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23-03_7_Redacted
MINING CHECKLIST FOR ROUTING Applicarre'e Name: Project Name. ApplicJPermit No.: _County: Date Received: Reviewer. River 15asin Name- 0 New ORenewal ❑ Modification (inside permit boundaries) ❑Modification (outside perrryt boundaries) 0 Transfer ❑ Release ❑Partal Release 24M&Vonal Information OFee Needed: $ 0 Fee Received: $ Please route enure applorinion pares. to: Regional Office (2 complete copies;attach the"LQ5 Regional Office Mining Application Review Checklist"to one wpy and attach k=h the DWQ and PAO "Mining Application Review Forth"to the other wpy; send both copies tc the Regional Fsgineer) Date: Routed : ; Reed 0 Division of Water Resources Date: Routed Reed ❑NC Wildlife Resources Commission Date. Routed Reed 0 U5 Fish &Wildlife Service Date: Routed Reed (Only new applications and modification requests that add land to the permit) Please route firs* 3 pages of the apoication and any location to 0 Division of Parks & Recreation Date. Routed Reed 1 0 NC Geological 5urvey Section Date: Routed Rec'd (Only new applications and modification requests that add land to the permit) 0 Division of Archives & History Date: Routed Reed (Only new applications) ❑Other. Date. Routed Rec'd "Suspense Date for Comments: (no later than 25 days from receipt) 0 Please note the following: l i & IMERYS Kings Mountain Minerals Inc. P. O. Box 729 - 0 Kings Mountain, NC 28086 MAY 2009 May 28, 2009 lu%47*��4'44 ur J,:.r_.�r,,t+• w �i7��7uR� NCDENR - Land Quality Section 610 East Center Avenue Suite 310 Mooresville,NC 28115 R_1-.01 i V, Attention: Mr. Zahid Saeed Khan JUN C 1 200! RE: Notice of Deficiency Kings Mountain Minerals Inc. Mining Permit 23.03 Moss-Neisler Mine Kings Mountain, Cleveland County Dear Mr. Khan: I am writing in response to the Notice of Deficiency received by Kings Mountain Minerals Inc. ("KMM") dated April 30,2009 for its Mining Permit 23-03 located in Cleveland County North Carolina Please find in this letter a brief description of resolution for each of the deficiencies detailed in your letter and mine inspection report. The permitted acreage for Mine Permit 23-03 is 753.92 and a disturbed acreage of 381.03. The West Archdale property map has the correct acres in the table, but there seemed to be some labeling temrinology the may have been located incorrectly. We have corrected the map to reflect the permitted limits of disturbance. All mining property maps have been revised to identify, limits of disturbance, haul roads, vegetative buffers, streams/springs, drainage features and discharges. A reclamation plan timeline has been attached for the Neisler Tract V. Also included is an approved list of vegetation for our permit. Please find enclosed the following: 1.) Attachment A— West Archdale Mine plan map. 2.) Attachment B -New mine maps for all mining sites. 3.) Attachment C and D Revised reclamation efforts for Neisler Tract#7 including a recommended list for vegetation. Thank you in advance for your cooperation in this matter. If you have any questions or need additional information, please contact me directly at 744-739-3616. Sincerely Michael Tonelis Plant Manager Kings Mountain Minerals Inc. Attachments C and D � Revised Reclamation Plan and timeline for Neisler tract N7 y, 1.) Complete backfilling of pond in the Northwest comer of the property By Summer of 2010. 2.) Seed and establish Vegetation Fall of 2010. 3.) Monitor vegetation growth weekly during Fall 2010. 4.) Release property back to original landowner Neisler Brothers, Inc. Winter of 2010. Also enclosed an approved list of vegetation previously submitted with Mining permit application. Apr 12 04 01 : 29p Shelby USDA SC 17044711230 United stators department of Agriculture N R C S Natural Resources conservation Service 844 WON"Grpvs Road Shelby,NC 28t50-9213 April 12, 2004 Andy Howell KMG - Minerals Kings Mountain, NC Subject: Re-vegetation Plan for mica mining site: Located in the Kings Mountain area of Cleveland County along highways 29 and Bethlehem Church Road From: Ben Robinson . District Conservationist Following are selected vegetation recommended for stabilizing disturbed areas for this site: atcs February— March Common Bermuda(Seed —unhulled) ai 10 lbs, per acre March i — April Hybrid or Common Bennudagrass sprigs—2' x 2' spacing March i — April 15 Tall Fescue at 160 lbs. per acre Kobe Lespedeza(inoculated) at 10 lbs. per acre March 15 —Julie Sericea Lespedeza (scarified)(inoculated) at 40 lbs. per acre Weeping Lovegiass at 2 lbs. per acre Best for droughty sites April 15 —June 30 Common Bermuda (seed — hulled) at 8 lbs. per acre April 15 — August 15 Tall Fescue at 160 lbs. per acre Kobe Lespedeza(inoculated) at 10 lbs. per acre Weeping Lovegrass at 5 lbs. per acre August 15 —March 1 Tall Fescue at I60 lbs. per acre Rye at 20 lbs. per acre Crimson Clover(inoculated) at 10 lbs. per acre Note - Tall fescue is not well suited to droughty, sandy soils The Natural Resources Conservation Service provides leadership in a partnership e0ort to help people conserve.maintain,and improve our natural resources and environment. An Equal opportunity Provider and Employer Apr 12 04 01 : 30p She1btj USDA SC 17044711230 Page —2- Prepare seedbed by incorporating lime and fertilizer to a depth of 3-4 inches (if hydroseeder is used lime and fertilizer may be applied with seed mixture). If slope prevents use of conventional equipment, scarify soil with chain harrow, hand tools,or other equipment. Where amendments can be incorporated, lime and fertilize according to soil test. in the absence of a soil test, apply per acre: 1,000 lbs. 4-24-24 or equivalent 2 tons dolomitic limestone 2 tons small grain mulch (with Bermuda use I ton) Where amendments cannot be incorporated, lime and fertilize according to soil test. Indicate on the soil test information sheet that the litre and fertilizer will be applied by means ofhydroseeding or cannot be incorporated. In the absence of soil test, apply per acre: 1,000 lbs. 4-24-24 or equivalent I ton dolomitic limestone. 2 tons small grain mulch (with Bermuda use 1 ton) Anchor areas with mulch netting or emulsiiicd asphalt where needed to hold mulch in place. For short term seeding, seed as follolvs: Late Winter— Spring Rye or oats at 3 bushels per acre Summer Browntop Millet or Sudangrass at 40 lbs. per acre Or Weeping Lovegrass at 5 lbs. per acre Late Summer to Early Rye at 3 bushels per acre Winter For short term seeding apply per acre: 500 lbs. 10-10-10 2 tons lime Mulch is optional but should be used when temporary seeding is during the summer or on droughty/sandy areas. Maintenance of permanent vegetation: Control weed competition by mowing or with herbicides. Follow NC Agricultural Chemicals Manual recommendations and adhere strictly to instructions on pesticide label. Irrigate newly seeded areas ifwater is available and rainfall is not adequate. Rpr 12 04 01 : 30p Shelby USDA SC 17044711230 Page—3- Inspect all areas for planting failures and make necessary repairs, replacements, and reseeding as soon as possible. Take soil samples every 2 years and follow lime and fertilizer recommendations. if not known apply fertilizer annually and lime as indicated based on the following: Pure stands of tall fescue: Apply 400 lbs. of 10-10-10 per acre August - September Apply 45 lbs. of nitrogen/ac. February—March (e.g. — 130 lbs. 34-0-0/ac.). Pure stands of Bermuda grass: Apply 400 lbs. of 10-10-10 per acre April 15 —May 1. Apply 50 lbs. of nitrogen/ac. in July(e.g. — 150 lbs. 34-01-0/ac). Mixtures of lespedeza,clover, tall fescue and weeping lovegrass: Apply 400 lbs. per acre of 5-to-to or equivalent February—March. For all vegetations apply lime at 1 —Z tuns per acre lime every 3 -5 years. 1 �Z /t/er Z4- Ke 's IVO, /, No . 3 � rr�ic�.a1F /I/Jite — Lza-y� dD /7)055 j ;t-4 Aj/ , J d /Vo . 4*VWi/V G r i II / 1 1 1 \ 1 o J I x i o o \ ' C X \ x _0 _0 � rn � r+ x X ox_— o i — r� O � l 7u � o Ul ------------ \X, IQ OD a s, o ' CD T rt 0 C = 0 0 —� p x v 00 NJ co o / I 1 1 ( x Z; I i _ / zo O Ln OOS 94 _ fPI �8g - OIF 016� tib � O O 0 0 l,i I O o 068 °aa ' � / •� W CD Ogg J O ail � i 3 o $ -�a z \�\�'— "1 � - \ ^ +ter•'; •! P m O m 0 0 ` OL8 �� �rI ZN g Er—, I �o 048 tTl CD 17 n � y l n ,r , '` -- - lam- / �' CS HWY 29 .6 �; � 1 l�� 4 kk � � I ti 'a > < ty III r' SAIDU 9G d _ - - - — - ARC V4DI,, NHDACe"ATER ro ANp SU E MP ASTI y S� 'rcI(VG %jt, \1 PN0\� CAST ARCMMLE SUMP j----------- EAST FR SEDIMENT BASIN 'II `N\ , ECFIa r� APR jV, up QUACI ry sEcr, INTERSTATE 85 Category Affected Acreage in s ct°S 21e Mountain Tailings/Sed Ponds 1 o*5 oo010 29 WEST ARCHDALE MINE PLAN Stockpiles 0 gy Town of Kings Mountain — Cleveland County — North Carolina Waste Iles Archdal Kings Mountain Minerals Inc. °a1 4i0i09 P 0,853 �� ® °YB A`Wpa7CPERMIT Processing Areas/Haul Rds 2,0 85 GRAPHIC SCALE Minerals Group Inc. . oRmwa ex 29 o e Sao m .m s TOH NPT Mine Excavation 56,5 216 North Carolina RISK M> South Carolina t IN m" I Other I I h � loom Vicinity Map o a � � Q � ry J" °b v ke S 9 6g ae a $ � e ypy ��ll ob ®� N 1�0>a on s9 y � O cf) o0 3 N a a x mr � �� A N a Q m p D (f)CZ rz d O v $ m J Q 41 T O w m C K 9 ` m m n A �fi O) Ui O .{a CP O \IJ m > > Z Q e z t' , r i00000 e Al e _ e N cn O II L=J z a z (n k e C/) > o z z z V z 2 � Z o ; y m p r jtl o0 N Cz a ci z A m ■ C3 W z co � F � o 1 w gad 1 Q) � o ° � o 1 Q z g w zaw T AeZI z p Z ¢ W ¢ W a � z U z 0 x ti a € Bethlehem Rd. 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Box 729 DO"WWA07CPERMIT ti\ $ GRAPHIC SCALE 1469 S. Battleground Avenue me` I' — 1w Processing Areas/Haul Rds 2,0 85 Kings Mountain, NC 28086 (704)734-3513 d�es ara eF 29 o m five mo IN — TDX NPT 218 Mine Excavation 56.5 North caroling South Carolina t m rear ) Other I izwh — loon. Vicinity Map I i RECEIVED MAR 1120118 LAND QUALITY SECTION LEGEND Category Affected Acreage e MINE AREA (• Tailings/Sediment Pond 40 PROPERTY LINE Stockpiles 17 MINE ACTIVITY Overburden Piles 14 Processing Area/Haul Rds 3 , Permit Boundary Mine Excavation 13 I , Other 42 , CD Mine Activity CD 129 Acres ore CDstoc is St 1 Acres 0 ® 'Waste 5 Acres 00 I 1 00 5 ' Ae O- & m S ® oq Ip ' Waste l h \ 5 Acres Ore U h �X� 00 k e ♦. , �� w 00 '" - ' ' J+ Open Pit Area Ne l l e r 13 Acres Waste 250 Acres + 7Acres Elf �. - 4 I Waste Q� $ ®Ore 4 Acres Stockpile 8 Acres oIle Fill and Grading 40 acres . o 00���� � " ° , Ore me e Neisler Tract # 7 t Stockpile , 4 Acres Tailings & Water Storage I % � ` 28 Acres a'Neisler Tract #7 " ' u Currently under Reclamatio.Q a 55 ages for release in 2007 rn , \ a /d��/ J ha ` -- Reclaimed 2 acres , I Fall 2004 e RECEIVED � � ttti 06 2008 "��` "° LAND QUALITY SECTION Kings Mountain Mining, LLC a Zemex Industrial Minerals Co EXISTING PERMIT NO. 23-03 NO. DATE REVISION 1) 7/7/2004 2004 MINING PERMIT RENEWAL i" = 1oo' P801CN0 nnw er 2) 11/9/2004 2004 MINING PERMIT RENEWAL 4/fe/2004 MINE PERMIT RENEWA M.P. Tonelis 3) - ADDED CONTOURS & STOCKPILES '1°'� NEISLER MINE'S No. 1 , No. 2 & No. 3 4) 1/20/2005 2004 Mine Reclamation Report somns: m.uc nofum 5 1/12/2006 2005 Mine Reclamation Report 6 MINING/TAILINGS DISPOSAL ACTIVITY in 9e f 9a umu, q^0S 6? RD m Amhdal m e RD Mine Entrance 06 N2rb 0uralin NCDOT R/W south Carolina x___--_—_x—____�_x.:+' /� 25 C,�___l Vicinity Map _-- _ �b4fe� � ��.�\ """•� -�Ar\ Category Affected Acreage Tailings/Sed Ponds 3 Stockpiles 5 x t Wasepiles 15 x/ Processing Areas/Haul Rds 3 Mine Excavation 58 a Other 25' Buffer-?+ _— Exist. R-O-W Fencing To Remain Along U.S. Hwy. 29 Ore stockpiles Nc0 GT Rjy Mine sump Sediment Boain w/PAtar Dam -Berm �/ 01/e�bUrden B s NCDOT R/W 25' Buffer NCDOT R/W — x x NCDOT Fence To Remain — Interstate 85 RECEIVED p Archdale Mine — East FEB 062000 Mine, Erosion Control & Reclamation Plan Town of Kings Mountain - Cleveland County - North Car'ino Kings Mountain Mining, LLC °"`10 11 m AND QUALITYSECTIpN GRAPHIC SCALE 2006 Reclamation Annual Report an SW ArchERenaw P.O. Box 729 We 4M 1469 S. Battleground Awmue " r' - 1W Kings Mountain, NC 26066 (704)734-3513 o..is, o ea tdh mpt ( m Beer 1 arl eW, m n - too n F Alam NC®ENR North Carolina Department of Environment and Natural Resources Division of Land Resources James D. Simons, PG, PE Land Quality Section Beverly Eaves Pardue,Governor Director and State Geologist Dee Freeman,Secretary June 21, 2010 Kings Mountain Minerals, Inc. General Chemical Industrial Products, Inc. Attention: Mr. Peter Flynn Post Office Box 729 Kings Mountain, North Carolina 28086 RE: Mining Permit No. 23-03 I JUN 2 3 f Moss-Neisler Mine 1Di0 Cleveland County ND�. -_ QUAL ITY Broad River Basin t A --- SE1'7(CN J Dear Mr. Flynn: Thank you for your letter dated June 6, 2010 concerning the referenced mine site, which was received by the Mooresville Regional Office on June 8,2010. In your letter,you provided an update of corrective actions taken in response to our Notice of Deficiency issued on October 13, 2009. On April 205 1010, Mr. Ryan Kormanik, Environmental Specialist, inspected the site and observed that approximately 14 acres of the tailings pond had been reclaimed. The reclaimed portion included the area that had overtopped. Please continue to stabilize the area. We appreciate your cooperation. Please continue to provide periodic updates of your evaluation and design of a new impoundment. we look forward to receiving your engineering study and/or plan submittal. Please provide a%witten update within thirty(30)days of receipt of this letter with a date by which we may expect to receive the engineering study and/or plan for the proposed impoundment. It is recommended that you or vour engineer direct questions related to dam applications or the data plan review process to our dam safety staff at(919)733-4574,or to Ms.Tames Eplin,PE,Assistant Regional Engineer,at(704) 663-1699. Questions regarding the existing tailings pond should be directed to Mr. Kormanik at(704)663-1699. Sincerely, �J'aC Zahid Khan Regional Engineer cc: State Mining Specialist I>tooreeville. Regional 0%ce 610 East Carter Avenue, Suite K1, h7t>d:esvills, North Catalina 28116 • PhonB 704-961 FAX , I KINGS MOUNTAIN MINERALS Inc. 1469 S. Battleground Avenue P. O. Box 729 Kings Mountain, North Carolina 28086 Phone 704-739-3616 Fax 704-739-7888 April 21, 200B ! NC DENR Division of Land Resources Land Quality Resources 1612 Mail Service Center Raleigh, NC 27699.1612 Dear: Mr. Floyd Williams This correspondence is in reference to Mine Permit No. 23-03 and the requested change of ownership from Kings Mountain Mining, LLC to Kings Mountain Minerals, Inc. Please find enclosed two sets of current mine maps with the correct Company Name per your letter 402008. If you have any questions please call me at 704-735-3513. Regards, Michael Tonelis, Operations Manager Enclosures: Two sets of complete mine maps. RE�E�QED APR 231008 CANp QQAUTV SfCr/ CA o s ,WJT a y 6 TA � n 4P m EaT9 r Tanee -a-o - ` m 5 0 — NAA, COO ItS �_ 1-ems, J1 An 12ow A a y q. � lPC,C IrZ o fi 4 !® I� B ar ,. D o..,. 7 TOP mn;ngs 10.0 - Mns 6 � 4� se11�I1 n nqs e o e.M,s. om:sxw� q , W,N APR 2� / 01F � ' Plant Area 53 Acres / oru sum 222 Acres + ([��� NO QUALITY SECil01 woes N 2 +/- 14 Mrp" " �'' - ✓ - -,4_a- -i-` -- - n°' - v: �� e CAM ST CoA � — llrr 4 _ O _ — J AWAPIA CDC - Mine Area Category Affected Acreage EXISTING PERMIT NO. 23—OJ 9 y Property Line j �!j �—== ( \ --� ToilingslSediment Ponds 57 Stockpiles 6 u �\ P�rmi Boun,drJ �, -- ' = �� iZ �� $ �-� � � - _ . 1 - — �_, � � , T� ,�---,, Overburden Piles 0 y �' % 1 Mine AcFvrt �' ProcesslHaul Roads 5 Mine Excavation (inactive) 14 Kings Mountain Minerals Inc . -- ` " r � � ' ,/ ✓ Water Storage 6 NO. DATE REVISION MINERALS GROUP Inc 1) 1 19 98 1997 — Reclamation Report (MPT) ecru: t" = too' a TM. 2) 1 /25/99 1998 — Reclamation Report (MPT) oes 7/18/04 1 MINING MAPPINGM.P. Tonelis 3) 11/23/99 Transfer of Mining Permit to New Owner (MPT) ' MOSS MINES No . 1 & No . 2 4) 7/19/04 2004 MINE PERMIT RENEWAL MOSS �V� � VL J 5) 10/15/07 GENCHEM SALE suenna: °B" emmee 8 PROCESSING PLANTS AND WATER STORAGE a � n 3�VJ. o.� a — a �. �o J oJ�aGy " CD DEUS.57 Ell N apaApE �,B OLACs JENS E - E 0.5 Jf NSf IgLrOt MC! S y �4�q�4 A. e. o m. M Q. Icn- eA.L grog S _. �'0 9a J pn� JAe AN[e 9 ro 9T6 PS] pre Bvneik !ren =�• a m 05 _ Brag 950 I 1 0 AC. ort =rAT... DRIED TAILINGS 9bo Is, FROM DITCH rO-AO, pn' 950 Om st"Esa 9153 ].9 950 NET 9I5 0� C B o p CX si0R6E OPEN S-X e sas- Tailings 8.0 925 Acres Q p Moss n 4 Sreo B�ikinq n` //� o s s �r� r�6,� t OPEN SiaMGE ury\\VVV//hull `/`'/C,�I it p B.B. TOUR- 930 Plant Arco 53 Acres 222 Acres OPEN STOWS BRUSH BRUSH AS y 2l5 ftss 2 1/ *r1 Acres BRUSH orEN ETOM..E n� BPVSM d JE1B3 FC-AaF - - - B U 9P.SX 0^, BRVCJ! 9'O 900 9� MOSS MINES NO. I do NO, 2 gyp BBC .�11 EXISTING PERMIT NO. 23- 03 CLEVELAND COUNTY i AFFECTED 0BB CATEGORY _ ACREAGE KINGS MOUNIAIN MINERALS INC. TAILINGS & SEDIMENT PONDS -._ 1469 S. BATTLEGROUND AVE- STOCKPILES 6 KINGS MOUNTAIN NC 28085 OVERBURDEN PILES 0 I 5128109 , „ = 2 s 0 PROCESS / HAUL ROADS 5 MOSS09REV.D410 IDH MINE EXCAVATION (INACTIVE) 9 4 WATER STORAGE - - - c� - U v'A iui NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James 0. Simons, PG, PE Beverly Eaves Perdue, Governor Director and State Geologist Dee Freeman, Secretary August 13, 2010 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7001 0360 0000 5313 6586 Mr. Jeff Hicks Imerys 100 Mansell Court Suite 300 Roswell, Georgia 30076 RE: Permit No. 23-03 Kings Mountain Minerals, Inc. Moss-Neisler Mine Cleveland County Broad River Basin Dear Mr. Hicks: On August 12, 2010, we received the revised $500,0=.00 Surety Bond (no. 82192892) issued by Federal Insurance Company for the referenced minir-..c operation. As this new surety bond sufficiently covers the mining operation, the enclosed Irrevocable Standby Letter of Credit (no. F853073) for $500.000.00 issued by Suntrust Bank is hereby released by the Department of Environment and Natural Resources for your disposal. In addition, per your request, 1 am returning the incomplete Surety Bond No. 82192892 received by this office on August 9, 2010. We will retain the revised, completed bond as referenced above as surety for this site. This office is closing its bond cancellation/forfeiture action. ''-612 Mail Service Center, Raleigh, North Carolina 27699.1612 • Teleohor. :: 733-a5741 FAX:919-733-2876 512,Ncr,n Salisbury Street, Raleigh, North Carclina, 27604 -Internethttp:N,ww,v.dlr,z_--Male.nc.uslpagesilandqualitysection An Equal Opporiunily i Airtrm;tr:e .c;ion Empieyer-50%Recrc'ec '- :=^s,tic❑surner Pa. v i Certified Mail Mr. Hicks Page Two Thank you for your cooperation and prompt attention to this matter. If you should have any questions on the above, please contact me at (919) 733-4574. Sincerely, ,mil n Ashley L. Rodgers Assistant State Mining Specialist Land Quality Section Enclosure: SB No. 82192892 received by the Land Quality Section on August 9, 2010 ISLOC No_ F853073 cc: Mr. Zahid Khan Ms. Josephine Kerr, Esq., Attorney General's Office Ms. Kathy Cooper, Esq., Attorney General's Office Ms. Pamela Crenshaw, Suntrust Bank, Attn: Standby Letter of Credit Dept., 25 Park Place, 16" floor, MC 3706, Atlanta. GA 30303 Ms, Susan 8. Radcliffe, Kings Mountain Minerals, Inc., PO Box 729, Kings Mountain, NC 28086 ` NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, PG, PE Beverly Eaves Perdue, Governor Director and State Geologist Dee Freeman, Secretary August 4, 2010 CERTIFIED MAIL RETURN RECEIPT REQUESTED BOND CANCELLATION &-FORFEITURE NOTICE 7008 1300 0000 1127 4730 7008 1300 0000 1127 4723 Ms. Susan B. Radcliffe Ms. Pamela Crenshaw Kings Mountain Minerals, Inc. Suntrust Bank PO Box 729 Attn: Standby Letter of Credit Dept. Kings Mountain, North Carolina 28086 25 Park Place, 16`h floor, MC 3706 Atlanta, Georgia 30303 RE: Moss-Neisler Mine Permit No. 23-03 Cleveland County Broad River Basin Dear Ms. Radcliffe and Ms. Crenshaw: This office has received notification of Suntrust Bank's intent to cancel Kings Mountain Minerals, Inc.'s $500,000.00 mine reclamation bond (Irrevocable Standby Letter of Credit No. F853073). The effective date for the cancellation is October 10 2010. Please-note that if the bond is not reinstated or replaced by September 10,2010, the mining permit will be automatically revoked (G.S. 74-50(c)). Thus, all mining activities must cease and the entire mine site must be completely reclaimed. Should any further mining activities occur at the site after this date, such activities will be considered mining without a permit and subject to further enforcement action, such as civil penalties and injunctive relief. As a surety is required to maintain the validity of the mining permit, please arrange to substitute this bond. I am enclosing another surety form, an assignment of savings account form and an irrevocable standby letter of credit form, any of which may be used to replace the existing surety. 1612 Mail Service Center, Raleigh,North Carolina 27699-1612 • Telephone 919-733-4574 I FAX:919-733-2876 512 North Salisbury Street, Raleigh, North Carolina, 27004•Internet:http://www.dlr,enr.state.nc.uslpagestlandqualitysection.html An Equal Opportunity I Affirmative Action Employer-50%Recycled 110%Pos;Consumer Paper CERTIFIED MAIL Ms. Radcliffe and Ms. Crenshaw Page 2 Please be advised that this reclamation bond must remain in full force and effect until it is reinstated or replaced, or the site is completely reclaimed and deemed releaseable by the Department. A review of our records indicates that the mining permit for the above referenced mine site is still active and, therefore, a valid mine reclamation bond is still required until all . outstanding reclamation obligations have been met at the site. If a substitute reclamation bond is not received by this office within this deadline, or if reclamation of the site has not commenced and is proceeding in a timely manner by this deadline, this matter will be referred to the Attorney General's Office for initiation of bond forfeiture proceedings under G.S. 74-56(d) to ensure proper reclamation of the mine $ite✓, In addition, failure to address the terms of this Notice may result in the assessment of civil penalties and/or injunctive relief against the permittee. Please contact me at (919) 733-4574 as soon as possible to convey your intentions in this matter. Your cooperation will be greatly appreciated. Sincerely, Ashley L. Rodgers Assistant State Mining Specialist Land Quality Section Enclosures: Bond Forms cc: Mr. Zahid Khan Ms_ Josephine Kerr, Esq., Attorney General's Office Ms. Alison Howard, Attorney General's Office Ms. Kathy Cooper, Esq., Attorney General's Office T SuNT, RUST -4, IRREVO,CABE; i, STANDBY F I'ETTER OF CREDIT NUMBER - ' 53073 DATE . AUGUST 02 ,d' 2010 �Al M A I L,/,T 0 BENEFICIARY: ' STATE OF��NORTH CAROLINA DEPARTMENT Z. "6F ENVIRONMENT AND NATURAL_- RESOURCES 1612 MAIL SERVICE CENTER RArEIGH , -N C 2769:9` 1612, JA RE : APPLICANT : , KINGS MOUNTAIN -IMINERALS INC . fir' _6LE ROCK 120�.EA! :S EAST HANOVER,, NJ 07936 SUNTRUST STANDBY . LETTER. OF CREDIT NUMBER F853073 ,e 'd , 11 0 ^GENTLEMEN; fiP Ole KINDLY BE ADVISED THAT�_�IN ACCORDANCE WITH THE 'TERMS AND- CONDITIONS."'O/F THE .ABOVE /,REFERENCED LETTER ,OF CREDI-T , THIS IS OUR NOTIFICATION THAT THIS LETTER ,OF ' CREDIT. WILL NOT7_BE EXTENDED BEYOND ITS PRESENT EXPIRATION DATE , 'OCTOBER" rO ,. 2010w UPON EX `ORIGINAL LETTER OF RE PIRY OF OCTOBER 10 2 0 10 ,:THE "ORIGINAL D'i AND AMENDMENTS , IF,,ANY , MUST CBE RETURNED TO OUR OFFICE,-'Ci9T`ED B E L 0 W.,,,. it ,A-PLEASt DIRECT C; OUR,.,ALL INQUI.RIES AND CORRESPONDENCE REGARDING LETTER OF CREDIT , ANY /AMENDMENTS OR NOTICES TO . BANK 0 'ATTN : STANDBY LETTER OF.,".CREDIT DEPARTMENT PARK;, PLACE , 1 6TH F,LOOR,,,,MC .3 7-,0.6,.. ._. et - 114 ATLANTA , GEORGIA"' 3 03 03 PHONE :. 600-95'1l- ?�-8-47 OPTIOW�3 . 'iil N RE.LY , S T UST BANK ell) Pamela.T. Crenshaw Banking Officer 1AUTHOhZtD SIGNATURE-- CC : SUNTRUST A/C OFFICER Deily , Steven A. GA- At 1,ant a- 19 ZV"r Jf v CC : APPLICANT RECEIVED AUG o 3 2010 LA QUALITY SECTION TRANSMISSION VERIFICATION REPORT TIME 08/04/2010 09: 37 NAME NC DENR DLR FAX 9197158801 TEL 9197333833 SER. # xxxxxxxxxxxx DATE,TIME 08/04 09:36 FAX NO. /NAME 917046636040 DURATION 00:01:08 PAGE(S) 02 RESULT OK MODE STANDARD r .. � . amO a1il ''a North Carolina Department of Environment and Natural Resources Division of Land Resources- Land Quality Section Mining Program 1612 Mail Service Center, Raleigh, North Carolina 27699 (919) 733-4574 Fax: (919) 715-8801 FAX COVER SHEET FAX NUMBER TRANSMITTEDTO: bo(4) (oU3- Cooyo To: �6a.h'I d K he ,n or: /Las From: /"ISl'1)f1.1 RoC�4fvs RE: ''EDY6 06kyialtozbC' k- o�3- b3 Datc: /� 6 COMMLYrs: Nea3e iY)-,t� Dec4 Muss NeisUn MiAA, (W3- 03) :ror bond rcaneella-t5on AISRP. ,Iha,h ks A *II'YOU OO NOT RECEIVE AALI,PAGES,PLEASE-n;I.EI)noNE US IMMIBDIATELY AT(919)733-4574. • Complete items 1.2,and 3.Also oredd we n dig m hem4HReshldea Delivery lsdesle X ',^ , �] � DAgern . Print your nacre and address on the reverse d 1.