Hecla Mining Co. said the “bad actor” lawsuit impacting its Libby Exploration Project in Montana was dismissed because of the recent retirement of the company’s former CEO Phil Baker.
On July 11, 2024, the Montana First Judicial District Court dismissed a lawsuit filed by environmental groups and tribes against the Montana Department of Environmental Quality (MDEQ) alleging that Baker was a “bad actor” and as a result, MDEQ should deny exploration and mining permits to Hecla’s subsidiaries. The lawsuit sought declaratory relief and a writ of mandamus to compel enforcement of provisions in the Metal Mines Reclamation Act, precluding MDEQ from renewing or issuing exploration and mining permits, including those applicable to the company’s Libby Exploration Project.
The plaintiffs alleged that Baker was a “bad actor” not based on his roles with Hecla, but because of his prior leadership positions with Pegasus Gold in the leadup to its bankruptcy in 1998, and subsequent default on reclamation obligations at the Zortman-Landusky, Basin Creek, and Beal Mountain mines in Montana. With Baker’s recent retirement from the company, the plaintiffs voluntarily dismissed the lawsuit.
With the dismissal, Hecla said it is focused on advancing permitting for the Libby Exploration Project, a silver-copper project located 23 miles south of Libby, Montana. The company has submitted a Plan of Operations to the U.S. Forest Service, which is currently under an Environmental Assessment review in accordance with the National Environmental Policy Act. The Plan of Operations, if approved, would allow for dewatering and rehabilitation of an existing 14,000-ft adit, completion of 10,500 ft of new underground development, and the commencement of exploration activities at the project.
