Forest System lands within the Juneau Ranger District and 0.3 acres of new surface disturbance within the Admiralty Island National Monument,” the Forest Service’s report on the final decision states.
Hecla Greens Creek Mining Co. had sought to expand its 8.5-million-cubic yard disposal facility for tailings and waste rock storage to accommodate up to five million additional cubic yards, anticipating the current facility will be at capacity by 2025.
Two other development options and one no-development option were proposed in a Draft Supplemental Environmental Impact Statement released by the Forest Service in March of 2023. The largest extended operations by 27 to 40 years, while the middle-development scenario extended operations 17 to 28 years. A draft decision for the 12- to 18-year extension was announced by the Forest Service in February of this year.
The Greens Creek Mine is the nation’s largest silver producer and unique in that it operates within a national monument, according to the USFS.
The announcement of the final decision comes a day after Helca released its earnings report for the third quarter of 2024. It reports revenues of $245.1 million — 45% from silver, 32% from gold — which it states are the second highest in the company’s history. However, while the reported gross profit of $59.3 million was a 15% increase from the previous quarter, the net income of $1.6 million was $26.1 million reduction from the prior quarter, which the report attributed to some write-downs from suspended operations, losses on foreign currency exchanges and other factors.
Helca also announced this week Rob Krcmarov is the new president and CEO, who most recently served for 13 years on the executive leadership team at Barrick Gold Corp. based in Toronto.
Angoon residents and leaders, during a meeting in May of 2023, generally expressed opposition to extending the mine’s operation due to concerns about impacts on residents’ health and the ecosystem, as well as complaints the company was not doing more to aid the villages’ fiscal stability and job sector.
Among the supporters of an extension during the review period for the proposals was the Alaska Miners Association, which in a letter in May of 2023 stated Hecla “was the largest private-sector employer and taxpayer in Juneau, with a direct economic impact in local communities of more than $219 million.”
Hecla agreed during that month to pay a $143,124 fine and to take corrective action to settle a series of hazardous waste violations discovered during a 2019 inspection. According to the U.S. Environmental Protection Agency, violations included lead-containing dust outside of the building used to store the mine’s milled concentrate, improper disposal of lead-containing items used in ore processing, and lapses in inspection and labeling.
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
