INSPEC39566

• Permit No: M1977493
• IBM Index Class Name: Inspection
• Doc Date: 2/22/2001
• Doc Name: Insp Rpt
• From: DMG
• To: Climax Molybdenum Company
• Inspection Date: 10/24/2000
• Media Type: D
• Archive: No

• i
MINE ID # OR PROSPECTING ID#:
INSPECTION DATE: 10-24-00
M-1977-493 PAGE: 2
INSPECTOR'S INITIALS: ACS
This inspection was conducted as a follow-up to the 9-26-00 inspection related to the
Climax Mine's request for surety reduction being processed as revision SR-03 to the
reclamation permit. Two reclamation tasks included in the SR-03 application that were
not inspected on 9-26-00 were inspected during this site visit, specifically, the
demolition of the Precon Building and the demolition of No. 3 thickener, AKA Precon
Thickener.
The Division of Minerals and Geology (DMG) pzevious ly inspected the No. 3 thickener
demolition site on 8-30-99. The tank was removed using cutting torches. The
depression in the ground surface associated with the tank remains, as does fine
grained residue from the thickening process. The approved reclamation plan requires
that following removal of a structure, the site will be filled to grade, and graded
for drainage and erosion control as needed (1989 amendment AM-02, page E-3). Based
on this reclamation plan requirement and the performance standards of Rule 3 of the
Hard Rock/Metal Mining Rules, the DMG must hold sufficient funds to finalize No. 3
Thickener reclamation that may include:
• residue removal and relocation,
• concrete rubblization and possibly relocation for disposal,
• backfilling and grading.
The Precon Building location was inspected and it was determined that building
superstructure demolition had been completed and the demolition debris had been
removed from the former building location. Foundation rubblization and covering with
clean fill remains to be completed at the Precon Building site.
Based on the observations made during this inspection, the estimated costs for
superstructure demolition of No. 3 Thickener and Precon Building will be deducted from
the reclamation cost estimate that forms the basis for the amount of the Climax Mine
reclamation bond. The amount of bond held by the Mined Land Reclamation Board will
be adjusted as appropriate in conjunction with the approval of Revision SR-03. DMG
will provide Climax with a complete and updated estimate of reclamation costs adjusted
for completed reclamation tasks released through SR-03 and incorporating various
pending bond issues discussed during and subsequent to a meeting between Climax and
DMG on 3/14/00. The SR-03 approval letter and reclamation cost re-estimate are being
mailed on the same day as this report (2(22/01).
cc: Carl Mount, DMG
2 & E Contact Address
NAME Bryce Romig
OPERATOR Climax Molybdenum Comoanv
STREET Climax Mine
CITY/STATE/ZIP Climax, CO 80429