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Aggregates Today
Jennifer Joy WilsonPresident and CEO
National Stone, Sand & Gravel Association
Improving Safety and Health Performance at
NSSGA• MSHA-NSSGA Alliance:
– Data Analysis, Communications, Best Practices– CEO Newsletters– Rip and Share Communiqués
• Safety and Health Committee– Model Occupational Health Program– Discussion of developing a Safety and Health
Management System– Continuing education and discussion of Behavior
Based Safety strategies
Alliance Safety Pledge
As an aggregate producer or supplier to the industry, our company is committed to a culture that promotes our employees as our most valuable resource.We believe that safety and health are important values. Our goal is to work with our miners to ensure they know how to prevent injuries and exposure to harmful substances in order to return home safely at the end of every shift.To accomplish this, we will improve employee safety and health practices, ensure the amount and quality of formal employee training is appropriate, and enhance employee participation in the safety and health process.We will continually enhance management's direct participation and commitment in all aspects of safety and health, specifically that of senior management, production and plant managers, field superintendents and supervisors.By voluntarily signing this agreement, we demonstrate our commitment to a work environment designed to eliminate injury incidents, which will ultimately result in zero fatalities. Our first milestone in this process will be to reduce the MSHA injury incident rate 50 percent by the end of 2007, with continuous improvement thereafter.Name_________________________________ Company _____________________________
Core Safety Principles
• Management leadership & commitment • Training and development• Auditing of work practices• Employee involvement and
participation • Incident investigations• Safety communications• Regulatory compliance programs• Operational best safety practices• Accountability system• Substance abuse prevention programs
Infrastructure 2007: A Global Perspective
• The U.S. faces a $1.6 trillion deficit in transportation, energy, water and wastewater through 2010
• Poor road conditions led directly to $54 billion in needed car repairs annually.
Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.
Survey of State DoT Planning Directors
• 44% feel that their transportation infrastructure “meets most” of current needs
• 50% say that it “meets some” current needs
• 6% says it “does not meet most” current needs
• 80% feel that their 10-year plans will “not meet needs” for future transport networks.
Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.
Infrastructure 2007: A Global Perspective
Conclusion: “At some point, the system is going to grind to a halt.”
Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.
AASHTO Reports
• The U.S. Interstate highway system should double in capacity in the next 50 years.
• The United States also should increase from $43 billion in fiscal year 2009 to $73 billion by the year 2015.
AASHTO Reports:
• An increase of 3 cents will be needed in 2009 to sustain the highway program at the levels guaranteed in SAFETEA-LU. – This effectively would restore the spending power to
1998 levels.
• Spending would have to be increased by another 7 cents or equivalent levels between 2010 and 2015. – The current funding level of 18.3 cents, the Federal
excise tax has been in place since 1996.
• The cost to improve U.S. highways and bridges to the levels needed this year is $155.5 billion.
AASHTO Reports:
• 1 percent of total U.S. highway miles carries 24 percent of all traffic and 41 percent of large truck traffic.
• In 1955, U.S. highways carried 65 million vehicles. Today, the same roadways carry 246 million vehicles; the figure is expect to reach almost 400 million by 2055.
• U.S. population, which between 1955 and 2005, grew by 130 million to 295 million, is expected to increase to 435 million within the next 50 years.
AASHTO Reports:
• China is building a 53,000-mile national expressway system, which when finished in 2020
• India is building a 10,000-mile system
• Europe (with a population of 450 million) is spending billions of Euros on a network of highways, bridges, tunnels, ports and rail lines.
The Impact of the Aggregates Industry on the American Public…
• Aggregates account for over 2/3 of the non-fuel minerals mined in the United States. (1/2 if coal is included.).
• The aggregates industry employs approximately 117,000 people.
