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Y ~~~ AUG 3 0 2007 ®Wisfon or Reclamation, R t o f; r B f? d E Mkning and Safety ANNUAL REPORT OF GCC RIO GRANDE TO DIVISION OF RECLAMATION MINING AND SAFETY August 29, 2007 Pursuant to C.R.S. 34-32-116, as operator and permittee holder of a Colorado Mine Land Reclamation permit, GCC Rio Grande, Inc. submits the following Annual Report to the Colorado Division of Reclamation Mining and Safety for Permit M-2004-004. A. BACKGROUND INFORMATION While plant construction is underway, as discussed below, mining for production purposes has not yet commenced at GCC Rio Grande's Pueblo portland cement manufacturing facility and limestone mine. The quarry area is under development and construction. B. SPECIFIC FACILITY -RELATED ACTIVITIES Since receiving County and the State of Colorado permits, GCC Rio Grande has been actively engaged in a continuous program of coordinating and pursuing all state and federal permitting and construction activities necessary for the facility. These activities have involved the expenditure and commitment of substantial financial resources towards completion of the project. The following is a description of the current construction activities at the facility site. 1. Ouarry Activities -The limestone/shale quarry has been opened. To date, all of the materials from the quarry have been used for plant construction related activities. The quarry is currently being configured to facilitate placement of the mobile crusher and associated equipment such as belt conveyors to transfer limestone/shale to the storage dome. 2. Limestone/Shale Storage Dome And Handling System -The structure of the dome has largely been completed including the limestone/shale reclaim tunnel beneath the dome. Work is ongoing on the stacker/reclaimer system located inside the dome. The stacker/reclaimer is for performing pre-blending of the limestone/shale raw material before being fed to the raw storage bin and subsequently to the raw mill. The belt conveyor frame from the limestone reclaim tunnel (beneath the dome) to the primary limestone storage bin have been installed. The primary limestone storage bin has also been installed along with dust collection and a limestone weigh scale. Mechanical and electrical work is ongoing on this system. 3. Raw Material Delivery and Handline by Truck -Other raw materials are received at the plant either by railcar or truck. The raw material truck dump hoppers, feeders, and reclaim tunnel for delivery of raw materials (alumina [kaolin], iron [slag], silica [sandstone], coal for back-up/emergency, and gypsum on an as needed basis) by truck are substantially completed. The partial structure in which the dump hoppers will be enclosed is nearly completed. Belt DN321281192