Aggregates Manager July 2016

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July 2016 | www.AggMan.com

Embrace new ways to

engage your

community 14

Roger Group’s Rutherford Quarry is rocking and rolling

26 40

Buying or selling? Know what that site is worth OSHA’s crystalline silica rule may foreshadow MSHA’s

THIS IS HOW DEERE DOES BIG. Your ideas carry lots of weight with us. You’ll see them in our expanded line of heavy equipment. And in the customized support you get that’s so critical to high-production operations.

Together, we’re building big things.

For proof, visit JohnDeere.com/Big

Design a conveying system to provide the necessary service and eliminate problems from the outset and it will lead to ease of operation throughout its lifetime.

PAGE 30

On Our Cover: Runners in a 6k race pass through Wendling Quarries, Inc.’s Bowser Quarry as part of the community fundraiser.

Cover photo courtesy of Daryl Schepanski, Anamosa Journal Eureka.

Terex Minerals Processing System’s new portable impactor and screen plant is a quick set-up, standalone, closed-circuit plant that can produce up to three products at one time.

PAGE 11

TABLE OF CONTENTS JULY 2016 |

VOLUME 21, NUMBER 7

FEATURE ARTICLES

COLUMNS & DEPARTMENTS

14

3 Editorial Community relation efforts are a worthwhile investment.

26

Keep on Rockin’ It, Baby Busy doesn’t even begin to describe a typical day at Rutherford Quarry in southeastern Tennessee.

Buying and Selling: A Primer Learn the best method for determining what your quarry is worth.

30 Smooth Moves

Investing in the proper design of an overland conveyor system can pay off with low-maintenance operation.

35 Digging Deep

Excavator upgrades target efficient power use and faster cycle times.

OPERATIONS ILLUSTRATED Community Relations 101

21

Want to build better relationships with your neighbors and community leaders? Learn from the pros — your peers.

5 Data Mining The latest financial analysis of issues impacting in the industry and Aggregates Manager’s exclusive aggregates industry outlook.

8 State and Province News A roundup of the latest news in North America.

11 RollOuts Komatsu’s new WA500-8 wheel loader, and other new equipment for the aggregate market.

40 Rock Law For a preview of MSHA’s respirable crystalline silica rule, take a look at OSHA’s final rule.

42 Advertiser Index See who’s who and where to find their products.

43 Classified Ads Aggregate industry classifieds.

44 Carved in Stone Speleotherms, such as stalactites and stalagmites, continue to grow in the Kartchner Caverns.

Aggregate Drones

“I was able to accurately measure the volumes of stockpiles at one of our quarries in just 10 minutes using the Kespry Drone System. Previously, it took me about 2 days of strenuous GPS work to cross-section those piles. This is an amazing technology!”

—John P. Davenport, Construction Surveyor, Whitaker Contracting Corporation

Automatically measure aggregate stockpiles Kespry drones are saving mining companies time and money by automating the measurement of aggregate stockpiles and construction materials.

Companies can fly their own sites and automatically get the perimeter and volumes for all their aggregate stockpiles as frequently as needed.

The Kespry 2D and 3D aerial models also assist with mine surveying, planning and operations.

With Kespry, what used to take weeks now takes hours.

Aggregates | Construction | Insurance

www.kespry.com/aggregates

July 2016

EDITORIAL

Vol. 21, No. 7

by Therese Dunphy, Editor-in-Chief tdunphy@randallreilly.com

aggman.com /AggregatesManager @AggMan_editor

Editorial Editor-in-Chief: Therese Dunphy Editorial Director: Marcia Gruver Doyle Online Editor: Wayne Grayson

Community relation efforts are a worthwhile investment

editorial@aggman.com

Design & Production Art Director: Sandy Turner, Jr. Production Designer: Timothy Smith Advertising Production Manager: Linda Hapner production@aggman.com

Construction Media Vice President, Construction Media: Joe Donald sales@randallreillyconstruction.com

3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 randallreilly.com

Corporate Chairman: Mike Reilly President and CEO: Brent Reilly Chief Operations Officer: Shane Elmore Chief Financial Officer: Russell McEwen Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Vice President of Events: Stacy McCants Vice President, Audience Development: Prescott Shibles Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault For change of address and other subscription inquiries, please contact: aggregatesmanager@halldata.com.

Aggregates Manager TM magazine (ISSN 1552-3071) is published monthly by Randall-Reilly, LLC copyright 2016. 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.

C

ommunity relations — or lack thereof — can have a profound effect on your ability to succeed in the aggregates industry. As one operator told me, involvement with members of your local community goes a long way toward dispelling some less-than-favorable myths about our industry.

In fact, I believe these programs are so vital to the health of not only your operation, but to the industry as a whole, that they are the theme of this year’s photo contest. Boy, did we have some fabulous entries. One even includes wedding pictures taken in an aggregates operation! Eight entries are featured in this month’s issue, including on the cover and in Operations Illustrated (page 21). All entries are featured in a photo gallery at www.aggman.com. Be sure to check it out and pick up an idea or two for a new initiative within your company.

If you don’t already have established community relation programs in place, get started with these tips from your peers.

• It doesn’t have to be complicated to have a big impact. Simple steps can go a long way. For example, Roger Group Inc.’s Rutherford Quarry (page 14) sweeps around the scalehouse, plant entrance, and main roads. “We sweep every day to keep the road clean for our neighbors,” explains Travis McGaffee, area production manager.

• Make sure you have support from the top. “Support from the top is critical,” says John L. Kulper, safety and environmental director for Wendling Quarries.

He notes that the Manatt family, which owns the company, understands that community relations are a huge part of the success of the industry.

• Be receptive to new opportunities. When members of the community approached Aggregate Industries about riding its barge along the Mississippi River, what Patty Christensen, land and environment manager for the North Central Region, refers to as its “shining star” began. Say yes to your next good opportunity.

• Play into your passion. Everyone has personal interests; figure out how to incorporate yours into a community relation activity. “When it comes to pushing the flag issues, I’m the spearhead for this company,” says Tom Dupuis, manager of the environment and engineering departments at Dolese Bros. Co., and a military veteran. He brought a program for a military spirit medal to the company’s community relations committee for sponsorship.

Investment in simple activities shows the community your business is an asset to be appreciated and supported. Get out there and put your best foot forward!

AGGREGATES MANAGER / July 2016

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Discover new state-of-the-art technology • Test innovative equipment and services • Learn about new trends • Build a powerful network MINExpo® is a selected participant in the U.S. Department of Commerce’s International Buyer Program (IBP). Through the IBP, U.S. Embassies and Consulates around the world will promote and recruit buyer delegations to the event. If you are interested in joining a U.S. Embassy led delegation, please contact the location nearest you (http://www.export.gov/worldwide_us/index.asp).

The CS logo is a registered trademark of the U.S. Department of Commerce, used with permission.

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q

DATAMINING Stock Report Company

Ticker

Cemex, S.A.B. de C.V. CRH plc Eagle Materials Inc. Granite Construction Inc. Heidelberg Cement AG LafargeHolcim Ltd. ADR Martin Marietta Materials, Inc. MDU Resources Group, Inc. Summit Materials United States Lime & Minerals, Inc. U.S. Concrete Vulcan Materials Co.

CX CRG EXP GVA HEI HCMLY MLM MDU SUM USLM USCR VMC

Current Value

$6.27 p $29.75 p $79.71 p $43.83 p $81.67 q $8.62 q $185.54 q $23.12 p $20.47 p $57.91 p $64.57 q $115.49 q

52-Week High

52-Week Low

$9.40 $31.55 $87.04 $48.59 $90.24 $15.07 $193.87 $23.65 $28.56 $63.59 $69.66 $120.40

$3.50 $23.33 $45.03 $28.45 $65.62 $6.92 $108.31 $15.58 $13.12 $45.56 $36.37 $78.83

Sources: Wall Street Journal Market Watch. Currency conversion calculated on date of close 6/10/16.

