2013-10-08_INSPECTION - M1977342

• Permit No: M1977342
• IBM Index Class Name: INSPECTION
• Doc Date: 10/8/2013
• Doc Name: Monitoring Inspection
• From: DRMS
• To: Climax molybdenum Company
• Inspection Date: 10/2/2013
• Email Name: PSH
• Media Type: D
• Archive: No

PERMIT #: M- 1977 -342
INSPECTOR'S INITIALS: PSH
INSPECTION DATE: October 2, 2013
OBSERVATIONS
The Henderson Mine was inspected by Peter Hays and Tyler O'Donnell with the Division of Reclamation,
Mining and Safety (Division) as part of the Division's monitoring inspection program. Mr. Bryce Romig, Mr.
Miguel Hamarat and Ms. Amber Moran with Climax Molybdenum — Henderson Operations (Henderson) were
present during the inspection.
The inspection began with a meeting to discuss the ongoing permitting items at the site. The following topics
were discussed: the fire water line leak repair completion, clarification on the pre -law exposed groundwater in
the gravel pit, status of the technical revision to change the reclamation seed mixture, financial warranty
update, drop tower 17 replacement status, barge relocation progress and status of as -built drawings, potential
stipulated approval for TR -10 and an update on the pH exceedences at MLGW -7 and MNGW -1.
Fire Water Line Repair
The repair work associated with the fire water line leak is complete. Henderson provided photographs of the
repair work and the area was observed during the inspection.
Financial Warranty:
Henderson is waiting for the Colorado Mined Land Reclamation Board to make a determination on the
financial warranty structure proposed for the Climax Mine prior to submitting the revised bond estimate for
the site. The Henderson site will request a similar financial warranty if the Climax warranty structure is
approved. A meeting between Freeport- McMoRan Company and the Division is scheduled for October 30,
2013. The item is expected to be presented before the Board during the November meeting. Henderson
stated a copy of the bond estimate calculations would be provided to the Division for review by the end of
October.
Barge Pump Relocation:
The Barge Pump relocation was approved by the Division on April 8, 2013 under TR -19. The barge location is
complete and was observed during the inspection. Henderson staff stated the as -built drawings were
complete and would be submitted to the Division for review soon.
Drop Tower 17:
The removal of Drop Tower 17 and replacement of 1,025 linear feet of RCP with 42 -inch HDPE pipe was
approved by the Division September 3, 2013 under TR -20. The removal of Drop Tower 17 has not start as of
the inspection.
Gravel Pit:
During the last inspection, two areas of exposed groundwater were observed in the gravel pit, along the north
end of the pit and along the eastside of the pit in the northeast corner of the excavation.
According to the letter dated September 30, 2011 from W. W. Wheeler and Associates, Inc., approximately
2.64 acres of groundwater were exposed prior to December 31, 1980. The letter stated the future plan for the
pit is to not enlarge the area of exposed groundwater and to not produce from areas below the groundwater
level. A substitute water supply plan and augmentation plan were not required by the Division of Water
Resources since the exposed groundwater area was less than 2.64 at the time of the letter and no further use
of the pit involving use of groundwater was planned.
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