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2016 Reclamation Cost Estimate Update — Climax Mine <br />1 General Reclamation Update <br />There are many areas of the Climax property that have been disturbed during the past approximately 100 <br />years of mining activities. This reclamation plan outlines specific strategies for all existing and anticipated <br />new disturbances. Upon the permanent cessation of production operations Climax will reclaim all <br />remaining affected areas not required for the following post -mining land use: <br />• Continued water management and monitoring. <br />To accommodate these key assumptions, this cost update has therefore resulted in the following <br />changes: <br />• Refinements to cycle times and haul distances have been checked based on current and planned <br />locations for soil stockpiles. <br />• Addition of both dust control and haul road grading activities to most reclamation projects. <br />• Comprehensive updates to the Caterpillar correction factors in the equipment production tables. <br />• Consistent use of a swell factor of 21.5% for the loading and hauling of topsoil and biosolids. <br />• Replacement of the fleets of large mine equipment (for example, 988 Wheel Loaders, 773 Mine <br />Haul Trucks, 14M Motor Graders) with more realistic fleets of construction equipment (for <br />example, 938 Wheel Loaders, 740 Articulated Haul Trucks, 12M Motor Graders) which have been <br />proven to successfully complete previous reclamation projects at Climax. <br />• No allocation for heavy equipment assembly and disassembly (consistent with the approved <br />Henderson closure cost estimate). <br />• Changed allocations for some Indirect Costs (consistent with the approved Henderson closure <br />cost estimate). <br />• Standard unit rate updates have been incorporated, including but not limited to: <br />o Labor rate increases (according to the 12/31/15 Consumer Price Index (CPI)). <br />o Equipment rate increases (using 1/1/16 Colorado Caterpillar rental rate sheets). <br />o Material and demolition rate increases (using previous Climax unit rates, historic Climax <br />project costs, and the 2016 RS Means Heavy Construction Cost database). <br />1 November 2016 (revised August 2018) <br />