U.S. On-Highway Diesel Fuel Prices 6/6/16

One Week

One Year

United States

$2.407

+0.025 p

-0.477 q

East Coast

$2.436

+0.031 p

-0.544 q

New England

$2.471

+0.029 p

-0.605 q

Central Atlantic

$2.522

+0.017 p

-0.600 q

Lower Atlantic

$2.363

+0.041 p

-0.490 q

Midwest

$2.361

+0.019 p

-0.413 q

Gulf Coast

$2.278

+0.024 p

-0.505 q

Rocky Mountain

$2.390

+0.015 p

-0.435 q

West Coast

$2.681

+0.031 p

-0.440 q

West Coast less California

$2.600

+0.035 p

-0.401 q

California

$2.746

+0.028 p

-0.471 q

Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes).

AGGREGATES MANAGER / July 2016

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Aggregates Industry Outlook 150 140

131.68

130.00 129.05

128.61

130.99 128.42 125.60

130

128.15

128.99

127.51

126.03

122.49

120 110 100

July 2015

August September October November December January 2015 2015 2015 2015 2016 2015

February 2016

March 2016

May 2016

June 2016

July 2016

In June, the Aggregates Industry Outlook (AIO) bounced 1.68 percent from May, to an overall score of 128.15.

With 100 as a neutral rating, respondents continue to be consistently positive. Results were up across four of the six questions. Respondents were slightly more optimistic about the outlook for their own businesses (3.95 on a 5-point rating scale) than the industry as a whole (3.90). The most positive outlook responses (4.05) were for demand during the upcoming quarter, with results falling slightly with longer projection terms of six months (3.89) and 12 months (3.62).

Comments: We have a very positive forecast across all product lines for the next 12 months. Fuel costs and interest rates, even with moderate increases, should not have a significant dampening effect.

— Rick Gerroll, Sales Executive, County Materials Corp.

We’re noting market stagnation in Illinois and western Kentucky for public works projects, likely attributed to state budget impasses. Coupled with the downturn in the coal industry, with their direct and indirect demand for aggregate, we’re even seeing some price erosion. Middle Tennessee demand remains robust.

— Robert L. Stone, Manager of Sales and Compliance, Hunter Sand & Gravel, LLC

If the rain slows down, the next six months will be better than last year.

— O.F. “Russ” Patterson, III, Chief Geologist, Patterson Exploration Services

The aggregate industry, as far as I can tell as a consultant to the industry, is relatively upbeat. Most of my clients have a positive outlook for the remaining 2016 season. Even frac sand exploration activities have picked up in some parts of the United States.

— 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.

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AGGREGATES MANAGER / July 2016

CUTTING DOWN ON EXPLOSIVES INTEREST IN SURFACE MINING MACHINES FOR QUARRIES GROWS ALONG WITH DRILL AND BLAST REGULATIONS

IF YOU ASK PEOPLE WHO RUN QUARRIES WHAT THEIR BIGGEST PAIN POINT IS, THEY’RE LIKELY TO SAY TRANSPORTING THEIR PRODUCT. IT’S EXPENSIVE AND LOGISTICALLY CHALLENGING.

Because those products are mostly used as building materials, the goal usually is to locate quarries near where road and other construction projects occur. This is typically in urban areas.

And that is becoming an even bigger pain for mining companies because a major trend in the industry worldwide is increasing regulations on drilling and blasting methods due to environmental and safety concerns, especially in populated areas.

a 600-horsepower (447 kW) engine and can cut a swath up to 27 inches (68.6 cm) deep and 12 feet (3.7 m) wide in a single pass.

More and more quarries are turning to surface excavation machines as a solution. They have numerous advantages over drilling and blasting:

Mining companies are benefitting from these features. There’s a Vermeer customer that chose not to use a primary crusher because its Terrain Leveler SEM could consistently produce a 6-inch (15.2 cm) minus particle size.

• THEY can be used in parts of surface mines that explosives cannot.

• THEY cause less noise, dust and vibration.

• THEY cut more precisely.

• THEY produce a smaller, more consistent particle size.

• THEY can take steps and equipment out of the mining process.

• THEY can also be used for site preparation and haul road construction.

As a surface excavation machine moves on its tracks, its cutting drum rotates and the teeth on the drum mechanically excavate material.

To give an example, the Vermeer T1255 Terrain Leveler® surface excavation machine (SEM) has

It can be equipped with an optional GPS for precision cutting, allowing an operator to use the full length of the drum and minimize the overlap with each pass. Additionally, a survey can be taken of a quarry to create a flitch plan, which can be uploaded to a computer on the machine.

Another customer had a million tons of mineable product but could no longer drill and blast because of nearby pipelines, powerlines and roads.

“The surface excavation machine is getting that last remaining bit of aggregate,” says Patrick Robinson, senior commercialization manager for mining at Vermeer. “The site is already permitted, but if not for the surface excavation machine, it would probably be abandoned because drill and blast is no longer an option.”

It may go without saying, but surface excavation machines are quieter and create less vibration than explosives. As for dust suppression, the

Vermeer Terrain Leveler SEM offers an optional traditional water spray bar or an optional dust-collection system that uses vacuum technology instead of spraying.

The smaller, consistently sized product wastes less space than the larger material from drilling and blasting, which may allow more material to fit into haul trucks and loaders or possibly allow for the downsizing of equipment, which in turn can lower expenses.

A surface excavation machine also could potentially let a quarry get to market faster. The infrastructure and planning needed for drill and blast — conveyer systems, purchasing and setting up large pieces of equipment like primary crushers, permits — can take years.

“Many of the mining companies interested in surface excavation machines usually are forward-thinking in terms of how they adopt technology, their processes and their process control,” Robinson says.

Visit Vermeer at Booth #8401 at MINExpo.

Vermeer, the Vermeer logo, Equipped to Do More and Terrain Leveler are trademarks of Vermeer Manufacturing Company in the U.S. and/or other countries. © 2016 Vermeer Corporation. All Rights Reserved.

STATE & PROVINCE

NEWS

To keep up to date with news from the United States and Canada, visit www.AggMan.com for daily updates.

MASSACHUSETTS

by Therese Dunphy | Editor-in-Chief tdunphy@randallreilly.com

CONNECTICUT The Westerly Town Council unanimously voted to consider hiring an appraiser to provide an estimated value of the 108-acre property where the Comolli family’s Westerly Granite Co. Inc. owns a quarry property. The Westerly Sun reports that Councilor Louis Sposato Jr. first suggested that the town explore the possibility of purchasing the property “as a possible resolution to the millstone that has hung around this council’s neck for the last five years.” The company has a new agreement with Cherenzia Excavation to mine the property and to bring the property into compliance with state environmental regulations.

Councilor Christopher Duhamel noted the appraisal would be needed to buy the property or take it through eminent domain.

A principal in Westerly Granite said the family would consider selling the land to the town if a reasonable offer was made.

Aggregate Industries presented a Fill Management Plan for its Saugus facility, and it was accepted by the Aggregate Post Closure Committee.

Wicked Local reports that the plan and an updated Land Reclamation Agreement must be approved by the Board of Selectmen before the operator can obtain an administrative consent order for its reclamation plan from the state Department of Environmental Protection. Aggregate Industries’ plan calls for nearly 5 million cubic yards of material to be taken in over three phases to fill the 31.3-acre quarry. Consultants for the town and operator exchanged viewpoints over issues such as how to handle suspect soil, protocols for sharing test results, hours of work, and storm water management. The committee unanimously approved the plan, subject to a review of final edits by its consultant.

ILLINOIS Racers recently completed the Quarry Crusher Atlanta Run, part of the Quarry Crusher Run Series, held at Vulcan Material Co.’s Norcross Quarry. According to the Gwinnett Daily Post, the event offered two different races: a 7.4-mile run and a 3.7-mile trek.

Runners went more than 600 feet deep into the quarry, including running along haul roads with grades that exceeded 10 percent for more than a mile. Participants described it as the toughest race in the state. A portion of the net proceeds will go to the Gwinnett County Public Schools Foundation, as well as a cluster of schools that includes Louise Radloff Middle School. Radloff was at the race and greeted runners as they crossed the finish line. Elementary students handed out water bottles and race medals at the finish line.