�f ly O Addresses so that we can retum the card to you. a eah (mrdetl ) c. Oats of Daaery . Attach tnie Dora to the t> of the maiipiece, 4 �PNu�EA or on the front tl space penults D. le EtlNa�lilra 0 Ye enlhwn•IIemlt s 1. ArgAAtltlramtlta: hY M44dellvery eddtmd b" ❑No rMR ALEX CHOI _ DEC 01 2000 KINGS MOUNTAIN MINERALS INC ' GENERAL CHEMICAL INDUSTRIAL 120 EAGLE ROCK AVENUE s. ae USPC •0�%� EAST HANOVER NJ 07936 mme° I b Man Rapbteredm MertMrEise 0 In omd Mall O C.O.D.Raoelptbr d. ReaNctm lxlweM lF+asrss/ Om 2. Amae Runnier -- -- ' - - . �marw nommNwYaeq I' ��� '�700T 0710 ' 00�1 '5982 : 3866 ; PS Form 3811,February 2006,22.030mnsm Recent Recelpt 11�.As'Op tozaesaarkrew UNITED STATES POSTAL SERVICE I I I II I EFntC1,s Ea r Paitl • Sender: Please print your name, address, and ZIP+q In this x DENR-DIVISION OF LAND RESOURCE�� � lT� LAND QUALITY SECTION ' O 1612 MAIN SERVICE CENTER RALEIGH NC 27699.1612 9L I,1I1Iti Is 111111„till 11 11111191 Il1.j 11 Ip 11 NCDENR North-Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, PG, PE Beverly Eaves Perdue, Governor Director and State Geologist Dee Freeman, Secretary August 13, 2010 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7001 0360 0000 5313 6586 Mr. Jeff Hicks Imerys 100 Mansell Court Suite 300 Roswell, Georgia 30076 RE: Permit No. 23-03 Kings Mountain Minerals, Inc. Moss-Neisler Mine Cleveland County Broad River Basin Dear Mr, Hicks: 4n August 12, 2010, we received the revised $500,000.00 Surety Bond (no. 82192892) issued by Federal Insurance Company for the referenced mining operation. As this new surety bond sufficiently covers the mining operation, the enclosed Irrevocable Standby Letter of Credit (no, F853073) for $500,000.00 issued by Suntrust Bank is hereby released by the Department of Environment and Natural Resources for your disposal. In addition, per your request, I am returning the incomplete Surety Bond No. 82192892 received by this office on August 9, 2010. We will retain the revised, completed bond as referenced above as surety for this site. This office is closing its bond cancellation/forfeiture action. 1612 Mail Service Center, Raleigh, North Carolina 27699.1612 - Telephone 919-733-45741 FAX:919.733.2875 512 North Salisbury Street, Raleigh, North Carolina, 27604- Internet:http:/1%vww.dlr.enr.state.nc.uslpagestiandqualitysection.^tml An Equal Opportunity 1 Affirmative Action Employer-50%Recycled 11090 Post Consumer Paper Certified Mail Mr. Hicks Page Two Thank you for your cooperation and prompt attention to this matter. If you should have any questions on the above, please contact me at (919) 733-4574. Sincerely, Ashley L. Rodgers Assistant'State Mining Specialist Land Quality Section Enclosure: SB No. 82192892 received by the Land Quality Section on August 9, 2010 ISLOC No. F853073 cc: Mr. Zahid Khan Ms. Josephine Kerr, Esq., Attorney General's Office Ms. Kathy Cooper, Esq., Attorney General's Office Ms, Pamela Crenshaw, Suntrust Bank, Attn: Standby Letter of Credit Dept., 25 Park Place, 16th floor, MC 3706, Atlanta, GA 30303 Ms. Susan B. Radcliffe, Kings Mountain Minerals, Inc., PO Box 729, Kings Mountain, NC 28086 A7;A NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources James D.Simons, PG, PE Land Quality Section Beverly Eaves Perdue,Governor Director and State Geologist Dee Freeman, Secretary August 6, 2010 Kings Mountain Minerals, Inc. 120 Eagle Rock Avenue Exist Hanover, New Jersey 07936 RE: Moss-Neisler Mine (Per►nit 4 23-O3) Cleveland County,N.C. Dear Sir or Madam: Attached is a copy of our report documenting an inspection recently conducted at a mine site for which our records show you to be responsible. The inspection was performed under the provisions of-North Carolina General Statute 74-56 of the Mining Act of 1971. Please review the report carefully and note any problems or deficiencies documented by the inspector. furthermore, please note any recommendations and/or specific corrective actions required to correct any deficiencies that may be listed. The responsibility for understanding and complying with the terms and conditions of your mining permit and the Act lies with you. Please do not hesitate to contact this office if you have any questions concerning the attached report. Your cooperation is appreciated. Sincerely, . I, i Vera F in, P.E. Assistant Rel,ional Engineer THE/cm Attachment cc: Mining Specialist Mooresville Regional Office 610 East Center Avenue, Suite 301, Mooresville, North Carolina 28115 Telephone; 704.663-16991 FAX: 704-663-6040• Internet: http//www.dlr.enr.state.nc.uslpages/landqualitysection.html An Equal Opportunity I Affirmative Action Employer--50% Recycled 1 10% Post Consumer Paper North Carolina Department of Environment and Natural Resources, Division of Land Resources, Land Quality Section MINE INSPECTION REPORT (PERMITTED MINE) 1. Mine Name: Mass-Neisler Mine 2. Mining Permit 9: 23-03 3. Operator: Kings Mountain Minerals,Inc. 4. County: Cleveland 5. Address: 120 Eagle Rock Avenue, East Hanover,NJ 07936 6. Permit Expiration Date.04/05/2015 7. River Basin: Broad 8. Person(s) contacted at site: Thomas 9. Was mine operating at time of inspection? ® Yes ❑ No 10. Pictures? Yes ❑ No 11. Date last inspected: 4/28/09 12. Has mining occurred since last inspection? Yes ❑ No 13. Is the mine in compliance with the Operating Conditions of the Permit? ❑ Yes ® No If no, explain: Offsite sedimentation 14. Is the mine in compliance with the Reclamation Conditions of the Permit? ® Yes ❑No If no, explain: 15. Did any of the above deficiencies result in offsite damage? ® Yes ❑No If yes, describe the type and severity of the damage: There has been offsite sedimentation within the ditchlines around the main plant facility= site. 16. Corrective measures needed and/or taken: Clean out the roadside ditches of accumulated sediment and install measures to keep sediment off the road and have completed no later than August 26, 2010. Please submit these measures on an updated mine map for evaluation. Please reevaluate the sediment pond at the Archdale site for size and settling times for amount of flow being sent there. Supply your results and any plans for expansion of the pond if necessary. Please update the tailings ponds on the mining map with the recent reclamation of one of the two ponds. 17. Other recommendations and comments: Discussions with personnel in Raleigh, the two processing facilities will NOT have to be included within the mining boundaries. 18. Is the Annual Reclamation Report+/- map accurate? ❑ Yes ❑No (Explain) ®Not Reviewed 19. Follow-up inspection needed? ® Yes ❑No Proposed date: August 26, 2010 20. Number of additional pages of Inspection Report: 1 21. Date report sent to operator: Inspected by: Ryan Kormanik/Scott Harrell Date: July 20, 2010 'telephone No: Copy to file Copy to operator Copy to Mining Specialist RECEIVED 0 0 2010 LAND QUALITY MINING PROGRAM ASIA NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, PG, PE Beverly Eaves Perdue, Governor Director and State Geologist - Dee Freeman, Secretary October 13, 2009 NOTICE OF DEFICIENCY CERTIFIED MAIL7008 1140 0002 2715 7735 RETURN RECEIPT REQUESTED Kings Mountain Minerals, Inc. General Chemical Industrial Products, Inc. Attention: Mr. Ales Choi 120 Eagle Rock Avenue East Hanover, New Jersey 07936 RECEIVED RE: Mining Permit No. 23-03 Moss-Neisler Mine ocr 1 2Gu9 Cleveland County Broad River Basin LAND OU u = Dear Mr. Choi: ' On September 16, 2009, this office was notified that a large rainfall event at the referenced mine site had resulted in the overtopping of the 28-acre tailing pond dam. During an inspection of the tailing pond dam later that day personnel from this office observed that temporary repairs had been performed at the area where overtopping had occurred. It was also observed that other areas of the dam embankment had no available freeboard. Personnel from this office performed a subsequent inspection of the tailing pond on October 8,2009. It was observed during this inspection that additional work has been performed to provide freeboard at the tailing pond dam. However, as was discussed with Mr. Michael Tonelis, Plant Manager during this site inspection, a deficiency remains that requires your prompt attention. The deficiency discovered and the necessary corrective action is as follows: Mooresville Regional Office 610 Ent Center Avenue, Suite 301, Mooresville,North Carolina 28115 Telephone. 704-663-16991 FAX: 704.663-6040• Mlemet htto:IMrw,v.dir.enrstate nc.usioaaesnandeualitvsection.html An Equal Oppodunity I Affirmative Action Employer-50%Recycled 110%Post Consumer Paper Notice of Deficiency Kings Mountain Minerals, Inc. October 13,2009 Page 2 1. There has been a failure to maintain freeboard sufficient to prevent overtopping at points along the 28-acre tailing pond than. It is requested that you provide a written description of the sequence of events necessary to obtain and maintain adequate freeboard at the subject tailings pond, along with the schedule by which these events will be implemented. If the previously described deficiency is not addressed within 30 days following your receipt of this Notice,this matter will be referred to the Director, Division of Land Resources, Department of Environment and Natural Resources, for die issuance of an official Notice of Violation in an effort to secure compliance at the site. Do not hesitate to contact Mr.Ryan Kormanik,Environmental Specialist or me at(704)663- 1699 regarding any questions you may have about this matter. Sincerely, �® Zahid S. Khan Regional Engineer Land Quality Section RK/ae oc: Mr. Floyd Williams, PG Mr. Michael Tonelis, Plant Manager, Kings Mountain Minerals, Inc., P.O. Box 729, Kings Mountain,North Carolina 28086 RECEIVED OCT 14 2009 LAND QUALITY MINIIIGPROGRAM t� North Carolina Department of Environment and Natural Resources, Division of Land Resources, Land Quality Section MINE INSPECTION REPORT (PERMITTED MINE) 1. Mine Name: Moss-Neisler Mine 2. Mining Permit#: 23-03 3. Operator: Michael Tonelis 4. County: Cleveland 5. Address: PO Box 729, Kings Mountain,North Carolina 28086 6. Permit Expiration Date: April 5, 2015 7. Riven Basin: Broad 8. Person(s) contacted at site: Michael Tonelis, Plant Manager, Tom, Plant Supervisor 9. Was mine operating at time of inspection? ® Yes ❑ No 10. Pictures? ❑ Yes ® No 11. Date last inspected: September 16, 2009 12. Has mining occurred since last inspection? ® Yes ❑No 13. Is the mine in compliance with the Operating Conditions of the Permit? ❑ Yes ® No If no, explain. Tailings Pond on Moss-Niesler Nos. 1, 2, & 3 has overtopped and there is not enough freeboard to maintain safe operating level. 14. Is the mine in compliance with the Reclamation Conditions of the Permit? ® Yes ❑No If no, explain: 15. Did any of the above deficiencies result in offsite damage? ❑ Yes ®No If yes, describe the type and severity of the damage: 16. Corrective measures needed and/or taken: Please provide a written description of the sequence of events necessary to obtain and maintain adequate freeboard at the subject tailings pond, along with the schedule by which these events will be implemented. 1.7. Other recommendations and comments: This was a follow-up inspection due to the overtopping of the tailings pond in September. Work has begun to bring the levels of sediment down. but there are still areas where there is no freeboard available. 18. Is the Annual Reclamation Report+l- map accurate? ❑ Yes ❑No ® Not Reviewed 19. Follow-up inspection needed? ® Yes ❑ No Proposed date: 11/15/09 20. Number of additional pages of Inspection Report: 21. Date report sent to operator: w/NOD Inspected by: Ryan Kormanik Date: October 8, 2009 Telephone No: 704-663-1699 Copy to file Copy to operator Copy to Mining Specialist NC®ENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, PG, PE Beverly Eaves Perdue, Governor Director and State Geologist Dee Freeman, Secretary 16 June 2009 Kings Mountain Minerals, Inc. General Chemical Industrial Products, Inc. Attention: Mr. Alex Choi 120 Eagle Rock Avenue East Hanover. New Jersey 07936 RE: Mining Permit No. 23-03 RECEIVED Moss-Neisler Mine Cleveland County JUN Q 2 2009 Broad River Basin Dear Mi. Choi: _—�-- We are in receipt of your correspondence dated May 28, 2009, received in Mooresville office on June 12, 2009, responding to a Notice of Deficiency (NOD) issued by our office for the referenced Mine on April 30, 2009. We have reviewed the additional information submitted by Michael Tonelis, Plant Manager. The table for permitted acreage and disturbed acreage has been found in compliance with the Operating Permit Condition 4 (B) and I A., for West Archdale Property. The revised Reclamation Plan for Neisler Tract No. 7 and timeline for completion as described in Reclamation Permit Condition 4 are acceptable. Your company is hereby released from this Notice of Deficiency for this site in accordance with The Mining Act of 1971. - Thank you for your cooperation in this matter. Sincerely, S. K— Zahid S. Khan Regional Engineer ZSK7 Cc: Michael Tonelis, Plant Manager, Kings Mountain Minerals Inc., P. 0. Box 729, Kings Mountain, North Carolina 28086 ° Mooresville Regional Office 610 East Center Avenue, Suite 301, Mooresville,North Carolina 28115 Telephone 704663-16991 FAX 704-663-6040. Internal: http:fiw .dlcencstate.he.uslpagesllandqualitysectioahtml An Equal Oppommily/Affirmative Action Employer-50%Recycled 110%Post Consumer Paper North Carolina Department of Environment and Natural Resources, RECE1 E1r.14 Division of Land Resources, Land Quality Section MINE INSPECTION REPORT MAy 04 2108 PERMITTED MINE) 1. MINE NAME} nSg- �c'i s �� �`7 N r; _ 2. MINING PERMIT # -Q AND QUAL iTY 3. OPERATOR'S yuq 4. COCINTf\o MINVNG PROGRAM 5. ADDRESS V© (6& j a i nu Z,1.A,Kj C _0'1Z--0V0 6. PERMIT EXPIRATION DATE04 05_A nl 5 7.)RIVER BASIN .R#:n1q Z� 8. Person(s) contacted at site) I JEEit L 0- hj 11 N1!R 9. Was mine operating at time of inspection? X Yes ❑ No 10. Pictures? ❑ Yes .Sq No 11. Date last inspected: 0 S Icy G sj -7 12. Any mining since last inspection? -X-Yes ❑ No 13. Is the mine in compliance with the Operating Conditions of the Permit? 9 Yes 0 No If no, explain: 14. Is the mine in compliance with the Reclamation Conditions of the Permit? K Yes 0 No If no, explain: 15. Did any of the above deficiencies result in offsite damage? ❑ Yes l7 No If yes, describe the type and severity of the damage: 16. Corrective measures needed and/or taken:50 o r Lo,1<S .ems +n 0& h11a t;i.s 1 Ai li C _r- l [� cr_ L_ -;rr: < 4, r 4� AP_c�1A1i` y\) ti i. a�ac.� ���.�„�� rno wA "k t 0 17. Other recommendations and comments: 18. Is the Annual Reclamation Report +/-map accurate? �W Yes ❑ No (Explain) ❑ Not Reviewed 19. Follow-up inspection needed? 0 Yes 'R No Proposed date / 1 20. No. of additional pages of Inspection Report 21. Copy of Report sent to operator I I (date) INSPECTED BY: �� � . DATE4 Telephone No:TIM White copy to file Yellow copy to operator Pink copy to Mining Specialist 10197 rRodgers, Ashley From: Jeff Hicks Reff.hicks@imerys.com] Sent: Thursday, August 12, 2010 11:49 AM TO: Rodgers, Ashley Subject: RE North Carolina Bonds. Debra Deming Senior Client Specialist Commercial Surety Ado Risk Services, Inc. 1111 Metropolitan Avenue Suite 400 Charlotte, NC 28204 Tel: (704) 343-8662 "Rodgers, Ashley" <ashley.rodgers@n . cdenr.gov> To Jeff Hicks <jeff.hicks@imerys.com> 08/12/2010 10:41 cc - AM Subject RE: North Carolina Bonds Jeff - I need the contact info (physical and mailing addresses at least) for the resident agent on these bonds, Debra Deming. You can just email me the info. Thanks, Ashley -----Original Message----- From: Leff Hicks [mailto:jeff.hicks@imerys .com] 1 Sent: Wednesday, August 11, 2010 2:51 PM To: Rodgers, Ashley Cc: Dawn Whaley; Stephanie F Bachman; Claudia Alvarado Subject: RE: North Carolina Bonds Ashley, As requested, here are copies of the bonds signed by a resident agent. The originals are being sent out today. Thanks, Jeff (See attached file: NC TFC Bond v2.pdf)(See attached file: NC KMM Bond v2.pdf) "Rodgers, Ashley" <ashley.rodgers@n cdenr.gov> To Jeff Hicks <jeff.hicks@imerys.com> 08/11/2010 02:32 CC PM Subject RE: North Carolina Bonds Sure. I will send them out tomorrow. Thanks, Ashley -----Original Message----- From: Jeff Hicks [mailto:jeff.hicks@imerys.com] Sent: Wednesday, August 11, 2010 2:25 PM To: Rodgers, Ashley Subject: RE: North Carolina Bonds I've requested new bonds. Would you please return the bonds that you have to my attention? Thanks, Jeff Z "Rodgers, Ashley" <ashley.rodgers@n cdenr.gov> To Jeff Hicks <jeff.hicks@imerys.com> 08/10/2010 10:23 cc AM Subject .RE: North Carolina Bonds Jeff, I have received your replacement bonds for The Feldspar Corporation and Kings Mountain Minerals, Inc. However, they do not have the signature of a resident agent of NC on the bond. The bottom part of page two needs to be countersigned in NC by the resident agent for NC. Please revise both bonds and send me new originals. If you have any questions, please email or call (919.733.4574) . Thanks, Ashley -----Original message----- From: Jeff Hicks [mailto:jeff.hicks@imerys.com] Sent: Friday, August 06, 2010 2:14 PM To: Rodgers, Ashley Cc: Stephanie F Bachman; Claudia Alvarado Subject: North Carolina Bonds Ashley, Attached are copies of two-bonds that are being sent to your attention today. One bond is for The Feldspar Corporation, and replaces LC # F850951, and the other bond is for Kings Mountain Minerals, Inc, and replaces LC# F85073. Once you have received the originals of these bonds, and everything is in order, I would appreciate it if you would return the originals of the letters of credit to SunTrust Bank so they may be cancelled. Please let me know if you have any questions. Thanks, Jeff (See attached file: NC TFC Bond.pdf)(See attached file: NC KMM Bond.pdf) This electronically transmitted message contains information that is privileged and confidential and subject to legal restrictions and penalties regarding its unauthorized disclosure or other use. You are prohibited from copying, distributing, or otherwise using this information if you are not the intended recipient. If you have received this electronic 3 . r 'message in error please notify us immediately by phone or return e-mail and delete this e- mail or Fax and all the attachments from your system. Thank You! This electronically transmitted message contains information that is privileged and confidential and subject to legal restrictions and penalties regarding its unauthorized disclosure or other use. You are prohibited from copying, distributing, or otherwise using this information if you are not the intended recipient. If you have received this electronic message in error please notify us immediately by phone or return e-mail and delete this e- mail or Fax and all the attachments from your system. Thank You! This electronically transmitted message contains information that is privileged and confidential and subject to legal restrictions and penalties regarding its unauthorized disclosure or other use. You are prohibited from copying, distributing, or otherwise using this information if you are not the intended recipient. If you have received this electronic message in error please notify us immediately by phone or return e-mail and delete this e- mail or Fax and all the attachments from your system. Thank You! This electronically transmitted message contains information that is privileged and confidential and subject to legal restrictions and penalties regarding its unauthorized disclosure or other use. You are prohibited from copying, distributing, or otherwise using this information if you are not the intended recipient. If you have received this electronic message in error please notify us immediately by phone or return e-mail and delete this e- mail or Fax and all the attachments from your system. Thank You! 4 11 • Complete Xems 1,2,and 3.Also complete I A Signature item C it Restricted Delivery is desired. ❑AXmt • Print your neme and address on Me reveres —"��t^�' ❑AEtlnaea so Met vre can retum the card to you. e. Heceketl M(Rin Name) 0. pared mNery • Attach this card to the back of the mallplece, or on Me from it specs permit. 1. grXcle Addieexd to D. isdebeny 11 D Y X YES,ea ❑ No L C AS SUSAN B RADCLIFFE NOV 2 5 2008 CINGS MOUNTAIN MINERALS INC a0 BOX 729 CINGS MOUNTAIN NC 28086 c•uam p Rogiatam iq forrat d�mgrc� ❑ Imumo Mall . .D. <. Raatrlded Oellveyf fame Few Cl r 2. Ankb Number 7007 0710 0001 5482 3613 a•ralvhomarvke fNep _ .' - ' - - — -. . . -. - . PS Fom13811.February 20 Dn•otllc Rawm Receipt //_/ I� e) . •- lash e-lem UNITED STATES POSTAL SERVICE 111111 Flrst-Class Mail Poslegs 8 Feea Paitl LISPS Pe,mH Nw G-10 • Sender. Please print your name, address, and ZIP+4 in this box DENR-DIVIStO 1 EqC2 ] DO 6MA IG MINING CHEECKLI5T FOR ROUTING ApplicarrCsName: Ili 0.S �14 ; neyola Project Name-. 1Ans<- U4,i I C V Mi �L ApplicJF ermlt; No.:a3 °3 County: CI ekl r I a n d Date Received: I I - 1 ° 6R Reviewer. I7 . ei aQr ps River basin Nam& �✓�0.c� ❑New ❑Renewal ❑ Modification (inside permit boundaries) 11 ❑Modification (outside permit boundaries) ?Transfer ❑Release ❑Partial Release O,Additional Information ❑Fee Needed: $ ,0 Fee Received: $ I po. on PI ma mi= atmim application nackaQ_ to-. � oovPs v1 Ila Regional Office (2 complete copies: attach the"LQ5 Regional /Office Mining Application Review Checklist"to one copy and attach path the PWQ and DAQ "Mining Application Review Form"to the other copy:send botin copies to the Regional engineer) Dat& Routed I l )C;i 0 i &&,A ❑Division of Water Resources Date: Routed Kee d ❑NC Wildlife Resources Commission Date: Routed Reed ❑U5 Fish &Wildlife 5ervice Date- Routed Reed (Only new applications and modification requests that add land to the permit) Please route first pAiips of the application and any location maps to: ❑ Division of Parks & Recreation Date: Routed Reed ❑NC Geological Survey 5ection Date- Routed Reed (Only new applications and modification requests that add land to the permit) ❑ Division of Archives & History Date: Routed Reed (Only new applications) ❑Other. Date: Routed Reed 'suspense Date for Comments: rib'" (no later than 25 days from receipt) 13 Please mote the ttfollowing: v N IMERYS COP November 18, 2008 Ms. Ashley Rodgers Assistant Mining Specialist Land Quality Section North Carolina Department of Environment& Natural Resources 1612 Mail Service Center Raleigh, North Carolina 27699-1612 RE: Mining Permit Transfer for Kings Mountain Minerals, Inc. Moss-Neisler Mine, Cleveland County Dear Ms. Rodgers: This correspondence responds to your letter of October 19, 2008, informing Tom Holmes of Kings Mountain Minerals, Inc. that the Mining Permit Transfer application filed with your agency was incomplete. Enclosed please find the $100,00 permit fee and the original executed version of the application, as requested. please do not hesitate to contact me if you need anything further to approve this application. Best regardsVand Ry . VeterLit ation Regulatory Counsel Imerys—North America ='CE7.,D 100 Man sell Court Last,Suite 300.Roswell.Georgia 30076-4860 Tel-770-594-0660-Fax:770-645-3475-www.lmerys.mm IMERYS is a business name of IMERYS Pigments,Inc.,IMERYS Kaolin, Inc.and IMERYS Marble,Inc. Registered in the USA. Register C ice: 100 Mansell Court East,Suite 300,Roswell,CA 30076. NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES LAND QUALITY SECTION APPLICATION FOR A MINING PERMIT (PLEASE PRINT OR TYPE) 1. Namcof Mine Moas-Neisler Nine County Cleveland RlverflasinBroad River Latitude(dd.mntss) 35-12'-15" Longitude(dd.mmSs) 81-23'-00" 2, Natneof Applicant* Kings Mountain Minerals tat. 3. Permanent address for receipt of official mail** P.O. BOX 729 Kings Mountain, NC 28086 Telephone 704-739-3616 4. MIRCGffice Address 1469 S. Battleground Avenue Kings Mountain, NC 28086 Telephone 704-734-3516 5. Mine Manager Tam Holmes We hereby certify that all details contained in this Permit Application are true and correct to the best of our knowledge. We fully understand that any willful misrepresentation of facts will be cause for permit revocation. /� //� ® ***Signature Si44te Z6726,fl,5 Date 0"'. 