• 3,100 quarries, 70 underground mines & 6,500 sand & gravel operations
The Impact of Aggregates on the American Public…
Aggregate Operations in the United States
In all 50 states and 70% gov’t jurisdictions…
End Uses of Aggregates
Private Nonconstruction
1%
Other Public Works
8%
Railroad Ballast
3%
Gov't Buildings
5%
Commercial Buildings
19%
Highways & Streets31%
Residential Buildings
33%
Economic Impact of the Aggregates Industry, 2003
(in $billions)
5.81
8.82
8.625
13.925
14.435
22.745
0
5
10
15
20
25
30
35
40
Sand &Gravel
CrushedStone
Total
IndirectDirect
Economic Impact
•For every new dollar of output in the aggregates industry, an additional $1.58 is generated in the U.S. economy.
•For each $1,000,000 in output produced by the industry 19.5 jobs are created.
Demand For Aggregates: Highway & Other Public Uses of Aggregates
60
70
80
90
100
110
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Con
stan
t D
olla
rs o
r to
ns (
2005
= 1
00)
+2.1%/yr.
+2.9%/yr.
*Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26.
Demand For Aggregates: Non-Residential Building
65
75
85
95
105
115
125
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Con
stan
t D
olla
rs o
r to
ns (
2005
= 1
00)
-3.7%/yr. +2.4%/yr.
*Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26.
Aggregate Production From 1900 to 2025
0.000
1.000
2.000
3.000
4.000
5.000
6.000
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
90
20
00
20
10
20
20
Pro
du
ctio
n (
Bill
ion
Me
tric
To
ns)
Sand & Gravel
Crushed Stone
Combined
4.84 bill
2.94 bill
1.89 bill
*Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26. Assumes annual growth rates of 3.0% for crushed stone and 2.1% for sand & gravel.
Aggregate Production From 1900 to 2025
0.000
0.500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
19
00
19
10
19
20
19
30
19
40
19
50
19
60
19
70
19
80
19
90
20
00
20
10
20
20
Pro
du
ctio
n (
Bill
ion
Me
tric
To
ns) Sand & Gravel
Crushed Stone
Combined
3.80 bill
2.26 bill
1.55 bill
*Based on USGS estimates. Assumes 2.1 percent annual increase for crushed stone production and 1.3 percent increase in sand & gravel production.
U.S. Production of Aggregates by Size of Company’s Tonnage
Production…Rank Number of
Companies
% of all Companies
Production/Company (Millions of metric tons)
Total
Production(Millions of metric tons)
% of U.S. Production
1-13 13 0.3 25 1,070 37.9
14-30 18 0.4 10 – 25 273 9.6
31-58 28 0.6 5 – 10 204 7.2
59-356 297 6.2 1 -5 581 20.5
357-1282 926 19.4 0.25 – 1 455 16.1
1283-2235 954 20.0 0.1 – 0.25 151 5.3
223-4777 2541 53.1 < 0.1 96.3 3.4
Total 4777 100.0 NA 2,830 100.0
*Based on USGS data.
• Most companies are small companies (85%+), many family-owned businesses (still true)
• Most aggregate produced by largest producers (The top 30 produce close to 48% of the aggregates.)
• Consolidation is increasing; the number of small companies is decreasing.
• The number of people in the workforce has not increased over the past 15 years– Approx. 125,000 in 1990 to 117,000 currently– During same time period production as increased 46%
Who will produce aggregates?
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
1989 1991 1993 1995 1997 1999 2001 2003
Years
Emplo
yee H
ours
0.00
2.00
4.00
6.00
8.00
Incident Rates
Employee Hours
Total Incidence Rates
Comparison of Aggregate Industry Workhours vs. Incident Rates from 1989-2004
Where will these aggregates come from?
•Better use of technology
Casper Stolle Quarry & Contracting Co.,
Falling Springs Quarry
Dupo, Ill.
Vulcan Materials Co.,
McCook Quarry
McCook, Ill.
