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PERMIT#:M-1977-493 <br /> INSPECTOR'S INITIALS: ECS <br /> INSPECTION DATE: January 9,2019 <br /> OBSERVATIONS <br /> This was a routine monitoring inspection for the Climax molybdenum mine, a 112d -3 hard rock mine operated <br /> by the Climax Molybdenum Company—a division of Freeport McMoRan. The inspection was conducted by <br /> DRMS representative Eric Scott. DRMS arrived on-site at approximately 0915 and met with Climax <br /> representatives James Haag and Diana Keltz after signing in with site security. <br /> Due to extensive snow cover, this inspection was somewhat abbreviated and consisted of site discussion with <br /> Climax personnel, followed by inspection of several of the pump stations utilized across the site. DRMS and <br /> Climax briefly discussed several issues including: the existing sludge cell used to contain the waste from the <br /> Water Treatment Plant, and what permitting would be required to expand or re-locate that sludge cell as the <br /> existing facility nears capacity in the next year to two years; the initiation of placing water rock onto the <br /> McNulty Gulch OSF expansion area at the most upslope part of the expansion where underdrains are not <br /> required; improvements to the Bartlett Haul Road; and several additional items that will be presented in the <br /> next TR to be submitted to DRMS. <br /> DRMS then accompanied Climax personnel to 5-Shaft pump station, Storke wastewater pump station, Warren <br /> pump station, Robinson Lake pump station, and the 4-Dam pump station. Maintenance was being conducted <br /> on one of the four pumps located at the 5-shaft station, and the other stations were observed to be in <br /> operation and in excellent condition. These pump stations, and others, are critical Environmental Protection <br /> Facilities and process components for the mine site. As such they have routine maintenance schedules, on- <br /> site spare pumps, and are monitored on a shift-basis as well as electronically to ensure proper function. <br /> DRMS then observed that at the time of the inspection, tailings were being discharged from the ETDL cutout <br /> into the Mayflower TSF. DRMS was informed that tailings were periodically discharged into the TSF from this <br /> location to maintain the required gradients and to keep water from backing up into this area when tailings are <br /> discharged from the 5-dam lead-offs. <br /> DRMS returned to the site offices and met briefly with Mr. Lazuk to discuss any items noted during the <br /> inspection, discuss any other proposed site related activities, or answer any questions. No issues of concern <br /> were noted during this inspection. <br /> Inspection Contact Address <br /> Ray Lazuk <br /> Climax Molybdenum Company <br /> Highway 91,Fremont Pass <br /> Climax, CO 80429 <br /> Page 2 of 2 <br />