13, oWf Print Name Susan B. Radcliffe ' Title Vice President, Deputy General Counsel - Americas and Secretary * This will be the name that the mining permit will be issued to and the name that must be indicated on the reclamation bond (security) that corresponds to this site. *" The Land Quality Section most be notified of soy changes in the permanent address or telephone number. Signature of company officer required. G.S. 74-51 provides that the Department shall grant or deny an application for a permit within 60 day�s of receipt of a complete application or, if a public hearing is held, within 30 days following the hearing and the filing of any supplemental information required by the Department. All questions must be addressed and all required maps provided before this application can be considered complete. Attach additional sheets as needed. -1- • 4 o v APPLICATION FOR A MINING PERMIT a NOTE: All of the following questions must be thoroughly answered with regards to your raining operation for the intended life of the mine. All responses must be clearly conveyed on a corresponding, detailed mine map. A. GENERAL CHARACTERISTICS OF THE MINE Answer all of the following that apply: 1. a. If this is an application for a NEW permit, indicate the total acreage at the site to be covered by the permit(this is the acreage that tie "new permit" fee will be based upon): Of this acreage, how much is owned and how much is leased? Acres owned: Acres leased: Property owner if leased: b. If this is an application for RENEWAL of a mining permit,indicate the mining permit number and the total(overall)acreage covered by the existing permit: Mining Permit No.: Total permitted acreage(this is the acreage that the"renewal"fee will be based upon): c. If this is an application for a MODIFICATION to a mining permit, indicate the mining permit number and the total (overall)acreage covered by the existing permit: Mining Permit No.: Total permitted acreage: Does the modification involve acreage within the previously approved permitted boundary? Yes_No_. If yes,indicate the acreage to be covered by this modification(this is the acreage that the "major modification" fee will be based upon): Does the modification involve acreage outside the previously approved permitted boundary? Yes No . If yes, indicate the additional acreage to be covered by this modification: (NOTE: you must complete all of Section F,of this application form entitled Notification of Adjoining Landowners). Of this acreage to be added to the permit, will any portion of this acreage be affected (disturbed, ground cover removed) by the mining operation? Yes No (if no,a"minor modification" fee of$50.00 is required, despite the "undisturbed" acreage to be added). If yes, indicate the acreage to be affected within the acreage to be added to the permit(the total acreage to be added to the permit is the acreage that the"major modification" fee will be based upon): d. if this is an application for TRANSFER of a mining permit,indicate the mining permit number and the total (overall) acreage coverea Sy the existing permit: Mining Permit No.: 23-(}3 Total permitted acreage: 753.92 Change in parent from 2emex Minerals Group, Inc. to Imerys ., nc, ee associated correspondence. m SEETHE FEE SCHEDULE AT THE END OF THIS FORM FOR THE PROPER FEE AMOUNT TO BE PAID FOR THE REQUESTED PERMIT ACTION(S)AND CORRESPONDING ACREAGE NOTED ABOVE 2. Name of all materials mined: Mica, Feldspar & Clay 3. Mining method: Hydraulic Dredge X Front-end Loader& Truck Shovcl&"liuck Dragline&Truck Self-loading Scraper Other(explain) -2- • 0 APPLICATION FOR A MINING PERMIT 4. a. Expected maximum depth of mine(feet) 100 feet (870 feet above natural ground level.) Depth is relative to what benchmark? (e.g., natural ground Ievel, mean sea level, road elevation, etc.) natural ground level 970 feet b. Expected average depth of mine(feet) 50 feet (920 feet above natural ground level) 5. Has any area(s)at this site been mined in the past? Yes x No If yes, when and by whom was this activity conducted? Mining by various operators beginning in the 19501s to present 6. Number of years for which the permit is requested(10 years maximum): NIA B. MAPS 1. Clearly mark and label the location of your mining operation on six 6 copies of a 7.5 minute quadrangle and a county highway map. These maps, in addition to six 6 copies of all mine maps and reclamation maps,must be submitted with each permit application. - 7.5 minute quadrangles may be obtained from: N.C. Geological Survey NCDENR 1612 Mail Service Center Raleigh,North Carolina 27699-1612 (919) 715-9718 - County highway maps may be obtained from: Location Department State Highway Commission Raleigh,North Carolina 27602 (919)733-7600 -3- • • 1 r _`• :._ APPLICATION FOR A MINE PERMIT G. LAND ENTRY AGREEMENT We hereby gram to the Department or its appointed reppresentatives the right ofealry and travel upon our lands or operation during regular business hours for the purpose Making necessary field inspections or investigations as may be reasonably required in the administration of the Mining Am of 1971. We further grant to the Department or its appointed representatives the right to make whatever entries on the land as may be reasonably necessary and to take whatever actions as may be reasonably necessary in order to carry out reclamation which the operator has failed m complete in the event a bond forfeiture is ordered pursuant to G.S. 74-59. LANDOWNER: II 1I `p1 APPLICANT: Signature: \y�3'u" ,9� V/\�L(jr.�,'� Signature:" sx4x�Z4 �c-e � i Print Name: Charles Neisler Print Name: Susan B. Radcliffe . Neisler Brothers, Inc. Address: P.O. BOX 99 Title: vice President, Deputy General Counsel- Americas and Secretary Rings Mountain, NC 28086 Company: Kings Mountain Minerals Inc. Telephone: 704-739-3286 Mine Name: Moss-Neisler Mine Telephone 770-645-3393 *Signature must be the same as the individual who signed Page 1 of this application. Six 6 co vies of the comilleted allf2fication, sinn6 c efsof ae ocstiom maps, mine ma and reclamation maps,and thro peoresh Nis in the forma cheek or money order payable tothe North Carolina Department of Environment and Nature m Resources must be sent to the Land Quality Section Central Office at the address listed on the front cover of this application form. Inquiries regarding the status of the review of this application should be directed to the Mining Program staff at (919) 7334574. RECEMt) le- 'NOV 19 2U08 IAND QUkITY SECTION ® • l _.; . NCDENR -- - -- -- -North-Carolina-Department of Environment and-Natural-Resources- - - - Division of Land Resources Land Quality Section James D. Simons, P.G., P.E. - Michael F. Easley, Governor Director and State Geologist William G. Ross Jr., Secretary November 13, 2008 Certified Mail Return Receipt Requested 7007 0710 0001 5982 3613 Ms. Susan B. Radcliffe Kings Mountain Minerals Inc. PO Box 729 Kings Mountain, North Carolina 28086 RE: Moss-Neisler Mine Cleveland County Broad River Basin Dear Ms. Radcliffe: We have reviewed the transfer request your company submitted for the referenced mine site. However, the following information is needed to continue processing your application: 1. Submit $100.00 for the mining permit transfer application fee for this project. Please note that the mining application processing fees were increased effective August 1, 2007. 2. Provide a copy of the land entry agreement (page 18 of the application) with an original signature of Mr. Charles Neisler, landowner. Please be advised that our review cannot be completed until all of the items listed above have been fully addressed. In addition, please note the Land Quality Section may request additional information, not included in this letter, as the mining application review progresses. In order to complete the processing of your application, please forward two (2) copies of the requested information to my attention at the following address: 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 9919-733-45741 FAX: 919-733-2876 512North Salisbury Street,Raleigh,North Carolina, 27604 An Errl4 Opportunity 1 AKrmedve Action Employer—50%Recycled 110%Post Consumer Paper Certified Mail Ms. Radcliffe Page Two Land Quality Section Division of Land Resources Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 As required by 15A NCAC 513.0013, you are hereby advised that you have 180 days from the date of your receipt of this letter to submit all of the requested information. If you are unable to meet this deadline and wish to requestadditional time, you must submit information, in writing, to the Director clearly indicating why the deadline can not be met and request that an extension of time be granted. If an extension of time is not granted, a decision will be made to grant or deny the mining permit based upon the information currently in the Department's files at the end of the 180-day period. Though the preceding statement cites the maximum time limit for your response, we encourage you to provide the additional information requested by this letter as soon as possible. Your prompt response will help us to complete processing your application sooner. Please contact me at (919) 733-4574 if you have any questions. Sincerely, --- �,( n ----- - ----- _6 x --- -- Ashley L. Rodgers Assistant State Mining Specialist Land Quality Section cc: Mr. Zahid Khan TRANSMISSION VERIFICATION REPORT TIME : 11/07/2008 16:09 NAME : NC DENR DLR FAX : 9197158801 TEL : 9197333833 SER. N : xxxxxxxzxxxx DATE,TIME 11/07 16: 08 FAX NO./NAME 917706453475 DURATION 00: 00: 34 PAGE(S) 02 RESULT OK MODE STANDARD ECM JM I A North Carolina Department of Environment and Natural Resources Division of Land Resources - Land Quality Section Mining Program 1612 Mail Service Center, Raleigh, North Carolina 27699 (919) 733-4574 Fax: (919) 715-8801 FAX COVER SHEET V FAX NUMBER TRANSMITTED TO: (110) i S- 34 5 To: Velo Por5onS Of. _ Kin�9 Movnkain K Y)evals jrlc . From: hhle.V (20c>lWS RE: TronsQey FeD_ 4br Most- Neisler Mine_ Date: !D$ COMMENTS: f✓lemn on i cAlu ntnl `te Hy. Tom- H-on-Irg, Mine, �i`—v_ T �,,SJC- 1QOY-C ie his n;�C C.e anct 4-W) Vlo A no recj)YA of 3LAbm14Krij wvn} TQ� IS Y"kx have on questions or c.oneevv(. planst call (1) 19) a33- US-44 . r will cheek a plri I.ot4h (ne. Hulr)lra on MortolgY. •IF YOU DO NOT RECEIVE ALL PAGES,PLEASE TELEPHONE US IMMEDIATELY AT(919)733- 574. _ � 1 , _ � � . ' .. . . NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons,P.G., P.E. Michael F. Easley, Governor Director and State Geologist October 19, 2008 William G. Ross Jr., Secretary MEMORANDUM RE: Mining Permit Transfer for Kings Mountain Minerals, Inc. Moss-Neisler Mine Cleveland County Dear Mr, Holmes: We are in receipt of your mining permit transfar application for Moss-Neisler Mine in Cleveland County. We regret that we cannot complete processing the above materials until we have received the necessary fee as set forth in the fee schedule adopted by the 2007 General Assembly in G.S. 74-54.1•(a). We will continue processing the paperwork but cannot complete the application process until this office has received the appropriate fee. Please remit by check or money order $100.00 payable to the North Carolina Department of Environment and Natural Resources, DO NOT SEND CASH. Payments should be mailed to: Attention: Ms. Ashley Rodgers Assistant Mining Specialist Land Quality Section NC Department of Environment & Natural Resources 1612 Mail Service Center Raleigh, North Carolina 27699-1612 Full payment must be received by this office within 30 days or your materials will be returned unprocessed. if you have any additional questions, please contact our office at (919) 733-4574. Thank you for your cooperation. Sincerely, Brenda M. Harris Land Quality Section Ibmh 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 - 919-733-4574! FAX: 919-733-2876 512 North Salisbury Street,Raleigh,North Caroiina• 27504 State of North Dept. Of Envirtinrinerital and Natural Resourcles Land QualitySection Memo To: Ashley Rodgers From: Zahid Khan Cr. Date: 10/2412008 Re: Moss-Neisler Mine, Cleveland County, and Broad River Basin ApplicationlPermli 2M3 We reviewed the most recent submittal dated October 14, 2008 and received in MRO on October 22, 2008 with suspense date for comments November 7, 2008, No comment from the field office on this submittal. I am not sure whether they paid transfer foe or not Please contact me if you need additional information. 1 Zemex Letter of'Credit w/DENR Subject: Zemex Letter of Credit w/DENR From: "Shapira, Micki" <mshapira@akingump.com> Date: Fri, 17 Oct 2008 12:21:43 -0400 To: ashley.rodgers@ncmail.net, Judith.wehner@nemail.net CC: "Wheeler, Michael" <mwheeler@akingump.com> Ashley and Judith, Per my telephone conversation with Judith today, I would appreciate if you could send the release of the Zemex letter of credit to the following address: General Chemical Industrial Products Inc. 120 Eagle Rock Ave. Last Hanover,NJ 07936 Attention: Alex Choi '['hanks, Micki Micki M. Shapira Akin Gump Strauss Hauer & Feld LLP 590 Madison. Avenue New York,NY 10022-2524 Direct Dial: (212) 872-8084 Fax: (212) 872-1002 IRS Circular 230 Notice Requirement: This communication is not given in the form of a covered opinion, within the meaning of Circular 230 issued by the United States Secretary of the Treasury. Thus, we are required to inform you that: you cannot rely upon any tax advice contained in this communication for the purpose of avoiding United States federal tax penalties. in addition, any tax advice contained in this communication may not be used to promote, market or recommend a transaction tc another party. The information contained in this e-mail message is intended only for the personal and confidential use of the recipient(s) named above. zf you have received this communication in error, please notify us immediately by e-mail, and delete the original message. I of 1 10/17/2008 12:53 I'M MANG CHECKLIST FOR ROUTING Appliearrt'sHome: k;nas MoUrrtcl� Nile,ai5PrOjectName: Moss - Klci lei M r14. 1^` AppllcJPermitNo.: 23rn�eourty: ('lev<Inrrl Date Received: /b l / " OR Reviewer. 19. !7&c1 4C v5 River basin Name: a;y on C I ❑ New ❑Renewal 0 Modification (inside permit boundaries) ❑Modification outside permit gTranefer ch ;.sM;e ( p ) � � 0 Release ❑Partial Release ❑A:l&rlonalInformation P,Fee Needed: $ IU0. 00 0 Fee Received: $ Please route enVre applicationpokagrt - 0. Moordsolie Regional Office (2complate copies, attach the"LQ5Regional Office Mining Application Review Checklist"to one copy and attach hath the DWQ and DAO "Mining Application Review Form"to the other copy, send both copies to%Kagional Engineer) Date- Routed /o�i99e§ Plec'd 0 Division of Water Resources Date: Routed Reed ❑Ne Wildlife Resources commission Date: Routed Reed ❑U5 Fish &Wildlife Service Date: Routed Reed (Only new applications and modification requests that add land to the permit) Please route first PaQ sr of the a plication and aM4 locationps to• ❑Division of Parks & Recreation Date: Routed Reed ❑NC Geological 5urvey 5ection Date•. Routed Reed ' (Only new applications and modification requests that add land to the permit) ❑Division of Archives & History Date: Routed Reed (Only new applications) ❑Other. Date: Routed. ��ReeJ "`5uspense Date for Comments: I I , hR (no later than 25 days from receipt) Oo0,6 � S4 � 4p95 ❑nrPlease note the following: I'h'ln/ln - 6J iPCCv rnQrr 0. I'U' yo iAr /r✓i V".) r li en r. Al o(s". '0A0j) A)L A7j"LA NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons,P.G., P.E. Michael F. Easley, Governor Director and State Geologist October 19, 2008 William G. Ross Jr., Secretary MEMORANDUM RE: Mining Permit Transfer for Kings Mountain Minerals, Inc. Moss-Neisler Mine Cleveland County Dear Mr. Holmes: We are in receipt of your mining permit transfer application for Moss-Neisler Mine in Cleveland County. We regret that we cannot complete processing the above materials until we have received the necessary fee as set forth in the fee schedule adopted by the 2007 General Assembly in G.S. 74-54.1.(a). We will continue processing the paperwork but cannot complete the application process until this office has received the appropriate fee. Please remit by check or money order $100.00 payable to the North Carolina Department of Environment and Natural Resources. DO NOT SEND CASH. Payments should be mailed to: Attention: Ms. Ashley Rodgers Assistant Mining Specialist Land Quality Section NC Department of Environment & Natural Resources 1612 Mail Service Center Raleigh, North Carolina 27699-1612 Full payment must be received by this office within 30 days or your materials will be returned unprocessed. If you have any additional questions, please contact our office at (919) 733-4574. Thank you for your cooperation. Sincerely, Brenda M. Harris Land Quality Section Ibmh 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • 919-733-4574 ! FAX: 919-733-2876 512 North Salisbury Street, Raleigh, North Carolina, 27604 IMERYS October 13, 2008 Mr. Melt Nevils. P.E. Section Chief Division of Land Resources, Land Quality Section North Carolina Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, North Carolina 27699-1612 RE: Change of Corporate Parent: Kings Mountain Minerals Inc. Dear Mr. Nevils, Attached please find an Application for a Mining Permit, submitted by Kings Mountain Minerals Inc. This letter and Application is intended to inform NCDENR of the recent purchase of Kings Mountain Minerals Inc. by Imerys USA, Inc. from Zemex Minerals Croup, Inc. This purchase, consummated on October 10, 2008, also requires the change of the Letter of Credit supporting Kings Mountain Minerals Inc.'s financial assurance for reclamation. A copy of the new Letter of Credit, issued by SunTrust, is attached to this correspondence. Please do not hesitate to contact me with any questions regarding this transaction or the enclosed documents. 'Ihank you for your assistance in this matter. Sincerely, Rya J. an Meter Litigation and Regulatory Counsel Imerys— North America RJV:mb Attachments RECEIVED UCT 14 2088 LAND QUALITY SECTION too Mansell Court East Suite 300.Roswell.Georgia 30076-48W Tel 770-594-0660-Fax 770-645-3475-eavor meriscom IMERYS i5 a business name of IMERYS Pigments Inc,IMERYS Kaolin,Inc.and IMERYS Marble,Inc. Registered in the USA Register Office 100 Mansell Court East,Suite 300.Roswell,GA 30075- 10/10/2008 FRI 14:17 FAX 704 739 8471 OAKLAND-PLANTATION LM002 • NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES LAND QUALITY SECTION APPLICATION FOR A MINING PERMIT (PLEASE PRINT OR TYPE) 1. Name of Mine !toss-Heisler Nine County Cleveland RiverBoinsroad RiverLatitude(dd.n ,ss) 35-12'-15" Longimde(dd.mm.ss) 8I-23'-Oo" 2. Name of Applimt* Rings Mountain Minerals Inc. 3. Permanent address for receipt of official mail" P.O. BOX 729 Kings Mountain, NO 28086 Telephone 704-739-3616 4. Mine Office Address 1469 g. Hatelegxonad Avenue Kings Mountain, HC 29086 Telephone 704-734-3516 5. Mine Manager Tom Holmes We hereby certify that all details contained in this Permit Application are true and correct to the best of our knowledge. We fully Understand that nay Wflfal misrepreseUtation of facts Will be cause for prrmit revocation *"Signetume S�L�ls Date OG7e/,zej /J 2G0 f' Print Name Susan H. Radcliffe Title Vice President, Deputy General Counsel - Americas and Secretary • This will be the name that the mining permit will be issued to and the name that must be indicated on the reclamation bond(security)that corresponds to this site. " The Land Quality Section must be notified of any changes in the permanent address or telephone member. "`• Signature of tympany officer required. G.S.74-51 provides that the Departmentshall grantor deny an�Pplication fora pennitwithin 60 daysofreceipt of a comolete ap licadon oy if a public hearing is held, within 30 nays following the hearing and the filing of: y supplemei"infmmaaconregwred by the Department All questions must be addressed and all required maps provided before this application tan be considered complete. Attach additional sheets as needed. -1- 10/10/2008 FRI 14:17 FAX 704 739 8471 OAKL.AND-PLANTATION 10003 0 10 APPLICATION FOR A MINING PERMIT s NOTE: All of the following questions must be thoroughly answered with regards to your mining operation for the intended life of the mine. All responses must be clearly conveyed on a corresponding, detailed mine map- A. GENERAL CHARACTERISTICS OF THE MINE Answer all of the following that apply: 1. a. If this is an application for a NEW permit,indicate the total acreage at the site to be covered by the permit(this is the acreage that the"new permit"fee will be based upon): Of this acreage,how much is owned and how much is leased? Acres owned: Acres leased: Property owner if leased: b. If this is an application for RENEWAL of a mining permit,indicate the mining permit number and the totd(overall)acreage covered by the existing permit: Mining Permit No_: TOW permitted acreage(this is the acreage that the"renewal" fee will be based upon): c. If this is an application for a MOIDMCATION to a raining permit, indicate the mining permit number and the total(overall)acreage covered by the existing permit: Minim permit No.: Total permitted acreage: Does the modification involve acreage within the previously approved permitted boundary? Yes No_. If yes,indicate the acreage to be covered by this modification(this is the acreage that the "m-ajor modification"fee will be based upon): Does the modification involve acreage outside the previously approved permitted boundary? Yes_ No if yes, indicate the additional acreage to be covered by this modification: (NOTE: you must complete all of Section F.of this application form entitled Notification of Adjoining Landowners). Of this acreage to be added to the pennit, will any portion of this acreage be affected(disturbed, ground cover removed)by the mining operation? Yes NO _- ---- - (if no,a"minor modification" fee of$50-00 is required, despite the "undisturbed" acreage to be added). If yes, indicate the acreage to be affected within the acreage to be added to the permit(the total acreage to be added to the permit is the acreage that the "major modification"fee will be based upon): d. If this is an application for TRANSFER of a mining permit,indicate the raining permit number and the total(overall)acreage covered by the existing permit: Mining Permit No.: Z3-D3 Total permuted acreage: 753.92 Change in parent from Zemex Minerals Group, Inc. to ImerysInc. See associated correspondence. SEE THE FEE SCHEDULE AT THE END OF THIS FORM FOR THE PROPER FEE AMOUNT TO BE PAID FOR THE REQUESTED PERMIT ACTION(S)AND CORRESPONDING ACREAGE NOTED ABOVE 2. Name of All roaterials mined: Mica, Feldspar & Clay 3. Mining method: Hydraulic Dredge X Front-said Loader&Truck Shovel&Truck - Dragline&Truck Self-loading Scmper Other(explain) -2- 10/10/2008 FRI 14:18 FAX 704 739 8471 OAKLAND-PLANTATION 10 004 0 0 APPLICATION FOR A MINING PERMIT d. a. Expected maximum depth ofmine(feet) 100 feet (870 fast above natural, ground level) Depth is relative to what benchmark?(e.g.,riatural ground level,mean sea level,mad elevation,etc,) .