U.S. REPORT (September 30, 1991)

New York-based metals giant Asarco (NYSE) has reached a settlement with the U.S. federal government over alleged health and safety rule violations at its East Helena smelter in Montana.

Back in 1988, Asarco was cited by the U.S. Occupational Safety and Health Administration (OSHA) for inadequately monitoring the amount of toxins including lead and arsenic within the smelter. It was also cited for failing to provide the smelter’s 270 employees with proper respiration equipment or installing the necessary engineering controls needed to reduce their exposure to lead in the air. OSHA originally had sought proposed penalties of $1.7 million.

But in reaching a settlement, Asarco has agreed to pay OSHA $500,000 to resolve any remaining citations and to participate in a 4-year joint study with the United Steelworkers of America Union which represents the smelter workers. During that period, Asarco and the union will evaluate work exposures and determine the feasibility of implementing additional controls. In return, OSHA has agreed not to issue any citations for matters that are the subject of the settlement agreement.

However, the agreement includes a clause allowing OSHA’s views to be considered in the event that the union and the company dis agree over the feasibility of additional controls.

With the completion of an option agreement on the Adobe Flat property in Pershing Cty., Nev., a drilling program is expected to start in late September.

Teck (TSE) can earn a 60% interest in the property from New Charter Minerals (VSE) by spending a total of US$500,000 and making cash payments of $35,000 over the next three years.

As part of the agreement, New Charter will issue Noramex Minerals (VSE) 500,000 shares upon Teck vesting and one million shares upon a production decision. The shares are in consideration of Noramex relinquishing its first right of refusal and reducing its net smelter royalty interest to 3% from 4%. Following a program of surface exploration and geophysical surveys, a single hole was drilled on the property in 1990, intersecting 120 ft. grading up to 0.015 oz. gold per ton from 30 ft. to 150 ft.

Teck plans an initial program of five holes on the property.

A definitive agreement has been signed between Coeur d’Alene Mines (NYSE) and Callahan Mining (NYSE) for a merger of the two companies.

Under the agreement, Callahan will become a wholly owned subsidiary of Coeur d’Alene with Callahan shareholders receiving 0.435 shares of Coeur common stock for each share of Callahan Mining.

The merger is subject to regulatory and shareholder approvals. Callahan Mining owns the Galena silver mine in Idaho as well as Flexaust, a manufacturer of flexible hose and duct tubing.