Industry outlook PG4 | Leverage telematics PG15 | Wheel loaders PG22
April 2018 | www.AggMan.com
Your guide to profitable production
Digging
Deep for a
High-Value
Seam 20
Build trust for effective safety leadership
27
Overlap creates MSHA/OSHA jurisdictional ambiguity
— Dodge® bearings and power transmission Local manufacturing Global support
For 140 years, we’ve focused on providing industry-leading products that reduce your total cost of ownership. Every day we produce the mounted bearings, enclosed gearing and PT components you trust and prefer from Rogersville, Tennessee; Marion, Asheville and Shelby, North Carolina; and Belton and Greenville, South Carolina. We are proud to continue to offer the same products and service you prefer with the global ABB technologies and innovation you deserve.
479-646-4711 Baldor.com
Trimble’s TrimFleet offers a simple solution that allows aggregates haulers to remain ELD compliant.
PAGE 6
On Our Cover: Sterling Ventures’ Verona mine produces more than a million tons per year. Cover photo courtesy of Volvo Construction Equipment.
Daily inspection of buckets and ground engaging tools allows operators to detect problems before they affect production.
PAGE 22
TABLE OF CONTENTS APRIL 2018 |
VOLUME 23, NUMBER 4
FEATURE ARTICLES
COLUMNS & DEPARTMENTS
10 Mining on the Cutting Edge
3 Editorial Lessons from the Sea.
Sterling Ventures manages its three-level underground mine by managing its mineralogy while keeping a keen eye on equipment performance.
20 The Fourth Domain of Safety Leadership 22
4 Data Mining The latest financial analysis of issues impacting in the industry and Aggregates Manager’s exclusive aggregates industry outlook.
The final domain of effective safety leaders is the ability to build trust.
6 RollOuts Komatsu’s new PC238USLC-11 excavator, and other new equipment for the aggregates market.
Take a Two-Pronged Approach to Maintenance
27 Rock Law Lack of clear jurisdiction on mining-related activities leads to inconsistent and overlapping enforcement by MSHA and OSHA.
For optimal wheel loader maintenance, planning processes and early detection are essential.
30 Advertiser Index See who’s who and where to find their products. OPERATIONS ILLUSTRATED
15
Mining Data and Aggregates
Leverage data from telematics to improve operations and inform equipment decisions.
31 Classified Ads Aggregates industry classifieds. 32 Carved in Stone One difference between mineral resources, probable reserves, and proven reserves lies in the amount of investigation performed.
April 2018
EDITORIAL
Vol. 23, No. 4
by Therese Dunphy, Editor-in-Chief, tdunphy@randallreilly.com
aggman.com /AggregatesManager /AggManEditor
Editorial Editor-in-Chief: Therese Dunphy Editorial Director: Marcia Gruver Doyle Senior Editor: Kerry Clines Online Editor: Wayne Grayson editorial@aggman.com
Design & Production
Lessons from the
Art Director: Sandy Turner, Jr. Production Designer: Timothy Smith Advertising Production Manager: Leah Boyd production@aggman.com
Construction Media Vice President, Construction Media: Joe Donald sales@randallreillyconstruction.com
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Aggregates Manager TM magazine (ISSN 1552-3071) is published monthly by Randall-Reilly, LLC copyright 2018. Executive and Administrative offices, 3200 Rice Mine Rd. N.E., Tuscaloosa, AL 35406. Subscription rates: $24 annually, Non-domestic $125 annually. Single copies: $7. We assume no responsibility for the validity of claims of manufacturers in any advertisement or editorial product information or literature offered by them. Publisher reserves the right to refuse non-qualified subscriptions. Periodical circulation postage paid at Tuscaloosa, Alabama and additional entries. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage retrieval system, without written permission of the copyright owner. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Aggregates Manager, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406.
Sea
I
f you didn’t attend the National Stone, Sand & Gravel Association’s (NSSGA) annual convention, you missed out on a wonderful keynote address by Captain Michael Abrashoff, author of the best-selling book, “It’s Your Ship.” He drew some very interesting parallels between managing a naval ship and managing an aggregates operation. When Abrashoff took command of the USS Benfold, it had one of the highest accident records in the Navy, some of the worst performance metrics, and a retention rate of just 8 percent. During his first 12 hours as the ship’s captain, one sailor received a DUI and another new sailor was beaten and hospitalized on the first after completing his training. Abrashoff had his work cut out for him. He quickly went about changing the ship’s culture. Abrashoff worked with staff to design an onboarding process to get new sailors off to a good start by assigning a high-performing sailor in their division as a mentor. All new recruits also had a one-on-one meeting with him. During that meeting, he explained that safety was a top priority. If they ever felt they were being asked to perform an unsafe task, they could bypass the chain of command and come straight to him without fear of repercussions. It paid off. Two years later, the ship came in second for the Navy’s safety award. Abrashoff said that his goal was to create a culture where he would be proud for his own family members to be part of the crew. He focused on his own communication with sailors to ensure that he explained why he was making certain changes and how the changes would impact the crew’s safety. “We tried to give them the best training we could, and we listened to them,” he added. In fact, Abrashoff interviewed every sailor on the ship and got to know each of them. He turned military hierarchy upside down, telling them that if they knew how to improve something — even incrementally — he wanted to hear their idea. He allowed sailors to challenge the status quo by doing things such as swapping out metal fasteners with stainless steel to streamline maintenance. It allowed the ship to extend painting intervals from two months to 10 months. “What would you do? It’s your ship,” Abrashoff often asked his sailors. The philosophy paid off. At the end of his tenure, the ship had a nearly 100-percent re-enlistment rate, and some of the changes made on the USS Benfold were adopted throughout the Navy. If safety in the workplace, employee retention, and improved performance are among the goals of your operation, implement a few of these lessons from the sea. Like Abrashoff, consider how to make your site one where you’d be happy to have your own children report for duty. AGGREGATES MANAGER / April 2018
3
mining U.S.
On-Highway
Diesel Fuel
Prices 03/5/18
United States $2.99 One Week -0.015 q One Year +0.413 p
Company Cemex, S.A.B. de C.V.
New England $3.126 One Week -0.001 q One Year +0.480 p
Central Atlantic $3.240 One Week -0.015 q One Year +0.460 p
Lower Atlantic $2.894 One Week -0.012 q One Year +0.369 p
Midwest $3.920 One Week -0.027 q One Year +0.418 p
Gulf Coast $2.793 One Week -0.004 q One Year +0.364 p
Rocky Mountain $2.910 One Week -0.026 q One Year +0.285 p
West Coast $3.392 One Week -0.005 q One Year +0.515 p
West Coast less California $3.064 One Week 0.000 n One Year +0.285 p
California $3.652 One Week -0.008 q One Year +0.696 p Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes).
CX
Current Value
52-Week Low
$7.35 q
$6.45
52-Week High $10.37
CRH plc
CRG
$33.87 q
$32.65
$42.91
Eagle Materials Inc.
EXP
$102.79 p
$86.51
$122.49
Granite Construction Inc.
