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Material Supply Capacity in the Road SectorAggregate Producers Perspective
May 2006
Alex HallGeneral ManagerHolcim Aggregate and Readymix (KZN)
2
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
3
RPF May 2006 18.04.23/AhalHolcim South Africa
Market Developments
DME Sales ('000 tons) and annual change
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Est
200
6
Est
200
8
Est
201
0
-20%
-10%
0%
10%
20%
30%
40%
4
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
5
RPF May 2006 18.04.23/AhalHolcim South Africa
Suppliers to the Market
Commercial Quarries - Mainly Fixed Plant
Borrow Pits
Construction Industry - Mobile Plants
Illegal Operations
Artisinal Miners - Hand Tools
6
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
7
RPF May 2006 18.04.23/AhalHolcim South Africa
Market Map
90 million
ConstructionBorrow pit
InformalIllegal
Licensed suppliers providing
returns to theDME
CPM
Readymix
Asphalt
Reseller
Direct (building & civil)
Other ind.
Residential
Non-residential
Civil
OtherRoad (surf)
Road (base)
Road (sub-base)
Concrete (inc. RM & CPM's)
Mortar, plaster, screeds, etc
Total Aggregate &Sand Market, 2004
(tons)
Suppliers Channel Industry Sectors Product Application
50%
50%
67%
6%5%
9%
13%
33%
9%
52%
6%
40%
30%
12%
8%
5%5%
8
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
9
RPF May 2006 18.04.23/AhalHolcim South Africa
Specific Requirements of the Road SectorTypical section through a South African Road
Surfacing and Wearing Course
Base Course
Sub-Base Course
Selected layers and/or sub-grade
Note: Road stone is the big challenge - specially single size small products!!
G6+
Grading loosely specified
PI controlled
CBR controlled
G4 + G5
Top size
Grading
PI specified
Workability
Compaction
Often stabilised
CBR or UCS/ITS
G1,2,3
Top size
Grading
Flakiness
PI specified
Compaction
Workability
Soundness
Water absorption
Road stone or
Concrete Stone
Single size
Particle shape
Particle angularity
Cleanliness
Toughness/Hardness
Soundness
Deleterious material
Water absorption
Relative density
Surface texture
PSV
10
RPF May 2006 18.04.23/AhalHolcim South Africa
Specific Requirements of the Road SectorMaterial - Properties
21 – 2550 - 55209 - 33013 - 180.34 – 0.672.64 – 2.79Quartzite
10.449380100.32.72Greywacke
32612.10.22.61Siltstone
55 - 61290 - 31812.7 – 13.20.50 – 0.602.69 – 2.72Tillite
1635289150.62.80 – 2.86Dolomite
28.249163 - 19518 - 240.26 – 0.302.91 – 2.93Norite
13.4 – 3347162 - 30013 - 200.40 – 0.522.63 – 2.66Granite
1645322140.452.68Felsite
8 – 12.753 - 58302 - 35412 - 130.30 – 0.532.90 -2.99Dolerite
84956460.362.92Andesite
LA Abrasion
PSV10% FACT
ACVWater AbsARD
Road stone potential
11
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
12
RPF May 2006 18.04.23/AhalHolcim South Africa
Capacity ConstraintsReserves
Permitted reserves are currently not tracked by the DME
Currently permitted reserves are estimated to be in excess of 30 years given forecast market demand
Reserves is not the problem!
13
RPF May 2006 18.04.23/AhalHolcim South Africa
Capacity ConstraintsProduction/Crushing Capacity The Aggregate Industry has been characterised by surplus
capacity and marginal profitability since it peaked in 1988
Industry players are injecting new capacity as well as refurbishing existing capacity at an unprecedented rate
Mobile crushers are being used to bridge short-term capacity limitations
Demand for smaller and higher specification single size product will always be a problem
These products are expensive to produce particularly when they result in large recycle loads and/or the generation of waste products/unsaleables
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RPF May 2006 18.04.23/AhalHolcim South Africa
Understanding Capacity ConstraintsExample - Basic Crushing Plant = Open Circuit
15
RPF May 2006 18.04.23/AhalHolcim South Africa
Understanding Capacity ConstraintsBasic plant running in design mode
Product* Throughput (t/hr) Product Split % 26 mm 19 mm 13 mm 9.5 mm (UTFC) 6.7 mm Crusher sand
49.6 57.5 52.1 45.1
(20.0) 33.8 111.9
14.17 16.43 14.89 12.89 (5.71) 9.66 31.97
Total 350 100 Recycle load (oversize >26 mm) = 17.9 t/hr
UTFC is screened and washed from concrete stone generating rejects or flats. The yield is in the region of 40% of 9.5 mm concrete stone
*Concrete Stone Specification
16
RPF May 2006 18.04.23/AhalHolcim South Africa
Understanding Capacity ConstraintsExample - Basic Crushing Plant = Recycle Circuit
17
RPF May 2006 18.04.23/AhalHolcim South Africa
Understanding Capacity ConstraintsBasic plant producing only 9.5 mm and finer
Product* Throughput (t/hr) Product Split % 26 mm 19 mm 13 mm 9.5 mm (UTFC) 6.7 mm Crusher sand
0 0 0
63.5 (24) 44.5 142
0 0 0
25.4 (9.6) 17.8 56.8
Total 250 100 Secondary crusher is closed up to a css of 28 mm from 32 mm
Plant throughput is reduced to 250 t/hr from 350 t/hr
Recycle load (oversize, 26, 19 and 13) = 279.6 t/hr from 17.9. Another crusher is required to crush fines
UTFC production increases by 4 t/hr
Crusher sand production increases by 30 t/hr
It is an expensive process to convert viable product into finer product
*Concrete Stone Specification
18
RPF May 2006 18.04.23/AhalHolcim South Africa
Contents
Market Development
Suppliers to the market
Aggregate Market Map
Specific Requirements of the Road Sector
Capacity Constraints Reserves Production /Crushing Capacity
Conclusions
19
RPF May 2006 18.04.23/AhalHolcim South Africa
Conclusions
Supply problems will not be improved by opening new quarries, specially in urban markets
Some shortages of concrete stone and road base have been reported
No shortage of sub-base!
Shortage of crushing capacity is being addressed Mobile Crushers Plant Upgrades
Rigid single size road stone specifications are problematic. Specifiers need to be more pragmatic and flexible