Mining Dispute Headed For New Courtroom

Hecla Mining Co.’s long-standing dispute with the owners of the Star Phoenix Mining Co. is headed for the Idaho Supreme Court after a ruling released Friday.

Hecla was waiting for an Idaho district court judge to explain why he had denied the company’s motions for a new trial. When Idaho District Court Judge Craig Kosonen filed an opinion Friday, he removed the last legal block keeping Hecla from appealing to the state Supreme Court.

The owners of the now-defunct Star Phoenix Mine sued Hecla for $20 million after the lease to the Star Mine in Burke, Idaho, was terminated in 1990. Star Phoenix owners Frank and Janice Duval argued that Hecla had no legal authority to end the lease, and a Wallace jury agreed.

Kosonen denied Hecla’s motions in July 1994. His 100-page opinion Friday outlined his reasons for sweeping aside Hecla’s motions. The opinion also dismissed Star Phoenix’s calls for sanctions against Hecla, and awarded a portion of legal costs that the Star Phoenix counsel had sought.

Hecla’s appeal is already in motion, said Vicki Veltkamp, manager of corporate communications.

Hecla also held its annual meeting Friday, with Chairman Art Brown telling shareholders that 1994 had been a “turnaround type year where we made a lot of good progress in a lot of areas.”