GVA
$61.95 p
$45.14
$68.58
Heidelberg Cement AG
HEI
$101.71 p
$94.69
$118.35
LafargeHolcim Ltd. ADR
HCMLY
$11.13 q
$10.47
$12.59
Martin Marietta Materials, Inc.
MLM
$209.18 p
$191.09
$244.32
MDU Resources Group, Inc.
MDU
$26.48 p
$24.29
$28.22
Summit Materials
SUM
$32.13 p
$21.88
$34.06
United States Lime & Minerals, Inc.
USLM
$72.66 q
$70.56
$101.40
U.S. Concrete
USCR
$67.87 q
$58.75
$86.35
Vulcan Materials Co.
VMC
$121.20 q
$108.95
$141.20
Source: Wall Street Journal Market Watch. Currency conversion calculated on date of close 03/09/18.
COMPANY SPOTLIGHT
East Coast $3.046 One Week -0.011 q One Year +0.413 p
Ticker
U
nited States Lime & Minerals, Inc. (USLM) reported fourth quarter 2017 revenues of $35.2 million, compared to $34.2 million in the prior year quarter, an increase of $1.1 million or 3.1 percent. Revenues from its Lime and Limestone Operations for the quarter increased $1.1 million, or 3.4 percent, to $34.7 million. The increase in lime and limestone revenues resulted primarily from increased demand from the company’s oil and gas services and industrial customers, which was partially offset by decreased demand from environmental and construction customers. For the full year, revenues were $144.8 million, compared to $139.3 million in 2016, an increase of $5.6 million, or 4.0 percent. “Demand for our United States Lime & Minerals, Inc. (USLM lime and limestone products in the fourth quarter and full year 2017 remained steady,” President and CEO Timothy W. Byrne said in a press release. “In addition to the St. Clair replacement kiln project, we continue to seek innovative ways to enhance efficiencies at all of our facilities so we can compete in what remains a challenging pricing environment.” Income tax benefit was $6.2 million for the fourth quarter and $2.2 million for the full year 2017, compared to $1.2 million and $5.9 million for the fourth quarter and full year of 2016, respectively. Income tax benefit in the fourth quarter and full year 2017 included a benefit of $7.4 million due to a reduction in the enacted federal income tax rates in the United States and the one-time impact of the lower rate on deferred tax liabilities. USLM reported net income of $11.6 million in the fourth quarter of 2017, compared to net income of $3.9 million in the fourth quarter of 2016, an increase of $7.7 million or 195.5 percent. Net income for the year was $27.1 million, compared to $17.8 million in 2016, an increase of $9.2 million, or 52.9 percent. Byrne announced a $500 bonus for all non-executive employees, noting, “I am excited to invest a portion of the savings to the company from the recently passed tax legislation directly back to our employees, which are our most important asset and the foundation of our continued success.”
Source: Market Watch
Data
STOCK REPORT
AGGREGATES INDUSTRY OUTLOOK
Aggregates Industry Outlook 150
139.94
145
138.89
140
134.60
132.37
133.44 128.38
135 130
138.44
140.38
135.06
125
133.61 129.35
120
129.36
115
121.69
110 105 100 March 2017
April 2017
May 2017
June 2017
July 2017
Aug. 2017
Sept. 2017
Oct. 2017
Nov. 2017
Dec. 2017
Jan. 2018
Feb. 2018
March 2018
The March Aggregates Industry Index dropped slightly, 0.37 percent, from February to 138.44. Responses regarding the industry’s annual outlook fell more than any other category, down 4.6 percent from February and 6.3 percent from March of last year. The annual outlook for the respondent’s company outlook was essentially flat from February and down 1.8 percent from last March. The outlook for tons sold during the next quarter garnered the highest percentage increase, up 4.4 percent from February. Predictions for longer timelines, including over the next six months and year, were essentially flat when compared to February predictions.
While the U.S. continues to enjoy one of the longest periods of economic expansion on record, our regional private markets show no indications of slowing. We have strong momentum entering 2018 with favorable underlying demand conditions in our private and public end markets. — Damian Murphy, Regional President, Summit Materials
In his final State of the State Address, it was encouraging to hear that at least (California) Governor Brown agrees with President Trump on the need to improve our infrastructure. — Deric Harrington, Production Manager, Specialty Granules, LLCs
Commercial construction project letting and aggregates ramp up to support those projects is increasing in the South, Southwest, and Southeastern U.S. Contractors visited indicate current work load and backlog is increasing at a better rate than the last four years. Contractors (are) still not sure how long positive indicators will last and are choosing to increase equipment fleets via short-term rentals or longer term RPOs rather than lease or cash equipment purchases. — Jason Hurdis, Senior Market Professional, Caterpillar
Shovel ready jobs continue to be bid and let at a rapid pace, spurring greater demand for construction materials throughout our region. If the current administration can be successful in pushing through a federal gas tax in 2018, 2019 could be the best ever, despite interest rate hikes. — Daryl Zeiner, Sales Manager, The H&K Group
Given the fact that Standard & Poor’s 500 Index for materials was 24 percent for 2017 performance and the U.S. economy continues to grow at a moderate rate, the outlook should remain very positive for aggregate demand and construction. —Jill Shackelford, President, Jill Shackelford Consulting
As a geologic consultant to the industry, I find that most of my clients have a positive outlook in 2018. Most are in a buying mode, so that should give us a clue to their optimism. Natural concrete sand is widely sought after in most states and hydraulic fracturing sand (frac sand) is being explored in west Texas at record numbers. — Mark J. Zdunczyk, Consulting Geologist, Mark J. Zdunczyk LLC
Editor’s note: To join our panel, email Editor-in-Chief Therese Dunphy at tdunphy@randallreilly.com.
ROLLOUTS
Your complete guide to new and updated equipment and supplies in the aggregates industry.
by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com
Updated technology improves fuel efficiency Volvo Construction Equipment’s H-Series wheel loaders incorporate the latest technology, including the next-generation OptiShift and new load-sensing hydraulics and transmission. The updates result in faster cycle times and improved fuel efficiency. The new OptiShift technology allows operators to customize the lock-up engagement of their machines and integrates the patented Reverse-By-Braking function and the new torque converter with lockup. The new transmission works with the engine and axles to improve stability and efficiency, while the new converter delivers increased torque output for better performance at low speeds. Steps between gears have been reduced for faster acceleration and smooth operation. The H-Series 2.0 update, combined with the engine, attachment organization, and dry P-brake, results in up to 20-percent greater fuel efficiency. It is available on the L150H, L180H, L220H, and L260H..
Volvo Construction Equipment www.volvoce.com
Excavator yields productivity gains Komatsu America Corp. introduces the PC238USLC-11 hydraulic excavator. Equipped with a Tier 4 Final engine and a new viscous fan clutch, engine parasitic loads are now lower, resulting in productivity gains of up to 4 percent over the previous model. The excavator is available with Komatsu’s new KomVision system, a bird’s-eye-view camera system that combines input from three cameras into a surround-view image of the machine and its surroundings to provide better situational awareness for the operator. The unit is powered by a 167-net horsepower SAA6D107E-3 engine. Maintenance accessibility has been improved through new monitor panels and machine design. A new operator ID system provides telematics data to track operators, applications, and machine operations for up to 100 individual ID codes.