KENTUCKY Defendants in a homicide at a Clark County quarry will be tried separately, The Winchester Sun reports. Ray Combs was shot to death at the site on May 12, 2015, while his cousin, Billy Combs, was shot but survived. Kirk Garrett is charged with murder and attempted murder in the case. Don Attaway, Kristi Mattingly, and Chris Coleman are charged with complicity. An attorney for the Commonwealth made the motion to sever the cases, saying it would be easier to try the cases one at a time.

MAINE Reclamation work at a Rockland quarry has drawn the wrath of neighbors who say that leveling about 20 acres and removing trees has exposed them to more noise and headlights from local traffic. Water is also being pumped from the site. According to the Bangor Daily News, a local code enforcement officer said that the work does not violate any land-use ordinances and needs no permits from the state or city. Water is being pumped from the site so the operator can put rip rap along two sides of the quarry to prevent erosion. The intended use is for the property to be rented out as a beach and swimming facility.

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AGGREGATES MANAGER / July 2016

NEW JERSEY Tilcon donated $10,000 to the town of Riverdale to help with the purchase of a new digital sign in front of the municipal building. According to NorthJersey.com, municipal officials have been looking for a more efficient alternative to a public information sign that requires manual changing of the letters. A new digital sign could cost up to $25,000 due to requirements for new footings. Mayor Paul Carelli announced the donation at a council meeting, noting that he appreciated the funds and the good relationship between the borough and the operator.

OHIO A trip to the Flint Ridge State Memorial was highlighted in the Columbia Daily Tribune. The 525-acre site includes a museum built around a restored prehistoric quarry and trails past various quarries dug by Native Americans. A small museum, built in 1933, tells how they mined flint and traded it for copper, seashells, food, hides, and pottery. An archaeologist is on hand to demonstrate how to make a spearhead using a stone tool and antelope horn.

PENNSYLVANIA Solebury supervisors announced that the Pennsylvania Environmental Hearing Board upheld a water-pumping limit imposed by the state’s Department of Environmental Protection on New Hope Crushed Stone and Lime. According to The Intelligencer, the quarry had requested a temporary stay on the 500,000-gallon-per-day limit, but the request was denied by an Environmental Hearing Board judge, who said the agency had the discretion to impose the limits.

TENNESSEE A fire truck was sunk at the Gray Quarry, WJHL reports. A group of certified divers lowered the antique truck about 60 feet into the water, where it joins a school bus and several statues. The quarry owners let scuba divers train and explore the water. They told the news outlet the truck adds a new dimension of excitement for recreational divers.

TENNESSEE The Nashville International Airport is using an abandoned quarry to cut its cooling costs in half. According to WKRN, the airport is saving $430,000 per year. The geothermal lake cooling system pumps hot water from the terminal’s cooling plant to stainless-steel heat exchangers submerged in the reservoir.

Water is cooled from 79 to about 63 degrees. The airport authority’s vice president of strategic planning and sustainability says the system is the largest of its kind in North America.

TEXAS APAC Texas LLC’s request to increase annual production at its quarry near Marble Falls is being met with resistance from some area residents, DailyTrib.com reports. The plant currently produces 7.7 million tons per year and is seeking an amendment to its air quality permit to increase production to 12 million tons per year. Neighbors say they are concerned about the increase in particulate matter that would accompany higher tonnage levels. A group has banded together to form the Texas Hill Country Property Rights Coalition and has hired an environmental attorney to help them with their opposition to the expansion.

VERMONT According to the Burlington Free Press, granite used for a mock gravestone with Donald Trump’s name and the inscription, “Making America Hate Again,” comes from the Rock of Ages quarry in Barre. The 420-pound marker was featured in the New York Times and other media outlets when it turned up anonymously and unannounced in Central Park at the end of March.

WISCONSIN Dane County zoning officials have delayed a revocation hearing for a conditional use permit to give a quarry operator an opportunity to come into compliance, the Wisconsin State Journal reports. The action follows complaints about the quarry’s hours of operation made after trucks were seen entering and leaving the site one night in April. Upon inspection, the quarry was found to be in violation of eight of 18 permit conditions, including failure to implement proper erosion control, operating on 12 more acres than allowed in the permit, failing to install safety fences along the quarry perimeter, excavating in areas not identified on its reclamation plan, failing to provide blasting information for more than a year, and operating outside specified hours.

AIM FOR UPTIME The new RigScan audit program uses cutting edge tools to increase your safety and equipment availability.

We’ll identify rig problems before they sideline production.

800-732-6762 www.atlascopco.us

AGGREGATES MANAGER / July 2016

9

Want to know what 10,885 U.S. operations are up to?

Get the the most current information with the 2016 Aggregates Industry Atlas and the Atlas on CD. While the printed version of the Aggregates Manager 2016 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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ROLLOUTS

Your complete guide to new and updated equipment and supplies in the aggregates industry.

by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com

Tier 4 loader improves efficiency and productivity Komatsu America Corp. introduces the new WA500-8 Wheel Loader equipped with a 357-horsepower, Tier 4 Final engine. The standard bucket, with an increased capacity of 7.6 cubic yards, fills easier and retains material better, resulting in better efficiency and productivity gains of up to 10 percent.

Komatsu’s SmartLoader Logic, combined with the lockup torque converter that activates in second, third, and fourth gear, provides optimal engine torque for improved acceleration, hill-climbing ability, a higher top speed, and fuel savings, while a new air-suspension, high-back heated seat softens machine vibration for operator comfort. The Komtrax telematics system provides key machine metrics, including KDPF status and diesel exhaust fluid (DEF)-level data, fuel consumption, and performance information collected and sorted by Operator ID.

Komatsu America Corp. | www.komatsuamerica.com

Upgrades increase productivity of heritage crushers Metso launches a new generation of upgrades to increase the productivity of its old crusher models, while reducing maintenance costs and bringing equipment into line with enhanced safety practices. The upgrades include: • Symons cone crushers — advanced bowl adjustment control, hydraulic motor bowl adjustment system, and hydraulic tramp release and clearing system.

• Nordberg HP800 and MP cone crushers — jack screw locking nut, top-mount clamp cylinder, heavy-duty head, MP1250 retrofit kit, and head maintenance stand.

• Superior gyratory crushers — super spider, arched spider, shimmed spider bushing, hydraulic shell separators, dualbalance cylinder.

Metso says users who implement the upgrades will see improved productivity through increased product rate capability, easier setting adjustments, better crusher reliability, and reduced bridging for over-sized material.

Metso | www.metso.com

New generation of bucket crusher attachments offers higher output Atlas Copco Construction Equipment introduces its new generation of bucket crusher attachments with higher output and greater reliability than previous models. The new bucket crushers — the BC 2500 and BC 3700 — are said to process about 80 percent more material due to their hydraulic drive system. The bucket crushers fit 49,000- to 85,200-pound carriers. The attachments feature components that allow carrier operators to crush up to 110 tons per hour of material; a drive system of two hydraulic motors and a timing belt that generates high torque needed to power the crushing jaw; and a reverse function that easily removes any blockage by pushing material back through the inlet.

