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~- <br />• III IIIIIIIIIIIII III i <br />999 <br />CLIMAX MOLYBAD~EINUM COMPANY <br />A DIVISION OF AMAX INC. <br />HENDERSON MINE <br />Box 68 <br />Empire, Colorado 80438 <br />(303) 569-3221 Apri 1 4, 1988 <br />r ~t87 <br />Ms. Margaret Winter, Chairman "'~ <br />Colorado Mined Land Reclamation Board r{~,~ ~ )o~~ <br />1313 Sherman Street, Room 423 <br />Denver, Colorado 80203 ~ ~ . ~ ~~ ~.• ; <br />Re: Technical Revision to Henderson Mine Permit No. 77-342 "~``~ ~~" '' ~~',~`~'^ <br />Dear Ms. Winter: TiPOS <br />Our initial approach to intermediate range reclamation objectives, conceived <br />and implemented in better economic times, has undergone intensive review <br />recently due to the depressed molybdenum business climate. We have endeavored <br />to re-fashion solutions that allow us to meet our reclamation obligations <br />while giving maximum consideration to the amount and timing of expenditures. <br />The current business climate has dramatically effected the rate of production, <br />the life of the mine, and the resulting timing of reclamation. At the current <br />reduced production rate of 18-million pounds of molybdenum in concentrates per <br />year the life of the mine is extended from previous estimates by 4 years to <br />the year 2020. <br />Due to dramatic changes <br />timing of reclamation, <br />~I,de,~ + or technical revision; 1) <br />~,~ ~ establish a reclamation <br />requirement, and 4) to r <br />in the rate of production, the life of the mine, the <br />and increasing cost of surety bonding we request a <br />to institute an alternate form of bonding, 2) to <br />trust fund, (3) to revise the soil cover on tailing <br />evise the soil stockpile plan. <br />1. Alternate Form of Bonding <br />We wish to substitute a letter of credit or other surety mechanism for <br />,,,~ , current surety bonds. Based on our information, there are alternative <br />~Q~" lower-cost surety mechanisms which are recognized under Colorado law. <br />During the last nine years our annual bond cost has increased 547 percent <br />while the estimated reclamation costs which require bonding have increased <br />235 percent. <br />2. Reclamation Trust Fund <br />We wish to establish a reclamation trust fund (sinking fund) and make <br />~ periodic payments into the fund as allowed by Colorado law. As the fund <br />a~' builds in value, the letter of credit or other surety mechanism will be <br />reduced in cost. This fund will build over the remaining 32-year life of <br />the mine (1988-2020) to cover future reclamation costs. <br />