Komatsu America Corp. www.komatsuamerica.com
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AGGREGATES MANAGER / April 2018
Separator system recovers coarse particles Eriez Flotation Division offers the HydroFloat Separator to recover coarse particles up to 6 mm. It is both a flotation device and a density separator, combining the advantages of froth flotation and separation gravity to enhance coarse particle recovery, produce higher throughput capacity, and reduce reagants and air consumption. Fluidization water is supplied through a network of pipes that extends across the bottom of the separation chamber. The teeter bed is aerated by injecting compressed air and frothing agent into the fluidization water. As air bubbles rise through the teeter bed, they become attached to hydrophobic particles, reducing their effective density and increasing their buoyancy. The lighter bubble particle aggregates rise to the top of the denser teeter bed and overflow the top of the separation chamber. Hydrophilic particles that don’t attach to air bubbles move down the teeter bed and settle into the dewatering cone where they are discharged as a high-solids stream.
Eriez Flotation Division | www.eriezflotation.com
Tracking idler designed for high-speed operations Asgco adds a Dual Return model to its line of Tru-Trainer tracking idlers. Designed for high-speed and tonnage operations, the tapered ends sense potential belt alignment issues and initiate tracking corrections to take place immediately, without the need for edge contact rollers. This model features an external central pivot that eliminates the need for a single large drum and enables a concentric and balanced rotation to be achieved. The idler is available for belt widths from 48 to 96 inches and can accommodate conveyor belt speeds that exceed 800 feet per minute and/or greater than 1,500 PIW. Installation can be performed at the location of existing idler attachment points and can be configured to push down or push up, depending on the belt’s operation.
Asgco | www.asgco.com
ELD management solution for haulers Trimble TrimFleet is said to be an intuitive, on-highway solution that allows aggregate haulers to manage their fleets more efficiently while being ELD compliant. TrimFleet features in-cab navigation and voiceguided turn-by-turn directions powered by CoPilot Truck from ALK Technologies, automatic and accurate real-time vehicle location status, automated Hours of Service, electronic Daily Vehicle Inspection Report, push to talk voice communication, and visibility of load.
Trimble Fleet Management | www.trimble.com
Wheel loader increases performance, uptime protection The Doosan DL280-5 wheel loader is said to provide operators with enhanced performance and comfort, as well as increased uptime protection. The 3.7-cubic-yard loader has a dump height of 9 feet, 2 inches. A wide fin radiator provides more effective cooling with larger fin spacing, which reduces clogging. Powered by a 172-horsepower diesel engine, the wheel loader is designed with heavy-duty axles to deliver additional machine performance in harsh applications. A benefit of the heavy-duty axles is owners can use solid tires for enhanced uptime protection. Another new feature is an upgraded forward-neutral-reverse joystick, which is easier to activate and more ergonomic, thereby improving operator comfort.
Doosan Infracore North America, LLC | www.doosaninfracore.com
AGGREGATES MANAGER / April 2018
7
ROLLOUTS Gearless drive system expands range ABB expands its gearless drive technology for medium power range (1 to 3 MW) to make it economically feasible for a broader range of conveying systems, including mobile equipment in mining operations. Fewer parts and new motor technology increase the reliability and efficiency of the overall conveyor system. A permanent magnet motor, specifically designed for mining applications, is a core element of the system. The gearless conveyor drive system eliminates the gearbox from the drive, subsequently reducing the number of main wear parts and lowering maintenance and the associated costs. With its smaller footprint, it can be installed in smaller spaces. The gearless drive design is also said to be more energy efficient. ABB | www.abb.com
System automatically adapts breaker’s behavior Epiroc is outfitting many of its rig-mounted heavy hydraulic breakers with the patented Intelligent Protection System (IPS), which combines with its AutoControl and StartSelect functions for a fully automated system. AutoControl optimizes breaker performance by automatically adjusting the piston stroke length. StartSelect offers manual switching between two modes: Autostart (which enables easy positioning at the beginning of the breaking cycle) and AutoStop (which automatically stops the breaker to avoid blank firing at the end of a breaking cycle). These functions are combined in the IPS, which ensures the hydraulic breaker always starts in the AutoStart mode. When the contact pressure between chisel and material increases and AutoControl switches from a short piston stroke to a long piston stroke, IPS switches automatically to the AutoStop mode. When the chisel breaks through the material, the breaker automatically shuts off.
Epiroc | www.epiroc.com
Updated software expands mine planning features Micromine releases the latest version of its 3D modeling and mine planning software, Micromine 2018. A new licensing system, which works with or without a dongle, includes the ability to temporarily borrow a network license without the need for a dongle or persistent network connection. New tools visually adjust the extents of a block model, as well as visually adjust the position, orientation, size, and anisotropy of the Vizex search ellipsoid. Another new feature automates the selection of initial values for displaying a variogram map or variogram chart.
Micromine | www.micromine.com
Portable fuel station is configurable Western Global introduces Fuel Island, a ready-to-use, portable fuel station for fleet refueling. Fuel Island is a self-contained fuel station with remote, cloudbased monitoring technology. It can be configured with an in-cabinet or outof-cabinet solution to ensure a fully compliant design for various jurisdictions and fuel types. Three equipment packages are available. Each includes a fuel tank on a skid mount, dispensing equipment, a fuel inventory monitoring system, cardlock equipment, an electrical panel, and all the necessary plumbing and wiring.
Western Global | www.western-global.com
8
AGGREGATES MANAGER / April 2018
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CONSTRUCTION
|
ROAD & BRIDGE
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A G G R E G AT E
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© 2 0 1 8 B R I D G E S T O N E A M E R I C A S T I R E O P E R AT I O N S , L L C
APPLICATIONS
Mining on the
Cutting Edge
Editor’s Note: This operation was previously featured in an April 2010 plant profile.
A
limestone producer in northern Kentucky is setting high standards for underground mining with inventive mining techniques and a lean fleet of Volvo Construction Equipment.
10
AGGREGATES MANAGER / April 2018
Sterling Ventures owns 1,000 acres of rolling mountain land outside Verona, 30 miles south of Cincinnati. From the surface, it appears to be a substantial crushing operation with voluminous stockpiles of sized stone fed from the mouth of the mine by a race-track-style conveyor system. The core action takes place underfoot, where round-the-clock crews pull
more than one million tons of limestone out of the ground each year from three mining levels. “We believe we are one of the largest underground limestone mines in Kentucky based on our deposit size,” says Timothy Stout, chief operating officer, “Having deposits on three levels gives us tremendous access to reserves that will last several hundred years.”
Sterling Ventures manages its threelevel underground mine by managing its mineralogy while keeping a keen eye on equipment performance.
At Sterling Ventures’s underground mine, innovative mining techniques and attention to equipment details are the keys to maximizing its potential.