Atlas Copco Construction Co. | www.atlascopco.us

AGGREGATES MANAGER / July 2016

11

ROLLOUTS Standalone plant can produce three products Terex Minerals Processing Systems says its new CRH1313R portable impactor and screen plant offers versatility to handle rock crushing, concrete recycling, and asphalt recycling. The highly mobile plant is said to be a complete stand-alone, closed-circuit unit capable of producing three products. It features a high-production Cedarapids IP1313 impactor with a 3- or 4-bar 50-inch rotor powered by a Tier 4, 450-horsepower diesel engine, direct drive to crusher, and 200-horsepower generator. A heavy-duty undercrusher pan feeder protects the conveyor belt from damage by absorbing the high-velocity discharge from the crusher. The 5-foot by 16-foot, patent-pending, dual-slope two-deck screen handles heavier loads for more capacity. Both screen deck products can be returned to the crusher for maximum production. A 48-inch by 16-foot high-stroke Cedarapids “Advantage” feeder with 60-inch grizzly bar or optional stepped-tine-style grizzly section feeds the impactor. The plant is said to be simple to operate, quick to set up, and easy to transport

Terex Minerals Processing Systems | www.terexmps.com

Three new scraper tires round out size offerings The Goodyear Tire & Rubber Co. rolls out three scraper tires for construction and mining/earthmover applications, the Goodyear RT-3A (E-3), RT-3A+ (E-3+), and RL-3J (E-3). The RT-3A (E-3) and RT-3A+ (E-3+) are designed to offer enhanced traction in all underfoot conditions. They feature cool-running, radial construction; an aggressive tread pattern; a unique, geometric lug pattern for long tread life, even pressure distribution and enhanced mobility; buttressed, self-cleaning lugs to help protect against sidewall cutting; and more. The RT-3A (E-3) is available in size 33.25R29, while the RT-3A+ (E-3+) is available in size 40.5/75R39. The RL-3J (E-3) is for high-speed use on moderate-to-severe underfoot conditions. It features a zig-zag, centerline groove to offer superior lateral traction in high-torque applications; tapered, self-cleaning shoulder lugs for excellent forward traction; a high-tensile steel belt package for enhanced impact resistance; and more. The RL-3J (E-3) is available in size 37.25R35.

Goodyear Tire & Rubber Co. | www. goodyear.com

New scrapers leverage automation for higher performance Caterpillar says its new 630K Series wheel tractor-scrapers — 631K and 637K — were designed to replace the 630G Series. The redesign includes an Advanced Cushion Hitch that uses new software to dampen end-of-stroke movement of the load cylinder for a smoother ride, hydraulicsystem refinement that simplifies the bowl quickdrop function, and draft-arm-overflow guards that divert material away from the sides of the bowl.

Plus, a new Auto-Stall system quickly brings the transmission to operating temperature for faster transitions from torque-converter drive. The open-bowl 631K and open-bowl twin-engine 637K offer a payload capacity of 34 cubic yards. The 637K features a Fuel Economy Mode that adjusts shift points and power distribution for optimum fuel economy. The 630K Series includes the following standard features: Engine over-speed protection, tire spin reduction, differential-lock-engagement protection, high-pressure steering, machine-speed limiter, ground-speed control, sequence assist, load assist, payload estimator, and Cat grade control.

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12

AGGREGATES MANAGER / July 2016

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PLANT PROFILE

by Kerry Clines | Contributing Editor

Keep on Rockin’

It, Baby Busy doesn’t even begin to describe a typical day at Rutherford Quarry in southeastern Tennessee.

S

ome of you may have attended AGG1 in Nashville a few months ago, and you may have made it out to Rogers Group Inc.’s Rutherford Quarry for the NSSGA-sponsored tour of that operation. If you didn’t go on the tour, you really missed out. This quarry is large, extremely busy, and quite strikingly beautiful from the front

14

AGGREGATES MANAGER / July 2016

entrance to the bottom of the pit.

“We try to keep things nice,” says Travis McGaffee, area production manager for Rutherford Quarry and several other quarries in southeast Tennessee.

“We keep things in good repair. When you drive into our operation, it looks clean and nice. I think we’ve got one of the nicest looking pits. I’m proud to show people this quarry.”

The limestone quarry was opened near Murfreesboro, Tenn., in 1985

by Stoneman, after which it passed through Lehigh Hanson’s hands and was eventually acquired by Rogers Group in 2000. Since then, it has become one of the top aggregate producers in the area, mainly because of all the growth going on in that part of the state.

Photo credit: Rogers Group, Inc.

Processing activity at Rogers Group Inc.’s Rutherford Quarry begins in the pit, which is quite beautiful.

“A lot of the area is farmland, but Murfreesboro is growing so much right now, the amount of residential homes and multi-family homes being built is unreal,” McGaffee says.

“We’ve taken off here because of all that growth. There hasn’t been a whole lot of roadwork going on because of the lack of federal funding.

If there was a whole lot of roadwork going on, it would be unbelievable how busy we would be.”

Daily operations Rutherford is a pretty typical aggregate operation in most ways — it makes big rocks into little rocks.

That starts with drilling and blasting, which is contracted out. A local contractor does all the drilling, and Austin Powder comes in to design the shot, lay it out, load the shot, and shoot it.

Once the blasting is done, a pit loader loads the material into haul

trucks, which carry it to the primary plant located in the pit. After the rock goes through the primary crusher, it travels up a 300-foot conveyor to a service pile, or live storage surge pile, that can hold as much as 12,000 tons of material. A tunnel underneath the storage pile feeds material onto a conveyor that carries it to the secondary plant with another crusher and an enclosed screen tower where three different products are pulled out.

AGGREGATES MANAGER / July 2016

15

PLANT PROFILE One of those three products is crusher run, which is conveyed to a stockpile. A tunnel running beneath that stockpile feeds material into the pug mill system, which is fully automated. The pug mill system includes a conveyor and a scale underneath two material bins — one for dry crusher run and one for pug, crusher run mixed with water. The truck driver simply pulls up to the sign with instructions. He pushes a button to select the type of material he wants and the weight his truck can hold. Then, he pulls forward onto the scale under the bin holding the material he wants. The system loads the truck with material and automatically cuts off when the truck reaches the proper weight. If the truck has an RFID tag, the driver doesn’t have to go to the scalehouse to get a ticket, he can pick it up from a kiosk as he exits the pug mill.

Material not pulled out at the secondary plant is sent on to the tertiary plant where one dry product is taken out. The remaining material is sized, crushed, and sent to a wash plant where three different wash products are made for readymix concrete and asphalt customers.

The quarry operates two full-time scales at the scalehouse that are open from 6:30 a.m. to 5 p.m. Monday through Friday and from 6:30 a.m. to 3 p.m. on Saturday. Between the scales at the scalehouse and the scale at the pug mill, the operation is in constant motion with trucks coming and going.

Four months ago, the plant was fully automated so that one operator in the primary plant control tower in the pit can monitor and run the entire operation, including the two cone crushers in the secondary and tertiary plants, all the conveyors, and the surge pile. The operator can tilt, pan, and zoom the cameras to see different locations in the plant. Two monitors located in the control tower allow the operator to see the primary plant on one monitor and the secondary and tertiary plants on the other.

Part of the community Many of the quarry employees live in Blackman, the small community where the quarry is located, so they care about

16

AGGREGATES MANAGER / July 2016

After material is crushed at the primary plant in the pit, it is carried via conveyor to a live storage surge pile on top. A guard was built beneath the conveyor where it crosses the quarry road to prevent material spillage from striking vehicles.

Material runs through an enclosed screen tower at the secondary plant, where it is separated into three different products.

what their neighbors think of the operation. They work hard at keeping the quarry out of sight, but work just as hard at keeping it in the community’s mind, but in a positive way.

“I live in this community, in a neighborhood two miles down the hill, and my kids go to school here,” McGaffee says. “We definitely want to be a good neighbor. We’re involved in Blackman

and Stewart Creek schools and have built a good relationship with the school administrations. We do everything from teacher luncheons on teacher work days to working at fairs, such as book fairs at the schools or community fairs, to donating to sports programs. We do a reading literacy program and donate books and computers to the schools. It gives us a face in the community.”

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PLANT PROFILE as a company and as a person.”

As they leave, customer trucks go through a wheel wash, which cleans their tires and helps minimize the dust being tracked out of the quarry. A road-capable water truck not only reduces dust levels down in the plant, it can travel out onto the roads in the neighborhood to clean the roads when necessary.

One of the most popular events that the quarry hosts is its annual Barbecue in the Pit. Between 250 and 300 people, including the sheriff of Rutherford County, school principals, local legislators, local public works people, and people from the neighborhood, are invited to attend the event. A large tent is set up in the bottom of the pit where everybody is served barbecue, and gifts and prizes are handed out. McGaffee says it’s a big, nice event, and people look forward to coming back every year.

The 5S program

The pug mill system allows drivers to pull up, push a button to select the product and weight they want, pull under the correct bin, and push another button to begin loading. The scale beneath the bins automatically closes the bin when the desired weight is reached.

But McGaffee adds that it isn’t just about donating money or receiving awards, it’s about getting involved and having a positive impact on the people in the community.

