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Climax Mine <br />Climax Mo7ybdenum Hwy 91- Fremont Pass <br />Climax, Colorado 80429 <br />A Freeport-McMoRan Company Phone (719) 486-2150 <br />Fax (719) 486-2251 <br />April 20, 2009 <br />Mr. Allen Sorenson Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />RE: Bonding Analysis, TR-r4 Stipulation, Climax Mine, Permit No. M-1977-493 <br />Dear Mr. Sorenson: <br />Please find attached the Climax Mine Site's reclamation cost estimate for the new mill and <br />accessory buildings authorized under Technical Revision No. 14. As the Division is aware, the <br />facilities were not completed due to the suspension of the 2010 Project due to unfavorable <br />market conditions. The attached bond costs reflect structures with footings, but no cement <br />flooring. <br />The cost estimate for the partially completed facilities is $2,002,445. The bond cost allocated to <br />the facilities demolished to date is $1,484,046. Although there is a slight difference between the <br />facilities demolished and the facilities constructed, Climax believes that the earthwork and <br />preparation activities performed on the Robinson Tailings Area and Arkansas River Channel, <br />which carry a bond cost of $4,482,398 and $892,352, respectively, greatly exceeds the $518,339 <br />costs difference between demolition and construction; thereby not warranting a bond adjustment <br />upwards. <br />If you have any questions or need additional information, please do not hesitate to contact me at <br />(719) 486-7718. <br />Sincerely, <br />AIC- <br />Johnny Pappas <br />Climax Environmental Manager <br />Attachment <br /> <br />Cc: K. Kioska (w/o Attachment) <br />E. Bower (w/o Attachment)