2001-02-22_REVISION - M1977493

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 2/22/2001
• Doc Name: Approval
• From: DMG
• To: Climax
• Type & Sequence: SR3
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St., Room 215
Denver,Colorado 80203
7NERALS
V I S I ON O F
Phone.[phone]
FAX:[phone] &
GEOLOGY
RECLAMATION
February 22, 2001 1 MINING-SAFETY
Bill Owens
Mr. Bryce Romig Governor
Climax Molybdenum Company Greg E.Walcher
Climax Mine Executive Director
Michael B.Long
Climax, CO 80249 Division Director
RE: Partial Reclamation Liability Release, Climax Mine,
Permit No. M-1977-493, Revision No. SR-03
Dear Mr. Romig:
Thank you for your letter of January 29, 2001 summarizing the status of Revision SR-03 to the Climax
Mine reclamation permit. I am pleased to inform you that Revision SR-03 has been approved; the
approval date for the revision was December 23, 2000. What follows in this letter is a discussion of the
terms of the approval as outlined during the site inspections conducted on September 26 and October
24, 2000. Also provided is an update on the working reclamation cost estimate that forms the basis for
the amount of Financial Warranty required to maintain the reclamation permit. A complete year 2001
re-estimate of reclamation costs for the Climax Mine is enclosed.
1. Storke Complex
The Division of Minerals and Geology (DMG) through approval of Revision SR-03 releases Climax
Molybdenum Company (CMC) from reclamation liability for backfilling and grading in a portion of
Zn
Storke Yard. Limitations to the release of reclamation responsibility for the Storke Complex are as
follows:
• Approximately 11 acres around 7-Shaft are not included in the release.
• Approximately 9 acres where the buried Arkansas River channel will be reconstructed under the
terms of the approved reclamation plan is not included in the release.
• The immediate locations of 5-Shaft and the 5-Shaft head frame, and the immediate locations of the
Storke Waste Water Treatment Plant, ponds and appurtenances are not included in the release.
• Mining debris exposed in the Storke Yard backfill will be removed (see 9/26/00 inspection report).
• Revegetation responsibility release was not requested by CMC and is not included.
The reclamation costs for reconstruction of the Arkansas River channel, and for backfilling and grading
in the 7-Shaft area have been completely re-estimated for the purpose of establishing the amount of
required bond. This was necessary because one of the primary assumptions used in the previous
estimates is no longer valid, i.e., that cut material generated during reconstruction of the river channel