A busy quarry means there’s a lot of truck traffic through the neighborhood.

Quarry personnel try to minimize the impact of that traffic on the community by sweeping around the scalehouse and the plant entrance, as well as up and down the main road leading in both directions from the entrance to keep the road clear of any rock that might spill out of the

18

AGGREGATES MANAGER / July 2016

trucks leaving the plant.

“We sweep every day to keep the roads clean for our neighbors,” McGaffee explains. “We don’t want to be a nuisance. If the neighbors have any concerns, I want them to come to me and tell me what they are so I can address them and try to make things better rather than have them sit back and let it build until it becomes a big problem. Generally, when you address issues up front and people see that you’re being proactive and trying to remedy any problems they have, they’re much more receptive to you

Rogers Group has an internal award program called the 5S program, which includes Sustain, Standardize, Sort, Straighten, and Shine, but a sixth S has been added for Safety. To apply for the award, every operation can submit up to three different projects that they’ve done each year. Out of the submissions, the judges pick out the most creative projects and the projects that have had the most significant impact.

“I’m very competitive and so are most of my guys,” McGaffee says. “The 5S program has really brought out our pride and competitive spirit, because everybody in the other areas competes with us. Rutherford won the first two years of competition, so everybody wants to beat us. The competition is good, and it instills a sense of pride in the employees.”

One of the projects that won an award for Rutherford Quarry was the way it organized its shop. “We have conveyor, screen, and crusher V-belts hanging on the walls in the shop. We put signs above each of them that shows its size and what equipment it fits,” McGaffee explains.

“There’s a labeled shelf for everything in the shop to keep it organized. So whether a guy has been here five years or five weeks, he can go to the shop and quickly

and easily find what he needs. We do that to be more efficient, but the key is not just to win the awards, it’s to maintain that organization going forward.”

One thing that was done recently pertains to hazard training for customers.

At most sites, office personnel go over a hazard recognition form with anyone who comes on site. Rutherford Quarry has implemented a kiosk, an area in the scalehouse with a computer, where those entering the site can watch site-specific hazard training videos and then print off a form with their signature showing they’ve completed the training.

“That was a 5S submittal when safety first became a part of the program,” McGaffee notes. “That idea came out of Whites Creek Quarry. Brian Dillard came up with that, and after he did it, I did it.

Now, kiosks are being put in at every site.”

Safety meetings take place every morning to get all the employees focused on safety before they go to work. A range of topics are discussed, including anything related to Rogers Group’s company-wide near-miss program. If an incident occurs that didn’t result in an injury, but could have, each site is responsible for writing up a near-miss report that says exactly what happened, what the contributing factors were, and what preventive measures going forward would help prevent it from happening.

“We don’t pattern our safety program after MSHA, we go above and beyond that,” McGaffee explains. “Our main goal is to not get people hurt.

We have safety committees made up of hourly people who go to other sites to do inspections. They see things that people who are there every day might not see. They take pictures and do a write up at the end of the day, and then they present it to the plant manager. He goes over it with them and sets up dates to fix anything that’s found. It’s just an extra thing we do internally to try to head off injuries and incidents. It’s a good thing.”

Looking to the future The primary, secondary, and pug mill were built new in 2007, but the tertiary plant has been in operation since the

At the tertiary plant, one dry product is taken out, then the rest of the material is sized, crushed, and sent to a wash plant to make wash products for ready-mix asphalt customers.

A tunnel running underneath the live storage surge pile feeds material onto a conveyor that carries it to the secondary plant, where it is processed through another crusher and an enclosed screen tower.

plant was built in the 1980s. The tertiary plant was slated to be replaced in 2008, but the economy went south, so the project was tabled…until recently. In April, the project was being discussed and considered once again.

“Maybe by winter, we’ll have a set plan, and we can start requesting early capital for it next year,” McGaffee says.

“It’ll probably be a six- to eight-month project. I figure we’ll probably be finished with the project by the fall of next year,

if it gets approved through corporate. I’ve got it laid out so we’ll be able to continue running the old plant while we’re building the new one, and we won’t have to shut the old one down until we get ready to tie the new one in, which shouldn’t be more than a couple week process.

“That’s kind of what we see in the future. The market will support it, and the reserves are definitely here to support it. The reserves will be here long after we’re gone.” AM AGGREGATES MANAGER / July 2016

19

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PULL-OUT GUIDE

By Therese Dunphy, Editor-in-Chief

July 2016

Community Relations 101

School visits are a staple for many operators, including Walker Brothers Quarries.

Schedule a memorable experience, such as a blast.

Students, and their teachers and parents, gain an understanding and appreciation for the industry

Be sure to have visitors wear closed toed shoes, hard hats, and safety vests.

Simulators also provide a great activity for students — and may attract future employees.

OPERAT 1

Create a recreation area

Build better relationships with your neighbors and community leaders

L

ogically, most operators understand the importance of having a good community relations. In the day-to-day environment of running a business, however, not all are willing to invest time into nurturing those relationships. Big mistake.

“A strong relationship with our neighbors and community leaders is such an integral component to the success of our business,” says Patty Christensen, land and environment manager for Aggregate Industries – North Central Region. Growing up, her father worked for an aggregates business that was later acquired by Aggregate Industries, and there was a very different atmosphere than the strong relationship she enjoys with neighbors today. “Things were always contentious between the residents and the mining company,” she recalls. But with some fairly simple initiatives to improve communication between operators and neighbors, she found a much better dynamic when she joined Aggregate Industries in 2000. “What a difference,” she says. “I was amazed.”

Some community relations programs can be quite elaborate, but small, simple outreach efforts can go a long way. When Tom Dupuis noticed the crowds that gathered near the Dolese Bros. Co.’s headquarters in Oklahoma City for a Pearl Harbor Day memorial, he suggested the company sponsor a hospitality tent with warm beverages and sweets.

That simple task led to a series of AGGREGATES MANAGER

additional community relation initiatives with local veterans, who greatly appreciate the support. “It’s been a good marriage for us,” Dupuis says.

While Wendling Quarries has a splashy community event with the 6k race that runs through its property, it continues smaller scale initiatives such as school tours at its site.

“We have folks whose yards back up to the quarry. For us to maintain a relationship, not only with our close neighbors, but the town itself, is very important to us,” says John L. Kulper, safety and environmental director for Wendling Quarries, Inc. “We just like the community involvement. It’s a chance for us to work with a close-knit, organized, and truly nice community.”

Establishing good relationships with the surrounding community is not only the right thing to do, it’s also the smart thing to do.

“We had a variance hearing in the city of Minneapolis in September 2015,” Christensen says. “One of the board members stated, ‘I just want the board to know that this company has been a great corporate citizen in our community. They have been involved with the National Park Service for years. They are a great example of how a business and the community can work together.’

“The value of hearing that statement from a regulatory official says it all for us,” she adds. “It just brings home to us how important our community relations efforts are with these municipalities.”

Lehigh Hanson’s Gainesville Quarry’s historic lake house and 9-acre man-made lake draw hundreds of visitors each year. The lake house was founded in1971 and has hosted hundreds of events involving thousands of community members over the years. Hanson shares the venue free of charge to ensure that financial considerations will not restrict its use. Earlier this year, a wedding took place at the site. More than 150 people enjoyed the scenic setting of a tranquil lake at an operating quarry. The venue made for some dramatic and unique wedding photos.

4

Involve community leaders

Aggregate Industries–North Central Region has a long-standing policy of actively participating in the communities in which it conducts business. It says the open-door policy has led to better communication, better understanding in both directions, and a significant level of trust with neighbors and community leaders.

Each year, every close neighbor and local official from the communities in the greater Minneapolis-St. Paul Metropolitan Area are invited to attend its “Neighborhood Barge Ride.” Guests enjoy a unique cruise on the Mississippi River on a “working” barge and have the opportunity to meet employees and learn firsthand about the aggregates and ready-mix industries.

TIONS ILLUSTRATED Community Relations 101

2

Support a well-known cause

3

OUR

EXPERTS

Sponsor a patriotic program

John L. Kulper is the safety and environmental director for Wendling Quarries, Inc. He has served in that role for 12 years and oversees environmental training and compliance, as well as safety training and compliance. He previously served as an environmental consultant.

