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MINE ID # OR PROSPECTING ID#: M-1977-493 PAGE: 2 <br />INSPECTION DATE: 1-28-09 INSPECTOR'S INITIALS: ACS <br />Major construction operations were underway at Climax during 2008 <br />under what is called the Climax 2010 Project. This was a project to <br />resume production from the open pit in 2010. Late in 2008, Freeport <br />McMoRan, the parent of Climax Molybdenum Company announced that <br />Climax 2010 was being suspended and that the mine would be returned <br />to a care and maintenance status. This inspection was conducted to <br />discuss the shutdown of the Climax 2010 Project and to inspect the <br />2008 construction projects in the Climax Camp area. <br />Climax 2010 is being shut down in methodical, planned phases. At the <br />time of this inspection, there were 28 Climax employees on site, and <br />88 contract employees in Climax Camp and approximately 30 contract <br />employees working in the Ten Mile Tunnel. Activities observed in the <br />new mill building included connecting of natural gas to the building <br />in anticipation of starting heating and ventilation systems in the <br />new term and continuing installation of the mill storm drainage <br />system. Climax will continue to take delivery of new mill and other <br />equipment over the next several months, and the equipment will be <br />stored for installation prior to future resumption of mining. <br />The Division will inspect Climax again in the spring of 2009 to <br />continue tracking the orderly return of the mine to care and <br />maintenance status. <br />Inspection & Enforcement Contact Address <br />NAME Gary Slifka <br />OPERATOR Climax Molybdenum Company <br />STREET Climax Mine <br />CITY/STATE/ZIP Climax, CO 80429