Amazing W.R. Grace - Seven Mining Executives Indicted For Conspiring To Hide Health Problem With Their Asbestos Mine in Libby, Montana

A grand jury indictment accuses the company of exposing its employees to asbestos, failing to disclose air monitoring results, interfering with an investigation by the Environmental Protection Agency (EPA), and giving away asbestos–containing materials to schools and local residents. Charges include clean–air act violations and wire fraud as well as conspiracy.

The Libby mine, in operation from 1939 to 1992, once produced 80% of the world supply. It was purchased by Grace in 1963.


From 1963 through 1990, Grace operated a vermiculite mine in Libby that was contaminated with asbestos. Used in soil conditioners and insulation, vermiculite is a metal ore that can be heated to form a light–weight, fire–resistant substance. The Libby vermiculite was shipped to factories throughout the nation, endangering workers who were exposed to asbestos during processing. It was formulated into a type of insulation that may be contained in millions of homes.

The indictment indicates that W.R. Grace knew that the mine contained deadly asbestos which is known to cause mesothelioma. The L.A. Times indicates the following events are alleged in the complaint.

According to a 1976 memo citing statistics from Henry A. Eschenbach, a director of health, safety and toxicology in Grace's industrial chemical group, 63% of Libby mine employees with more than 10 years of service tested positive for lung ailments.

In 1978, Eschenbach, one of the indicted men, received a report from an epidemiology firm Grace hired: It concluded there were "a number of quite young individuals with obvious asbestos disease" at the mine.

On Nov. 26, 1980, according to the indictment, a memo for discussion among senior Grace executives laid out options.

The first option was to "obstruct and block, possibly even contesting in the courts." But, the memo added, "we'd lose and this is not exactly the image we try to project."

The second option was among those favored: "Be slow, review things extensively and contribute to delay. This might not be bad policy generally and it is possible that the new administration's policies will make NIOSH more selective in how scarce resources are allocated after January 20, 1981."

That was the date of the presidential inauguration of Ronald Reagan, who had campaigned against overzealous and cumbersome regulation of industry; the indictment charges company officials with obstructing an investigation by NIOSH, the National Institute of Occupational Safety and Health.

In a 1982 memo, the indictment said, Eschenbach reported on a study of 66 death certificates of employees: "Our major problem is death from respiratory cancer. This is no surprise."

In 1983, mine officials decided against requiring workers to shower and change out of a uniform, a proposed means to minimize "take-home dust." A memo from one defendant said it would "only cause unwarranted fear or concern" in Libby.

Looks like the Amazing W.R. Grace has a tough road ahead of them.