—natural ground level 970 feet b. Expected average depth of mine(feet) 50 feet (920 feet above natural ground level) 5. Has any area(s)at this site been mimed in the past? Yes_ X--- Na If yes,when and by whorn was this activity conducted? tuning by various a erArors beginning 1u the 1950's to present 6. Number of years for which the permit is requested(10 years maximum): NIA B. IDS l. CIearly mark and label the location of your mintiap operation on six copies of a 7.5 minute quadrangle and a catty se highway map. The maps,in addition to six(6)conies of mine maps and reclamation maps,must be submitted with each permit application- - T5 minute quadrangles may be obtained from: N.G.Geological Survey NCDENR 1612 Mail Service Center Raleigh,North Carolina 27699-1612 (919)715-9718 - County lughway maps may be obtained from: Location Department Sty Highway Connnismon Raleigh,North Carolina 27602 (919)733-7600 -3- lo/10/2008 FRI 14:18 FAX 704 739 8471 OAKLAND-PLANTATION 16005 p APPLICATION FOR A MINING PERMPI" G. LAND ENTRY AGREEMENT Wehmebygmm to the Depazmrentorits appointed�epr�nmaves the right ofemry and travel upoe am lands or operation timing regular business hems for the purpose of making necessary Held inspections or investigations as may be reasonably required in the administration of the Mming Act of 1971. We further grant to the Department or its appointed representatives the right In make whatever entries on the land as may be reasonably necessary and to take whatever actions as maybe reasonably necessary in order to carry out reclamation which the operator bas failed to complete in the event a bond forfeiture is ordered pursuant to G.S. 74-59. LANDOWNE�Rp 1 APPLICANT: Q Signature Print Name: Charles Neisler Print Name: Susan B. Radcliffe . Neisler arothersr Inc. Address: P.O. Box 99 Tide: yice Pre sidenq Depury General Couasel- AmeClea9 and Secretary Kings Mountain, NC 28086 Company: Kings mountain Minerals Inc. Telephone: 704-739-3286 Mhlc Name: Moss-Neisler Mine Telephone 770-645-3393 'Sigamure must be the same as the individual who signed Page I of this application. Su is of the feted n licatt six carries of all location m• mine ma and reclamation ma tbea ro " te reset¢: ee see nestpogn erfeesc edule)in the form a cheekormoney order paysbleto the r4orth Common leportment of Environment and Natural Resources most be sent to the Land Quality Section Central OQice at the address listed on the front cover of this applieatlun form. Inquiries regarding the status of the review of this application should be directed to the Miming Program staff at (919)733-4574, -28- ,I me Mountain zB Archtlal +�w G� 29 Mine Entrance De Nortn Carolina R jW South Carolina x —c"^ CA Vicinity Map 25' �' '�""`�" x"fix / Category Affected Acreage B Tailings/Sed Ponds 3 Stockpiles 5 w Wastepiles 15 • Processing Areas/Haul Rds 3 Mine Excavation 58 s Other e 25' Buffer°+ Exist. R—O—W Fencing To Remain Along U.S. Hwy. 29 are Stacl ilea r 4b� x Mine Sump Sediment Baain w/niter Oam rBerm r x—� OV erbUrden 675 NCDOT RAW 25' Buffer 9 x-- NCDOT R/W _—x' NCDOI Fence —'�- To Remain - Interstate 85 -- - - - - - - -- - -- - -- - Archdale Mine — East :REE'VEGMine, Erosion Control & Reclamation Plan 06 Town of Kings Mountain — Cleveland County — North Carolina 20U9Kings Mountain Mining, LLC Mm`10 11 7 GRAPHIC SCALE 2" Reclamation Annual Report moll,ArmeRIII... LITYSECTIOty P.O. Box 729 1469 S. Battleground Avenue I- - Her Kings Mountain, NC 28086 (704)734-3513 aa"ex awm ex his mpt Ni W, f mah = 100 fc Sou I W a,sX°9' `e.c &U LEGEND Category Affected Acreage MINE AREA m m m Tailings/Sediment Pond 40 - ♦ ,. {— PROPERTY LINE Stockpiles 17 P, Overburden Piles 14 b - MINE ACTIVITY , Processing Area/Haul Rds 3 , Permit Boundary 13 Mine Excavation Other 42 Mine ActivityOre C) , s 129 Acres Stockpile r 2 Acres 1. ♦ 'Waste @ 5 Acres � 1 I � Met ' ' 5cA�eros ✓ � Ore pi (ja i 1,A sf� 100 to m 00 n ` I Open Pit Area Ne isler 73 Acres 250 Acres + 7 Waste i ♦ ! Waste Pa 4 Acres ♦ L b' " ' Ore b - -�; Stockpile ell, 6 Acres Fill and Grading 40 acres . � ����/, , Ore m elsler Tract # 7 � Stockpile / 4 Acres Tailings & I4#r m j a ' Water Storage �► 28 Acres j ..MNeisler ,Tract #7 /// a �► J , Currently under Reclamation 35 gpres for release in-, 200.E rn Cy ® . J 0 - r•, rn /I^rl C1 =TKeciaimey ucrc ; r(CL,CI v w Fall 2004 I-Lb 06 2008 .� LAND QUALITY SECTION Kings Mountain Mining , LLC a Zemex Industrial Minerals Co EXISTING PERMIT NO . 23 -03 NO. DATE REVISION 1) 7/7/2004 2004 MINING PERMIT RENEWAL 1' _ loot 2) 11/9/2004 2004 MINING PERMIT RENEWAL 411612004 MINE PERMIT RENEWA M.P. Tonelis 3) - ADDED CONTOURS & STOCKPILES """ NEISLER MINE'S No. 1 , No. 2 & No. 3 4) 1/20/2005 2004 Mine Reclamation Report s"reema ov�ws n�� 5 1/12 2006 2005 Mine Reclamation Report 6 MINING/TAILINGS DISPOSAL ACTIVITY Ir Oil, -_ - Yl US NWY Ll - -� �— — > < � _i --- �O 9� -------- -- _--_---— OUNDC ----------- \ �RUUNDf RUN .. f S�Mpr� fADT —_-- /SErT�INr SIN ,1 NP INTERSTATE 85 Category Affected Acreage Kings n° 216 Mountain h WEST ARCHDALE MINE Tailings/Sed Ponds 1 o<^0 (I C) 0� 29 Mine, Erosion Control & Reclamation Plan Stockpiles 0 85 Town of Kings Mountain — Cleveland County — North Carolina v RECEIVED Archdale Kings Mountain Mining, LLC Data 10710707 Wastepiles 0 , 5 `e FEB 062008 UM ne WA07BPERMIT X P.O. Box 729 , * 1469 S. Battleground Avenue �`e" 1" = 100' Processing Areas Haul Rds GRAPHIC SCALE AND QUALITY SECT 9 .� g / 85 Kings Mountain, NC 28066 (704)734-3513 °.««e ey cN«ew By \ 29 o w im mo eoo voo Mine Excavation 14 . 0 TDN MPT 216 North Carolina Sheet NI South Carolina IN FEET Other f t mon = toots Vicinity Map s �o - > roiciq. io.o - km � i CD CD 0111* M / ,I a m¢ �� Tmlin9° lan 04 m au^ Tailings 0.0 krea ow sxw¢ Moss Pant / - J Plant Area 53 Acres 222 Acres + a � a 9 ✓ �� _ --�-ram f�\ Leaend Mine Area '� _ Category Affected Acreage EXISTING PERMIT N0. 23-03 Property Line Tailings/Sediment Ponds 57 Permit Boundry Stockpiles 6 q Overburden Piles 0 Mine Activity Process/Haul Roads 5 Mine Excavation (inactive) 14 KINGS MOUNTAIN MINING LLC ZEMEX INDUSTITAT, MINERAL Water Storage 6 RECEIVED FES 0 G 200E NO. DATE REVISION LAND 1) 1 19 98 1997 — Reclamation Report (MPT) : 1" = 100' D - 2) 1/25/99 1998 — Reclamation Report (MPT) wn: MINING MAPPING 7/ia/oa M..P.. Tonelis 3) 11/23/99 Transfer of Mining Permit to New Owner (MPT) '""� MOSS M I N E'S No. 1 & No. 2 4) 7/19/04 2004 MINE PERMIT RENEWAL 5T 10/15/07 GENcHEu seta W PROCESSING PLANTS AND WATER STORAGE � 6 \ - 85 U.S Interstate 05 / -.I,r --- -- Benton Rd. NCSR 2314 950 m _ m — Site 3 e s tW6 Right-Of-Way - " Co ruct Berm Over -925" ent Ex t. Mineral Drive, �- 9 is Location 2S\\ 60' Right-Of- y - G<°�° _ &enton Natural Visual Berjm `�, I I N �. To Remain�/ � � I I 4-Strand CSR i— ---__- _ \ I I Barbed Wire Fence 2374 �- Treeline gJEte a �I`At ROW & PL R _ god 40 ♦ iW 5 10 - / o - - -- ---___ ` -` ' au Road From Pit Joiil i io 2004 � ''� �, � \ \ xi O m Mine Area — Visual Berm Between Exist /✓/ ' I a 10 AC.+ - Are I Haul Road And Limit Of Mining. ,Nell ' Li s \ (See Detail) / Exist. 0 4-Strand dot < Genera um Area --- --- -- -_- __ \ Acaess/Haul g c\^\( 4e P Well Barbed & pLence \'\O RoadAlongEde Of Tree Link. ♦--- ♦ ., % It ,� a Shall Be Dewatered NIt / LEGEND ough Sediment Basin 7 I, 2004 , / MINE AREA Ore Stockpile 2004 -b ' PROPERTY LINE 1 .0 Ac. +/— , c - / MINE ACTIVITY -- --------- Overburden m - - -_ _ '�i �' It _�-M Permit Boundary �- - - 6 . 0 Ac . + / -- i Wide Spillway '. / �N Deep - O Well i r Category Affected Acreage iP.efmapent S I j Tailings/Sediment Pond PD PD 7PD / i 4-Strand Barbed Wire Fence At ROW & PL Stockpiles 2 , Permanent Diversion Swale Tree r� 1 ? i v'VGI Uul dell I IIGJ v Permit Boundary / I j � II IIf _ � , /i'V I I I Processing Area /Haul Rds At �50 _ if Mine Excavation 10 if If Other ---- KINGS MOUNTAIN MINING EXISTING PERMIT NO. 23-03 ZEMEX INDUSTRIAL M Nip I I It I , 1 FEB G p008 NO. DATE REVISION LAND QUALITY $ C Itl J 1) B 23/04 2004 Permit Renewal Application nave 1 = 100 P'°"TNO OBA1n nff 2) 11/9/04 2004 MINING PERMIT RENEWAL mn: June 2004 M.P. T0NE III S 3) - ADDED CONTOURS & STOCKPILES 4) 10 15 07 GENCHEM SALE HAWKS MINE 5) nuerrt�s: nesmrc xo� 6) 1 1 64994801 r Ings Mountain a 29 85 Archdal tiO e5 a — 29 North - ina ^ T R /W Mine Entrance 218 So th Gamma a,.m NUDO i x_____—x_________x—_. —x--- � / Vicinity Mop 25 Category Affected Acreage Berm "�\•• \\ Tailings/Sed Ponds 3 Stockpiles 5 wat««w k Wastepiles 15 x/ �n Processing Areas/Haul Rds 3 Mine Excavation 56 a Other 25' Buffere^'> Exist. R—O—W Fencing To Remain Along U.S. Hwy. 29 Ore Stockpiles �T X Mine sump RE EiVED Sediment Basin API 2s 200B w/Filter Dam LAND Q LTY SECTION rBerm a%s NCDOT R/VV 25' Buffer AW NCDOT R -. k�—_.x--�_�NCDOT Fence — - To Remain Inferstafe Archdale Mine — East Town of Kings Mountain — Cleveland County — North Carolina Kings Mountain Minerals Inc. Bat` 04 os oB GRAPHIC SCALE DM nk ArchERene ,... Sao a >o ,ao rb .aa Baer r^ . ioo• Minerals Group Inc. am" BA m.a.e By tdh mot ( IN FEET ) SIUN Nw I inch - 100 ft. MINING CHECKLI5T FOR ROUTING Applicarrt'e Name:/L�, 11V Arl Af A TY,Froject Name: v ApplicJPermit No23—�County. Date Received: Reviewer. River Basin Name: ❑New ❑Renewal ❑ Modification (inside permit boundaries) ❑Modification (outside permit boundaries) ❑Transfer ❑ Release ❑Partial Release !Additional Information 0 Fee Needed: $ ❑Fee Received: $ Elwetire anlcaion nackaac to: ❑ aoP n Regional Office (2 wmplete copies; attach the "LQ5 Regional Office Mining Application Review Checklist"to one copy and attach both the OWQ and DAQ "Mining Application Review Farm"to the other copy; send both copies to the Regional Engineer) Date: Routed -2`F�Rec'd ODivisionof Water Resources Date: Routed Reed DNC Wildlife Resources Commission Date: Routed Reed ❑U5 Fish & Wildlife 5ervice Date: Routed Reed (Only new applications and modification requests that add land to the permit) Please route first 3 pzges of the application and any location mace to: ❑Division of Parks & Recreation Date: Routed Reed ❑NC Geological Survey 5ection Date: Routed Reed (Only new applications and modification requests that add land to the permit) ❑Division of Archives & History Date: Routed Reed (Only new applications) ❑Other Date: Routed Reed "5uopen5e Date for Comments: F''r�(o'laterthan 25 days from receipt) ,,. lAzr� e,Jc.r_"G ea— f AIA . e- o, 0 Please note the following: NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources .Eames D. Simons, PG, PE Land Quality Section Michael P. Easley,Governor Director and State Geologist William G. Ross Jr., Secretary ]play 1, 2008 Kings Mountain Minerals,, Inc. Post Office Box 729 Kings MOLintain, North Carolina 28086 RIB: Moss-Naisler Aline (Permit # 23-03) Cletreland County, N.C. 19ear Sir or])Madam: Attached is a copy of our report documenting an inspection recently conducted at a mine site for which our records short' you to be responsible. The inspection was perforined under the provisions of North Carolina General Statute 74-56 of the Alining Act of 1971. Please revie",the report carefully and note any problems or deficiencies documented by the inspector. Furthermore, please note any recoinniendations and/or specific correcti%,e actions required to correct any deficiencies that may be listed. The responsibility for understanding and complying With the tern]s and conditions of your mining perinit and the Act lies with you. Please do not hesitate to contact this office if you have any questions Concerning the attached report. Your cooperation is appreciated. Sincerely, lahid S. Khan RECEIVED Regional Engineer Attachment MAY 0 4 2008 Cc: Flovd VL'illiains, PG - Alining specialist LAND QUALITY MINING PROGRAM C tt�lac North Carolina Department of Environment and Natural Resources, Division of Land Resources, Land Quality Section MINE INSPECTION REPORT ERMITTED MINE) L MINE NAMEf)I r <C- Kk i s r� M )J%j t 2. MINING PERMIT # 2 -0 3 3. OPERATORIe!\ -, WNa.>••< c,:�, hh iatt:,1t Z�z 4. COUNT{,ka�w 6\�� 5. ADDRESS � o 1f&'A Z ;?c-I . ),6 KR 1 nu UAlf.s 1\)C_ _CV 0)'G 6. PERMIT EXPIRATION DA�EO - C�5 '�i 5 7. RIVER BASIN R ivNlaZ> 08. Person(s) contacted at site , �11a tir ' 1`?r1 roi+9 N.{N 9. Was mine operating at time of inspection? .O Yes ❑ No 10. Pictures? ❑ Yes M No 11. Date last inspected: n 3 /C\(s ir'1 7 12. Any mining since last inspection? :1 Yes ❑ No 13. Is the mine in compliance with the Operating Conditions of the Permit? 9 Yes ❑ No If no, explain: 14. Is the mine in compliance with the Reclamation Conditions of the Permit? .FCI Yes ❑ No If no, explain: 15. Did any of the above deficiencies result in offsite damage? ❑ Yes I� No If yes, describe the type and severity of the damage: 16. Corrective measures needed and/or taken:fir' Lc> K 3acQ PT -hhi' 1 t\Nit . r mli Mt` tl lAii All le'cti?+T< At, D sjs�o€ A _• 'g L-RS' ltSa0 hNW;) h!u 4CLE'A 5.ti^�; �h }�^.. Al2 c`n?`.R1e W !�� \^" � F� a, �`���it'''e �toa�•.�c ra,a?•.:n�. 'd ' 17. Other recommendations and comments: 18. Is the Annual Reclamation Report +/-map accurate? R'Yes ❑ No (Explain) O Not Reviewed 19. Follow-up inspection needed? ❑ Yes 'R No Proposed date 20. No. of additional) paac!of Inspection Report_. 21. Copy of Report sent to operator INSPECTED BY: \"� <: I (date) ..,;1..._._.��. .\Ni`i.;»•....._ DATED`r Telephone No: '(`a^_.'} ) While copy 10 file 1'elloli,copy to operator Pink Copp 10 Mining Specialist 10197 LEGEND Category Affected Acreage MINE AREA IIIIIIIIIIIIIIIIIIN Tailings/Sediment Pond 40 % PROPERTY LINE Stockpiles 17 MINE ACTIVITY Overburden Piles 14 Processing Area/Haul Rds 3 ✓ `- \ 4 Permit Boundary — Mine Excavation 13 / m Other 42 i � � c , WOO (D f, x Mine Activity s Ore (D 129 Acres Stockpile 2 Acres u i Wo 5 Acres � i' ax "S w VO Q- WasteJ •\ ' 5 Acres J\ �O y Ore o' cl U ° nay c ._� i e 00 1�1+ Open Pit Area Nz' OS er } I �� —�3 Acres - : Waste - � , 250 Acres + 7Acres Waste v a 4 Acres L \ Ore . � \ Stockpile '• 40"r \ 8 Acres ��� c s Fill and Grading 40 acres . �• ������������ ® � , ore °�; y� •v � Neisler Tract # 7 stores ' 4 flares Toilings & �� :' �� REGEIV L � -a , _ Water Storage 28 Acres �/ APR za 200 j �J�rr mm: Netsler �Troct 7 �' �/ , i;� LAN[) OU, rvsE noN,i Currently under Reclamat oc 35 �.�res for release to 2007 rnMOO SORM / s � X7 Ins _ —_ m 0 �0 �� Reclaimed , 2 acres . Fall 2004 HUM o� v O \ I ' \ j msw mo e+ Kings Mountain Minerals Inc . EXISTING PERMIT NO. 23 - 03 N0. DATE REVISION Minerals Group Inc . 1) 7/7/2004 2004 MINING PERMIT RENEWAL sa� i" _ 100, °H0 NO 0U1R( BY 2) 11/9/2004 2004 MINING PERMIT RENEWAL wrs. 411612004 MINE PERMIT RENEWALM.P. Tonelis 3) — ADDED CONTOURS & STOCKPILES ` NEISLER MINE'S No. 1 , No. 2 & No. 3 4) 1/20/2005 2004 Mine Reclamation Report 5) 1 12 2008 2005 Mine Reclamatjon Report BOB1 $ m16f6 " Ea 6 10/11/07 MINING/TAILINGS DISPOSAL ACTIVITY NEIS07DPERMIT f - 85 U.S Interstate 85 0 Benton Rd. NCSR 2374 950 --_ m e D r Site 3 i ' f y C I n y, 100"Right—Of—Way ,- Con ruct Berm Over v eat - Ex' t. Mineral Drive, 9 pd is Location >S +- i '60' Right- f- e - B G °J I I entan R / Natural Visual Berlm �\ �� j j � _ °otl To Remain % r � � 1 i 4-Strand r - -- __ 10 ` 1 Barbed Wire Fence �374 - Treeline 1 �'� - 1 At ROW & PL f 1♦ • �I44 --n ( "ZW go 44 to 4000 r J 00 - Haul Road From Pit f 2004 - -- - - N to Mine Area /Visual Berm Between / �'— ell °' , 10 Ac.+/— u Arse , \ Haul Road And Limit Of Mining. / :� ' (See Detail) / r / i Exist. C\^\( /3-Strand * g�ffe( Genera ump rea - _ _ -- -- - Access/Haul V Well / Barbed Wire Fence \100' —� _-. \ Road Along Edge Of Tree 0 � At ROW & PL -- -- - IIIIIIIIN REGE '`, l Z APR I II ' s Op - - ,, e Shall Be Dewatered 1 LEGEND ough Sediment Basin I' 2004 , , MINE AREA 0 M s _ 2004 Ore Stockpile j PROPERTY LINE IN i c MINE ACTIVITY Overburden I m ,'' , � � - - Permit Boundary -�Vir Wide Spillway ,% - -- 1' Deep /1 ..\ r0u `1 Permanen S Category Affected Acreage 55\ - i ,i� �' \I , ,'� PD PD PD ,7PD I //� I//I 4-Strand Tailings/Sediment Pond 1 ,� '�� ' ' _ - fit' Barbed Wire Fence iiiiii�fS=�i-ir►-iEE , At ROW & PL Stockpiles 2 i I Permanent Diversion Swale Treelne > ,- Overburden P 'I" eS i1 1 r r 1 1 1 Permit Boundary ,, 6 Processing Area/Haul Rds 1 IN -- ' r / Mine Excavation 10 At OW � � , b ' 1 Other I IN NNN x�--- 1 1 �, Iki Kings Mountain ':Minerals In(, . l � EXISTING PERMIT N0. 23-03 r � - I N0. DATE REVISION MINERALS GROUP Inc. 1) 8 23 04 2004 Permit Renewal Application smu;: 1 = 100 PA m wnrtR 2) I1/9/04 2004 MINING PERMIT RENEWAL �*� June 2004 M,P. TONELIS 30 — ADDED CONTOURS & STOCKPILES *^" 4) 10 1e 07 GENCHEM SALE HAWKS MINE 5) eomns: oa..vra mmm� 6) 64994801 TRANSMISSION VERIFICATION REPORT TIME : 04/14/2008 15:48 NAME : NC DENR DLR FAX : 9197158801 TEL : 9197333833 SER. N : nxxxxxxxxxx DATE,TIME 04114 15: 47 FAX NO./NAME 912129680255 DURATION 00: 00:22 PAGE(S) 02 RESULT OK MODE STANDAR➢ ECM North Carolina Department of Environment and Natural Resources Division of Land Resources - Land Quality Section Mining Program 1612 Mail Service Center, Raleigh, North Carolina 27699 (919) 733-4574 Fax: (919) 715-8801 FAX COVER SHEET FAX NUMBER TRANSMITTED TO: / W�( - AaA-1 - To: —r21 �{ Atl n t�✓ Of: //�� �ZO,.M From: ( � 1, RE: T Date: 14�aB) COMMENTS: IK.Iria¢ Ai.�W 'IF YOU DO NOT RECEI V E ALL PAGES. PLEASE TELEPHONE US IMMEDIAI'CLY A r(919)733-4574. AFi NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, P.G., P.E. Michael F. Easley, Governor Director and Slate Geologist April 2, 2008 William G. Ross Jr.,Secretary CERTIFIED MAIL RETURN RECEIPT REQUESTED 7002 3150 0003 7044 5472 Mr. Dennis Dzvonik Zemex Industrial Minerals 1040 Crown Pointe Parkway, Suite 270 Atlanta, Georgia 30338 Re: Mining Permit No. 23-03 Moss-Neisler Mine Cleveland County Broad River Basin Dear Mr. Dzvonik: Your request to have Mining Permit No. 23-03 transferred in its entirety from your company to Kings Mountain Minerals, Inc. has been approved. As we have received King Mountain Minerals, Inc.'s required surety in an amount sufficient to cover the present operation, your company is hereby released from further responsibility for this site with respect to The Mining Act of 1971. Thank you for your cooperation in this matter. Sincerely, Floyd R. Williams, PG, CPG, CPESC State Mining Specialist Land Quality Section FRW/cnc cc: Mr. Zahid Khan Mr. William Gerringer-DOL, Mine and Quarry Bureau 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 •919-733-45741 FAX: 919-733-2876 512 North Salisbury Street, Raleigh, North Carolina, 27604 An Equal Opportunity t Affumative Action Emp1oyer-50%Recycle610%Post Consumer Paper TRANSMISSION VEP.IFICATION REPORT +1J TIME 05/09/2009 09:24 NAME : NC DENR DLR FAX 9197158801 TEL : 9197333833 SER.# xxxxxxxx=xix DATE DIME 05/09 09:19 FAX NO. /NAME 912024576315 DURATION 00: 05: 01 PAGE(S) 19 RESULT ©K MODE STANDARD ECM North Carolina Department of Environment and Natural Resources Division of Land Resources - Land Quality Section Mining Program 1612 Mail Service Center, Raleigh, North Carolina 27699 (919) 733-4574 Fax: (919) 715-8801 FAX COVER SHEET FAX NUMBER TRANSMfrTED TO: U'k. 9S07 -^ ( S To: Of. From: RE: p II Date: 9t -r l COMMENTS: 0.l V ' IkL41''uG Vt/t t oo •IF YOU DO NOT RbOEIVI3 ALL PAGIiS, PLEASE THI.CPHONE US IMMEDIA'FCLY A'1 (9I9)733-4574, RE: Kings Mountain Mining LLC surface mining permit y Subject: RE: Kings Mountain Mining LLC surface mining permit From: "Ellison, Benjamin" <BEllison@Pattonl3oggs.com> Date: Thu, 8 May 2008 11:15:26 -0400 To: "Judy Wehner" <Judy.Wehner@ncmail.net> Dear Ms. Wehner, I am an attorney representing the new owners of Kings Mountain Mining LLC--we talked three weeks ago. I was wondering if you could fax me a copy of the new surface mining permit. appreciatively yours, Ben Ellison Patton Boggs LLP 2550 M Street NW Washington DC 20037 (202) 457-6172 fax (202) 457-6315 (attn. Ellison) DISCLAIMER: This e-mail message contains confidential, privileged information intended solely for the addressee. Please do not read, copy, or disseminate it unless you are the addressee. If you have received it in error, please call us (collect) at (202) 457-6000 and ask to speak with the message sender. Also, we would appreciate your forwarding the message back to us and deleting it from your system. Thank you. This e-mail and all other electronic .(including voice) communications from the sender's firm are for informational purposes only. No such communication is intended by the sender to constitute either an electronic record or an electronic signature, or to constitute any agreement by the sender to conduct a transaction by electronic means. Any such intention or agreement is hereby expressly disclaimed unless otherwise specifically indicated. To learn more about our firm, please visit our website at http: //www.pattonboggs.com. 1 of 1 5/8/2008 1 1:17 AM KINGS MOUNTAIN MINERALS INC. RF do General Chemical Industrial Products Inc. CCC/t ' 120 Eagle Rock Avenue C V�O APR East Hanover, New Jersey 07936 Tel.: 973-599-5500 Ug Fax: 973-599-5501 AND QUA(Jn SF�rJON April 2, 2008 VIA FEDEX AND FACSIMILE: 919-715-8801 Floyd Williams, Director Land Quality Division Division of Land Resources Department of Environment and Natural Resources Slate of North Carolina 1612 Mail Service Center Raleigh, NC 27699-1612 Re: Mine Permit application for Kings Mountain Minerals Inc. Dear Mr. Williams: Please be advised that the proper name for our North Carolina company is "Kings Mountain Minerals Inc." Please feel free to contact Scott Ellis or me should you have any questions. Very tnd ours, TIMOTHY J BERNLOHR, Vice Presid t and Chief Operating Officer a: H. Scott Ellis Michael Tonelis uSfiuw 04/02/2008 02:10 FAX Z001/002 HARBERT ® MANAGEMENT CORPORATION HMC • NEW YORK , INC . 555 MADISON AVENUE , 161 ! PLOOR NEW YORK , N . Y . 10022 PHONU : 312 521 6970 FAX 212 521 6971 FACSIMILE TRANSMITTAL SHEET 20 FROW ale rcl wrllrG n_S Tip �7t-�.� -� �e�n lc�hl� PAX: DAM R6 TOTALNO OP lAG851NLI.BD[NG COYPA _URGENT _FOR REVIEW _ PLEASE COMMENT 4PLEASE REPLY _PLEASE HARRERT MANAURMBNT CORPORATION CORPORATE HBADQUARTRRS ONE RIVRRCHASS PARKWAY, SOUTH BIRMINGHAM, AL 35349 PHONE: 205 907 5500 PAY' 144 9AI 44AP 04/02/2008 02: 10 FAX 0 002/002 KINGS MOUNTAIN NUNERALS INC. c/o General Chemical Industrial Products Inc. 120 Eagle Rock Avenue East Hanover,New Jersey 07936 Tel„ 973-599-5500 Fax: 973-599-5501 April 2, 2008 VIA FEDEX AND_FACSIMILE: 919-715-8801 Floyd Williams,Director Land Quality Division Division of Land Resources Department of Environment and Natural Resources State of North Carolina 1612 Mail Service Center Raleigh, NC 27699-1612 Re: Mine Permit application for Kings Mountain Minerals Inc, Dear Mr. Williams: Please be advised that the proper name for our North Carolina company is "Kings Mountain Minerals Inc," Please feel free to contact Scott Ellis or me should you have any questions, very trul urs, TIMOTHY BERNLOHR, Vice Presid t and Chief Operating Officer CC.* H.Scott Ellis Michael Tonclis Nssisio I - 85 11.S Interstate $5 c Benton Rd. NCSR 2314 � 950 c .. J Site o 3 a f V I c I n 100`�Right-Of-Way ` rCo ruct Berm Over t % EA t. Mineral Drive, Pa e0 's Location 9 5 , . 60 Right- f- Ojos Rn.. .\ Natural Visual BeOm I 4-Strand S\To Remain ,= ' . , �� I i Barbed Wire Fence R z31q Treeline I At ROW & PL \ ,to ■ Haul Rood From Pit l d _ \ 2004 , m Mine Area Visual Berm Between 1st. �� 10 AC.+/— Are 0 Haul Road And Limit Of Mining. ell n Li (See Detail ttef� Genera ump rea -� - -. Exist. p 4-Strand p gJ --- -- . \ �I _ Acdess/Haul ' Well Barbed Wire Fence AO - g g e. 0 At ROW & PL -----� ----— - ■ \ ,' ��— - ■ \ Roa Along Edge Of Tree lin I a Shall Be Dewatered LEGEND 'I ough Sediment Basin I, 2004 , ' � MINE AREA 2004 i Ore Stockpile j X' _ ,' / PROPERTY LINE 1 .0 Ac.+/— 7, ' a .. , Overburden [ c i - MINE ACTIVITY I, �REc�NGD / — r" \ �.� .� � �� � mil � Permit Boundary Wide Spillway -. ITv SECTION , ----1' Deep �' A O A / / • / \ Well Category Affected Acreage Permanent Sedan j g _ y g :� � Tailings/Sediment Pond 1 PD PD PD PD � ■ I ' 4-Strand Barbed Wire Fence At ROW & PL Stockpiles 2 i Permanent Diversion Swale Tree 's I 1.., Permit Boundary 'I 1 - Overburden Piles 6 ng Area/Haul Rds n Processing At I Mine Excavation 0n Other ,i KINGS MOUNTAIN MINING 1 ; ; EXISTING PERMIT NO. 23-03 ZEMEX INDUSTRIAL MINERALS LLC \ NO. DATE REVISION 1) 0 23 04 2004 Permit Renewal Application 1 = 100 " T NO. note p 2) 11 9 04 2004 MINING PERMIT RENEWAL aR June 2004 M.P. T0NELIS 3) - ADDED CONTO RS & STOCKPD.ES 4) 10 15 07 GENCHEM SALE HAWKS MINE 55) eoerms: 101 c emm s 64994801 6�1�neS �tx`�ln �YYcap Cel !m gill q�G z,e omoin `b� M tl Archdal to b ee e h lino „m NCDOT R/W Mine Entrance South rolma ___ _x_—_�_X imp �� U Vicinity Map 25 x Category Affected Acreage Be m Tailings/Sed Ponds 3 Stockpiles 5 X il waI-a Wastepes 15 */ Processing Areas/Haul Rds 3 Mine Excavation 58 i Other 9 _ 25' bufferN Exist. R-O-W Fencing To Remain Along U.S. Hwy. 29 Ore Stockpiles ^� / UUU�1 R x Mine Sump Sediment Basin w1F ter Dam x�_x_ --`--- � Overb(irden e73 NCDOT R 25' Buffer 7ECD - NCDOT R/W X x--x--x-___:,__ NCDOT Nenx _xTo Remain TioN Interstate 85 Archdale Mine — East Mine, Erosion Control & Reclamation Plan Town of Kings Mountain - Cleveland County - North Carolina Kings Mountain Mining, LLC °°"10 11 07 GRAPHIC SCALE 2006 Reclamation Annual Report Mew ArchERenew... P.O. Box 729 w0 1469 S. Battleground Avenue w'nw f - IOC Kings Mountain, NO 28086 (704)734-3513 es a.a.a ee ton mpt ( RI 16S ) aw xs. 1 mah - too R. I 6- ( n��ne (Y{� (Oa LEGEND Category Affected Acreage MINE AREA Tailings/Sediment Pond 40 _ PROPERTY LINE Stockpiles 17 r MINE ACTIVITY Overburden Piles 14 Processing Area/Haul Rds 3 Permit Boundary Mine Excavation , 13 , Other 42CD r Mine Activity CD CDAcres Store co Acres cr kpile 2 Acre , 2 s �y WaAcrel m 0 ♦ Q- Qi �•. ' SQ Acres l� 0 Ore p U\ SfxApib Q Open Pit Area 3 _ - r00 p 1 N e i s e I 13 Acres ILI Waste 250 Acres + 7 Acres �p r 1 Waste �B 1, 4 Acres l Ore a Jam. Stockpileres ¢� Fill and Grading 40 acres . 