Automation in every part of the industry
NSSGA Automation Conference
Dallas, Texas, Oct. 21-24, 2006• Use of GPS in
dredging• Automation of Cone
Crushers• Wireless mine
operations• Automated weigh out
and scale house controls
• Fractionated plant design
• Remotely controlled operations
• Particle size analysis
• Automated telestacker controls
• Plant Flow Control Software, Techniques and Analysis
• Use of GPS in mine planning and mapping
• Liquid flowmeters• Plant Flow Modeling• Control room design• Automation in sand
classifying tanks
Where will these aggregates come from?
•Better use of technology– Within operations– To mine a broader range of
deposits
More Underground Aggregates
Where will these aggregates come from?
•Better use of technology– Within operations– To mine a broader range of
deposits•Best use of available materials
– End users– Zoning & permitting– Government regulation
Of course, quarries‚ and other
mining operations‚ operate
with the permission of the public…
Terms Related to Long Range Planning Issues
• CAVEs• NIMBYs• NOPEs• LULUs
• BANANAs
Aggregates Industry
Community Relations
• Past practice– stay below the radar– hide operation from view– let others take credit
• Current practice– openly engage surrounding community– publicize what we do
•visit schools, open houses• let people see what we really do
• RBAF alliance with Smithsonian
Defining SustainabilityBrundtland Commission, 1987: Humanity has the ability to make development sustainable – to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs.”
NSSGA Sustainability Task Force (working definition), 2006: Sustainability is a business approach that integrates environmental, social and economic aspects to ensure the long-term supply of aggregate materials to society.
World Business Council on Sustainable Development (WBCSD): Forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.
Sustainability
Defining Sustainability
• The terms ‘sustainable development’ or ‘sustainability’ can be misinterpreted when describing the operations of NSSGA members.
• The term ‘sustainability:’– IS NOT addressing the sustainability of mining, a specific
mine, or a resource.– IS addressing the contributions that a specific mine,
company, industry and industry products make towards a sustainable society.
• The largest contribution of NSSGA members to sustainability is providing the continuous supply of aggregates necessary for ongoing economic prosperity in the United States.
NSSGA & Sustainability
The operations of NSSGA members make contributions to sustainability by:
providing local employment opportunities and taxes, demonstrating environmental stewardshipmaintaining and/or improving safety and health of employees,developing and implementing closure plans that enhance communities, andcontributing to local communities in the form of educational programs and other long-term investments.
NSSGA & Sustainability
Guiding Principles for Sustainable Aggregates
Operations • Follows a mining “life cycle approach,” provides
general, voluntary guidelines– general Overarching Principles– planning– operation– post closure, reclamation
• Focuses on – prevention and minimization of environmental,
safety and health related risks– stakeholder engagement, corporate
responsibility– profitability, efficiency, preventing waste
– Greenfield permits take 3 years and $3 million (10 years ago: 3 months and $30,000)
– Many areas: Denied renewal of existing permits. Denied expansion of operation
•Other states are preserving aggregate deposits (Ohio mining act).
•Don’t sit on the sidelines. Get involved! Your job depends on it.
• “Smart (No) Growth” Movement and opposition to Aggregate Permits
Current Trends to Watch…
OR
Approach to Government Regulation…
• Consider the cost as well as the benefits. Regulations cost money. That cost is ultimately passed on to the consumer and effects the national economy.– Highway example. 15 mph speed
limit saves lives but no one gets anywhere.
OR
In California, aggregates producers must meet the requirements of up to 80
different agencies in a process that takes from 2-
10 years to complete.
Conclusions…• The aggregates industry in the USA will
continue to grow. • Consolidation of companies in the
aggregates industry will continue. • The aggregates that are needed to sustain
the economy will come from:– automation (doing more with less).– use of technology to reach more material
(underground, deeper dredging), and– use of a broader range of aggregates.
• Keeping aggregate reserves available will be critical to the survival of the US Economy.– Sites need the permission of the public to
operate.– Potential reserves can’t be covered up or made
off limits.– Regulation must be within reason and must be
based on sound science. (Would you like a 15 mph speed limit?)
Thank you! Questions?
4.92 million lbs.
Stone, Sand & Gravel