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Construction of the INCO SOZ/Air system will be overseen by INCO personnel. In addition, INCO will train San Luis operating personnel and oversee system start up. Upon the completion of construction and startup, INCO will provkie written verfNcation that the facility has been constructed and is operating as designed. This documentation will be forwarded to MLRD. Reclamation Considerations The current recamation bond agreed to by MLRD and BMR under the original permit for the San Luis facility is for $3,345,500. At the time the tailings impoundment was permitted, BMR estimated site reclamation costs to total $3,273,762 (Steffen Robertson and Karsten, 1990a). Redamation costs estimated by MLRD were slightly higher, and MLRD and BMR agreed to a bond amount totalling $3345,500. Costs associated with reclamation of the mill facilities are estimated to total 5328,453 (Steffen Robertson and Karsten, 1990a). Employing the same methodology used to calculate the current recamation cost estimate, costs associated with demditlon of the INCO SOZ/Air reactor area are estimated as follows: 35 ft x 35 ft = 1,225 ft' area x53.00/flz = $3,675 Existing reclamation cost estimates for the mill facility assume ripping of a 16-acre area and greding and topsoiling a 23.5-acre area (Steffen Robertson and Karsten, 1989). The INCO SO,/Air reactor will occupy an area of only 1,225 square feet and will be within the presently disturbed mill facility area. Existing ripping, grading and topsoiling costs for the mill facility are adequate to InGude proposed new surface disturbance. With the addRion of the INCO SOZ/Air system, revised reclamation costs associated with the mill facilities are estimated to total $332,128, an Increase of only one percent over that originally calculated. This small Incremental Increase will have a negligible effect on reclamation costs and the existing bond amount is more than adequate to cover costs of site reclamation. Furthermore, reclamation work already completed at the San Luis ske more than offsets reclamation costs associated with the INCO SOz/Air system. 25301/RNO610.RPT INl,O SOZ/Air Tecftnicel Revision Page 8 Juns 16, 1992 San Luis Mine