What started in 1999 as a greenfield site to supply stone to the aggregates/ building materials market took a more lucrative turn when a seam of highgrade, 97-percent pure calcium carbonate was discovered deep in the mine 10 years later, resulting in Sterling’s third mining level. That find led to a lime kiln (owned by an outside company) locating directly
on site. The kiln fires the chemical limestone to 1,800 degrees F to convert it into a product used by the steel industry to make slag (which removes impurities from the iron ore reduction process) and by water treatment plants to adjust pH and alkalinity. The challenge was in chasing this vein of high-calcium limestone, which runs more than 900 feet below the surface and moving it efficiently up three levels to the surface. Managing the new dynamics of the mine meant rethinking the workflow and mix of equipment, as the kiln operates 24/7 all year long. It’s a continuous cycle of drill, blast, scale, muck, haul, and crush for the 44 employees who work 10- to 12-hour shifts, and for the equipment that logs 24-hour continuous operation. The mine is laid out in quadrants and mined room-and-pillar style. As the crews drill horizontally into the seams of rock, pillars of untouched material support the roof overburden. The opened rooms, approximately 40-feet high by 40-feet wide, are extracted of blasted rock. Whether open pit or underground mining, cycle times dictate production. As the haul roads out of the mine turned into miles, Sterling took an uncommon approach and installed two underground primary crushers on Levels 1 and 3. They also built an underground plant to specifically process the high-calcium stone for the kiln. Over 24,000 feet of conveyors are used to shuttle the stone through the mine and then to the surface. The crusher systems were dismantled, transported below ground, then reassembled to fit around the pillar ribs. The minimal fleet of haul trucks, loaders, and excavators at the Verona mine are all Volvo. “Three years ago, as part of a review on all of our equipment, I did a detailed analysis of the three main heavy equipment manufacturers on fuel burn, warranty costs, and preventive maintenance. I settled on the Volvo articulated haulers and excavators because they give us the right technology mix to not only be effective
and efficient, but profitable,” Stout says. It took him a little longer to run the numbers on wheel loaders, but in the end, he also switched brands, choosing Volvo L220G models based on an analysis of fuel burn, tire wear, maintenance costs, and lease-versus-buy math. Today, Sterling’s Volvo equipment line-up includes: • (3) A40G articulated haulers, • (2) L220G(H) wheel loaders, • (1) L110H wheel loader, • (1) EC220D crawler excavator, • (1) EC340D crawler excavator, • (1) EC350E crawler excavator, and • (1) MC60C and (1) MCT85C skid steer. Stout says, “A big factor in selecting equipment is our relationship with our dealer, Rudd Equipment, and Josh Curtis, our sales rep. They perform all preventive maintenance work and check with the operators to see what is working well and what isn’t. They have come up with ideas to use equipment that, from an old-school mining point of view, we may never have thought of before.” Located in the heart of Appalachian mining country, Rudd is one of the oldest Volvo legacy dealers in the United States, dating back to the 1950s when they sold Clark/Michigan loaders (purchased by Volvo in 1985). Today, they operate 14 locations across Ohio, West Virginia, Pennsylvania, Kentucky, and Indiana. For a company open to ingenuity, such as Sterling, a little investment offers long-tail returns. Curtis says, “Tim is very hands-on when looking at buying equipment. We reviewed specs, productivity, fuel burn, and in all of these areas, Volvo has the advantage. That helped us build more business with Sterling.” The fact that Rudd’s central warehouse had parts on the shelf was also a big selling point. A blast crew spends a full shift boring, packing, and preparing to detonate charges. Rudd also represents Sandvik face drilling equipment and supplied a new DT912D tunneling jumbo to Sterling. This new model tunnels 2 feet AGGREGATES MANAGER / April 2018
11
APPLICATIONS
A new face drill, purchased at ConExpo-Con/Agg 2017, tunnels 2 feet deeper than its predecessor, allowing a blast crew to drill a 16-foot-deep casing hole in a single minute.
Excavators, fitted with a Rockwheel grinder, scale loose slabs of stone from the sidewalls and ceiling of the face.
deeper than what it replaced, allowing crews to drill a casing hole 16 feet deep in one minute. The dynamite is loaded into casings in a specific order to produce a shot with consistent rock. This is determined by a carefully constructed pattern and timing of the individual explosions. “Each face is packed with 29 casings, and each shot brings down approximately 1,400 tons of limestone. The crew aims for 8 to 10 shots per day, set off after the first shift leaves the mine around 5 p.m.,” says R.L. Maxwell, mine superintendent. Two seismographs measure and record the ground and air
12
AGGREGATES MANAGER / April 2018
vibrations from each blast. The two-hour lag between shifts gives any limestone gases time to dissipate. “The air quality is constantly monitored. That is one of the biggest safety concerns with underground mining,” says Steve Brierly, senior director of safety and compliance. The second hazard in a mine is loose rock, a job that fell largely on excavator operations. Before any load-out, a Volvo E340D and EC220D, both fitted with a Rockwheel grinder, scale away loose slabs of stone from the sidewalls and ceiling of the face. The excavators have factory-fit demolition guarding kits, including
ROPS/FOPS guarding on the cabs. “The reason we switched to Volvo is because of uptime. We can completely scale a 40-by-35-foot face in less than an hour, top to bottom. The power is unmatched,” Stout says. “The Volvo excavators are also just more durable. For example, the track guards and reinforced undercarriage protect against abrasive limestone.” After the sides and ceiling are scaled, rock bolts are anchored to secure the roof from cave-ins. For Brierly, the environment inside the equipment is equally as important as the outside. “The air quality of a mine is everything. We monitor mine gases and record readings every two hours. The beauty of this equipment is that outside it can be layered in dust, but inside the cab the air is like sitting in our living room,” he says. That is due to the 14 air filters in the excavator cab. The haul trucks were selected for their capacity and handling and for the on-board weighing system to manage payloads and balance workflow. Their profile and articulating chassis can maneuver around pillar ribs. The trucks move the rock from the face to the primary crusher on Level 3, a 4,800-foot round trip, on an uneven road that tends to undulate like the chemical seam. Operators may make 100 round trips a shift. “The automated traction control system on the Volvo artics is a must for us. We can’t get by without it.” Maxwell says. Most days, crews enter when it’s dark and leave the mine when it’s dark. “Mining is not for everyone,” Brierly says. Potential hires are taken into the lower depths of the mine to get acclimated before they commit. “If a new employee stays for a year and a half, we know they are hooked. It gets in your blood,” he says. “I’ve been in the mines for over 20 years, and there’s nothing else I’d rather do than be underground. This is what I know; it is my passion. I enjoy knowing I’ve made a difference in the safety and health of this mine.” AM Article courtesy of Volvo Construction Equipment.
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OPERATIONS ILLUSTRATED By Nathan Medcalf, Contributing Editor
Mine Data While Mining Aggregates
Performance metrics such as travel times may indicate if roads need maintenance.
Compare operator reports to highlight training opportunities.
Mining data can increase production, decrease costs, and improve safety.
OUR EXPERTS
Better data means better business decisions for savvy quarry operators.
Freddy Aird has served nearly three years as quarry manager of Cemex USA’s Balcones Quarry. He has 25 years of experience in construction materials. Aird received training in geology and mining from University of the West Indies in Jamaica, Lulea University in Sweden, and Colorado School of Mines in the United States. He is a certified project manager with master’s degrees in business and mineral economics.
