1997-02-13_REVISION - M1977493 (7)

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An • • Amendment: CLIMAX MINE Mining and Reclamation Permit M-77-493 1.0 INTRODUCTION • The Climax Mine (Climax) is a molybdenum mining and milling operation wholly owned by the Climax Molybdenum Company (CMC) which, in turn, is wholly owned by Cyprus Climax Metals Company. The operation is located in the historic Ten Mile Mining District within a private land block of approximately 14,000 acres straddling the Continental Divide at Fremont Pass. The mine, once one of the world's largest primary producer of molybdenum, was in generally constant operation from about 1918. until the mid-1980s. The Mining and Reclamation Permit (Permit) required under the Colorado Mined Land Reclamation Act of 1976 (Act) was approved by the Colorado Mined Land Reclamation Board (Board) in late 1977 (Permit M-77-493). Subsequently, the Permit was formally amended in 1989. In addition, nine Technical Revisions JR) to the Permit have been approved by the Colorado Division of Minerals and Geology (DMG). Two other TRs, the groundwater monitoring plan and the Environmental Protection Plan (EPP), are presently being reviewed by DMG. The history of Climax is well documented. Briefly, molybdenite was discovered on Bartlett Mountain in 1916. With the start of World War I, the ore body was developed by underground techniques and production initiated. The mine closed briefly following the war, but opened again in 1924. Both production and the facilities grew for approximately 60 years, reaching a production peak in the late 1970s of approximately 50,000 tons per day of ore from both underground and open pit operations. At the peak, Climax employed more than 3200 people. Beginning in 1982, the world molybdenum market went into a rapid decline. Production was curtailed causing widespread and large-scale layoffs and facility shutdowns. Climax ceased production and reduced its workforce by more than 3000 during the early to mid-1980s. By early 1987, the mine was producing at a low rate exclusively from the higher grade portions of the underground facility. Production operations were curtailed later in 1987. At that time, Climax was placed in a ready state, care and maintenance condition as a swing producer capable of reasonably rapid production from the open pit as the market dictated. Since that time, Climax has operated only sporadically. Previously developed ore from the underground facility was milled, and the underground facilities closed. Other than a brief period of limited production in early 1995 in response to a short-lived market upswing, the only recent activities at Climax have 3