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Strategies & Market Trends : The Ego Forum

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To: hubris33 who wrote (11829)2/20/2013 10:51:08 AM
From: hubris332 Recommendations  Read Replies (1) of 12175
 
Read that Hecla NR all the way to the end...... tossed in at the end is BAD news!

As previously reported in December, the Lucky Friday mine was notified of potential PPOV (Potential Pattern of Violations) status by MSHA for citations issued in late 2011 and early 2012, prior to the Silver Shaft rehabilitation and other work done at the mine in the past year. The Company continues to work with MSHA and expects to work through the PPOV process.

Huh? Did a little research.....

dol.gov

MSHA issues potential pattern of violations letters to 4 mines
Number of operations with chronic violations declining

ARLINGTON, Va. — The U.S. Department of Labor's Mine Safety and Health Administration today announced that four mining operations have received letters putting them on notice about a potential pattern of violations of mandatory health or safety standards under Section 104(e) of the Federal Mine Safety and Health Act of 1977. The PPOV screening from which these letters resulted represents the third since MSHA established the current criteria and procedures in September 2010.

The four mines that received warning letters are Ten-Mile Coal Co. Inc.'s No. 4 Mine in Harrison County, W.Va.; Pike Floyd Mining Inc.'s No. 3 Mine in Pike County, Ky.; Argus Energy WV LLC's Deep Mine No. 8 in Wayne County, W.Va.; and Noranda Alumina LLC's Gramercy Facility in St. James County, La.

In addition, two nonproducing mines have received warning letters that they will be subject to PPOV procedures once they return to active status. They are D & C Mining Corp.'s D & C Mining Corp. in Harlan County, Ky., and
Hecla Mining Co.'s Lucky Friday Mine in Shoshone County, Idaho.

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Here is what MSHA says about "Pattern of Violations Screening Criteria"

msha.gov

Mines meeting all of the following four criteria are further screened to identify those that
meet appropriate criteria, as specified in 30 CFR §104.3, for a potential pattern of
violations.


  1. At least 50 citations/orders for significant and substantial (S&S) violations issued in the most recent 12 months.
  2. A rate of eight or more S&S citations/orders issued per 100 inspection hours during the most recent 12 months OR the degree of negligence for at least 25 percent of the S&S citations/orders issued during the most recent 12 months is “‘high” or “reckless disregard.”
  3. At least 0.5 elevated citations and orders [issued under section 104(b); 104(d);104(g); or 107(a) of the Mine Act] issued per 100 inspection hours during the most recent 12 months.
  4. An Injury Severity Measure (SM) for the mine that is greater than the overall Industry SM for all mines in the same mine type and classification over the most recent 12 months.i
Or

Mines meeting both of the following two criteria are further screened to identify those
that meet appropriate criteria, as specified in 30 CFR §104.3, for a potential pattern of
violations.

  1. At least 100 S&S citations/orders issued in the most recent 12 months.
  2. At least 40 elevated citations and orders [issued under section 104(b); 104(d); 104(g); or 107(a) of the Mine Act] issued during the most recent 12 months.
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So..... Hecla was operating Lucky Friday so poorly that it crossed these thresholds? WOW! These guys have been around for a L-O-N-G time and they aren't any better operators than this? Just squeaking by on Mine Safety? Look, one has to be a pretty recalcitrant F-up to end up on one of these Gubmint lists! In my experience, the regulators have been working with you for some time and you have been uncooperative for them to take this kind of drastic action.

I mean look at the "company" Helca has in that news release: 4 small independent coal mines in Kentucky & WV!!! I am guessing that Hecla has a pattern or corporate culture of fighting against MSHA, rather than addressing mine safety issues. This explains why Hecla has spent tens of millions on upgrades and fixes at Lucky Friday - they have no choice, they are under MSHA's thumb!

So past practices have been BAD, really bad. But like Veris Gold's Consent Decree with NVDEP on Mercury Emissions form its roaster, companies CAN emerge from these encounters in better shape and with industry leading practices. Now we wait to see if there has been a change at Hecla corporate culture and these improvements help or if the pattern of MSHA violations continues.

Now we know, "the rest of the story!"
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