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C77E239D3E197F40872582420063E595 Hearing Summary


Date Feb 28, 2018      
Location HCR 0107

Presentation from Climax Mine - Committee Discussion Only

11:11:10 AM  

Mike Kendrick, President Climax Mine, introduced himself to the committee and provided the committee with his background. He discussed safety procedures and statistics for Climax Molybdenum (moly), which has locations in Climax and Henderson, CO. He also discussed Climax Moly global operations, which include the two mines in Colorado.  Mr. Kendrick distributed a copy of his presentation to the committe [Attachment A].

11:15:42 AM  

The Henderson Mine has been operational since 1976, and its production has ranged between 10 and 40 million pounds of moly per year. Climax Mine opened in 1918, but was put into care and maintenance in the 1980s due to a lack of demand for the mineral. The mine reopened in 2012. The production range of Climax mine has ranged to 30 million pounds of moly per year.  Mr. Kendrick discussed the primary uses of molybdenum.

11:23:17 AM  

Mr. Kendrick discussed the different uses for molybdenum, including stainless and alloy steels, de-sulfurization catalysts, flat screen electronics, renewable energy, and oil and gas production and exploration.  He also discussed the economic impact of Climax and Henderson Mines. Mr. Kendrick responded to questions regarding affordable housing for people who work at Climax and Henderson, and how Climax helps its employees with housing.

11:28:39 AM  

Mr. Kendrick discussed reclamation efforts being made by Climax Molybdenmum and discussed the water treatment process for the mine. He also discussed the qualities of molybdenum and stated that it is not a heavy metal, rather it is considered a trace element.

11:32:14 AM  

Mr. Kendrick discussed the regulatory and governmental oversight that Climax Mine must comply with and discussed the water quality standards history of the mining operations. Colorado has adopted two human health-based water quality standards. The first was adopted in 2007 and was based on a 1960s era Armenian study that has since been discredited.  The current standard, adpoted in 2010, is based on a 1990 graduate thesis.  Mr. Kendrick discussed regulations in Europe and how those regulations impacted human health science for moly. He discussed Climax Mine's application of the International Molybdenmum Association (IMOA) study results and discussed the current status of the water standard for moly. The Water Quality Control Commission granted Climax an extension to continue to operate under current conditions while uncertainty surrounding the science is addressed. Future Water Quality rule-making is scheduled for November 2019.

11:40:26 AM  
Bryce Ronig, Director of Remediation for Climax Mine, responded to questions from the committee regarding communication with local officials of areas impacted by Climax and Henderson Mines. Mr. Kendrick responded to questions from the committee regarding the IMOA study and results of the study. He also discussed the next steps that need to be taken in evaluating water quality standards.

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details