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�t <br />Climax Molybdenum <br />A Freeport-McMoRan Company <br />Sent by UPS Legal Express <br />(OPiH, kiA ti• <br />August 29, 2018 <br />Mr. Jared Ebert, Environmental Protection Specialist III <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />H _ 111�4�3 <br />RE: Climax Mine Permit No. M-1977-493, Revised Financial Warranty Update <br />Dear Mr. Ebert: <br />Climax Mine <br />Hwy 91 — Fremont Pass <br />Climax, CO 80429 <br />Phone (719) 486-2150 <br />Fax (719) 486-2251 <br />RECEIVED <br />AUG 31 2018 <br />Division Of Reclamation, <br />Dining & Safety <br />This letter and attachments provide a revised update to our reclamation cost model for Climax Molybdenum <br />Company — Climax Mine (Climax) originally sent to Eric Scott with the Division of Reclamation, Mining <br />and Safety on November 21, 2016. Specifically, this revision incorporates additional information and <br />clarifications requested by you in email correspondence and in your letter to Climax dated June 21, 2018. <br />This revised cost model was prepared by AJAX Mountain Enterprises, LLC. Several important changes to <br />the November 2016 cost model are as follows: <br />• Structures that have been demolished and facilities missing from your AM -06 list are noted in the <br />attached responses to your June 21, 2018 comment letter <br />• The Mill complex will be demolished instead of repurposing to an industrial facility <br />• Experience with past demolition of Climax facilities warrants a scrap steel salvage credit that is now <br />included to partially offset demolition costs <br />Please let us know if you have any questions on the attached materials and we can arrange for a conference <br />call or meeting with AJAX. I can be contacted at (719) 486-7584 or at rlazuk@fmi.com. <br />Sincerely, <br />Raymond Lazuk <br />Environmental Manager <br />Attachments: Response to June 21, 2018 DRMS Letter - Climax Mine, M-1977-493, Reclamation Cost <br />Estimate, Follow-up Questions <br />Revised Reclamation Cost Estimate Narrative and Figures <br />Documentation of Demolition Cost Credit from Rocky Mountain Recycling <br />Revised Reclamation Cost Model Spreadsheets <br />