2011-03-31_REVISION - M1977493 ‎(3)‎

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 3/31/2011
• Doc Name: Pre-Hearing Statement
• From: MLRB
• To: DRMS
• Type & Sequence: AM6
• Email Name: ECS
• Media Type: D
• Archive: No

CC S
44
BEFORE THE MINED LAND RECLAMATION BOARD
STATE OF COLORADO
RECEIVED
PRE-HEARING STATEMENT MAR 31 2011
OF CLIMAX MOLYBDENUM COMPANY 4 Division of Reciamation,
Mining & Safety
1-1
REGARDING CLIMAX MINE PERMIT AMENDMENT APPLICATION AM-06,
PERMIT No. M?1977-493
Climax Molybdenum Company ("Climax") hereby submits the following
Prehearing Statement to the Mined Land Reclamation Board (the "Board") in advance of
the April 13-14, 2011 hearing before the Board on the application for amendment AM-06
to the reclamation permit for the Climax Mine, Permit No. M-1977-493.
1. EXECUTIVE SUMMARY
This matter comes before the Board for decision on the recommendation by the
Division of Reclamation, Mining and Safety (the "Division" or "DRMS") to approve
AM-06 over objections, with stipulations. Climax requests the Board approve the
Division's recommendation and stipulations.
The AM-06 application seeks approval to expand the current affected land
boundary to align substantially with the boundary within which Climax was approved to
conduct operations prior to 1989. This current request for expansion of affected lands is
onto land long owned in fee simple by Climax and, for the most part, previously
encompassed in the affected lands delineated in the 1977 permit. In the short term,
approval of AM-06 will enable Climax to begin preparation of the open pit for
resumption of mining (once market conditions allow) and to upgrade the Robinson
reclaim pipeline in the 2011 construction season.
Activities in the 2011 construction season are budgeted at approximately $350
million, and the pit preparation project to begin following AM-06 approval will create an
estimated 145 new jobs at Climax in 2011. In the long term, approval of AM-06 will
provide Climax needed life of mine footprint for full-scale mining and processing
operations. The total expenditure towards preparing the mine for re-start is anticipated to
reach $600 million by the end of 2011. Although Climax has not announced a date for
resumption of full-scale commercial production of molybdenum at the mine, it is
expected at full production Climax will employ approximately 380 people.
Because of the location of the activities related to preparation of the pit and to the
Robinson reclaim pipeline, approval of AM-06 is a crucial component of the re-start
process. If AM-06 is not approved, these expenditures and hirings will be curtailed.
1386748.1
3/31/11