Andrew Kahler is the product marketing manager - WorkSight and ForestSight for the Worldwide Construction and Forestry Division of John Deere. He has worked in Deere’s construction business for 12 years in a variety of roles. Kahler’s focus is to provide customers with solutions that deliver jobsite, machine, and uptime optimization through Deere’s portfolio of equipment, technology, and dealer support.
Dave Adams is the product sales manager – Connected Services for Volvo Construction Equipment. He is responsible for leading the Americas Region sales strategy for Connected Services, including the company’s new ActiveCare Direct program. Adams has 23 years of experience in both public and private sector fleet management, training, and fleet services administration.
AGGREGATES MANAGER / April 2018
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Leverage data to improve operating metrics
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etter information leads to better decisions. This is the logic behind employing telematics. Telematics gives machine information in real time via the Internet and allows for the creation of reports, which enables decisionmakers to have a better understanding of how their operation is performing. Traditionally, telematics has been used for tracking fuel use, idle time, payload, and machine location. However, producers are finding ways to extrapolate from the data valuable information that leads to better decisions. Data can help producers identify underutilized equipment. A piece of equipment may have little use at one site, but another site may be bottlenecked without it. By reviewing machine usage, idle times, and payload, managers can decide whether to move the machine to the bottlenecked site and then purchase a smaller machine, or make some other arrangement on the first site. With the change, the producer will relieve the bottleneck and, potentially, avoid unnecessarily purchasing a machine. If moving underutilized equipment to another site doesn’t benefit you, consider selling the machine. You may be able to decrease equipment payments and increase capital. Telematics also offers the potential to right-size equipment. If a machine that is working in assembly with other machines is idling a lot, it means that two of your machines aren’t paired well. How many passes does it take the wheel loader to fill a truck? What is the time in between trucks? If the loader is waiting between trucks,
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maybe a smaller loader would be appropriate. If it doesn’t decrease production, but does decrease fuel use and equipment costs, consider downsizing. Telematics also allows producers to better understand component wear. Wear parts, such as the teeth on a bucket or the cutting edges on a blade, are often replaced after a certain number of hours, regardless of use. A machine registers a higher RPM when it is performing ground engaging work and lower RPM when traveling or idling. If the machine registers a high RPM just 80 percent of the time, it is safe to assume the attachment is not being used 20 percent of the time. Therefore, component replacement may be extended, thereby decreasing replacement parts costs. With telematics, producers can benchmark performance. By monitoring payload and truckload over a long time, producers can determine their long-term production rates. Then, by contrasting that data with data for a shorter time period with a decreased production rate and by reviewing what was different during that timeframe, producers can determine how they can avoid the circumstances that led to decreased production. Or, by comparing long-term production rates to shorter terms with higher production rates, and then examining what was different during that timeframe, producers can implement changes that lead to even higher production rates. Performance benchmarks can also help producers set performance expectations for their operators and identify training opportunities.
Optimize equipment usage
When it comes to driving productivity at a quarry, the haul truck carries a lot of weight (metaphorically and literally). By using a telematics program, quarry operators can optimize the use of haul trucks and other mobile equipment, as well as significantly decrease the chances of a breakdown in the field.
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AGGREGATES MANAGER / April 2018
2
Ensure equipment match
Loaders equipped with payload weighing provide weight measures remotely via telematics. Managers can use the data to monitor productivity. Measures such as total tons, load time, unload time, and trip counts help them assess productivity goals. For example, average tons per load highlights if trucks are overloaded, which can lead to higher maintenance and repair costs, or underloaded, which can increase costs per ton.
3
Educate operators
Equipment operators play a huge part in managing your heavy equipment assets, since they are the ones who will be making changes to machine performance. Key areas where operators can make changes are by reducing idle times, using the machine’s work mode that best suits that application, improving brake use, and shutting down the machine properly.
4
Make informed purchases
One mine operation was considering the purchase of a new haul truck. The truck could carry a heavier load than a wheel loader, which was currently performing the task. The operations manager used data to compare the two scenarios. In the end, the operations manager was able to demonstrate that their current method was less costly and decided against an additional equipment purchase.
AGGREGATES MANAGER / April 2018
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Voices of Experience Freddy Aird
C
emex is a global building materials company. Its U.S. network includes 11 cement plants, more than 50 strategically located distribution terminals, 50 aggregate quarries, and nearly 270 ready-mix concrete plants. This includes the company’s largest plant — the Balcones Quarry in New Braunfels, Texas. The quarry manager for Balcones Quarry, Freddy Aird, shares how the company manages their heavy equipment assets and the benefits that the company has realized from using data derived from telematics. “At Balcones Quarry, we manage our operations with a system that includes two key features, equipment condition monitoring and production monitoring. The information is used for servicing the equipment, as well as ensuring its safe operation and efficient use,” he says. “Key pieces of equipment are tracked via GPS and their production performance is reported in real time.” The company uses telematics to manage the company’s load-haul system, including haul trucks and loaders, as well as some auxiliary equipment. “Telematics plays a vital role at the quarry in improving safety, equipment availability, and achieving our production KPIs through real-time feedback of mining performance,” Aird says. “Data related to employee safety and equipment protection takes priority. Production information remains vital for the success of the telemetric tool,” he explains. However, the best data is the data that is acted upon, and Cemex U.S. has implemented numerous changes that have improved employee safety and operation productivity. “Several changes were made from the informed data including automating the pre-shift inspection to enhance reporting and the repair process, operator training to minimize operator-related alarms, improved berm construction through analysis of drone data, and nimble adjustment of production plans in response to real-time production data,” Aird says.
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AGGREGATES MANAGER / April 2018
Andrew Kahler
David Adams
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D
ou don’t need quarry-specific telematics to make changes to productivity and efficiency. Many operators have been using “yellow iron” telematics for years. “Our customers find general telematics data such as hours, fuel consumed, and diagnostics trouble codes extremely valuable, because these can help maximize uptime,” says Andrew Kahler, product marketing manager, John Deere WorkSight. “In a production environment such as a quarry, many processes are tied to a single machine, and if it’s down, then other parts of the operation also stop.” The company’s telematics software — JDLink — enables loaders to collect data by up to 10 different types of aggregates. “Measures like total tons, loaded time, unloaded time, and trip counts help producers understand if they are achieving their productivity goals.” Kahler says. “Average tons per load can help identify trucks that are overloaded, which can lead to higher maintenance and repair costs, or underloaded, which can increase costs per ton. Travel times metrics can help identify when their roads need to be re-groomed.” Kahler says data can also be used to optimize the crew’s performance. “The customer runs fuel reports with average fuel rate, fuel percent at idle, and fuel percent working along with their brake usage to see if more operator training or a best practice needs to be shared.” Because JD Link measures idle time and machine utilization, quarry managers can quickly identify underutilized assets and areas where additional equipment may be needed. This information can reduce bottlenecks and help quarries get the most out of their assets. “An operations manager in a sand mining application was grappling with a decision on whether to add a haul truck to transport material from one side of the mine to the other side,” says Kahler. “Utilizing JD Link data, he was able to calculate the business benefit of continuing to use a loader to transport material rather than investing in a haul truck.”