The goal of Rogers Group Inc.’s annual United Way employee campaign is to encourage employees to financially support the United Way of Metropolitan Nashville, but it does so in a way that shows the employees where their money goes and helps the local organization with current projects. Every year, corporate employees spend an average of 200 work-hours on various projects determined by that year’s campaign committee. Recent projects have included landscaping at a school, painting at a women’s shelter, and sorting donated items at a food bank. Each year, the amount donated by Rogers Group employees increases.

5

Focus on sustainability efforts

Each year, Dufferin Aggregates, a division of CRH, plants trees at its Acton Quarry. Earlier this year, 2,600 were planted. Through the years, a total of 65,000 trees have been planted at the site. Volunteers from Scouts Canada North Halton District, neighbors, and Dufferin Aggregates and CRH Canada employees and family members make the initiative a successful one.

As part of the day, the site organizes a complimentary barbecue lunch for all the volunteers. Feedback from key stakeholders is very positive.

Dolese Bros. Co. helps to fund a program that recognizes the commitment made by young men and women who plan to enter the U.S. Armed Forces after high school graduation. Veteran Bob Lambert (left) is the founder and chairman of Oklahoma’s Military Spirit Medal. Students who apply to the program and write an essay are given the medal during senior recognition ceremonies at their high schools. Lambert says the medal is a way to “thank them from day one, rather than wait to see if they return home to be appreciated.”

6

Provide a unique service

Aggregate Industries US’ Littleton Quarry crew in the Northeast Region donated a day to clearing brush and grading observation areas to prepare the Rescue Dog site for two planned training events. Last year, three dogs were certified for live find by the International Rescue Dog Organization, which is affiliated with the United Nations and coordinates all rescue dog deployments to disasters such as the Nepal earthquake.

This year, 13 dogs from nine states and Canada were trained to find human remains. The participants were very excited to work in a new location and praised the site as one of the best in the country.

Tom Dupuis is the manager of the environmental and engineering departments at Dolese Bros. Co. Prior to joining the company in 1988, he spent 11 years in the U.S. Air Force. Dupuis is a passionate advocate for all issues regarding the U.S. military.

Patty Christensen is the land and environment manager for Aggregate Industries – North Central Region.

She joined the company in 2000 and began in the accounting department before moving into the land and environment department.

She has an associate’s degree in paralegal.

July 2016

Voices of Experience John Kulper

W

endling Quarries, Inc.’s Bowser Quarry, in Springville, Iowa, is gearing up for the 4th Annual Springville Extreme Quarry Run. “A lot of the towns in our area have their fun days where it’s a community get-together,” says John L. Kulper, safety and environmental director for Wendling Quarries. “Typically, it’s just a few carnival rides and lots of fatty food.”

Four years ago, that changed when a group of event organizers who are avid runners approached Wendling Quarries Inc. about allowing a race to pass through the operation. The quarry has north and south locations that are split

by Highway 151 — with a tunnel running between the two. “The tunnel at the Bowser Quarry draws a lot of interest,” he says.

Kulper and Marc Whitman, quarry development manager, met with the committee to discuss its involvement and determine if it was a good fit. Once their concerns were addressed, they were happy to participate in the event.

Each year, the race has drawn between 180 and 280 participants and has raised thousands of dollars for local charities such as the Springville Community Schools Backpack Program, which funds meals for kids in need, and the City of Springville’s Community Trails Project, which is building a walking and bike trail.

Its involvement does require some work at the quarry. “The runners like to see the equipment, so we set up the trail so they can get a good look at the quarry and its different features,” Kulper explains. Another important preparation is to ensure that the roads are well groomed so there are no large rocks or divots in the roadway that could be hazards to the runners. Community volunteers are spread throughout the course on race day to ensure runners participate in a safe manner, while enjoying the scenery in the unique venue.

“It’s been a really good collaboration between us,” Kulper says.

AGGREGATES MANAGER

Tom Dupuis

T

om Dupuis, manager of the environmental and engineering departments at Dolese Bros. Co., says his heart is with the military. “I am from a big military family,” he explains, noting numerous family members have served. “I was in a combat construction outfit overseas. When I started working for Dolese in August 1988, it didn’t take long to realize the company was a good fit for me.”

His community relation efforts reflect that bond. For example, the company sponsored a hospitality tent for those who attend a Pearl Harbor Day ceremony. The tribute is held near Dolese’s Oklahoma City headquarters where the anchor from the USS Oklahoma, a battleship sunk during the attack on Pearl Harbor, is on display.

There, he met Bob Lambert, founder and chairman of Oklahoma’s Military Spirit Medal.

The medals are awarded to young people who have committed to military service after graduation. To receive the medal, the recipient must have completed high school, enlisted in any branch of the U.S. Armed Forces, submitted an application, written a 100-word essay entitled, “I choose to serve in the U.S. military because…,” and plan to attend the school’s senior awards ceremony where the medal is presented. The program has grown from two medals being awarded in 2010 to 122 medals in 2015.

Since funding is a challenge, Dupuis took the program to Dolese’s community relations committee, which contributed $1,000. While the program is currently involved with 30 high schools in the greater Oklahoma City area, the group would like to grow it across the state and, eventually, the nation.

“I like the whole concept of recognizing them from day one for having the ‘Spirit’ to commit to military service,” Dupuis says. “One of Mr. Dolese’s mottos was ‘Fly the flag. He was a true American, and there is nothing better than working for a company that has the same beliefs and values.”

Patty Christensen

W

hen a group at the Weisman Art Museum at the University of Minnesota spotted a group of people on a tugboat and barge, one of Aggregate Industries – North Central Region’s most popular community relation events was born.

According to Patty Christensen, land and environment manager for the region, the group’s inquiry sparked what is now an annual event. Close neighbors, as well as appointed and elected officials are invited. “It’s as popular now as when it commenced in 2000,” she says.

Preparations for the barge ride run like clockwork, despite having 200 to 225 guests.

Several days prior to the event, the barge is prepped, and welders install anchors for the tents that are put on the barge. Tables, chairs, and portable restrooms are brought in to ensure a comfortable trip, while life jackets and a first aid kit are on hand in case of any emergency.

“It’s become a very finely-tuned event, and it could not happen without our operations staff,” Christensen says. “They put a lot of work into this event to get the barge ready and to ensure that the river travel will be smooth and memorable.”

A mix of volunteers from the office and operations serve as hosts for the ride and answer guests’ questions about construction materials. For a number of years, the ride was extended to participants of the Mississippi River Recreation Area Junior Ranger Program.

National Park Rangers on board the ship would answer questions about the river corridor and explain the river’s significance to the community.

“This barge ride combines two of the key components of Aggregate Industries’ value system: commitment to community and sustainability,” Christensen explains. “Guests walk away from the barge with a better understanding of the importance of the aggregates industry and how the river plays into their day-to-day lives.”

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www.nssga.org

MINE MANAGEMENT

by Mike Nowobilski

Buying and Selling:

A Primer

Learn the best method for determining what your quarry is worth.

26

AGGREGATES MANAGER / July 2016

$19.50 $13.00 $6.50 $0.00

I

f you are in the market to expand your company via an acquisition, you may wonder whether the property advertised in the illustration at left is a good buy. Should you call and inquire? Is the indicated sales price too high?

How would you react to this ad?

Perhaps you are a loan officer at a bank and a quarry owner asks for a $5 million loan based upon the fact that a similarly sized quarry producing 1 million tons sold for $25 million.

Should the loan officer react favorably? After all, the collateral is apparently worth five times the requested amount of the loan?

I assume your reaction to these questions, is “I do not know.” Based upon discussions with many owners over the years, my observation is that most owners formulate their opinion regarding fair market value based upon what they hear with respect to the sales price a competitor received. This practice may stem from the use of comps in real estate where it seems to work fairly reliably. However, using comps to estimate the fair market value of a quarry or mine based upon its annual sales volume is not a reliable method, even in those instances where a similar mineral is being mined and sold.

