Hecla Mining contributes to communities & economies

Hecla is a long-standing, important part of the communities where we live and work, both as an Economic Contributor and through our Community Engagement. We provide tremendous positive economic impacts to both the states of Idaho and Alaska. Hecla is the largest private-sector employer in Juneau, Alaska, and the second-largest private employer in Shoshone County, Idaho, contributing to a solid foundation for these local economies.

In 2010, expenditures with vendors, suppliers, and contractors totaled $200 million and employment opportunities included 656 direct jobs and more than 1,600 indirect jobs. In North Idaho’s Silver Valley, Hecla has been a driving economic force for more than 100 years, and the Greens Creek operation on Admiralty Island has been a staple of the Juneau and Angoon communities for over 22 years.

Many Hecla employees play important roles in their communities by volunteering their time. Some are members of school boards, others provide education in health and safety, coach sports teams, promote mining education at the local and state levels, or participate in programs with local museums to preserve mining’s rich heritage. The Hecla Charitable Foundation, operational in 2009, has contributed $829,938 to our communities. And after an absence of nearly 25 years, Hecla has reestablished a community office in Wallace, Idaho – where it all began.

The mining industry provides higher compensation for its workforce than most industries, including excellent benefits. It also supports many direct jobs and additional indirect wage earners. In 2010, Hecla earned $419 million in revenue and $198 million in cash flow from operations. As a result of this success, Hecla’s operations in Alaska and Idaho were prime examples of the positive economic impact of mining for communities where high paying jobs with good benefits are scarce.

We’re the largest private-sector employer in Juneau, Alaska, and the second largest in Shoshone County, Idaho. The company provides competitive compensation in regions where, without mining, well-paying jobs would be very limited.

In 2010, Hecla’s operations at Greens Creek and Lucky Friday directly purchased approximately $163 million in goods and services from local, state, and regional suppliers, including over $33 million in contractor services. Company-wide, Hecla directly purchased nearly $200 million in goods and services, including about $37 million for contractors.

Additional local, state, and regional suppliers, contractors and other businesses are indirectly supported by Hecla and its operations. Utilizing a direct to indirect economic multiplier of 1:2, the Lucky Friday operation supports more than 600 indirect jobs, with more than $65 million paid directly to contractors, suppliers and vendors in 2010. Greens Creek supports more than 800 indirect jobs, with $98 million directly paid to contractors, vendors and suppliers in 2010. Other Hecla facilities including corporate, Colorado and Grouse Creek support another 200 indirect jobs.

At Lucky Friday, the wages in 2010 were nearly triple the average annual wage in Shoshone County, Idaho. The payroll of nearly $22 million includes 253 direct jobs, equating to an annual average salary of approximately $84,000, as compared to the local average salary of just over $30,000.

Generally speaking, wages in Alaska are higher than most places, and the 2010 Greens Creek annual average salary was about $107,000, from an aggregate payroll of more than $35 million for 329 direct jobs. This is more than three times the average non-mining private sector salary in Juneau, which is $35,000.

The 2010 payroll for all remaining Hecla facilities, including the corporate offices, Grouse Creek, and activities in Colorado and Mexico, was close to $18 million for 74 employees. An additional 200 indirect jobs are supported by at corporate, Colorado and Grouse Creek operations.