1 I Ore a 7 Neisler Tract # Stockpile 1 4 Acres Tailings & d Water Storage +� 28 Acres - Neisler Bract #7 a 4 /� Currently under Reclamat104(� 55 apres for release in 2007\ rn -- - I— Reclaimed 2 acres . LVoX \ I Fall 2004 " �J i Kings Mountain Mining, LLC a Zemex Industrial Minerals Co EXISTING PERMIT NO. 23-03 NO. DATE REVISION 1) 7/7/2004 2004 MINING PERMIT RENEWAL 100, 2) 11/9/2004 2004 MINING PERMIT RENEWAL mm 411612004 MINE PERMIT RENEWA M !ff Tonens 3 — ADDED CONTOURS & STOCKPILES NEISLER MINE'S No. 1 , No. 2 & No. 3 4) 1/20/2005 2004 Mine Reclamation Report 1 5) 1 12 2006 2005 Mine Reclamation Report g MINING/TAILINGS DISPOSAL ACTIVITY a U N - � U i z Z z to Lij q d CD Z 3 F_ E� F Z C) i= Z� ►� W a J (J (3 F= d (0) >C W o o (n CD lj tr (n ? [�] \ N xN LLJ p - U o o s a z z a of O W o E Be Lo d g m y c W Q K Z 00 •- r W m �\ It 0 m " C (b + � o .. U j Q O z .. ntM Vinm Ut C U L Q p co e U Q U W V) N a °' ° m e s Ga ea 1 p47 # , a` hunch Rd � geth�ehem C \ e � >J e e� 4 .v an V e � m Oe U O J � C IJ NCDEHR North Carolina Department of Enviro ment and Natural Resources Division of Land Resources James D. Simons, PG, PE Mchael F. Easley, Governor Director and State Geologist William G.Ross Jr.,Secretary July 1, 2005 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7003 1010 0003 5645 1655 - Mr. Michael Tonelis - Zemex Industrial Minerals, Inc. 7003 1010 ❑003 5645 1655 PO Box 729 Kings Mountain, North Carolina 28086 RE: Mining Permit No. 23-03 Moss-Neisler Mine Cleveland County Broad River Basin Dear Mr. Tonelis: Your request to have the corporate name changed on the referenced mining permit from Oglebay Norton Specialty Minerals to Zemex Industrial Minerals, Inc. is hereby approved. As we have received the required surety in an amount sufficient to cover this operation, I am enclosing a new cover sheet for the updated mining permit. The permit number, expiration date and mine name shall remain the same as before this corporate name change. Please review the cover sheet carefully and notify this office of any objections, questions or corrections that may need to be addressed. I have also enclosed surety bond no. 40OKB6879 issued by St. Paul Fire and Marine Insurance Company for your disposal. Thank you for your cooperation in this matter. If you should have any questions, please contact Kristin Hicklin, Assistant State Mining Specialist, at (919) 733-4574. Smcpjely, floydo�ReWflliams, PG, CPG, CPESC State Mining Specialist Land Quality Section FRWlkh Enclosures: Surety Bond No. 40OKB6879 cc: Mr. Doug Miller, PE, w/permit Mr. Bradley Bennett-DWQ, w/permit Ms. Shannon Deletion -W RC, w/permit Mr. William Gerringer-DOL, Mine and Quarry Bureau, w/o enclosures Land Quality Section 919-73345741 FAX: 919-733-2876 - Geological Survey Section 919-733-24231 FAX: 919-733-0900 1612 Mail Service Center, Raleigh, North Carolina 27699.1612 Division of Land Resources 919-733-38331 FAX: 919-715-8801 1 InterneC wwwAlr.enr. statemn.usfdlr.htm An Equal Opportunity 1 ABrmalive Action Employer-50%Recycled 110%Post Consumer Paper DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES DIVISION OF LAND RESOURCES LAND QUALITY SECTION -PERMIT for the operation of a mining activity In accordance with the provisions of G.S. 74-46 through 68, "The Mining Act of 1971," Mining Permit Rule 15A NCAC 5 B, and other applicable laws, rules and regulations Permission is hereby granted to: Zemex Industrial Minerals, Inc. Moss-Neisler Mine Cleveland County - Permit No. 23-03 for the operation of a Mica and By-Products Mineral Mine which shall provide that the usefulness, productivity and scenic values of all lands and waters affected by this mining operation will receive the greatest practical degree of protection and restoration. MINING PERMIT EXPIRATION DATE: April 5, 2015 Page 2 In accordance with the application for this mining permit, which is hereby approved by the Department of Environment and Natural Resources hereinafter referred to as the Department, and in conformity with the approved Reclamation Plan attached to and incorporated as part of this permit, provisions must be made for the protection of the surrounding environment and for reclamation of the land and water affected by the permitted mining operation. This permit is expressly conditioned upon compliance with all the requirements of the approved Reclamation Plan. However, completed performance of the approved Reclamation Plan is a separable obligation, secured by the bond or other security on file with the Department, and may survive the expiration, revocation or suspension of this permit. This permit is not transferable by the permittee with the following exception: If another operator succeeds to the interest of the permittee in the permitted mining operation, by virtue of a sale, lease, assignment or otherwise, the Department may release the permittee from the duties imposed upon him by the conditions of his permit and by the Mining Act with reference to the permitted operation, and transfer the permit to the successor operator, provided that both operators have complied with the requirements of the Mining Act and that the successor operator agrees to assume the duties of the permittee with reference to reclamation of the affected land and posts a suitable bond or other security. In the event that the Department determines that the,permittee or permittee's successor is not complying with the Reclamation Plan or other terms and conditions of this permit, or is failing to achieve the purposes and requirements of the Mining Act, the Department may give the operator written notice of its intent to modify, revoke or suspend the permit, or its intent to modify the Reclamation Plan as incorporated in the permit. The operator shall have right to a hearing at a designated time and place on any proposed modification, revocation or suspension by the Department. Alternatively and in addition to the above, the Department may institute other enforcement procedures authorized by law. Definitions Wherever used or referred to in this permit, unless the context clearly indicates otherwise, terms shall have the same.meaning as supplied by the Mining Act, N.C.G.S, 74-49. Modifications June 12, 1979: This permit has been modified to include an additional 465 acres identified as the Neisler and U.S. Gypsum Corporation Tracts. September 20, 1981: This permit has been renewed and transferred from Kings Mountain Mica Company, Inc. to KMG Minerals, Inc. May 16, 1994: This permit has been modified to include the changes to the operation as indicated on the revised mine maps, Sheets 1 through 17 of 17, dated March 9, 1994. October 14, 1994. This permit has been transferred in its entirety from KMG Minerals, Inc. to Franklin Industries, Inc. Page 3 March 10, 1997: This permit has been modified to incorporate Mining Permit No. 23-10 (Hawks Mine) in its.entirety and to add the Archdale Tract as indicated on the mine map last revised February 11, 1997. November 19, 1998: This permit has been modified to allow test blasting to be conducted at the Hawks Mine as indicated on the 8 '/2 by 11 inch section of the mine map received by the Land Quality Section on October 15, 1998 with stipulations. May 12 1999: A partial release has been granted to release Tract No. 1, Tract No. 3, Tract No. 4, and Tract No. 5 from the permitted and affected acreage at this site. Tract No. 2 was previously released. March 6, 2000: This permit, issued to Franklin Industries, Inc., has been transferred in its entirety to Oglebay Norton Specialty Minerals, Inc. January 8, 2001: This permit has been modified to increase the permitted acreage to 753.92 acres and increase the affected acreage to 381.03 acres as indicated on the Moss Mine's No. 1 & No. 2 Mine Map last revised November 30, 2000 and the Archdale Mine - East Mine Map last revised August 21, 2000. This modification includes a 2.0-acre stockpile/excavation area on the 4.19-acre addition (the McIntosh Addition) and a 1.03-acre mine area that will be converted to a waste storage area on the 1.03 acre addition (the Landstar Addition). July 1 2005: This permit has been modified to have the corporate name changed on the mining permit from Oglebay Norton Specialty Minerals to Zemex Industrial Minerals, Inc. Expirations Date This permit shall be effective from the date of its issuance until April 5, 2015. Conditions This Permit shall be subject to the provisions of the Mining Act, N.C.G.S. 74-46, et. seq., and to the following conditions and limitations: OPERATING CONDITIONS: 1. Wastewater and Quarry Dewaterin A. Any wastewater processing or mine dewatering shall be in accordance with the permitting requirements and rules promulgated by the N.C. Environmental Management Commission. ' Page 4 B. Any storm water runoff from the affected areas at the site shall be in accordance with any applicable permit requirements and regulations promulgated by the Environmental Protection Agency and enforced by the N.C. Environmental Management Commission. It shall be the permittee's responsibility to contact Division of Water Quality to secure any necessary storm water permits or other approval documents. 2. Air Quality and Dust Control A. Any mining related process producing air contaminant emissions including fugitive dust shall be subject to the requirements and rules promulgated by the N.G. Environmental Management Commission and enforced by the Division of Air Quality. B. During processing operation, water trucks or other means that may be necessary shall be utilized to prevent dust from leaving the permitted area. 3. Buffer Zones A. Any mining activity affecting waters of the State, waters of the U. S., or wetlands shall be in accordance with the requirements and regulations promulgated and enforced by the N. C. Environmental Management Commission. B. Sufficient buffer (30 foot undisturbed) shall be maintained between any affected land and any adjoining waterway or wetland to prevent sedimentation of that waterway or wetland from erosion of the affected land and to preserve the integrity of the natural watercourse or wetland. C. All buffer zones shown on the Moss Mine's No. 1 & No. 2 and Overall Property Map both received by the Land Quality Section on August 17, 2004, and the Archdale Mine — East, Archdale West, Archdale Mine, Hawks Mine, and Neisler Mine's No. 1, No. 2, & No. 3 mine maps received by the Land Quality Section on December 13, 2004 shall be maintained to protect adjoining property. These buffer zones, with the exception of the installation of required sediment control measures and approved earthen berms, shall remain undisturbed. D. An undisturbed buffer zone of 25 feet along both sides of the gas line located near Concept Drive on the Neisler 1 and 2 Tracts shall be maintained. in addition, all excavated slopes adjacent to the buffer zones along the gas line shall be maintained at a 2-foot horizontal to 1-foot vertical or flatter slope. Page 5 4. Erosion and Sediment Control A. Adequate mechanical Farriers including, but not limited to diversions, earthen dikes, check dams, sediment retarding structures, rip rap pits, or ditches shall be provided in the initial stages of any land disturbance and maintained to prevent sediment from discharging onto adjacent surface areas or into any lake, wetland or natural watercourse in proximity to the affected land. B_ All raining activities, including the installation and maintenance of all erosion and sedimentation control measures, shall be conducted as indicated on the Moss Mine's No. 1 & No. 2 and Overall Property Map both received by the Land Quality Section on August 17, 2004, and the Archdale Mine— East, Archdale West, Archdale Mine, Hawks Mine, and Neisler Mine's No. 1, No. 2, & No. 3 mine maps received by the Land Quality Section on December 13, 2004, and the Erosion & Sediment Control Details Drawings 1 and 2, dated February 11, 2005. C., Appropriately designed erosion and sediment control measures shall be installed and maintained, as necessary, below the previous United States Gypsum plant area to prevent off-site sedimentation. D. Appropriately designed diversions and chute spillway shall be provided and maintained, as necessary, to control surface drainage on the fill area between the plant area and Interstate 85. E. An erosion and sediment control plan(s) shall be submitted to the Department for approval prior to any land disturbing activities not indicated on the revised erosion control plan or mine maps submitted with the approved application for a mining permit and any approved revisions to it. Such areas include, but are not limited to, expansion outside of the approved pit area, creek crossings, or expansion of overburden or waste disposal areas. F. The surface water runoff from the 2.0 acres stockpile/excavation area on the 4.19 acre addition to the Moss Mine's No. 1 & No. 2 tract and the 1.03 acre mine area that will be converted to a waste storage area on the 1.03 acre addition to the Archdale Mine — East tract shall be diverted internal to the mine excavation or into existing sedimentation and erosion control measures to prevent off site sedimentation. 5. Groundwater Protection Groundwater monitoring wells shall be installed and monitored as deemed appropriate by the Department. Page 6 6. Graded-Slopes and Fills A. The angle for graded slopes and fills shall be no greater than the angle which can be retained by vegetative cover or other adequate erosion control measure, structure, or device. In any'event, exposed slopes or any excavated channels, the erosion of which may cause off-site damage because of siltation, shall be planted or otherwise provided with groundcover, devices or structures sufficient to restrain such erosion. 7. Surface Drainage The affected land shall be graded so as to prevent collection of pools of water that are, . or likely to become, noxious or foul. Necessary structures such as drainage ditches or conduits shall be constructed or installed when required to prevent such conditions. 8. Blasting The operator shall monitor each blast with a seismograph located at a distance no farther than the closest off site regularly occupied structure not owned or leased by the operator. A seismographic record including peak particle velocity, air overpressure, and vibration frequency levels shall be kept for each blast (except as provided under Operating Condition Nos. 8B and 8D of this permit). The following blasting conditions shall be observed by the mine operator to prevent hazard to persons and adjacent property from surface blasting: A. Ground Vibration With Monitoring: In all blasting operations, the maximum peak particle velocity of any component of ground motion shall not exceed Figure 1 (below) at the immediate location of any regularly occupied building outside of the permitted area such as a dwelling house, church, school, or public, commercial or institutional building. Page 7 10.0 10.0 V 0 ]n U O 2.0 Q in/sate. 2.0 / 5 1.5 C A 1. 1.0 O . 0.9 0.9 0.9 0.7 0J3 iNsee 0.7 n 0.6 ` l �0.6 0 0.5 i 0.5 O.a ' O.a 4 6.z o.z n g o.t t i 10 30 30 100 Slast 1lbration Frequency, '.Hz Figure? Alternative blasting.ievelcriteria (Source`m'otlifetldrom frgiire 8 t ?u.=eau or Mrnes RY280 i;; ;.: B. Ground Vibration Without Monitoring: In the eveni of seismograph malfunction or other condition which prevents monitoring, blasting shall be conducted in.accordance with the following formulas: V = 160(1)3 ' 6 W = Maximum charge weight of explosives per delay period of 8.0 milliseconds or more (pounds). D = Distance from the blast site to the nearest inhabited building not owned or leased by the mine operator (feet). Ds = Scaled distance factor. V = Peak Particle Velocity (inches per second). The peak particle velocity of any component shall not exceed 1.0 inch per second, for the purposes of this Section. Page 8 C. Air blast With Monitoring: Air blast overpressure resulting from surface blasting shall not exceed 129 decibels linear (dBL) as measured at the immediate location of any regularly occupied building not owned or leased by the operator outside of the permitted area such as a dwelling house, church, school, or public, commercial or institutional building, unless an alternate level based on the sensitivity of the seismograph microphone as specified below is being used: Lower Frequency Limit of Max Level, Measuring System, in Hz in dBL 0.1 Hz or lower-flat response 134 peak 2.0 Hz or lower-flat response 133.peak 6.0 Hz or lower-flat response 129 peak D. Air blast Without Monitoring: In the event of seismograph malfunction or other condition which prevents monitoring, blasting shall be conducted in accordance with the following formulas: U = 82 (D/WD.33)-1.2 To convert U (psi) to P (dBL): P = 20 x log (U12.9x10-9) Confined Air blast/Overpressure (dBL) for quarry situation: A = P - 35 U = Unconfined air overpressure (pounds per square inch). W = Maximum charge weight of explosives per delay period of 8.0 milliseconds or more (pounds). D = Distance from the blast site to the nearest inhabited building not owned or leased by the mine operator (feet). P = Unconfined air overpressure (decibels). A = Air blast or air overpressure for typical quarry situations (decibels). The air blastloverpressure shall not exceed 129 decibels, for the purposes of this Section. Page 9 E. Record Keeping: The operator shall maintain records on each individual blast describing: the total number of holes; pattern of holes and delay of intervals; depth and size of holes; type and total pounds of explosives; maximum pounds per delay interval; amount of stemming and burden for each hole; blast location; distance from blast to closest offsite regularly occupied structure; and weather conditions at the time of the blast. Records shall be maintained at the permittee's mitre office and copies shall be provided to the Department upon request. F. Excessive Ground Vibration/Air blast Reporting: If ground vibration-or Air blast limits are exceeded, the operator will immediately report the event with causes and corrective actions to the Department. Use of explosives at the blast site that produced the excessive reading shall cease until corrective actions approved by the Department are taken. However, blasting may occur in other approved areas within the permitted boundary. Authorization to blast at the blast site may be granted at the time of the verbal reporting of the high ground vibration or high air blast reading if the circumstances justify verbal approval. Failure to report will constitute a permit violation. G. FI rock Prevention: The operator stall take all reasonable precautions to ensure that flyrock is not thrown beyond areas where the access is temporarily or permanently guarded by the operator. Failure to take corrective measures to prevent flyrock and repeated instances of flyrock shall be considered a violation of the Mining Permit. H. Flyrock Reporting_ Should flyrock occur beyond the permitted and guarded areas, the operator shall immediately report the incident to the Department. Further use of explosives on the mine site shall be suspended until the following actions have been taken: 1. A thorough investigation as to the cause(s)of the incident shall be conducted. 2. A report detailing the investigation shall be provided to the Department within 10 days of the incident, The report shall, at a minimum, document the cause(s) of the incident along with technical and management actions that will be taken to prevent further incidents. The report shall meet with the approval of the Department before blasting may resume at the mine site. . Page 10 I. Studies: The operator shall provide to the Department a copy of the findings of any seismic studies conducted at the mine site in response to an exceedence of a level allowed by these blasting conditions. The operator shall make every reasonable effort to incorporate the studies' recommendations into the production blasting program. J. Notice: The operator shall, when requested by the Department, give 24-hour advance notice to the Land Quality Section Regional Office prior to any blast during a period for which notice is requested. K. The test shots in the Hawks Pit shall be conducted as indicated on the 8 '/2 by 11 inch section of the mine map and related correspondence received by the Land Quality Section on October 15, 1998 with the following stipulations: 1. the test shall be limited to two shots, 2. the above blasting conditions shall be followed for the test shots, and 3. the blasting consultants shall submit to the Land Quality Section two copies of the seismograph recordings and blasting records, including any conclusions made, shortly after completion of the test. L. A modification shall be submitted to and approved by the Division of Land Resources prior to incorporating blasting activities into the routine mining activities at the site. Prior to submitting the modification request, a meeting shall be conducted as described in the additional information letter from Ms. Judy Wehner dated October 19, 1998. 9. High Wall Barrier A physical barrier consisting of chain link fencing, vegetated earthen berms, 4-strand barbed wire fencing (a minimum 4-feet high), or large boulders placed end-to-end shall be maintained at all times along the perimeter of any highwall to prevent inadvertent public access. In addition, a minimum 10 foot wide horizontal safety bench shall be provided at the junction between the top of rock and the toe of any overburden cut slope. 10. Visual Screening A. Existing vegetation shall be maintained between the mine and public thoroughfares to screen the operation from the public. Additional screening methods, such as constructing earthen berms, shall be employed as deemed appropriate by the Department. Page 11 B. Vegetated earthen berms and other acceptable screening shall be located and maintained as shown on the Moss Mine's No. 1 & No. 2 and Overall Properly Map both received by the Land Quality Section on August 17, 2004, and the Archdale Mine — East, Archdale West, Archdale Mine, Hawks Mine, and Neisler Mine's No. 1, No. 2, & No. 3 mine maps received by the Land Quality Section on _.. December 13, 2004. Berms shall be constructed a minimum five foot high with a 16 foot top width and a minimum two horizontal to one vertical or flatter side slopes. C. In addition to grasses, long leaf and/or Virginia pines or other acceptable evergreen species shall be planted as deemed appropriate by the Department to improve visual and noise buffering. 11. Plan Modification A. The operator shall notify the Department in writing of the desire to delete, modify or otherwise change any part of the mining, reclamation, or erosion/sediment control plan contained in the approved application for a mining permit and any approved revisions to it. Approval to implement such changes must be obtained from the Department prior to on-site implementation of the revisions. B. A modification request shall be submitted to and approved by the Division of Land Resources prior to incorporating blasting activities into the routine mining activities at the site. Prior to submitting the modification request, a meeting shall be conducted as described in the additional information letter from Ms. Judy Wehner dated October 19, 1998. 12. Refuse Disposal A. No on-site disposal of refuse or other solid waste that is generated outside of the mining permit area shall be allowed within the boundaries of the mining permit area unless authorization to conduct said disposal has first been obtained from both the Division of Waste Management and the Land Quality Section, Department of Environment and Natural Resources. The method of disposal shall be consistent with the approved reclamation plan. B. Mining refuse as defined by G.S. 74-49 (14) of The Mining Act of 1971 generated on-site and directly associated with the mining activity may be disposed of in a designated refuse area. All other waste products must be disposed of in a disposal facility approved by the Division of Waste Management. No petroleum products, acids, solvents or their storage containers or any other material that may be considered hazardous shall be disposed of within the permitted area. C. For the purposes of this permit, the Division of Land Resources considers the following materials to be "mining refuse" (in addition to those specifically listed under G.S. 74-49 (14) of the N.C. Mining Act of 1971): Page 12 1. on-site generated land clearing debris 2. conveyor belts 3. wire cables 4. v-belts 5. steel reinforced air hoses 6. drill steel D. If mining refuse is to be permanently disposed within the mining permit boundary, the following information must be provided to and approved by the Division of Land Resources prior to commencement of such disposal: 1. the approximate boundaries and size of the refuse disposal area; 2. a list of refuse items to be disposed; 3. verification that a minimum of 4 feet of cover will be provided over the refuse; 4. verification that the refuse will be disposed at least 4 feet above the seasonally high water table; and 5. verification that a permanent vegetative groundcover will be established 13. Annual Reclamation Report An Annual Reclamation Report shall be submitted on a form supplied by the Department by February 1 of each year until reclamation is completed and approved. 