EXHIBIT 99
2003-16
NEWS RELEASE
[HECLA MINING COMPANY LOGO]
HECLA TO RECOGNIZE THIRD QUARTER ACCRUAL
FOR ENVIRONMENTAL LIABILITIES
FOR IMMEDIATE RELEASE
October 31, 2003
COEUR D'ALENE, IDAHO - Hecla Mining Company (HL:NYSE) today reported it
will take an accrual on its third quarter financial statements to reflect the
company's current estimate of its environmental liabilities. The majority of
this accrual is for the Coeur d'Alene Basin in response to a United States
District Court ruling in September, which held that Hecla has some liability for
yet-to-be determined natural resource damages and response costs due to its
historic mining practices. The court held that joint and several liability is
not appropriate, and that Hecla's tailings-related liability will be based on an
allocation of 31% of the historic mine tailings production in the Coeur d'Alene
Basin. The court also stated "that there has been an exaggerated overstatement
by the Federal Government and the (Coeur d'Alene) Tribe" of environmental
impacts in the Coeur d'Alene Basin in northern Idaho. But, because some
liability was determined, a second phase of the trial, scheduled to begin in
January 2005, will address what damages are recoverable and what cleanup relief
is appropriate.
The company is currently estimating that total costs for potential
liability for historical environmental impacts in northern Idaho's Coeur d'Alene
Basin, plus updated estimates for the Grouse Creek mine reclamation and other
properties, require an additional accrual of $23.1 million. The environmental
accruals taken in the third quarter, while having a significant impact on net
income, should not have a material impact on the company's current and future
plans. The company made the decision to take the accrual after a meeting today
by the audit committee of Hecla's Board of Directors.
Hecla President and Chief Executive Officer Phillips S. Baker, Jr.,
said, "These accruals do not materially impact our business, but are required
accounting entries. And let me reiterate that we are actually quite pleased with
the judge's ruling in the Coeur d'Alene Basin litigation. (Please see Hecla news
release dated September 3, 2003, at www.hecla-mining.com)
Of the $23.1 million total third-quarter environmental accrual, $16
million was in response to claims for environmental impacts in the Coeur d'Alene
Basin and $6.8 million was taken for reclamation at the Grouse Creek mine in
central Idaho. Based upon the court's
6500 Mineral Drive, Suite 200 o Coeur d'Alene,
Idaho 83815-9408 o 208/769-4100 o FAX 208/769-7612
September 2003 order, the company has attempted to outline a range of potential
liability for the Basin cleanup, and has estimated a range of potential
liability of $18 million to $58 million, with no amount within this range being
more likely than any other at this time. Accounting rules state that when no
best estimate within the range can be determined, the minimum liability should
be accrued.
Meanwhile, Hecla continues to successfully manage and close out
environmental projects. This year, reclamation has been completed on four idle
properties. A former industrial minerals property in Piedmont, South Dakota, has
been given final release, as has the Middle Buttes gold mine in California. Work
is complete at the Siddoway scoria rock property in Idaho and is awaiting final
inspection and reclamation bond reduction, and regulatory agencies have accepted
the site work, reclamation and reseeding at the Shumake gold mine in California.
Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and
processes silver and gold in the United States, Venezuela and Mexico. A
112-year-old company, Hecla has long been well known in the mining world and
financial markets as a quality silver and gold producer. Hecla's common and
preferred shares are traded on the New York Stock Exchange under the symbols HL
and HL-PrB.
Statements made which are not historical facts, such as anticipated
payments, litigation outcome, production, sales of assets, exploration results
and plans, costs, prices or sales performance are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995, and
involve a number of risks and uncertainties that could cause actual results to
differ materially from those projected, anticipated, expected or implied. These
risks and uncertainties include, but are not limited to, metals price
volatility, volatility of metals production, exploration risks and results,
project development risks and ability to raise financing. Refer to the company's
Form 10-Q and 10-K reports for a more detailed discussion of factors that may
impact expected future results. The company undertakes no obligation and has no
intention of updating forward-looking statements.
Contact: Vicki Veltkamp, vice president -
investor and public relations, 208/769-4144
Hecla's Home Page can be accessed on the
Internet at: http://www.hecla-mining.com
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6500 Mineral Drive, Suite 200 o Coeur d'Alene,
Idaho 83815-9408 o 208/769-4100 o FAX 208/769-7612