2010-08-10_REVISION - M1977493 (7)

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Permit Amendment (AM -06) — Climax Mine • biosolids, generated at municipal water treatment plants and composting with wood waste, that has resulted in successful mine reclamation. This program resulted from decades of Climax support in high altitude reclamation research. The biosolids composting program has received awards from the US Environmental Protection Agency and the state of Colorado. As described in Exhibit E — Reclamation Plan, Climax has long been performing reclamation at the Climax Mine. As these activities continue and areas are considered complete, CIVIC expects to submit written notice of completion of reclamation and requests for release of reclamation responsibility and financial warranties to the Division to acknowledge reclamation success. 1.1 Purpose of Permit Amendment The purpose of this amendment is to adjust the affected land boundary to encompass areas anticipated to be required for mine operations based on current mine plans and to provide updated information, based on the current status of planning and engineering activities. The existing permit was initially approved by the Colorado Mined Land Reclamation Board (Board) in 1977 in accordance with the Colorado Mined Land Reclamation Act of 1976 (CMLRA). This permit has been modified by 5 permit amendments and 15 technical revisions since 1977 (hereinafter, collectively referred to as the existing permit. This amendment represents an increase in the acreage of affected land from the current 4,638.8 acres to 7,908 acres, an increase of 3,269.2 acres. While this is an increase to the revised 2001 affected area boundary, it returns the affected land boundary to a size consistent with the boundary established in the 1980 permit amendment (AM -01), which established an affected land boundary of approximately 7,800 acres. This affected land boundary established in AM -01 was intended to accommodate future mine development based on the mine plan developed in the 1970s and reflected in the original 1977 permit application. CMC's commitment to the 1977 mine plan was demonstrated through the capital investment made by CIVIC to construct the East and West Interceptor Ditches in their current locations to - accommodate the future development of the Mayflower tailing storage facility (TSF), and the relocation of Highway 91 to provide adequate buffer between the roadway and the disturbed areas. Exhibits specified in Rule 6.4 have also been updated as necessary to reflect current conditions and planned operations. These Exhibits include, but are not limited to, an updated /amended Mining Plan, Reclamation Plan, and Environmental Protection Plan based on the current development plans for the mine. An increase in affected land acreage under this amendment signifies the following: • A reconfiguration of the boundary to encompass areas anticipated to be required for mine operations based on current mine plans; • Current operational considerations for the Climax Mine including both present reclamation activities and potential production; • Operational flexibility to allow regular and ongoing maintenance activities of numerous roads, ditches, water conveyance structures, and utilities; and • Logical delineation of affected land boundaries to aid in the field identification of boundaries. It should be recognized that an operational buffer on the affected land at Climax does not imply that all lands in the affected area defined by this amendment are targeted for disturbance. 1.2 Climax Reclamation Permit Background The Climax Molybdenum Company was formed in 1916, with development and preparation of the ore body beginning that year. Construction of the processing circuits began the following year and first production commenced in early 1918. As a result, the Climax Mine predated mine permitting laws in Colorado and the United States. The Board approved the existing permit for the mine in 1977 in accordance with the CMLRA. The Board subsequently approved five permit amendments and 15 technical revisions between 1977 and the present, which modified aspects of the 1977 permit related to affected land boundaries, mining plans and facilities, reclamation plans, post- mining land use, and • environmental protection measures. Introduction 1 -2 May 2010 (Page Revised August 2010)