14. Bonding The security, which was posted pursuant to N.C.G.S. 74-54 in the foram of a $500,000.00 blanket bond, is sufficient to cover she operation as indicated in the approved application. This security must remain in force for this permit to be valid. The total affected land shall not exceed the bonded acreage. 15, Archaeological Resources Authorized representatives of the Division of Archives and History shall be granted access to the site to determine the presence of significant archaeological resources. Page 13 APPROVED RECLAMATION PLAN The Mining Permit incorporates this Reclamation Plan, the performance of which is a condition on the continuing validity of that Mining Permit. Additionally, the Reclamation Plan is a separable obligation of the permittee, which continues beyond the terms of the Mining Permit. The approved plan provides: Minimum Standards As Provided By G.S. 74-53 1. The final slopes in all excavations in soil, sand, gravel and other unconsolidated materials shall be at such an angle as to minimize the possibility of slides and be consistent with the future use of the land. 2. Provisions for safety to persons and to adjoining property must be provided in all excavations in rock. 3. All overburden and spoil shall be left in a configuration which is in accordance with accepted conservation practices and which is suitable for the proposed subsequent use of the land. 4. No small pools of water shall be allowed to collect or remain on the mined area that are, or are likely to become noxious, odious or foul. 5. The revegetation plan shall conform to accepted and recommended agronomic and reforestation practices as established by the North Carolina Agricultural Experiment Station and the North Carolina Forest Service. 6. Permittee shall conduct reclamation activities pursuar,it to the Reclamation Plan herein incorporated. These activities shall be conducted according to the time schedule included in the plan, which shall to the extent feasible provide reclamation simultaneous with mining operations and in any event, provide reclamation at the earliest practicable time after completion or termination of mining on any segment of the permit area and shall be completed within two years after completion or termination of mining. RECLAMATION CONDITIONS: 1. Provided further, and subject to the Reclamation Schedule, the planned reclamation shall be to allow the quarry excavation to fill with water, provide a permanent barricade (fence) along the top of any high wall, and grade and revegetate any areas in unconsolidated material. .2. The specifications for surface gradient restoration to a surface suitable for the planned future use are as follows: Page 14 A. Overburden shall be used to slope all side slopes of the mine excavation in unconsolidated material to a 1 '/2 horizontal to 1 vertical or flatter slope on the Moss Tract and United States Gypsum Tract and to a 2'horizonta! to 1 vertical or flatter slope on the Neisler, Hawks, and Archdale Tracts. B. All lakes shall be excavated to maintain a minimum water depth of four feet measured from the low water table elevation. C. The side slopes of the lake excavation shall be graded to a 3 horizontal to 1 vertical or flatter above the water level and 1 '/2 horizontal to 1 vertical below the water level. D. Any settling ponds and sediment control basins shall be backfilled, graded, and stabilized or cleaned out and made into acceptable lake areas. E. The processing, stockpile, and other disturbed areas neighboring the mine excavation shall be leveled and smoothed. F. Compacted surfaces shall be disced, subsoiled or otherwise prepared before revegetation. G. No contaminants shall be permanently disposed of at the mine site. On-site disposal of waste shall be in accordance with Operating Conditions Nos. 12A through 12D. H. The affected land shall be graded to prevent the collection of noxious or foul water. 3. Revegetation Plan: Disturbed areas shall be permanently revegetated according to the Revegetation Plan prepared by Mr. Ben Robinson, NRCS District Conservationist dated April 12, 2004. Whenever possible, disturbed areas should be vegetated with native warm season grasses such as switch grass, Indian grass, bluestem and gamma grass. In addition, the permittee shall consult with a professional wildlife biologist with the N.C. Wildlife Resources Commission to enhance post-project wildlife habitat at the site. r Page 15 4. Reclamation Plan: Reclamation shall be conducted simultaneously with mining to the extent feasible. In any event, reclamation shall be initiated as soon as feasible after completion or termination of mining of any mine segment under permit. Final reclamation, including revegetation, shall be completed within two years of completion or termination of mining. This permit, issued to Kings Mountain Mica Company, Inc. July 26, 1972, modified June 12, 1979, renewed and transferred in its entirety to KMG Minerals, Inc. September 20, 1981, renewed and modified May 16, 1994, transferred in its entirety to Franklin Industries, Inc. October 14, 1994, modified March 10, 1997, November 19, 1998, and May 12, 1999, transferred in its entirety to Oglebay Norton Specialty Minerals, Inc. March 6, 2000, modified January 8, 2001, and renewed April 5, 2005, is hereby modified to have the corporate name changed on the mining permit from Oglebay Norton Specialty Minerals to Zemex Industrial Minerals, Inc. this 15t day of July 2005. By: James D. Simons, Director 74 Division of Land Resources By Authority of the Secretary Of the Department of Environment and Natural Resources F North Carolina Secretary of State ,�,.y ; hap//wwwsecrerarystate.nc.us/corporations/Corp.aspslPitenild=li$... " r ;1 " North Carolina r. fj i 1 '�6 Elaine F. Marshall DEPARTMENT DI- Tl•IE Secretary SECRETARYOFSTATE `•o:.s PO Box 2962.2 Ralxk3h,NC 27620 0622 ;9IIIW7 2001 CORPORATIONS Dale: 3/13/2008 Click here to: Corporations Home View Document Filings I Sign Up for Search By Corporate Name E-Notifications I Search For New Corporation %Print apre-populated Annual Report Search By Registered Agent Form I Annual Report Count I File an Important Notice Annual Report I Corporations FAQ Corporation Names Homeowners' Association FAQ Tobacco Manufacturers Name Name Type Dissolution Reports NC Kings Legal Non-Profit Reports Mountain Verify Certification Minerals Inc. 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Registered 3125 Poplar Wood Office Court Start An Order Address: the Aspen Building - New Payment Procedures Suite 100 Raleigh INC 27604 CONTACT us Registered 3125 Poplar Wood Mailing Court Corporations Division Address: the Aspen Building - Suite 100 Secretary of State's web site Raleigh NO 27604 rnrn c I oft 3/1320084:32 PM r North Carolina Secretary of State littp://www.secretary.state.nc.us/corporations/Corp.,,tspx?E'itemld=85... r Secretary of State Home Secretary of State Site Map Printable Page For questions or comments about the secretary of State's web site, please send e-mail to Webmaster. 2 of 2 3/13/2008 4:32 PM 0 MINING GHEGKLI5T FOR ROUTING �vN6� l/lS'cuYl�v Applicant's Name: 2,Mm Adw/J4)J. Project Name. 1ry16 h ham. ✓ �eti ApplicJPermltNo.:a3-u3County: AAalAl Date Received: .1)lo/U4 / /Rev r.iewe �I IA p`._ River Basin Name: 0 New ❑Renewal ❑ Modification (inside permit boundaries) ❑Modification (outside permit boundaries) PTransfer ❑Release ❑Partial Release ,dAde itional Information 0 Fee Needed: $ ❑Fee Received: $ Please routs antire application package V VVI vma„i,.Il r Regional Office (2 complete copies;attach the"LQ5 P.egional Office Mining Application Review Checklist"to one copy and attach hath the DWQ and PAQ "Mining Application Review Farm"to the other copy, send both copies to the Regional Engineer) Date: Routed Reed ❑ Division of Water Resources Date: Routed Reed ❑NC Wildlife Resources Commission Date: Routed Reed ❑ U5 Fish & Wildlife Service Date: Routed Reed (Only new applications and modification requests that add land to the permit) Please route first 3 pages of the.�.ipplicaUr 'on and any location maps to: ❑Divisiion of Parks & Recreation Date: Routed Reed 0 NC Geological Survey Section Date: Routed Reed (On y new applications and modification requests that add land to the permit) ❑ Division of Archives & History Date: Routed Reed (0ny new applications) ❑Other" Date: Routed - Reed "suspense Date for Comments: a II)A- (no later than 25 days from receipt) 0 Please note the following: �1. �a7lA �An e o KINGS MOUNTAIN MINERALS Inc. 1469 S. Battleground Avenue P. O. Box 729 Kings Mountain, North Carolina 28086 Phone 704-739-3616 Fax 704-739-7888 RGCEIVI::D MAR IS 2003 February 14, 2008 LAND!1UALITY SECTION NC DEN Division of Land Resources _ Land Quality Resources 1612 Mail Service Center Raleigh, NC 27699-1612 Dear: Ms. Judith Wehner This correspondence is in reference to Mine Permit No. 23-03 and the requested change of ownership from Kings Mountain Mining, LLC to Kings Mountain Minerals, Inc. Please find enclosed Page One of the Mine Permit Application with the corrected name for the transfer. If you have any questions please call me at 704-735-3513. RRegga/rds, Michael Tonelis, Operations Manager Enclosures: Two —Archdale West Mine Plans Kings Mountain Minerals Ito Kings Mountain, Cleveland, County, NC Mine Permit No. 23-03 NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES LAND QUALITY SECTION APPLICATION FOR A MINING PERMIT (PLEASE PRINT OR TYPE) 1. Name of Mine Moss-Neisler Mine County Cleveland River Basin Broad River Latitude (dd.mm.ss) 35 - 12 '- 15" Longitude (dd.mm.ss) 81 -23' -00" 2. Name of Applicant* Kings Mountain Minerals Inc. 3. Permanent address for receipt of official mail** P. O. Box 729 Kings Mountain, NC 28086 Telephone 704-734-3516 4. Mine Office Address 1469 S. Battleground Avenue Kin s Mountain NC 28086 Telephone 704-734-3516 5. Mine Manager Tom Holmes We hereby certify that all details contained in this Permit Application are true and correct to the best of our knowledge. We fully understand that any willful misrepresentation of facts will be cause for permit revocation. ***Signature Date 311y08 Print Name Michael Tonelis Title_ Operations Manager * This will be the name that the mining permit will be issued to and the name that must be indicated on the reclamation bond (security) that corresponds to this site. ** The Land Quality Section must be notified of any changes in the permanent address or telephone number. *** Signature of company officer required. G.S. 74-51 provides that the Department shall grant or deny an application for a permit within 60 days of receipt of a complete application or, if a public hearing is held, within 30 days following the hearing and the filing of any supplemental information required by the Department. All questions must be addressed and all required maps -I- ° i (A)oDt o+ me L/u Ufa (lati✓ r -3 �� y 0 y V2r�-er�ra 3s;gs3 . 3 -y53 C3 3 � 1 • � E. DETERMINATION OF AFFECTED ACREAGE AND BOND The foilowing bond calculation worksheet is to be used to establish an appropriate bond (based upon a range a S500 to Si.000 per affected acre)jor each permitted mine site based upon the acreage approved by the Department to be affected during the fife of the mining permit Please insert. the approximate aereaee for each aspect of the mininz one at that vau imend to affect durmz the life of this minin_v, permit (in addition Please insert the aPnronriate reclamation cost/acre for each carezory tram the Schedule of Reclamation Costs Provided wuh this apnlication7orm) OR you can defer to ahe,Denartment to calculate your bond far you based upon your maps and standard reclamation costs: AFFECTED RECLAMATION RECLAMATION CATEGORY ACREAGE COST/ACRE" COST T'ailings/SedimentPonds l =( t pAc. X S /Ac. = S Stockpiles4�0+b +ryo +a 30 Ac. X $ lAc. = $ Wastepiley * p + IS;aSt` zr ' Ac.' X 5 /Ac. — S Processing Area/H+3 Roa�I �_ Ac. X S /Ac. = S Vine Excavation: ' 9'� -Ac. X 5 /Ac. = S Is r 14 + SS+Iq +-lo Other ..;_ Ac. X S TOTAL AFFECTED AC.: 3 2( 8.5 Ae. - (TOTAL PERMITTED AC.: Ac.) Temporary & Permanent Sedimentation & Erosion Control Measures: Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into proposed/existing excavation and/or b) affected acres that will be graded for positive drainage where measures will be needed to prevent offsite sedimentation and sedimentation to onsite watercourses and wetlands. a) Internal Drainage Ac. b) Positive Drainage Ac. X $1.500.00 = S SUBTOTAL COST: S Inflation Factor: 0.02 X SUBTOTAL COST: S X Permit Life (Ito 10 years): INFLATION COST: S TOTAL COST = SUBTOTAL COST + INFLATION COST = S Total Reclamation Bond Cost: $ (round down to the nearest S100.00) 4 • O MINING CHECKL15T FOR ROUTIN ✓G11nn y� /nu Applicant's Name: Y. e.� nN- rh. rr 4 t . Project Name: /r'�n / 4?e44v /,�(.�. u nn ApplicJPermitNo.: a3-O'County. 164,,1i n Date Received: 3) 1doC� n/� 1 n r Reviewer. River Basin Name: Vn4l j u� ❑ New ❑Renewal ❑ Modification (inside permit boundaries) ❑ Modification (outside permit boundaries) ©Transfer ❑Release ❑ Partial Release r,ditional Information 0 Fee Needed: $ ❑ Fee Received: $ Pieeasnenroute entire application nackaoc to; �y r r I O-M 1�,v� ��1, Regional Office (2 complete copies; attach the"LQ5 Regional Office Mining Application Review Checklist"to one copy and attach bath the DWQ and PAO "Mining Application Review Form"to the other copy; send both copies to the Regional engineer) Date: Routed Reed ❑Division of Water Resources Date: Routed Reed ❑NC Wildlife Resources Commission Date: Routed Reed ❑U5 Fish &Wildlife Service Date: Routed Reed (Only new applications and modification requests that add land to the permit) Please mute first 3 peges of the application and any location maps to: 0 Division of Parks & Recreation Date: Routed Reed 0 NC Geological Survey Section Date: Routed Reed (Only new applications and modification requests that add land to the permit) ❑Division of Archives & History Date: Routed Reed (Only new applications) 0Other. Date: Routed Reed "suspense Date for Comments: Ole (no later than 25 days from receipt) ❑Please note the following: 07, ; 1,lid dA aJ �v KINGS MOUNTAIN MINERALS, LLC 1469 S. Battleground Avenue P. O. Box 729 Kings Mountain, North Carolina 28086 Phone 704-739-3616 Fax 704-739-7888 February 5, 2006 NC DENR Division of Land Resources Land Quality Resources 1612 Mail Service Center Raleigh, NC 27699-1612 Dear: Ms. Judith Wehner This correspondence is in reference to Mine Permit No. 23-03 and the requested change of ownership from Kings Mountain Mining, LLC to Kings Mountain Minerals, Inc. Your letter dated February 22, 2008 indicates that the permitted affected acreage and the documented affected acreage are in disagreement. Please find enclosed two copies of the modified Archdale West Mine plan with the corrected table of disturbed acreages. The four other q�ne map submitted for approval a%/correct as stated, Their names respectively are Archdale East, Hawks, Neisler Mines#1, #2  and Moss Mines#1 . If you have any questions please call me at 704-735-3513, Regards, (I/I���� Michael Tonelis, Operations Manager \ Enclosures. Two—Archdale West Mine Plans l7 RECEIVED MAR 112008 �ANp QUALITY SECTION :Y • ©YA • NCDENR . North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James 0. Simons, P.G., P.E. Michael F. Easley, Govemor Director and State Geologist February 22, 2008 William G. Ross Jr., Secretary Certified Mail Return Receipt Requested 7003 1680 0000 1484 2620 Mr. Mike Tonsils Kings Mountain Mining Inc. PO Box 729 Kings Mountain, North Carolina 28086 RE: Moss-Neisler Mine Permit No. 23-03 Cleveland County Broad River Basin Dear Mr. Ellis: We have reviewed the transfer request your company submitted for the referenced mine site. However, the following information is needed to continue processing your application: Currently your permitted acreage at this site is 753.92 and the amount of land your company is approved to disturb is 381 .03 acres (also referred to as the affected acreage for this site). The recently submitted mine maps have affected acreage charts on them that do not total 381.03 acres. The affected acreage charts total is 328.5 acres. Please clarify this discrepancy. Please note, the Land Quality Section may request additional information, not included in this letter, as the mining application review progresses. . The reclamation bond required for this site is $500,000.00 and will be required prior to approval of this transfer request. For your convenience, I have enclosed a bond form, an assignment of a savings account form and irrevocable standby letter of credit form for your use in securing the required bond. The name on the security must be the same as the name appearing on the application for a mining permit, i.e., Kings Mountain Mining Inc. In addition to one of these alternatives, you may, upon request, substitute a cash deposit. 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • 919-733-45741 FAX: 919-733-2876 512 North Salisbury Street, Raleigh,North Carolina,27604 An Equal Opportunity 1 Affirmative Action Employer-50%Recyeled110%Post Consumer Paper a • Certified Mail Mr. Ellis Page 2 Please be advised that our review cannot be completed until all of the items listed above have been fully addressed. In order to complete the processing of your application, please forward two (2) copies of the requested information and the bond to my attention at the following address: Land Quality Section Division of Land Resources Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 As required by 15A NCAC 5B.0013, you are hereby advised that you have 160 days from the date of your receipt of this letter to submit all of the requested information. If you are unable to meet this deadline and wish to request additional time, you must submit information, in writing, to the Director clearly indicating why the deadline can not be met and request that an extension of time be granted. If an extension of time is not granted, a decision will be made to grant or deny the mining permit based upon the information currently in the Department's files at the end of the 180-day period. Though the preceding statement cites the maximum time limit for your response, we encourage you to provide the additional information requested by this letter as soon as possible. Your prompt response will help us to complete processing your application sooner. Please contact me at (919) 733-4574 if you have any questions. Sincerelyke�hnLer dith Assistant State Mining Specialist Land Quality Section Enclosures: Bond Forms cc: Mr. Zahid Khan !' NCDENR North Carolina Department of Environment and Natural Resources Division of Land Resources Land Quality Section James D. Simons, P.G., P.E. Michael F. Easley, Governor Director and State Geologist February 8, 2008 William G. Ross Jr., Secretary Certified Mail Return Receipt Requested 7002 3150 0003 7044 5236 Mr. Scott Ellis 120 Eagle Rock Avenue East Hanover, NJ 07936 RE: Moss-Neisler Mine Permit No. 23-03 Cleveland County Broad River Basin Dear Mr. Ellis: We have reviewed the transfer request your company submitted for the referenced mine site. However, the following information is needed to continue processing your application: Currently your permitted acreage at this site is 753.92 and the amount of land your company is approved to disturb is 381.03 acres (also referred to as the affected acreage for this site). The recently submitted mine maps have affected acreage,charts on them that do not total 381.03 acres. The affected acreage charts total is 328.5 acres. Please clarify this discrepancy. Please note, the Land Quality Section may request additional information, riot included in this letter, as the mining application review progresses. The reclamation bond required for this site is $500,000.00 and will be required prior to approval of this transfer request. For your convenience, I have enclosed a bond form, an assignment of a savings account form and irrevocable standby letter of credit form for your use in securing the required bond. The name on the security must be the same as the name appearing on the application for a mining permit, i.e., Kings Mountain Mining Inc. In addition to one of these alternatives, you may, upon request, substitute a cash deposit. 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • 919-733-45741 FAX: 919-733-2876 512 North Salisbury Street,Raleigh, North Carolina, 27604 An Equal Opportunity 1 Affirmative Action Employer—50%Recycled l 10%Post Consumer Paper 1 1 Certified Mail Mr. Ellis Page 2 Please be advised that our review cannot be completed until all of the items listed above have been fully addressed. In order to complete the processing of your application, please forward two (2) copies of the requested information and the bond to my attention at the following address: Land Quality Section Division of Land Resources Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 As required by 15A NCAC 5B.0013, you are hereby advised that you have 180 days from the date of your receipt of this letter to submit all of the requested information. If you are unable to meet this deadline and wish to request additional time, you must submit information, in writing, to the Director clearly indicating why the deadline can not be met and request that an extension of time be granted. If an extension of time is not granted, a decision will be made to grant or deny the mining permit based upon the information currently in the Department's files at the end of the 180-day period. Though the preceding statement cites the maximum time limit for your response, we encourage you to provide the additional information requested by this letter as soon as possible. Your prompt response will help us to complete processing your application sooner. Please contact me at (919) 733-4574 if you have any questions. Sincerely, J9Ith A. V!ner Assistant State Mining Specialist Land Quality Section Enclosures: Bond Forms cc: Mr. Zahid Khan R Complete Items 1.2,and a.Also complete a Signature Item 4 If Restricted Delivery is desired. O Agent• Print your name and address on the memo X ❑MArrssea so that we can return the card to you. B. Received by(Ptlnled Nam) C. ()ate of Delivery E Attach this card to the back of the incident, or on the front if space permits. 1. Article Addressed!le: D. Is ddivery anid. tlifle,wtlmm Xeml? 01b If YES,enter delivery accreas beklw: ❑ No MR SCOTT ELLIS 120 EAGLE ROCK AVENUE Weenype EAST HANOVER NJ 07936 a nentled t w1aI,N Mall Fapraaa Mall ❑ InsglewMtl C.O.D. teEBlpIb MB�e1MM� D Insured Mail C.O.D. 4. Restricted Delivery?( Fee) ❑Yee 2. AMds Number 700E 3150- 0003- 7044- 5236- „vw rw„xamce mcep i - - PS Form 3811, February 20r143 C3 Domestic Rewm Receipt �' -.`!� Q RIceeaso2M-+sac UNITED STATES POSTAL SERVICE I I I II I Po h?N&F�Paid I • Sender: Please print your name, address, and ZIP+q in this box I DENR-DIVISION OF LAND RESOURCES LAND QUALITY SECTION 1612 MAW SERVICE CENTER RALEIGH NC 276WI612 I I 1 I I NCDENIR. North Carolina Department of Environment and Natural Resources Division of Land Resources Lana Quality Section James D. Simons, P.G., P.E. Michael F. Easley, Governor Director and State Geologist February 8, 2008 William G: Ross Jr., Secretary Certified Mail Return Receipt Requested 7002 3150 0003 7044 5236 Mr. Scott Ellis 120 Eagle Rock Avenue East Hanover, NJ 07936 RE: Moss-Neisier Mine Permit No. 23-03 Cleveland County Broad River Basin Dear Mr. Ellis: We have reviewed the transfer request your company submitted for the referenced mine site. However, the following information is needed to continue processing your application: Currently your permitted acreage at this site is 753.92 and the amount of land your company is approved to disturb is 381.03 acres (also referred to as the affected acreage for this site). The recently submitted mine maps have affected acreage charts on them that do not total 381.03 acres. The affected acreage charts total is 328.5 acres. Please clarify this discrepancy. Please note, the Land Quality Section may request additional information, not included in this letter, as the mining application review progresses. The reclamation bond required for this site is $600,000.00 and will be required prior to approval of this transfer request. For your convenience, I have enclosed a bond form, an assignment of a savings account form and irrevocable standby letter of credit form for your use in securing the required bond. The name on the security must be the same as the name appearing on the application for a mining permit, i.e., Kings Mountain Mining Inc. In addition to one of these alternatives, you may, upon request, substitute a cash deposit. 