ata without action is useless. Insights have to be communicated to the operator, and additional trade should be provided. David Adams, sales manager, connected services at Volvo Construction Equipment, has five tips for using the data to improve operator training. • Demonstrate how reducing idle times can increase machine resale value. Imagine two same model machines doing the same work in the same conditions: Machine A idles 50 percent of the time while Machine B idles 25 percent of the time. After five years, Machine A has accumulated 10,000 hours and Machine B has only 7,500. The difference in resale value is significant. • Explain how reducing idle times can reduce maintenance costs. In the same scenario, Machine B requires five fewer service intervals (at 500hour intervals) than Machine A. Any existing warranty would be spread out over a longer portion of the ownership of Machine B versus Machine A. • Show the importance of hot turbo shutdowns. When an operator doesn’t idle the engine prior to shutting the machine down, it can damage the turbocharger. Prolonged misuse can result in turbocharger failures. A manager can identify improper shutdowns and address those operators. • Explain the differences in excavator work modes. Insights can draw attention to machines that are in Heavy (H) work mode more than 80 percent of the time. Using General (G) work mode instead meets the power required on 90 percent of jobsites and conserves fuel up to 50 percent. • Eliminate excessive service brake use. Some operators ride the brakes or are not adequately trained to use engine braking and the retarder. Monthly reports can automatically flag those machines and operators who exceed 80 percent service brake usage, thereby helping you avoid or postpone costly brake replacement.
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SPECIAL REPORT by C. David Crouch
The Fourth Domain of Safety Leadership
The final domain of effective safety leaders is the ability to build trust. Editor’s Note: This is the fourth and final article in a series on effective safety leadership.
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e know intuitively that leadership significantly impacts the choices and behaviors of employees and that leadership behavior has a strong influence on safety. In 2012, Caterpillar launched a research and development effort to determine the most important characteristics of effective safety leadership, then build the first statistically validated instrument to measure those behaviors. The findings revealed that the safest workplaces have leaders who drive accountability, create connectivity, demonstrate credible consciousness, and build trust. This article addresses building trust.
Domain #4: Build Trust Safety leadership is all about building relationships. The way to build strong relationships is by building trust. When trust goes up, quality goes up, costs go down, and people work more safely. Trust is confident expectation of something because of good reason, definite evidence, or past experience. Trust involves authenticity, integrity, genuineness, transparency, and sincerity.
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AGGREGATES MANAGER / April 2018
When a leader builds high trust, others believe he has their best interests at heart. Trustworthy leaders are those who keep commitments, talk straight, listen well, are real and genuine, and get results. A leader that builds trust will never
ask someone to perform a task in an unsafe manner. Others feel they can be open and honest with the leader without fear of how he will handle sensitive or private information. The leader effectively represents the safety concerns of his team with upper management and builds an authentic open-communication culture in which everyone is empowered to speak up about safety. There are four elements of the trust domain.
Demonstrate care Everyone can tell if a leader doesn’t care. Caring for others is something that cannot be faked. The effective leader demonstrates authentic concern for the safety of others. They are a role model for others to emulate and take their personal safety, as well as the safety of others, very seriously. They insist on proper medical attention for injured employees and come across to others as genuinely interested in their safety. An effective safety leader cares about safety not only on-the-job, but off-the-job as well. One discernable outcome of a leader who cares is having direct reports who value safety in their personal life as much as they do at work.
Value safety When a leader values safety, there is no question about what he will do when another person’s safety is at risk. The leader has already made the decision that safety is not just a priority, it is a value and, as such, will never be compromised. The effective leader demonstrates that safety is a core principle that guides his decisions and behaviors. As a value, safety permeates everything we do. It’s not enough that we operate efficiently; it’s that we operate safely and efficiently. It’s not enough that we produce high quality; we produce high quality safely. It’s not enough that we serve our customers with excellence; we serve our customers safely with excellence. It’s not enough that we meet our financial objectives; we meet out financial objectives while sending everyone home safe every day. When safety is a core value, it is immersed in everything we do. The effective safety leader makes it so.
Openness and transparency It is the quality of our communication with one another that enables us to create the type of workplace we desire. The effective safety leader is accessible and available to discuss safety concerns and foster an environment of transparency and free-flowing communication. Effective communication is a foundational element to safety excellence. (Author’s note: Effective communication is foundational in all aspects of work and life.) In an open environment, communication flows freely in all directions. The leader encourages everyone to provide feedback on safety issues and welcomes feedback about his own safety behavior. Everyone feels safe to speak up if something isn’t right and has the courage to listen up if
confronted by someone with a concern. Everyone feels confident to approach the leader with any type of information.
Interact with others in a way that builds trust The effective safety leader communicates in a way that builds confidence and surety in relationships. They follow through on commitments, are open and honest with others, confront reality courageously, demonstrate respect for others, and behave with integrity. Perhaps most importantly, the effective leader is quick to acknowledge when he is wrong and accepts responsibility for righting the wrong. Measured humility enables the leader to readily accept responsibility for mistakes. Often, leaders feel they must project to others that they know everything. It’s an understandable inclination, but it’s unrealistic and disingenuous. Others know the leader doesn’t know everything; but they also need to know the leader knows he doesn’t know everything. When the leader interacts with others in this genuine manner, it builds trust with others and encourages the inherent desire to do what’s right and safe. With the new leader-inspired safety model developed by Caterpillar, we now have a statistically valid approach to assessing and improving safety leadership. When a leader drives accountability, creates connectivity, demonstrates credible consciousness, and builds trust, safety excellence is the result, and everyone goes home safe every day. AM
C. David Crouch is director of research and development for Caterpillar Safety Services.
AGGREGATES MANAGER / April 2018
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EQUIPMENT MANAGEMENT by Jason Hurdis
Take a Two-Pronged Approach to Maintenance For optimal wheel loader maintenance, planning processes and early detection are essential.
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A pre-shift inspection helps equipment operators spot potential problems.
heel loaders have become the workhorses of bulk material handling operations today. While wheel loaders range from small to very large and everything in between, they all have one thing in common: the need for maintenance. Proper and consistent wheel loader maintenance is directly linked to machine productivity, fleet productivity, and operational costs. Consider what’s at stake. Poor maintenance results in unplanned downtime that affects not only the wheel loader, but every machine that wheel loader leads, follows, and supports. Ask yourself a simple question: Can I afford, in terms of production needs, costs, and manpower, ― to be without this wheel loader today? Maintenance tasks on a wheel loader or any machine must be efficiently and effectively managed and executed to reach the goal of “repair before failure.” By identifying or detecting potential problems before failure and planning for maintenance, the wheel loader and potentially an entire site can avoid unscheduled downtime, productivity losses, and higher costs. Wheel loader maintenance can be viewed as two main functions — detect and plan.