Perhaps you are skeptical. Would you not expect the purchase prices (aka fair market value) of three limestone quarries each producing and selling approximately one million tons of construction aggregates to be similar? The actual results may surprise you. The individual quarry values shown in Figure 1 ranged from a high of $24.89 per ton sold to a low of $7.82 per ton sold.

Figure 1: Fair Market Value Comparison of 1 Million Ton Quarries Fair Market Value Per Ton of Annual Sales $32.50 $26.00 $19.50 $13.00 $6.50 $0.00

Quarry A

Quarry B

Quarry C

Just in case you are still skeptical, let’s look at the actual results of three quarries producing and selling approximately 600,000 tons annually. As Figure 2 illustrates, the range was from a high $20.32Value per ton sold to of a low of $13.26 Fair of Market Per Ton Annual Salesper ton sold. Again, these examples are based upon actual results. $26.25

$21.00

Quarry A

Quarry B

Quarry C

Figure 2: Fair Market Value Comparison of 600,000 Ton Quarries Fair Market Value Per Ton of Annual Sales $26.25 $21.00 $15.75 $10.50 $5.25 $0.00

Quarry D

Quarry E

Quarry F

So, how is the fair market value of a quarry or mine determined? The remainder of this article will provide guidance beginning with the definition of fair market value.

What is fair market value?

Fair market value is defined as “the most probable price that a property (quarry) should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and the price is not affected by undue stimulus.” The last part of the definition states: “The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted to anyone associated with the sale.”

How is fair market value determined?

There are three primary methods used to determine a mine’s fair market value. They are the asset-based approach, market-based approach, and the income approach. Each will be briefly described, but, in its mergers and acquisitions practice (M&A), Mid-America typically finds that the fair market value estimate determined by means of the income approach has the best correlation to a quarry’s actual sales price.

Asset-based approach: The basis for this methodology is that a business is a bundle of assets. Accordingly, the value of the business is the sum of the current fair market value of the mobile equipment fleet, plant, real estate (typically any owned surface or mineral), stockpiled materials, and goodwill. The structure of the transaction, whether an asset sale or stock transaction, determines how working capital (payables, receivables, cash, etc.) and long-term debt is considered in the calculations. We find that using the asset-based approach to estimate fair market value results in a materially lower value AGGREGATES MANAGER / July 2016

27

MINE MANAGEMENT

than the other two methods, except in those cases where the quarry is not profitable. For smaller family-owned quarries and mines, it seems this is partly due to the fact that the plant and equipment fleet are relatively old and, therefore, have low fair market values.

Market-based approach: This approach is based upon the use of comps to establish fair market value. It is imperative that the selected metric of comparison be appropriate. For example, as illustrated above, using annual sales volume to determine price is not a reliable metric. This is because the use of annual sales volumes does not take into consideration profit margins.

Accordingly, a much more reliable metric considers profits such as Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA).

There are potential inherent problems with the use of this approach. One drawback is that the selected metric is typically applied to historical performance. Obviously, the quarry’s future performance could be similar, better, or worse. Another drawback is the fact that it is based upon the application of multiples derived from other markets which may, or may not be, more dynamic or less competitive. However, we typically find the use of this methodology yields more reliable results than the asset-based approach.

Income approach: It has been our experience that the income-based approach yields the most reliable estimate of fair market value. Most of the larger companies rely most heavily on this methodology.

This approach is based upon a multi-year projection of future sales and financial performance. Historical performance forms the basis of the financial model in that historical sales volumes, sales prices, costs, and profits are considered. Factors that are evaluated include the following: • Sales performance – adjust historical sales volumes and sales prices in light of expected changes in market demand or the competitive environment.

• Reserve characteristics – projected mine life, change in overburden thickness, or rock quality.

• Mine costs – adjust historical mine costs in light of projected changes in labor costs, geologic conditions, or equipment changes.

• Capital requirements – consider replacement of worn equipment or potential increase to annual capacity.

Once the multi-year sales and financial forecast is completed, the resultant cash flow forecast is adjusted by a discount rate. Selection of the appropriate discount rate is a key success factor when employing this approach to valuation.

Perhaps too simplistically, the income approach yields the most reliable fair market value estimate because it is based

28

AGGREGATES MANAGER / July 2016

upon a forecast of future cash flows. Future cash flow is ultimately what a prospective purchaser is buying. You may have heard the saying “cash is king.”

How can fair market value be so different?

The dissimilarities in fair market values result from material variances in one or more of the factors described previously. First, let’s apply these principles towards reconciling the dissimilarities in fair market values between the three 1-million-ton quarries.

Figure 3 illustrates there is a $1.40 per ton difference in cash operating margin between the highest valued (Quarry A) and lowest valued quarry (Quarry C). Further inspection indicates that $1 per ton can be attributed to a higher average sales price. Quarry A’s greater profits account for a little more than 50 percent of the difference in fair market value.

Figure 3: Financial Performance Overview of 1-Million-Ton Quarries Financial Performance ($/Ton) $6.00

$4.50

$3.00

$1.50

$0.00

Quarry A  Avg. Sales Price

Quarry B  Cash Ops Costs

 Cash Margin

Quarry C  EBITDA

The remainder of the difference is attributed to the fact that Financial Performance ($/Ton) higher than future annual sales and profits will be significantly historical levels.

The quarry had just landed a new likely long16. term customer who would increase annual sales volumes by nearly 25 percent without an increase in overhead expenses.

12.

Also, a three-year road project not only was going to increase annual sales volumes, but permit the sale of previously spoiled 8. cap rock.

By contrast, the trend of Quarry C’s annual sales volumes was negative. As a matter of fact, they decreased nearly 20 percent 4. over the subsequent two years.

Similarly, analyzing the dissimilarities in fair market values between the three quarries operating at 600,000 annual tons 0.

Quarry Quarry E Quarry F also illustrates the Dimportance of considering non-financial  Avg. Sales Price  Cash Ops Costs  Cash Margin  EBITDA factors. Considering only the financial performance of Quarry D versus Quarry E one would expect that Quarry E’s fair market value to be twice that of Quarry D as its profit margin is nearly twice that of the other quarry, $3.48 per ton versus $1.78 per

Financial Performance ($/Ton) $6.00

$4.50

$3.00

ton. Figure 4 also illustrates Quarry E has an average sales price that is twice that of the other two quarries, but much of this ad$1.50 vantage is offset due to significantly greater mining costs. Why? Because this quarry produces a high-value product that is both $0.00 Quarryintensive.

A Quarry B Quarry C capital and labor  Avg. Sales Price

 Cash Ops Costs

 Cash Margin

 EBITDA

Figure 4: Financial Performance Overview of 600,000-Ton Quarries

The reason why Quarry E is not valued at twice that of Quarry D is two-fold. Most significantly, Quarry E’s reserves will be depleted in approximately 10 years. A second contributing factor is the fact that there is a new competitor capable of producing the high-value product that will negatively impact the ability to maintain current sales volumes and raise sales prices to meet inflation.

Conclusions The fair market value of a profitable quarry or mine is determined by future cash flow. To the extent that forecast future cash flow is greater, the quarry’s fair market value should be higher. What should be evident is using comps to estimate the fair market value of a quarry or mine based upon their annual sales volume is not a reliable method. Rather, there are numerous factors that need to be considered in developing an estimate of fair market value because value is about the amount of future cash flows. And, always remember, cash is king. AM

Financial Performance ($/Ton) 16.

12.

8.

4.

0.

Quarry D

Quarry E

 Avg. Sales Price

JOIN HCEA TODAY!

 Cash Ops Costs

 Cash Margin

Quarry F  EBITDA

Mike Nowobilski is president of O’Fallon, Ill.-based Mid-American Energy and Mining Services, a company specializing in mergers and acquisitions.

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10/22/15 1:27 PM

EQUIPMENT MANAGEMENT

Investing in the proper design of an overland conveyor system can pay off with low-maintenance operation.

30

AGGREGATES MANAGER / July 2016

A

ggregate producers spend millions of dollars every year maintaining conveyor systems.

