aggregates today jennifer joy wilson president and ceo national stone, sand & gravel association

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