Detect The detect wheel loader maintenance function is composed of two types of tasks. The first is a hands-on inspection
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AGGREGATES MANAGER / April 2018
Monitor machine health using telematics information displayed on a tablet computer.
in which an operator, supervisor, or maintenance person physically checks the machine. They literally put hands on the machine. The second type of task uses telematics information to do a virtual inspection. Wheel loaders today have electronic control units, sensors, and monitoring systems for almost every component. Data from these devices can be extremely useful in detecting problems. Hands-on - A pre-shift inspection or daily walkaround to detect potential issues is critical to success. Most operations have a daily walkaround procedure, and some sites under Mine Safety and Health Administration (MSHA) regulations mandate them. But are the operators or maintenance staff just going through the motions and checking the boxes, or are they really looking to detect problems? A minimum list of daily checks includes: 1. Work tools – Inspect bucket cutting edges and teeth for wear and damage and, most importantly, make sure they are there. Check the bucket or forks structure and welds for damage and cracks. 2. Tires – Inspect treads and sidewalls for cuts, splits, and damage. Check lug bolts for tightness and
ensure that all are in place. Check tire pressure and ensure tires are set to application requirements. Make sure all four tires are not set at the same pressures. 3. Structures – Inspect all structures, linkage, frames, ROPS, and glass for damage and cracks. 4. Major components – Inspect axles, transmission, cooling package, and engine for leaks, damage, and missing parts. 5. Fluids – Inspect and check all fluid
levels for hydraulics, engine, and transmission. Grease the wheel loader at manufacturer’s specified points or inspect automatic lube system operation and level. 6. Safety – Inspect ladders, steps, handrails, engine compartment doors, cab doors, seat, and cab glass for cleanliness, damage, and missing. 7. Define the process to follow if an issue is found. The daily inspection points or items
Inspect buckets and ground engaging tools for damage and missing components.
AGGREGATES MANAGER / April 2018
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Telematics information can be viewed on portable devices and desktop computers.
can usually be found in the operation manual in the wheel loader cab or online at the manufacturer’s website. Virtual inspection – Wheel loader telematics play an important role in maintaining these machines. Telematics systems can alert maintenance personnel or operators to fault codes that may not be visible or known from a hands-on walkaround. Information about tire pressures, fluid levels, and a number of other critical measures can verify and complement a hands-on inspection. An operator or maintenance person, regardless of experience, can only see external issues during a hands-on walkaround. A virtual inspection can provide an X-ray of the wheel loader.
Plan Effective companies have a solid plan and processes to ensure maximum wheel loader uptime while controlling interruptions to production and controlling costs. Daily inspections often find issues or things that need attention. The next step is the plan to fix those things and get the wheel loader back into service or performing at a more optimum level. The components of an effective wheel loader maintenance plan are listed below. Preventive maintenance (PM) – PM groups many maintenance activities at fixed or scheduled intervals. Grouping the tasks reduces the total time that a machine is not available for production. Intervals are normally defined by oil
change and lubrication schedules. These scheduled stops also represent a valuable opportunity to execute other preventive tasks, such as adjustments and minor repairs. Every wheel loader manufacturer has suggested maintenance intervals expressed in operating hours or calendar time to ensure optimum wheel loader performance. Telematics – Effectively using wheel loader telematics systems can greatly improve your maintenance practices and improve wheel loader operating efficiency. Several telematics systems can alert when a PM is due so personnel can schedule downtime around production needs. Some systems can provide a list of PM parts required and even place an order to the servicing dealer for those items. I have worked with customers to alter their maintenance schedules based on telematics information as well. These customers monitor and track machine idle time over a quarter or even a year to determine exactly when a PM should be completed. For example, if a wheel loader has 40 percent average idle time, the engine oil change or hydraulic oil service can possibly be extended and scheduled when it might better fit production needs. Fluids sampling and analysis information also guides optimized PM schedules. Parts – “Having the right part in the right quantity and at the right time” is a commonly used phrase today. Using information from daily walkarounds,
preventive maintenance schedules, and telematics data can provide an accurate and well-supported forecast of future parts needs. By monitoring wheel loader applications and reviewing the loader walkarounds, it can be easy to identify parts that should be on the shelf. Wear items such as cutting edges, bucket teeth, engine belts, engine oil, hydraulic fluid, cooling fluid, and washer fluid can easily be stored on site and replaced quickly to minimize interruptions. People – A key to wheel loader maintenance success is having the right people, in quantity and skill, organized effectively to execute specific routines and functions. And, they should share a common goal. Key personnel include wheel loader operators, supervisors, and maintenance personnel, as each has a part to play in maintenance. Operators should know how to complete an effective daily inspection, how to fill out the forms, and where to send the completed forms. Supervisors should ingrain in the operators that they need to take the time to complete the daily inspection. Most wheel loader manufacturers have daily inspection processes or checklists that personnel can use to ensure inspection quality. Taking 10 to 15 minutes before the shift far outweighs the hours that can be lost when a machine goes down due to something that could have been found and corrected. Maintenance personnel should be trained on the wheel loader and its systems. Wheel loader manufacturers and dealers provide service training, and dealers have both field and shop technicians to complement customer maintenance teams. At aggregates operations, wheel loaders set the pace, whether working at the face or handling processed material. Sound and consistent maintenance goes a long way toward making that pace productive and efficient. AM Jason Hurdis is the global market professional, construction materials industry, for Caterpillar, Inc.
AGGREGATES MANAGER / April 2018
25
Get the the most current information with the 2017 Aggregates Industry Atlas and the Atlas on CD. While the printed version of the Aggregates Manager 2017 Aggregates Industry Atlas will become an integral part of doing your job, don’t forget to order your copy of the Atlas on CD to see additional information about companies’ mine locations, types of rock mined, GPS coordinates, pertinent facts about companies listed in the atlas, and more.
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Patrick W. Dennison
ROCKLAW Jurisdictional Conundrum
Lack of clear jurisdiction on mining-related activities leads to inconsistent and overlapping enforcement by MSHA and OSHA.
