1999-02-05_GENERAL DOCUMENTS - M1977493 (7)

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• Comparison of Climax Mine Demolition Costs Prepared by the Colorado Division of Minerals and Geology (DMG) and the Demolition Costs Developed by the Climax Molybdenum Company 1.0 Introduction and Background Ellis Environmental Engineering, Inc. (EEE) was commissioned by Climax Molybdenum Company (CMC) to perform an analysis of the Colorado Division of Minerals and Geology's (DMG's) 1997 demolition cost estimate for Climax Mine, based on recent Cyprus Amax Minerals Company demolition projects and EEE's previous demolition experience at other mine reclamation sites. This report is the culmination of that analysis. Climax Mine provided Ellis Environmental Engineering, Inc. with the following documents and information, which were all used in the preparation of this report: • "Assumptions Necessary to Complete Preliminary Cost Estimate for Structural Demolition at the Climax Mine," by Allen Sorenson, Memo to File No. M -77 -493, dated April 27, 1997. This document summarizes the assumptions Allen made when calculating the DMG's preliminary estimate of demolition costs. • • M493-4.WKB Workbook, dated May 2, 1997, covering 8 pages of Climax buildings from Storke Area to the Coherex Fill Station. This workbook depicts all of DMG's calculations for the various types of activities needed to complete demolition of structures. For instance, it includes costs for tearing down the superstructure, breaking up the floor slabs, demolishing and rubblizing the foundations, and asbestos removal / disposal. • M493 -5.WKB Workbook, dated May 2, 1997, covering 5 pages of Climax buildings from McNulty Pump Station to Tailing Delivery Lines. This workbook also addresses various phases of demolition. • Complete Climax Mine file containing bid documents from the demolition of the Storke Area buildings in 1994. This file contains the individual bids from five construction companies to perform demolition work on 13 categories of buildings at the Storke Area. Many of these same buildings were covered in the first two sheets of DMG's Workbook M493- 4.WKB, so that we have a comparison of DMG's predicted costs of demolition versus actual bids for conducting the demolition work. In addition to the above reference material from DMG and Climax Mine, EEE has accumulated data for building demolition from two other Cyprus Amax Projects, where EEE was integrally involved as Field Project Manager during the demolition and reclamation phase. These two projects provided pertinent, real -life cost numbers, which were used to compare with DMG's predicted demolition costs.