1612 Mail Service Center, Raleigh, North Carolina 27699-1612 • 919-733-45741 FAX: 919-733-2876 512 North Salisbury Street, Raleigh, North Carolina, 27604 An Equal Opportunity 1 Affirmative Action Employer—50%,Recycled 110%Post Consumer Paper r � . i Certified Mail Mr. Ellis Page 2 Please be advised that our review cannot be completed until all of the items listed above have been fully addressed. In order to complete the processing of your application, please forward two (2) copies of the requested information and the bond to my attention at the following address: Land Quality Section Division of Land Resources Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 As required by 15A NCAC 5B.0013, you are hereby advised that you have 180 days from the date of your receipt of this letter to submit all of the requested information. If you are unable to meet this deadline and wish to request additional time, you must submit information, in writing, to the Director clearly indicating why the deadline can not be met and request that an extension of time be granted. If an extension of time is not granted, a decision will be made to grant or deny the mining permit based upon the information currently in the Department's files at the end of the 180-day period. Though the preceding statement cites the maximum time limit for your response, we encourage you to provide the additional information requested by this letter as soon as possible. Your prompt response will help us to complete processing your application sooner. Please contact me at (919) 733-4574 if you have any questions. Sincerely, J9Ith A. \A ner Assistant State Mining Specialist Land Quality Section Enclosures: Bond Forms CC" Mr. Zahid Khan APPLICATION FOR A MINING PERMIT E. DETERMINATION OF AFFECTED ACREAGE AND BOND The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a range of$500 to $5,000 per affected acre)for each permitted mine site based upon the acreage approved by the Department to be affected during the life of the mining permit. Please insert the approximate acreage for each aspect of the mining operation that You intent to aect during the life of this minine permit (in addition please insert the appropriate reclamation costlacre for each category from the Schedule of Reclamation Costs provided with this application form): AFFECTED , RECLAMATION RECLAMATION CATEGORY ACREAGE: COST/ACRE COST Tailings/Sediment Ponds Ac. X $ /Ac. = $ Stockpiles 2 Ac. X $ 1800 /Ac. = $ 3600 Wastepiles 1. Ac. X $ 2000 /Ac. _ $ 2000 Processing Area/Haul Roads Ac. X $ /Ac. _ $ Mine Excavation Ac. X $ /Ac. = S Other Ac- X $ /Ac. _ $ TOTAL AFFECTED AC.: 3 .03Ac. Temoorary & Permanent Sedimentation & Erosion Control Measures: Divide the TOTAL AFFECTED AC. above into the fllowing two categories: a) affected acres that drain into proposed/existing.excavation and/or b) affected acres that will be graded for positive drainage, measures will be needed to prevent offsite sediment. a) Internal Drainage 3 Ac. b) Positive Drainage Ac. X $1500 / Ac. _ $ SUBTOTAL COST: $ 5600 Inflation Factor: 0.02 X SUBTOTAL COST: $ 5600 X Permit Life (I to 10 years): 4 INFLATION COST: S 448 TOTAL COST = SUBTOTAL COST + INFLATION COST = $ 6048 TOTAL RECLAMATION BOND COST: _ $ 500, 000 (Current Blanket Bond) (round down to the nearest $100 . 001 � � -15- APPLICATION FOR A MINING PERMIT E. DETERMINATION OF AFFECTED ACREAGE AND BOND The following bond calculation worksheet is to be used to establish an appropriate bond (based upon a range of S500 to $5,000 per affected acre)for each permitted mine site based upon the acreage approved by the Department to be affected during the life of the mining permit. Please insert the approximate acreage. for each asvett of the mining operation that You intend to affect drain the life a this minirs ermit in addition lease insert the a ro tittle reclamation cost/acre for each cateeory from the Schedule of Reclamation costr provided with this application form): AFFECTED RECLAMATION RECLAMATION CATEGORY ACREAGE COST/ACRE COST Tadings/Sediment Ponds 99 Ac. X S 1,500 /Ac. = $ 148,500 Stockpiles 32 Act X S 1,800 /Ac. = $ 57,600 Wastepiles 70 AC X $ 2,000 /Ac = $ 140,000 Processing Area/Haui Roads 55 Ac. X $ 2,000 /Ac = $ 110,000 Mine Excavation 122 Ac, X $ 500 /Ac, _ $ 61,000 Other Ac. X $ /Ac. _ $ TOTAL AFFECTED AC.: 378 Ac. Temporary& Permanent Sedimentation & Erosion Control Measures: Divide the TOTAL AFFECTED AC. above into the following two categories: a) affected acres that drain into proposed/existing excavation and/or b) affected acres that will be graded for positive drainage, measures will be needed to prevent offshe sediment. a) Internal Drainage 378 Ac. b) Positive Drainage Act X $15001 Ac. _ $ SUBTOTAL COST: S 517, 100 Inflation Factor 0.02 X SUBTOTAL COST: $ 10,342 X Permit Life (1 to 10 years): 4 INFLATIONCOST: $ 41,368 TOTAL COST = SUBTOTAL COST + INFLATION COST = $ 558*468 TOTAL RECLAMATION BOND COSTS = $ 500,000 (round down to the nearest $100 . 00) -15- -.1 V:� ",.bf.North Carolina of Environmental Memo RECUNE-D FEB 00 203 To: QqU Weh—ne'r7 LAND QUALITY SECTION From: Zahid Khan CC: Oarm 2612008 Re: Moss-Neisler Mine, Cleveland County, and Broad River Basin Application/Permit R: 23-03 We reviewed the most recent submittal dated January 8 and 14 2008 and received in MRO on January 22, 2008 with suspense date for comments February 8, 2008. 1 have only one comment. 1: The land Entry Agreement(page 18)was not signed by the Landowner and Applicant on the same Page. A copy of DWQ, and DAQ comments are attached for your review. A copy of Charlie Whaley comments is also attached. Please contact Charlie Whaley or me if you need additional information. 1 MINING PERMIT APPLICATION REVIEW FORM For the DIVISION OF AIR QUALITY Project Name/Permit Number: Moss Neisler Mine County: Cleveland "* Due Date for Comments Back to Land Quality Section: ASAP '* Return To: Zahid Saeed Khan j Will the operation, as proposed, violate standards of air quality? Comments: YES NO Air permit required J�( Air permit existing (Permit # ) ✓� Other Comments: Reviewed by: Date: —� u ' J Print Name: �J-" C �� 1�•. „?. NC DEBT. OF ENVIRONMENT AND NRATURAL i=CEi11ED RESOURCES 10912005 HE B 0 6 2 003 8 Central Office Reviewer: Mo IREGIONAL IRQ OFFICE AUALIITY o • MINING PERMIT APPLICATION REVIEW FORM Forthe t ND D3U,4tsp�j DIVISION OF WATER QUALITY' ' ^ K , if c I rw 6 2606 Project Name/Permit Number Moss Neisler Mine ' wb of County: Cleveland `�� '• Due Date for Comments Back to Land Quality Section: ASAP Return To: Zahid Saeed Khan Will the operation, as proposed, violate standards of water quality?, Comments: Watershed/Stream Name & Classification: . ..mod✓(.r�L�� . /.NON FX'9. ✓G/ ��G •• YES NO NPDES permit required NPDES permit existing (Permit #! ti/GG oLoo `� Nondischarge permit required / Nondischarge permit existing V/ (Permit #_) Wetlands disturbed ✓ 401 Wetland Cert. required 401 Wetland Cert. existin _(Permit #_) Reviewed Date: 1)Z 66 Ole Print Name: ,SW_ J 109/2006 Central Once Reviewer._ Chapman Grading and Concrete Co. Mine Permit No. 23-13 Cleveland County May 28, 2007 correspondence from Raleigh, Land Quality requested the following: 1. Provide acreage for the entire access road and show road within the permit boundary. 2. Provide construction details for the settling pond. Received the requested information on 01/29/08 and it appears to be complete. Zemex Industrial Minerals, Inc. Mine Permit No. 23-03 Cleveland County Received a request for transfer of ownership to Kings Mountain Mining, Inc. appears to be complete. High Shoals Quarry Permit No. 36-24 Gaston County Vulcan Construction Materials, L.P. submitted a notification that they, Vulcan Materials, was reinitiating the land disturbing activities at this mining site. illinin� information responce 4 Subject; Mining information responce From: Charlie Whaley <Charlie.Whaley@ncmail.net> Date: Mon, 04 Feb 2008 08:23:24 -0500 To: Judy Wehner <Judy.Wehner@ncmail.net>, Zahid Khan <Zahid.Khan@ncmail.net> Judy, Please see the attached document concerning the Chapman Mine, Vulcan Mine and the zemex mine. Charlie Charlie Whaley - Chadi@ncmail.ne North Carolina Dept. of Environment & Natural Resources Div. of Land Resources - Land Quality Section 610 E. Center Ave. , suite 301 Mooresville, NC 28115 Ph: (704) 663-1699 Fax: (704) 663-6040 Chapman Grading and Concrete Co.doe Content-Type: application/msword Content-Encoding: base64 i of 1 2/4/2008 8:35 AM Chapman Grading and Concrete Co. Mine Permit No. 23-13 Cleveland County May 28, 2007 correspondence from Raleigh, Land Quality requested the following: 1. Provide acreage for the entire access road and show road within the permit boundary. 2. Provide construction details for the settling pond. Received the requested information on 01/29/08 and it appears to be complete. Zemex Industrial Minerals, Inc. Mine Permit No. 23-03 Cleveland County Received a request for transfer of ownership to Kings Mountain Mining, Inc. appears to be complete. High Shoals Quarry Permit No. 36-24 Gaston County Vulcan Construction Materials, L.P. submitted a notification that they, Vulcan Materials, was reinitiating the land disturbing activities at this mining site. O � MINING CHECKLI5T FOR ROUTING z ur cF. b!n d, e1 / �� Applicant's Name: 1�nnar9lyitAkm IneaiAz U6 Project Name: 3-03 ApplicJPerm t No._R Courr:50 u4U Date Received: / I 3I/)4 Reviewer. C111AAA4Z River Basin Name: U%fl,ird I 0New ❑ Renews l ❑Modification (inside permit boundaries) ❑Modification (outside permit boundaries) L'fransfer , ❑Release OPartialRelease ❑AdditionalInformation ❑Fee Needed: $ 01Fee Received: $ hfl ntiw application package to. I V I19177L1!/1 e (2 complete copies: attach the "L-OSp�u-ional Office Mining Application Review Checklist"to one copy and attach the DWO.aNd PAO "Mining Application Review Form"to the other copy, Bend bah copies to the the Regiona\Engineer) Date: Routed 1 k or\ Ged 0 Division of Water Resources Date: Routed I Rec'd ❑ NC Wildlife Resources Commission Date: Routed Rec'd 0 U5 Fish & Wildlife Service Date: Routed Rec'd (Only new applications and modification requests that add land to the permit) Please route first 3 pages of the application and any location mans to: ❑Division of Parks & Recreation Date: Routed Rec'd 0 NC Geological Survey Section Date: Routed Rec'd (Only new applications and modification requests that add land to the permit) ❑ Division of Archives & History Date: Routed Reed (Only new applications) ❑Other. Date: Routed Rec'd **5u5pense Date for Comments: a) �I0 b (no later than 25 days from receipt) ❑Please note the following: �$� WPATIONBOGGS ur 0 25WMSfMeL NW anaen[rs �i ii, Washin0lon,DC Np3)ga5p f Tere rs mI'7(! 1412e )C/ r5 /5 62l167 4%9 , vesi "7u ILM PATTON BOGGS LLP ® 3561966 VENDOR: 36691 N Carolina Department of Environment & ral Resources VOUCHER# INVOICE# INVOICE DATE INVOICE DESCRIPTION NET AMOUNT 1195414 NCDE110207A 11-02.07 Filing Fee 100 .00 EfVl'D CJ inND C 'Y SECTION TOTAL 100.00 s a i s 6-1 PAITON ME, Wa ngton,DC20037-1350 AIIURNEYS Ai lAW 202-457-MM www.pattonboggs.com �Vy U/G 1/41u, Ae- T' f / r day � ca, —Cerwirll C effucal Indust,nd hoductt I. Scott Ellis 120 Fago: hock Avenue Vice President and General Counsel Gant I:Lu ovor. NJ 07936 Tel:(973)599-5500 November 2, 2007 Fax:(973)599-5501 VIA CERTIFIED MAILIRETURN RECEIPT REQUESTED NCDENR—Land Quality Section Attn: Ms. Judith Wehner, Assistant Mining Specialist R ECEIVED 1612 Mail Service Center Raleigh,NC 27699-1612 Subject: Mine Permit Ownership Change Request Moss-Neisler Minc— Permit No. 23-03 Kings Mountain Mining, LLC Kings Mountain, Cleveland County Ms. Wchner: This correspondence is to request transfer of the above Mine Permit to Kings Mountain Mining Inc., a Delaware corporation and wholly owned subsidiary of General Chemical Industrial Products Inc. ("General Chemical'). General Chemical purchased certain assets of Kings Mountain Mining, LLC located in Kings Mountain, NC on November 2, 2007. Pursuant to the NCDENR "Mining Permit Transfer Checklist," we are submitting the following (originals&one set of copies): • Pages I through 3 of the Application 1'or a Mining Permit; • Page 18 of the Application for a Mining Penal (Land Entry Agrcemcnt); • Updated mine maps; • A letter from Kings Mountain Mining, LLC requesting transfer of the permit; • Check in the amount of$100.00 in respect of the filing fee; and • Acceptable security to replace the existing bond (SunTrust Bank Letter of Credit No. F845556 for $500,000 in the name of Zemex Industrial Minerals, Inc.) and Application Page 14 Kings Mountain Mining Inc. accepts any and all responsibilities and liabilities with respect to the Mining Act of 1971. Thank you in advance for your assistance with this matter. If you have any questions or need any additional information, please contact me directly at 973-599-5500. Respectfully submitted, Scott Ellis Vice President, General Counsel & Secretary 0 • Cc: Mr. Mike ToneIis, Operations Manager; Kings Mountain Mining, LLC; P_O. Box 729; Kings Mountain, NC 28086 � 7EHFX � INDUSTRIAL NINLRALS November 2, 2007 RECOWD JAN 08 2008 NCDENR— Land Quality Section LAND QUALITY SECTION Attn: Ms. Judith Wenner, Assistant Mining Specialist 1612 Mail Service Center Raleigh,NC 27699-1612 Subject: Mine Permit Ownership Change Request Kings Mountain Mining, LLC to Kings Mountain Mining Inc. Moss-Neisier Mine— Permit No. 23-03 Kings Mountain, Cleveland County Ms. Wenner: This correspondence is to request transfer of the above Mine Permit to Kings Mountain Mining Inc., a Delaware corporation and wholly owned subsidiary of General Chemical Industrial Products Inc. ("General Chemical'). General Chemical purchased certain assets of Kings Mountain Mining, LLC located in Kings Mountain, NC on November 2, 2007. Thank you in advance for your assistance with this matter. If you have any questions or need any additional information, please contact me directly at 864-640-7900. Respectfully submitted, t/ Dennis Dzvonil;�� Corporate Director of Safety, Health & Environmental Cc: Mr. Mike Tonelis, Operations Manager; Kings Mountain Mining, LLC; P.O. Box 729; Kings Mountain, NC 28086 Scott Ellis, Vice President, General Counsel and Secretary; General Chemical Industrial Products Inc.; 120 Eagle Rock Avenue; East Hanover, NJ 07936 1040 Crown Pointe Parkway,Suite 2701 Atlanta,Georgia 303381 phone:(770)392A6601 fax.(770)392467D A Cemenms Pooesmeyu Company Kings Mountain Mining into • Kings Mountain, Cleveland, County, NC Mine Permit No. 23-03 NORTH CAROLINA DEPARTMENT OF ENVIRONM T RTCED AND NATURAL RESOURCES LAND QUALITY SECTION JAN 081008 APPLICATION FOR A MINING PERMIT 1AN000ALIlY SEC710N (PLEASE PRINT OR TYPE) 1. Name of Mine Moss-Neisler Mine County Cleveland River Basin Broad River Latitude(dd.mm.ss) 35 - 12 '- 15" Longitude(dd.mm.ss) 81 -23' -00^ 2. Name of Applicant* Kings Mountain Mining Inc. 3. Permanent address for receipt of official mail"" P. O. Box 729 Kings Mountain, NC 28086 Telephone 704-734-3516 4. Mine Office Address 1469 S. Battleground Avenue, Kings Mountain, NC 28086 Telephone 704-734-3516 5. Mine Manager Tom Holmes We hereby certify that all details contained in this Permit Application are true and correct to the best of our knowledge. We fully understand that any willful misrepresentation of facts will be cause for permit revocation. ��/ \(��/���/�, """Signature YMA�C..rA�CI.I�( J //YU J Date ) 1 / 1 ( 07 Print Name Mike Tonelis Title Operations Manager ' This will be the name that the mining permit will be issued to and the time that must be indicated on the reclamation bond(security)that corresponds to this site. The Land Quality Section must be notified of any changes in the permanent address or telephone number. Signature of company officer required. G.S. 74-51 provides that the Department shall grant or deny an application fora permit within 60 days of receipt of a comolete application or, if a public hearing is held, within 30 days following the hearing and the filing of any supplemental information required by the Department. All questions must be addressed and all required maps provided before this application can be considered complete. Attach additional sheets as needed. -1- 0 i Kings Mountain Mining Inc. Kinds Mountain, Cleveland, County, NC Mine Permit No. 23-03 APPLICATION FOR A MINING PERMIT a NOTE: All of the following questions must be thoroughly answered with regards to your mining operation for the intended life of the mine. All responses must be clearly conveyed on a corresponding, detailed mine map. A. GENERAL CHARACTERISTICS OF THE MINE Answer all of the following that apply: 1. a. If this is an application for a NEW permit, indicate the total acreage at the site to be covered by the permit(this is the acreage that the "new permit" fee will be based upon): Of this acreage, how much is owned and how much is leased? Acres owned: Acres leased: Property owner if leased: b. If this is an application for RENEWAL of a mining permit, indicate the mining permit number and the total (overall) acreage covered tie existing permit: Mining Permit No.: Total permitted acreage(this is the acreage that the "renewal" fee will be based upon): c. If this is an application for a MODIFICATION to a mining permit, indicate the mining permit number and the total (overall)acreage covered by the existing permit: Mining Permit No.: Total permitted acreage: Does the modification involve acreage within the previously approved permitted boundary? Yes No . If yes, indicate the acreage to be covered by this modification(this is the acreage that the "major modification" fee will be based upon): Does the modification involve acreage outside the previously approved permitted boundary? Yes No . If yes, indicate the additional acreage to be covered by this modification: (NOTE: you must complete all of Section F.of this application form entitled Notification of Adjoining Landowners). Of this acreage to be added to the permit, will any portion of this acreage be affected (disturbed, ground cover removed)by the mining operation? Yes No (if no,a"minor modification" fee of$50.00 is required, despite the "undisturbed" acreage to be added). If yes, indicate the acreage to be affected within the acreage to be added to the permit(the total acreage to be added to the permit is the acreage that the "major modification" fee will be based upon): d. If this is an application for TRANSFER of a mining permit,indicate the mining permit number and the total (overall) acreage covered by the existing permit: Mining Permit No.: 23-03 Total permitted acreage: 753.92 ■ SEE THE FEE SCHEDULE AT THE END OF THIS FORM FOR THE PROPER FEE AMOUNT TO HE PAID FOR THE. REQUESTED PERMIT ACTION(S)AND CORRESPONDING ACREAGE NOTED ABOVE 2. Name of all materials mined: Mica, Feldspar, & Cla 3. Mining method: Hydraulic Dredge Front-end Loader&Truck X Shovel&Truck Dragline&Truck Self-loading Scraper Other(explain) -2- Kings Mountain Mining Inc. Kings Mountain, Cleveland, County, NC Mine Permit No. 23-03 APPLICATION FOR A MINING PERMIT 4. a. Expected maximum depth of mine (feet) 100-feet (870-feet Above Natural Ground Level) Depth is relative to what benchmark? (e.g., natural ground level, mean sea level, road elevation, etc.) Natural Ground Level 970-feet b. Expected average depth of mine (feet) 50-feet (920-feet Above Natural Ground Level) ._ 5. Has any area(s) at this site been mined in the past? Yes X No If yes, when and by whom was this activity conducted? Mining_by various operators beginning in the 1950's to present. b. Number of years for which the permit is requested(10 years maximum): N/A -3- General Chemical Kings Mountain, Cleveland, County, NC Mine Permit No. 23-03 APPLICATION FOR A MINING PERMIT G. LAND ENTRY AGREEMENT We hereby grant to the Department or its appointed representatives the right of entry and travel upon our lands or operation during regular business hours for the purpose of making necessary field inspections or investigations as may be reasonably required in the administration of the Mining Act of 1971. We further grant to the Department or its appointed representatives the right to make whatever entries on the land as may be reasonably necessary and to take whatever actions as may be reasonably necessary in order to carry out reclamation which the operator has failed to complete in the event a bond forfeiture is ordered pursuant to G.S. 74-59. LANDOWNER: APPLICANT: Signature: Signature:* Print Name: Charles Neisler Print Name: Mike Tonclis Neisler Brothers, Inc. Address: P. O. Box 99 Title: Operations Manager Kings Mountain,NC 28086 Company: General Chemical Telephone: 704-739-3286 Mine Name: Moss-Neisler Mine *Signature must be the same as the individual who signed Page 1 of this application. Six (6) copies of the completed application, six (6) copies of all location maps, mine maps and reclamation maps,and the appropriate processing fee(see next page for fee schedule)in the form a check or money order payable to the North Carolina Department of Environment and Natural Resources must be sent to the Land Quality Section Central Office at the address listed on the front cover of this application form. Inquiries regarding the status of the review of this application should be directed to the Mining Program staff at (919) 733-4574 . -18- 0 ! Kings Mountain Mining Inc. Kings Mountain, Cleveland, County, NC Mine Permit No. 23-03 APPLICATION FOR A MINING PERMIT G. LAND ENTRY AGREEMENT We hereby grant to the Department or its appointed representatives the right of entry and travel upon our lands or operation during regular business hours for the purpose of making necessary field inspections or investigations as may be reasonably required in the administration of the Mining Act of 1971. We further grant to the Department or its appointed representatives the right to make whatever entries on the land as may be reasonably necessary and to take whatever actions as may be reasonably necessary in order to carry out reclamation which the operator has failed to complete in the event a bond forfeiture is ordered pursuant to G.S. 74-59. LANDOWNER: APPLICANT: Signature: Signature:* Print Name: Charles Nei sler Print Name: Mike Tonelis Neisler Brothers Inc. Address: P. O. Box 99 Title: Operations Manager Kings Mountain,NC 28086 _ Company: Kings Mountain Mining Inc. _ Telephone: 704-739-3286 Mine Name: Moss-Neisler Mine *Signature must be the same as the individual who signed Page I of this application. Six b copies of the completed application, six 6 copies of all location maps, mine maps and reclamation maps,and the appropriate processing fee(see next page for fee schedule)in the form a check or money order payable to the North Carolina Department of Environment and Natural Resources must be sent to the Land Ouality Section Central Office at the address listed on the front cover of this application form. Inquiries regarding the status of the review of this application should be directed to the Mining Program staff at (919) 733-4574 . -18 - b, US HWY I y K "I _ra I � �O — I -- - . rL ING BASIN INTERSTATE 85 o :> Category Affected Acreage � ings �h��i 216 Mountain a WEST ARCHDA�MINE Tailings/Sed Ponds 1 0 a = 4 Vo o 29 Mine, Erosion Control "& Reclamation Plan Stockpiles 0 85 J Town of Kings Mountain _- Cleveland County - North Carolina Archdal Kings MouB Mining, LLC °as 10/10/07 %A07B Wastepiles � , 5 e �wAo7sPEIZM1r >i P.O.P.o. Box 729 %K 1469 S. Battleground Avenue SCOW - ' 65 k Processing Areas/Haul Ras 2 , 0 GRAPHIC SCALE Kings Mountain, NO 28086 704 I �.SCOW i too �\ 734-3513 0 ax cn.�k.a ex \ 21s North Carolina ��2g a eo iao no wo am Mine Excavation 14 , 0 T➢o. MPT No. South Carolina ➢1 FEET ) Other i inch = 1001t Vicinity Map -6 r i,VllIm SUNTRUST' r R9GCEIVED � . MAR 31 LAND DUALITY SECTION W 'LETTER OF CREDIT NUMBER F851222 '• �4' DATE : MARCH 27 , 2008 STATE OF NORTH CAROL.INA' ` ,DEPT OF ENVIRONMENTAL. AND NATURAL 'RESOURCES 1612 MAIL SERVICE CENTER 3; RALEIGH , NC ,27688 -_.1612 RE : APPLICANT ZEMEX INDUSTRIAL MINERALS , INC . 530 'ALTAPASS <RCA❑ - _ SPRUCE PINE ,`SNC 28777 MITCHELL COUNTY rl L 3, ,,STANDBY LETTER OF CREDIT NUMBER : Fels,1,222 a°G GENTLEMEN ,; •E KIN➢LY BE "ADVISED;.THAT INN ACCORDANCE WITH THE TERMS AND o CONDITIONS OF TH£ ABOVE1,REFERENCE➢ LETTEVOF`CREDIT , THIS IS OUR NOTIPICATION THAT THIS VETTER OF CREOIT,WIGE NOT BE EXTENUED ._ 11EYON❑ ITS PRESENT EXP_I-RATION DATE , MAY 31 , 2008 . .cCa. J UPON EXPIRY OF MAY%31 , 2008 (THE ORIGINAL LETTER OF CREDIT AND ' AMENDMENTS , IF ANY , MUST BE`RETURNED TO OUR OFFICE LISTED BELOW . " PLEASE • DIRECT ALL INQUIRIES AND CORRESPONDENCE REGARDING OUR- 7 LETTER OF CREDIT , ANYJAMENDMENTS OR NOTICES TO : e SUNTRUST BANK4.ry° - -o�ATTN: STANDBY LETTER OF".CREDIT DEPARTMENT 25 PARKPLACE , 16TH FLOORp;MC, 3706 ATLANTA , GEORGIA"' 30303 PHONE : 800-,9S1.'