I
Patrick W. Dennison is an attorney with Jackson Kelly PLLC’s Pittsburgh office where he practices in the Occupational Safety and Health Practice Group and the Coal and Oil and Gas Industry Group. He can be reached at 412-434-8815 or pwdennison@jacksonkelly.com
n the April 2017 edition of Aggregates Manager, I wrote about a decision from the U.S. Court of Appeals for the Sixth Circuit which held that a shop which makes and repairs mining equipment was not a “coal or other mine” subject to regulation by the Mine Safety and Health Administration (MSHA); see Maxxim Rebuild Co., LLC v. Sec’y of Labor, et al., 848 F.3d 737 (6th Circuit 2017). The Maxxim decision was particularly noteworthy because it rejected MSHA’s attempt to exercise its jurisdiction over off-site shops and equipment traditionally covered under the Occupational Safety and Health Administration’s (OSHA) jurisdiction, including other metallurgical fabrication shops and equipment rebuild facilities. The Maxxim case typifies the jurisdictional conundrum presented when companies engage in activities that are not explicitly mining, but relate to or involve some aspect of the mining process. Indeed, these cases almost always include inconsistent and overlapping enforcement by both MSHA and OSHA, often leaving the question of jurisdiction, to say the least, unclear. And the recent decision
from the U.S. Court of Appeals for the Second Circuit in Sec’y of Labor v. Cranesville Aggregate Companies, Inc., 878 F.3d 25 (2d Cir. 2017), is no different. Cranesville arose after OSHA issued citations at Cranesville’s “bag plant” where activities consisted mostly of “mixing and bagging sand” delivered from Cranesville’s Plant 5 where the sand was first crushed, washed, and screened. The bag plant’s employees mixed the sand either separately or in combination with cement and other minerals, including those received from third-party sources such as cement and pre-mix aggregates. Cranesville, 878 F.3d at 34–35. Cranesville contested the citations and argued that MSHA, and not OSHA, had jurisdiction over the bag plant. After an administrative hearing, an administrative law judge (ALJ) agreed with Cranesville and vacated the citations, concluding that, because MSHA had authority over the cited working conditions, OSHA’s standards did not apply to the bag plant. The Secretary appealed the ALJ’s decision to the Occupational Safety and Health Review Commission (OSHRC), where
AGGREGATES MANAGER / April 2018
27
ROCKLAW
two Commissioners could not agree on whether the Mine Act or OSH Act applied, which affirmed the ALJ’s decision. Cranesville, 878 F.3d at 27. The Secretary then appealed the decision to the Second Circuit. There, Cranesville argued again that the bag plant’s activities — drying and bagging of sand — were part of the milling process, as defined in Section 3(h)(1) of the Mine Act. Conversely, the Secretary argued that the bag plant’s activities are a manufacturing process subject to OSHA inspections. The OSH Act authorizes the Secretary, through OSHA, to adopt and enforce mandatory safety and health standards applicable to employers whose business affects interstate commerce, except those employers covered by applicable standards promulgated under other statutes, e.g., the Mine Act. The OSH Act is the broadest applicable statute regulating the safety and health aspects of working conditions of American workers, and it gives OSHA jurisdiction over virtually all workplaces, except those where it is preempted by another federal agency that has statutory authority over matters of workplace safety and health. 29 U.S.C. § 653(b)(1). To be exempted from OSHA coverage, and, therefore, subject to the jurisdiction of another agency such as MSHA, an employer must be properly covered by the jurisdiction and standards of the other agency. 29 U.S.C. § 653(b)(1). In its decision, the Second Circuit deferred to the Secretary’s definition of the term “milling” after finding that it is, “at best, unclear under the Mine Act when the mining process ends — and thus when MSHA authority terminates and OSHA authority begins.” In so doing, the Court concluded that the bag plant’s activities fell “somewhere between the termination of the milling cycle and beginning of the manufacturing cycle.” Cranesville, 878 F.3d at 33. The cited conditions at the bag plant, therefore, were subject to OSHA, which the court held was a reasonable construction of the Mine Act by the Secretary. Id. As is typical with other jurisdictional cases, the court also found that many of Cranesville’s operations fell under MSHA jurisdiction. For instance, the Court found that Plant 5 “unquestionably performed milling operations” and that MSHA, not OSHA, covered the maintenance shop located in Building 2 of the bag plant where mining equipment was repaired and stored. Cranesville, 878 F.3d at 35. However, the court found that the fact that “one portion of the bag plant may be subject
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AGGREGATES MANAGER / April 2018
to MSHA does not defeat the reasonableness of the Secretary’s determination as to the cited workplace conditions.” Cranesville, 878 F.3d 36. Legal concepts like jurisdiction are fundamental to due process and should be — no pun intended — concrete. But as Maxxim and Cranesville both illustrate, the lack of clear jurisdictional standards renders the concept of agency jurisdiction needlessly unpredictable, inconsistent, and arbitrary. Factor in the instances of multi-jurisdiction or, as in Maxxim, inconsistently applied jurisdiction, companies and their workers are left only to speculate whether the laws they must follow and the actions taken by government agencies are themselves lawful and proper. Due process and the determination of jurisdiction should not be subject to the whims of the Secretary. AM
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2017-08-10 AGGREGATES MANAGER / April 2018 11:35 AM 2/28/18 9:03 AM
CARVED IN STONE
Bill Langer is a consulting research geologist who spent 41 years with the U.S. Geological Survey before starting his own business. He can be reached at Bill_Langer@hotmail.com
Need Help Defining Your Reserves? The difference between mineral resources, probable reserves, and proven reserves lies in the amount of investigation performed.
L
ast month, this column reflected on a 20-year-old article about the geologist’s role in estimating reserves. The gist of the article was that how well you need to understand your reserves depends on factors such as where you are in the planning process, the nature of your operation, if you are a potential purchaser of an operation, and so forth. In general, reserves can be lumped into one of three categories based on how well they are characterized. From least to best characterized, those categories are mineral resources (aka inferred reserves), probable reserves, and proven reserves. The least well characterized, mineral resources, commonly are based on geoscientific information such as natural exposures, nearby workings, geomorphology, and limited drill holes. Mineral resources represent a low degree of certainty because drill holes and other data are too far apart to assume continuity of the estimates of the overburden, thickness, and quality of the deposit between observation points. Furthermore, mineral resources commonly are identified with limited consideration of the economics or practical aspects of mining and marketing the product. Simply stated, a mineral resource may or may not be economical to mine and process into a marketable product, the tons mined would probably be significantly different than predicted, and there may or may not be a market for the product. Mineral resources are, however, probably worth further investigation if the situation warrants. Mineral reserves are a sub-set of the mineral resources and are classified as either probable or proven reserves. They typically require more borehole data than mineral resources and require significant input from disciplines other than geology. The value of reserves To be classified as either probable or proven reserves, the deposit must be very well derequires, among other fined. The quantity and quality of the deposit must be computed from dimensions revealed in things, understanding the nature of the beast — or in outcrops, trenches, workings, or drill holes that are spaced so closely that size, shape, depth, this case — the geology of and mineral content of reserves are well-established with high enough certainty to assume the deposit. continuity between points of observation. For most mineral resource deposits, reserves at the probable or proven classification stage are adequate if thickness, lateral continuity, and geologic character of geologic units are fairly consistent in adjacent boreholes (i.e., thickness does not vary by more than about 10 percent). Simply stated, it would be surprising if the reserves mined were not fairly close to what was predicted. Classification of either probable or proven reserves also requires a robust analysis of factors affecting extraction, such as mining, processing, economic, marketing, legal, environmental, transportation, social, and governmental factors. The reserves are the part of the mineral resource that can economically be extracted and processed at the time of the reserve determination using currently available technology. The difference between probable and proven reserves lies in the confidence of the estimates. A probable mineral reserve has a lower level of confidence than a proven mineral reserve, but still is sufficient to serve as the basis for a decision whether or not to purchase or develop a deposit. If you want to get into the nitty gritty of classifying reserves, the Society for Mining, Metallurgy, and Exploration (SME) has standards for companies or individuals with interests in mineral properties. Those standards are outlined in The SME Guide for Reporting Exploration Results, Mineral Resources, and Mineral Reserves (http://www.smenet.org/publications-resources/resources/ sme-guide-for-reporting). And if all of this is way more than you want to deal with, a geologist, who according to SME standards qualifies as “a competent person,” can help you out. AM
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AGGREGATES MANAGER / April 2018
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