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In addition, the legislative history of S.B. 91-177 shows that an attempt to amend the Bill to change <br />"upon termination of the entire mining operation" to "upon substantial termination of the mining <br />operation" was defeated. This establishes legislative intent that, so long as reclamation is being <br />concurrently conducted, final reclamation is not required under S.B. 91-177 until a viable ore reserve <br />no longer exists at the subject mine. <br />Climax Molybdenum Company has provided DMG with proof of the following: <br />• There is a very lazge and viable molybdenite ore body remaining at the Climax Mine. <br />• Major reclamation of the Climax Mine has been, and continues to be, conducted. <br />• Chemical applications customers require high quality molybdenum, the specifications for <br />which cannot presently be met by secondary or byproduct mining operations. Primary <br />molybdenum mines such as Henderson and Climax operate to supply the chemical mazket with <br />high quality (non metallurgical) concentrates <br />• It is more economical, to a point, to ramp up production at the Henderson Mine during periods <br />of strong chemical application demand for molybdenum, than it is to bring the Climax Mine <br />back into operation. <br />The DMG's review of the Amendment AM-OS application has determined that all public notice <br />requirements for the application were followed by Climax; no adverse public comments were filed <br />with the DMG. <br />DMG Recommendation <br />Given the economics of the molybdenum market relative to the nature of molybdenum end products, <br />the language and legislative intent of the above quoted statutory citations, and in concert with advice <br />and counsel from the AGO, the DMG is recommending that the Mined Land Reclamation Boazd <br />approve Amendment AM-OS to Permit No. M-1977-493 as submitted. The DMG further recommends <br />that Board stipulate that approval of AM-OS does not confer future swing producer status to the <br />Henderson Mine, as changes in status of the Henderson Mine must be approved through modifications <br />to Henderson Mine Permit No. M-1977-342. Finally, the DMG recommends that the Board accept a <br />twenty-five yeaz life of mine term for the Climax Mine, commencing from the signature date of any <br />Boazd Order for Amendment AM-O5, provided that the Boazd will be briefed about the status of the <br />Climax Mine in an informational briefing to be held every five yeazs, with the first briefing to occur in <br />2011. The briefing will include discussion of the mining and reclamation status of the Climax and <br />Henderson Mines, and the molybdenum mazket. <br />Board Hearing <br />A hearing has been scheduled for the Climax Mine Amendment AM-OS Application during the <br />January 11, 2006 Board meeting beginning at 10:00 a.m., and will be held in room 318 of the <br />Centennial Building, 1313 Sherman Street, Denver Colorado. <br />3 <br />