-98-47 OPTION '3 . " SINCERELY , a SUNTRUST BANK , "yAUTHORIZED SIGNATURE AnOanethlaMCMIIIIaN ' -107 Banking Officer ' CC : SUNTRUST A/CyOFFICER Iy CC : APPLICANT * a L l \ / \ \ 1 It It It i i Neisler Lease Property l A I \ Moss Property Y \ 1� r 01 I / NI Archdale East Extensler (Current Mining Activlb4 r ill vv I /. \\ Archdale Lease , \\ 252 sores / _ \ ,/ Haw top" ko Archdale West Extension (Future) Mine Area/Activity — -- ———— — i e C Oglebay Norton Property Line t i Neisler Lease Property Line to Y KINGS MOUNTAIN MINING , LLC o A ZEMEX INDUSTRIAL MINERALS COMPANY. i Title : l; Mine Permit 23- 03 Overall Property Map I Date: Project: 8 10/2 04 Scale: Mine Permit Renewal 2004 1 IN. _ 600 FT. i C M&O 1 - 85 i U.S Interstate 85 G i Benton Rd. NCSR 2314 m rn rt _ S 3 / 8 z I I -_- i I / _ �� - V 1 c 1 in t V 100''Right-Of-Way Con ruct Berm Over _ _- // Ex' t. Mineral Drive, is Location `�\� 60' Right- f- y ., -----' / @e e - i o a Natural Visual Berm s _ r To Remain ' �, � ' I 4-Strand SR 00 ' I i Bor Abed t ROW Wire & PL �\ \\ 237q Treeine ' ----' �uEteso l 1 t 10to _ _. ._ - - --_ .___ II Haul Road From Pit fit ' 2004 o Mule Area - j I�\�\ Visual Berm Between \- ! c 10 Ac. + /- re , \ Haul Road And Limit Of Mini ell ng. / Li u (See Detail) / � vv / y f _ tfe< Genera ump rea Exist. p A-Strand Bu _ Acdess/Haul --- Well Barbed Wire Fence " 136 ____ j �i Rock Along Edge Of Tree Line. At ROW & PL to IIIIIIIIINIIIIIIIIIIN � 1 x ---- , - I ' I a Shall Be Dewctered II' — ' LEGEND j II / ough Sediment Basin ' 2004 �% I \ MINE AREA W iw -- Stockpile PROPERTY LINE 2004 1. 0 Ac. + / / " ' O V e r b U r d e r> /� o f � y - MINE ACTIVITY AM AM INi I m j Permit Boundary -- 6 . 0 Ac . + � ivv i, lif %€ i ' ,-`� Wide Spillwc\ / \�--- ' I= q - 1 ' Deep i a 0 �\ i l / - 1 Well / Category Affected Acreage Tail in s/Sediment Pond PD PD PD ��PD 4-Strand 11W 11111110- M-EM-Wls-1 Barbed Wire Fence At ROW & PL Stockpiles 2 Permanent Diversion Swale Treel - / / i Permit Boundary Overburden Piles 6 Processing Area /Haul Ras 1 n -- - Mine Excavation q — % Other `--- + KINGS MOUNTAIN MINING , LLC EXISTING PERMIT NO, 23-03 1-r I I A ZEMEX INDUSTRIAL MINERALS COMPANY NO. DATE REVISION 1 ) 6/23/04 2004 Permit Renewal Applicationate: 1 = 100 PR0'�� "0 DnAwr er 2) 11/9/04 2004 MINING PERMIT RENEWAL DATE: June 2004 Hawks Mine M.P. TONELIS 3) - ADDED CONTOURS & STOCKPILES MU: 4) Permit Renewal 2004 s) a : Mine Map 2004D64994801 Category Affected Acreage LEGEND y,� MINE AREA � � � � � � � Tailings/Sediment Pond 40 j � � �� � � � � X� .ae PROPERTY LINE Stockpiles 17 Overburden Piles 14 ,^, MINE ACTIVITY Processing Area/Haul Rds 3 Permit Boundary Mine Excavation 13 Other 42 Min e A i ty U� �s ' rr77 Ore c es stockpile z Acres o Acre 00 14 CT 09 B an " i tree 100 Open Pit Area e � 13 Acres 91 ) .,� r� Waste "� - / \ O \.r �c �,�—�0 �l� ° ✓ 7 Acres J Acres Ore StockPi 8 Acres �j 3 4 Ore , X ,� �, �� Stockpile � � 4 Acres Tailings & ter Storage a Neisler Tract 28 c es Currently unde �clomatio 105 Ac✓ % / Reclaimed — Dixon Dairy Tract '` Xf Qx —� Ci f j 'i j /- 4? 0 s� g �s Hwy . z KINGS MOUNTAIN MINING, LLC , A ZEMEX INDUSTRIAL MINERALS COMPANY EXISTING PERMIT NO . 23 - 03 N0, DATE REVISION 1) 7/7/2004 2004 MINING PERMIT RENEWAL stets. 1" = 100, PROMM NO. DRAW BY 2) 11/9/2004 2004 MINING PERMIT RENEWAL "M: 4/16/2004 MINE PERMIT RENEWAL M.P. Tonelis 3) — ADDED CONTOURS & STOCKPILES NEISLER MINES No. 1 , No. 2 & No. 3 4) 8) 9UMINING/TAILINGS DISPOSAL ACTIVITY D�e�Drue�s J x Y N � ' N Z_ \ m \ - - - - C J- - - — Al Q73 a_ l I - - - - _ - I 1 1 J1 I I I r II I ba �� � •� I � � , _ � � � // _ r1 � � � A � 1 -:� � 'I III I — � 1 v v o 0, - x- �%X 1 , I I I VA A � � A 1 •- X x I I II ^ xl r .,1 1 — � v vV vv \\ �� 1• XN U i — / LEGEND MINE AREA Wells disks sees — - - - - - - - - — s Kings - ;,r. Mountain -\ PROPERTY LINE 0aA�5 29 8'. MINE ACTIVITY � �f p e ' s 4P r Arc u Boundary 29 R5 ___ --- - - - -- - - Mine Entrance 400 Acres + 21e North Carolina p -- - Ingress / Egress South Carolina � X- - - _ — —� �— — -- t — ti __ Vicinity Map - - - - - - _�� 25' � X - - --x— _x k (— Category Affected Acreage � 41 , x ��� Tailings/Sed Ponds 3 \\ Stockpiles 5 /\ water Wells Wastepiles 15 � "♦ Processing Areas/Haul Rds / 3 SOP ~° P, Ore Stockpile see ♦ ♦Sab Mine Excavation 35 +/- 2.0 ACRES Other �1� ��� ♦ - OV b rde X 514�O 25' Buffer'' �� �\ ♦ � �� Exist. Fencing � � xV' ♦ ♦ � To Remainain Along U.S. Hwy. 29 �- O ♦ Ore Stockpile 2.0 ACRES sell sees, In e St r ge �es" NC ♦ X X tea, % �/ � ♦♦ �\ \ L� 141s, Qj \ Qj ♦� n ° C Activ in A "llike♦♦ Appr $ 35 A es USedime t B in Prior {o Pumpin int Basin it g DamLi ♦ � � QU +i - a -- -------- seenSediment Basin wit Berm ♦ Filtering Dame . 25' uff Perma nt Diver ♦ sess - �, 11111101 MENE sees ass, - sells NON - - - - - - - - iiiiiie urden - - - - - - -� -- ���/— - -- - --- ----- X X X x __ X _ 1 �x senselessness R VY X X X X� - NC OT Fence \�X To . Remain KINGS MOUTAIN MINING, LLC . A ZEMEX INDUSTRIAL MINERALS COMPANY NO. DATE REVISION 1) 7/26/2004 2) 11/12/2004 RCIUM 1n _ 100' PROJM N0. ORs N RY 3) 11/12/2004 RATR: 7/26/2004 MINE MAPPING 4) 1/19/2005 Mom` ARCHDALE MINE - EAST 5) RVBTIT l: aRA RNG NUIIRB 6) MINING ACTIVITY 64995001 afF C- �� e3 a a j END 0, CIO ie.,EN v n�, o e5 � ; / EL 1995.. ilin9e 10.0 - AcresVP .� It ME 1 :S°',] a m. / EN5e 1 i EEsSE W4 O'S km A,M 60 «. PMP. " e." m Oil_ . ro� on, C Tailings 10.0 — Aves owu row¢ yy� POOL `! R 431.0 // Jos qFP ]!5 ins 6b / � ]� BFUSw ]OI£i s OPEN smuoe MENzrtnw] Tailings 8.0 va Acres 40, a+ 0 l sea. MEN sm� Moss r ant sm COURT Plant Area 53 Acres GftsH 222 Acres + Ora sme s / .ea ew 1 \ �• e al l 41' y NOBB N Z 14 roe"" � 40 ' i ., MEN rokAOESo i oft sll disposal on Legend — -- - — s ., ` EXISTING PERMIT NO. 23 03 Mine Area \ - - Category Affected Acreage Property Line TailingslSediment Ponds 57 40 `" ' � /) � Stockpiles 6 i Permit Boundry Overburden Piles 0 Mine Activity s I Process/Haul Roads 5 KINGS MOUNTAIN MINING , LLC Mine Excavation (inactive) 7 ¢ i Water Storage 6 A ZEMEX INDUSTRIAL MINERALS COMPANY. NO. DATE REVISION 1) 1 19 98 1997 — Reclamation Report (MPT) sl 1 " = 100' es TNa. 2) 1 /25/99 1998 — Reclamotion Report (MPT) DAM: 7/18/04 MINING MAPPING DN.NNDx 3) 11 /23/99 Transfer of Mining Permit to New Owner (MPT) Wis. MOSS MINE S NO . 1 HC NO . 2 4) 7/19/04 2004 MINE PERMIT RENEWAL 5) Sol 7 ND!®BN 6 PROCESSING PLANTS AND WATER STORAGE • Complete Items 1.2. and 3.Also complete am p Item 4 If Restdoted Delivery is desired. \ CI❑Agent a • Printe your name,and address on Me reverse w ihatvre can return the Card[o you. B. Reared by(f-0bred Name) t m • Attach this prd M Me back of the mailpiece. D. or on the from H space permits. 1. Ankle Accessed to: 0. Mdalivery arldmss dMeRnl tram item 9 b It YES•enter delivery address below: ❑ Ric MR MIKETONELIS ' m rye w f:Man 13 r meee set KINGS MOUNTAIN NC 28088 Regktered s� Relum Receipt for Merchancie I1.$ ih �' t a ❑ Iwuetl Mall �j C.O.O. a. rMsektee bllveAm(�m'+FeN ❑� a.. eNNumw� ZW32000. 3 a-. lo3 Form 3811,August tool Domestic Return Receipt lnssasirz-cFlsaa kerb . 4 c cep�� _ „2 ;2 4A-&;— UNITED STATES POSTAL SERVICE I I I II I P e &Few PaW • Sender: Please print your name, address, and ZIP+4 in this box DENRDQUOF LAND ALITYSECTIONRESOURCES LAND ) 1612 MAIL SERVICE CENTER { RAMGH NC 27699.1612 InIdl���idl�dJ�J�I�„�JI�IL����II�dJI�I�J�LJ�I,d tll{ MINING PERMIT APPLICATION REVIEW FORM for DIVISION OF AIR QUALITY Project: �12f0Au ].lU2lw'y1:�emes County: delel?x Due Date for Comments Back to Land Quality Section: a A Will the operation, as proposed, violate standards of air quality? Comments: YES NO Air Permit Required Air Permit Existing _ (Permit # ) Other Comments : Reviewed by: G/�� {'" Date: -51- Print Name: // a14-r J • • MINING PERMIT APPLICATION REVIEW FORM for !!�� DIVISION OF WATER QUALITnY' Project: It.OIN(d6kr 'WAVA)lZeleZ County: ele✓ "Due Date for Comments Back to Land Quality Section: A7 0 Will the operation, as proposed, violate standards of water quality?_ Comments: _ ' ,i hApa Watershed/Stream Name & Classification: YES NO NPDES permit required &,IGG 02 00 g q NPDES permit existing _ (Permit#_) _ Nondischarge permit required _ Nondischarge permit existing _ (Permit Wetlands disturbed 401 Wetland Cart. required _ _ 401 Wetland Car. e i g — (P it #_) Reviews G Date: Print Name: 5 i of-G T�C razaaa � —J Kings Mountain Mining, LLC P.O.Box 729 Kings Mountain,NC 28086 May 23, 2005 Land Quality Section Division of Land Resources Department of Environment and Natural Resources 1612 Mail Service Center Raleigh, North Carolina 27699-1612 Dear: Kristin Hicklin, Assistant State Mining Specialist, Land Quality Section Please find enclosed per your phone call last week and second set of drawings with the appropriate details. These maps are part of the request for name change of Permit Number 23-03. Call myself at 704-739-3616 if there are any questions concerning the application. Sincerely, Michael Tonelis. Plant Manager RrcErveD MAY �q 14U5 t1tN���In'secnoN MINING CHECKLI5T FOR ROUTING Nab a �ewlex Zlhkxkl-d Adis c rr��tt ApplicanVoNa e: Project Name: Doss_ 'swrfylj 3 C Applic./Permit N�3o.: -0 IIounty: .lJoln Date Received: 5-Id -05- Reviewer. LL1I r\ River Darin Name: ❑ New ❑ Renewal ❑ Modification (inside permit boundaries) ❑ Modification (outside permit boundaries) x1 Transfer ❑Release ❑ Partial Release ❑Additional Information ❑ Fee Needed: $ , Fee Received: $ � /Please rounnte entire application page to• Kh Regional Office (2 complete copies; attach the "LQ5 Regi naI Office Mining Application Review Checklist"to one copy and attach bsch t VWQ��A "Mining Application Review Form"to the other copy; send both copies to the ,'g'm IA Engineer) Date: Routedd K'Ili. 1n{Reed Cl Division of Water Resources Date: Routed Rec'd ❑ NC Wildlife Resources Commission Date: Routed Rec'd ❑ U5 Fish & Will 5ervice Date: Routed Reddl (Only new applications and modification requests that add land to the permit) Please route first 3 pages of the application and any location maps to: ❑Division of Parks & Recreation Date: Routed Rec'd ❑ NC Geological Survey 5ection Date: Routed Redd (Only new applications and modification requests that add land to the permit) ❑ Division of Archives & History Date: Routed Rec'd (Only new applications) ❑Other: Date: Routed Rec'd "`5uopen6e Date for Commerlto:6 —3—CS (no later than 25 days from receipt) ❑ Please note the following: ��� l � lieA, l � �N1N'141� • TRADE ACCOUNT . No. 030036 KINGS MOUNTAIN MINING, LLC. _ 6a-14r610 1040 CROWN POINTE PARKWAY,SUITE 270 ATLANTA,GA 30338 (770)392-8660 PAY TO THE ORDER OF DATE CHECK NO. AMOUNT s!y 7: �3i�� b cr.cc*.c.r.5�_Oi3 7 s ? ;/'__:il-----------------------------�� '—� — _-, - -,ziwr- � _a________-__ SUNTRUST ITIVISICIN i�?iJ R 3'---uR.CZ'_ Atlanta,GA =-_ r =3 — —`- Not vWia for amounts over S900,00 witf o l two siq tvr . KINGS MOUNTAIN MINING,LLC- lie 03003EII' 1:06 L000 1041: 10000 231,0679S0 o o INDUSTRIAL MINERALS April 28, 2005 RECEIVED Land Quality Section MAY 12 2005 Division of Land Resources LAND QUALITY SECTION Department of Environmental and Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 Attention: Ms. Kristin Hicklin Subject: Application forTwtsfer Mining Permit No. 23-03 Dear Ms. Hicklin: "Phis correspondence is intended to make formal notification that, the undersigned, grails authority of action to Mr. Mike Tonelis to request the transfer of the Division of Land Resources Permit N23-03 of Oglebay Norton Specialty Minerals, Inc. to the Kings Mountain Mining LLC, wholly owned subsidiary of Zent Industrial Minerals, who has purchased the assets of Oglcbay Norton Specialty Minerals Inc. located in Kings Mountain, NC. Very truly yours. Vince Sadowski, ^ Vice President of Operations V ^ %ernes Industrial Minerals 1040 Crown Pointe Porkwoy,Suite 270 • Allento, GA 30338 Phone:770L392-8660 • Foe:770392-8670• www.ZI.M.com A ce,rentas oee..meya cams ny INDUSTRIAL MINERALS March 3( , 2005 Land Quality Section Division of Land Resources Department of Environmental and RECEIVED Natural Resources 1612 Mail Service Center MAY 12 2005 Raleigh, NC 27699-1612 LAND DUALITY SECTION Attention: Ms. Kristin Hicklin Re: Application for Transfer of Mining Permit No. 23-03 Dear Ms. Hicklin: Zemex Industrial lylinerals, Inc., through its subsidiary Kings Mountain Mining LLC, acquired on 2, 2005, substantially all of the assets of Oglebay Norton Specialty Minerals relating to its mining operations at the Moss-Neisler Mine in Cleveland County, North Carolina. Oglebay Norton Specialty Minerals carried out such mining operations under Mining Permit No. 23-03. Zemex Industrial Minerals, Inc. hereby respectfully requests that the Land Quality Section transfer Permit No. 23-03 from Oglebay Norton Specialty Minerals to Zemex Industrial Minerals, Inc. In accordance with §74-51 of the Mining Act of 1971, upon transfer of the permit, Zemex Industrial Minerals, Inc accepts any and all responsibilities and liabilities arising under the Mining Act of 1971. Very trul r your 7164S vl 1040 Crown Pointe Parkway,Suite 270 • Atlanta, GA 30338 • Phone, 770-392.8660 • Fax:770-392.8670• www.ZI M.com A Cem wPacaaw C=n ny INDUSTRIAL MINERALS March a1, 2005 MAY 12 2005 LAN n 2 Land Quality Section Division of Land Resources Department of Environmental and Natural Resources 1612 Mail Service Center EA Raleigh, NC 27699-1612 Attention: Ms. Kristin Hicklin Re: Application for Transfer of CTION Mining Permit No. 23-03 Dear Ms. Hicklin: We understand that the Land Quality Section is currently processing the renewal of Mining Permit No. 23-03, issued to Oglebay Norton Specialty Minerals, and that the permit-holder has provided all information and documents requested, and clarified all questions posed, by your office in connection with your review. If this is not the case, we would be grateful if you could let us know at your earliest convenience so that we may provide you with any additional information you may need to complete your review. AV, I On Marc' 7 , 2005, Zemex Industrial Minerals, Inc., through its subsidiary, Kings Mountain Mining LLC, acquired substantially all of the assets of Oglebay Norton Specialty Minerals relating to its mining operations at the Moss-Neisler Mine, in Cleveland County, North Carolina. We hereby respectfully request that, upon completion of your review and renewal of Permit No. 23-03, the Land Quality Section transfer such permit to Zemex Industrial Minerals, Inc. As instructed in the Mining Permit Transfer Checklist, enclosed are two copies of each of the following: 1. Letter from Zemex Industrial Minerals, Inc., the proposed new permittee, requesting transfer of the permit and accepting all responsibilities and liabilities under the Mining Act of 1971. 1 OA0 Crown Pointe Porkwoy,Suite 270 • Monte,GA 30338 • Phone:77< 392-8660 • Fox: 770-392.8670• www.ZlI m com A Gftx;g jet Company 2. First three pages of the mining permit application form, completed by Zemex Industrial Minerals, Inc. 3. Land Entry Agreement, signed by the landowner of the land covered by the permit and by Zemex Industrial Minerals, Inc. 4. Updated mine map indicating the items listed under Section B of the mining permit application. 5. Letter from Oglebay Norton Specialty Minerals, the existing permitee, requesting that the mining permit be transferred to Zemex Industrial Minerals, Inc. Also enclosed is the application processing fee, in the amount of$50.00 (Check No3rza made to the Department of Environment and Natural Resources), Zemex Industrial Minerals, Inc. has an existing blanket bond in full force and effect and in an amount sufficient to cover the new site. [Any additional identifying information relating to the bond?] If you have any questions relating to this application, please contact rA�dwelTonels at 744.73t-3i16 . Thank you for your attention to this matter. Very truly yours, ZEMEX CIV GGLEEAY NORTGN OGLEBAYNORTONSPECIALTYMINERALS, INC. 1001 Lakeside Avenue, 15th Floor Cleveland, Ohio 44114-1151 Phone (216) 861-3300 C%I_817In Fax(216) 861-2313 March 31, 2005 RECEIVED Land Quality Section Division of Land Resources Department of Environmental and IAND QUALITY SECTION Natural Resources 1612 Mail Service Center Raleigh, NC 27699-1612 Attention: Ms. Kristin Ilicklin Re: Application for Transfer of Mining Permit No. 23-03 (Moss-Neisler Mine) Dear Ms, Ilicklin: On March 31, 2005, Oglebay Norton Specialty Minerals sold substantially all of its assets relating to its mining operations at the Moss-Neisler Mine in Cleveland County,North Carolina, to Kings Mountain Mining LLC, a subsidiary of Zemex Industrial Minerals, Inc. Oglebay Norton Specialty Minerals carried out such mining operations under Mining Permit No.'23-03. , We hereby respectfully request that Mining Permit No. 23-03, relating to the Moss- Neisler Mine, be transferred to Zemex Industrial Minerals, Inc. If you have any questions, please telephone meat (216) 861-8737. Very truly yours, pp. C (49��ae Daniel C. Rose1'- Assistant General Counsel a3o7 _ North Carolina Department of d%M T Environment & Natural Resources NC®ENR Division of Land Resources — Land Quality Section 1612 bail Service Center, Raleigh, NC 27699-1612 Phone (919) 733.4574 Fax (919) fi332&76 Facsimile Date: TO: r Y ROSfL r7 Phone No: Fax No: a CO (n I FROM: rlS-1v� Extension: CONENIENTS: You should be receiving page(s) including cover sheet. IJ you do not receive all a es. lease c t sender. TRANSMISSION VERIFICATION REPORT TIME 14: 12 NAME NC DENT' Ell..R FAX 91971!.5;'iBl?:l TEL, 9 19 7 3:'--, 3 3 SEF'. # DATEJIME 04/20 14:11 FAX NO. 91216861,2307 DURATION 00:00:40 PAGE(S) 02 RESULT CK MODE STANDARD ECM • NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES LAND QUALITY SECTION APPLICATION FOR A MINING PERMIT RECEIVED (PLEASE PRINT OR TYPE) MAY 12 2005 1. Name of Minc Moss—Neisler Mine County C1evel Nf)QUAt.ITY SECTI01�1 River Basin Broad River Latitude (dd.mm.ss)35. 12. 15 Longitude (dd.mm.ss)81. 23. 00 2. Name of Applicant* 7emex Industrial Minerals, Inc. 3. Permanent address for receipt of official mail** P.O. Box 729, Kings Mountain, NC 28086 Telephone (704)-734-3516 4. Mine Office Address 1469 South Battleground Ave, , Kings Mountain, NC 228086 Telephone (704)-734-3514 5. Mine Manager Mike Tonelis We hereby certify that all details contained in this Permit Application are true and correct to the best of our knowledge. We fully understand that any willful misrepresentation of facts will be cause for permit revocation. �***Signature Date y J27166 Print Name m iC kae dvv—. )Ts Title NAA- - �1atn�� Gr * This will be the name that the mining permit will be issued to and the name that must be indicated on the reclamation bond (security) that corresponds to this site. ** The Land Quality Section must be notified of any changes in the permanent address or telephone number. *** Signature of company officer required. G.S. 74-51 provides that the Department shall grant or deny an application for a pennit within 60 days of receipt of a complete application or, if a ;:€'alit hearing is held, within 30 days following the hearing an._+ the filing of any supplemental information required by the Department. All questions must be addressed and all required maps -3- , � • provided before this application can be considered complete. Attach additional sheets as needed. APPLICATION FOR A MINING PERMIT ■ NOTE: All of the following questions must be thoroughly answered with regards to your mining; operation for the intended life of the mine. All responses must be clearly conveyed on a corresponding, detailed mine map. A. GENERAL CHARACTERISTICS OFT HE MINE Answer all of the following that apply: 1. a. If this is an application for a NEW pennit, indicate the total acreage at the site to be covered by the permit (this is the acreage that the "new permit" fee will be based upon): Of this acreage, how much is owned and how much is leased? Acres owned: Acres leased: Property owner if I eased: b. If this is an application for RENEWAL of a mining permit,indicate the mining permit number and the total (overall) acreage covered by the existing;permit: Mining; Permit No.: Total permitted acreage (this is the acreage that the "renewal" fee will be based upon): c. If this is an application for a MODIFICATION to a mining permit, indicate the mining; permit number and the total (overall) acreage covered by the existing; permit: Mining Permit No.: "Dotal permitted acreage: Does the modification involve acreage within the previously approved permitted boundary? Yes_No . If yes, indicate the acreage to be covered by this modification (this is the acreage that the "major modification" fee will be based upon): Does the modification involve acreage outside the previously approved permitted boundary? Yes No . If yes, indicate the additional acreage to be covered by this modification: (NOTE: you must complete all of Section F. of this application form entitled Notification of Adjoining Landowners). Of this acreage to be added to the permit, will any portion of this acreage be affected (disturbed, ground cover removed) by the mining;operation? Yes No (if no,a"minor modification" fee of$50.00 is required, despite the "undisturbed" acreage to be added). If yes, indicate the acreage to be affected within the acreage to be added to the permit(the total acreage to be added to the permit is the acreage that the "major modification" fee will be based upon): d. If this is an application for TRANSFER of a mining permit,indicate the mining permit number and the total (overall)acreage covered by the existing permit: Mining Permit No.:23-03 "Total permitted acreage: 753.92 ■ SEE THE FEE SCHEDULE AT THE END OF THIS FORM FOR THE PROPER FEE AMOUNT TO BE PAID FOR THE REQUESTED PERMIT ACTION(S)AND CORRESPONDING ACREAGE NOTED ABOVE 2. Name of all materials mined: Mica, Feldspar& Clay 3. Mining method: Hydraulic Dredge Front-end Loader&`(ruck X Shovel &Truck Dragline &Truck Self-loading Scraper Other(explain) -4- APPLICATION FOR A MINING PERMIT 4. a. Expected maximum depth of mine(feet) 100' Depth is relative to what benchmark? (e.g., natural ground level, mean sea level, road elevation, etc.) Natural Ground Level 970' b. Expected average depth of mine (feet) 50' 5. Has any arca(s) at this site been mined in the past? Yes No X If yes, when and by whom was this activity conducted? 6. Number of years for which the permit is requested (10 years maximum): 10 B. MAPS 1. Clearly mark and label the location of your mining operation on six (6) copies of a 7.5 minute quadrangle and a county highway map. These maps, in addition to six (6) conics of all mine maps and reclamation maps, must be submitted with each pen-nit application. - 7.5 minute quadrangles may be obtained from: N.C. Geological Survey NCDENR 1612 Mail Service Center Raleigh, North Carolina 27699-1612 (919) 715-9718 County highway maps may be obtained from: Location Department State Highway Commission Raleigh, North Carolina 27602 (919) 733-7600 APPLICATION FOR A MINING PERMIT G. LAND ENTRY AGREEMENT We hereby grant to the Department or its appointed representatives the right ofeanyand travel upon our lands oroperation during regular business hours fortee putposeofmaking necessary field inspections or investigations as my be reasonably required in the administration of the Mining Act of 1971. We further grind to the Deparfinentor its appointed representatives the not to make whatever entries on the land as maybe reasonablyneC[5.5eryand to take whatever actions as ma be reasonably necessary in order roc ry out reclamation which the operator Iran failed to complete in the event abond forfeiture is ordered pursuant to C 74-59. LANDOWNER: APPLICANT: Signature V"� Ll Signahue:• 1 Print Name:C1141L-ES A.NTASQER Print Name: IhSlt.t�ae-I Iovu'_�i5 Address: hN O�NN N �- Title'. QLa rVe\"" .j'r Off � ]'t C/ Company. ZonesIndonrrfal Minerals, Ine, Tetephone.IJ I 7 I �1 �1�'7 Mine Name: toss ialer Mine eSignamr:must be the same as the individual who signed Page 1 of this application. e a ' ti i co ice fall location mine ma s and reclamation mn�ts,so the aDDroamte procesamn ee see Wert page or ens ue mthe formacheek or mosey order payable to W e N&Hb Carolina Department of Rmviroumieut sad Natural Resources must be sent to the Lead naNty 3eetiot Central Office atthe address fisted on the front cover of this application form. Inquiries regarding the status of the review of this application should be directed to the Mining Program staff at (919)7334574. -18- . . ;• , •• � . . .� .:� .., ,. �' � r I