Oftentimes, conveyor design does not provide the means for ease of maintenance, and, as a result, maintenance may not be performed correctly, on time, or at all. This eventually leads to a greater risk of component failure and a resulting loss of production.

Designing a conveyor to be maintenance friendly means providing adequate provisions for necessary service from the onset. It also means eliminating problems such as inadequate component spacing, inaccessible positions, and other non-repairable configurations.

Material characteristics When designing a conveyor, the type of material to be conveyed is the first item to be taken into consideration. The flowability of a material affects the size of the cross section of material load that can be carried on a given belt width. Flowability is affected by material characteristics such as: size and shape of the fine particles and lumps, roughness, or smoothness of the material particle surface; the proportion of fines and lumps present; and material moisture content. Considerations should also be given to the weight per cubic foot of material, abrasiveness, and temperature.

Belt width, speed, and capacity

Proper system design reduces operating costs and improves an operator’s ability to properly perform maintenance.

For a given speed and material density, the wider the conveyor belt, the higher the capacity of the conveyor. A belt must be wide enough so that the combination of fines and lumps do not push the lumps too close to the edge of the belt.

Conveyor belt speeds depend upon the material characteristics, the capacity desired, and belt tensions. Heavy material with sharp edges should be conveyed at moderate speeds. The sharp edges will cause wear to the belt, particularly if the loading velocity of the material in the direction of belt travel is lower than the belt speed. Light, powdery materials must also be conveyed at lower speeds to reduce dust particles, especially at loading and discharge points on the conveyor. FragAGGREGATES MANAGER / July 2016

31

EQUIPMENT MANAGEMENT

belt is used in calculating the capacity of a conveyor. The cross section of material must meet the following two conditions: - The material does not extend beyond the belt edge or the distance recommended by the Conveyor Equipment Manufacturers Association, and - The top of the load does not exceed the surcharge angle of loading.

Idler selection

The pile under this conveyor was partially caused by carryback, which stuck to the bottom side of the conveyor belt.

All belt conveyor idlers have the same purpose. They provide shape and support for the belt and minimize the power needed to transport material.

Idler spacing affects both the shape and support of the conveyor belt. Idlers placed too far apart will not properly support the belt or enable it to maintain the desired profile.

Idlers that are placed too close together will provide the necessary support and profile, but may add a prodigal expense to the conveyor. The main influences in idler selection are belt weight, material weight, idler load rating, belt sag, idler life, belt rating, and belt tension.

Proper idler roll diameter and size of bearing and shaft selection is based on load carried, belt speed, and operating conditions.

Pulley and shaft selection

A combination of primary and secondary belt cleaners is used to ensure carryback ejects at the conveyor’s discharge point.

ile materials may degrade at loading and discharge points, as well as when moved over idlers. Therefore, these types of materials should also be conveyed at lower speeds.

As stated previously, belt capaci-

32

AGGREGATES MANAGER / July 2016

ty increases with the increase of belt width. It is important to know the tons per hour of material an end user expects to move with a conveyor. If there is uniform feed to the conveyor, a cross section of the material loaded on the

The standardization of pulleys lends itself to the ease of choosing the correct pulley for a given application. The most commonly used pulley is the standard steel pulley. Plain steel drum pulleys are best used in dry clean environments where traction is not critical and when no foreign material is present on the return belt.

Conveyor pulleys may also be covered with rubber, fabric, or other material. This is referred to as lagging.

Lagging on a drive pulley provides an increase in the friction between the belt and the pulley. Lagging is also used to reduce abrasive wear to the face of the pulley and to create a self-cleaning

The ideal transfer point is designed to load the belt in the center and at a uniform rate.

action on the surface of the pulley.

Wing pulleys are typically used in tail pulley applications to reduce the build up of material between the belt and pulley. Trapped materials fall through the paddle-like formations of the pulley.

Lagged winged pulleys are used in applications with abrasive material present on the return side of the belt. It is natural, under these conditions, for the wing tips to wear prematurely. The rubber lagging will add life to the pulley.

Shafting is commonly considered to be a part of the pulley assembly since the strength and rigidity of the assembly depends on both of these components. When choosing shaft diameter, it is important to consider both the shaft diameter required for strength and shaft diameter required for deflection.

Depending on the pulley assembly, either strength or deflection may be the deciding factor of shaft diameter.

Belt cleaners Carryback is the fugitive material that sticks to the belt after the belt passes over the head pulley and, subsequently, creates fugitive material piles along the underside of the conveyor. Fugitive material is a costly problem, considering that many maintenance hours are spent

cleaning fugitive material piles. In order to correct carryback, a belt cleaner is used. This is usually a form of wiper or scraper device mounted near the discharge (head) pulley.

A common type of belt cleaner is the pre-cleaner. This is often referred to as the primary cleaner and functions by scraping off most of the carryback leaving only a thin layer of fines on the belt. The pre-cleaner is mounted on the face of the head pulley just below the discharge trajectory. This allows the material scraped from the belt to fall with the discharge materials.

Multiple cleaner systems are the preferred method for eliminating carryback. The multiple systems consist of a pre-cleaner and one or more secondary cleaners. In addition to the improvement in belt cleaning, multiple belt cleaner systems increase the time interval between scheduled maintenance times.

Belt cleaners should be positioned as close to the head end as possible.

Secondary cleaners are designed to remove the thin layer of fines left by the pre-cleaner. It’s best to place the secondary cleaner in contact with the belt while it is still against the head pulley.

This enables the cleaner to scrape against a firm surface.

There are several types of belt cleaners available to eliminate carry back. The brush type can be driven by the pulley motion or motorized. This type is effective on dry materials, as the bristles of the brush sweep the belt clean. The disadvantage to brush type cleaners is the potential for build up on the brush’s bristles.

Pneumatic type belt cleaners send a stream of air across the face of the pulley to blow off the carryback materials.

They are best utilized when moving dry materials. The disadvantages of the pneumatic cleaners are the expense of the continual air stream, and the creation of airborne dust, as the carryback is not deposited in the discharge pile.

There are two styles of wash-type cleaners that use water to clean the belt. The first is a system that sprays a misting of water on the belt in order to make the scraping process easier. The second type uses a high-pressure wash to completely remove carryback.

Problems occur with these types of cleaning systems with the removal of the sludge that is created. However, in some cases, the water-material mixture can be returned to the material load. These systems also have the potential for trouble under cold operating conditions.

Return belt cleaner systems, also known as v-plows, are used to prevent large objects and tramp iron on top of the return belt from damaging conveyor components. A low-pressure mechanical scraping is used to remove the material from the belt.

Maintenance is an important part of the life span of any piece of equipment. The harsh operating conditions experienced by aggregate conveyor systems not only increase the need for proper maintenance, but also create a need for design considerations that facilitate proper maintenance. In many cases, proper design considerations may reduce the cost and time involved with conveyor maintenance. AM Article courtesy of Superior Industries.

AGGREGATES MANAGER / July 2016

33

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SUPPLYLINES

by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com

Digging Deep Excavator upgrades target efficient power use and faster cycle times.

NEW

Offers faster cycle times and more fuel efficiency The Case CX350D weighs 82,483 pounds, is powered by a 268-horsepower engine, and offers a bucket digging force of 51,638 pounds, maximum dig depth of 24 feet, and drawbar pull of 61,373 pounds. It is designed to provide improved performance and productivity over its predecessors, including faster cycle times (up to 8 percent faster), increased breakout forces, improved responsiveness and multifunctional control, and greater fuel efficiency (up to 12 percent better). The CX350D comes standard with Case ProCare, which includes a three-year Advanced Case SiteWatch telematics subscription, a three-year/3,000-hour full-machine factory warranty, and a three-year/3,000-hour planned maintenance contract.

Case Construction Equipment | www.casece.com

Said to have most powerful engine in class

NEW

The new Cat 6015B Hydraulic Shovel is said to deliver a productivity advantage over other excavators in its size class thanks to the most powerful engine in its class, a large standard bucket, and payload capacity of 16.0 tons. The design translates to fast cycles and a pass match advantage over leading standard-equipped shovels in its class when loading trucks of 60-, 70-, and 100-ton capacities. The 6015B is equipped with a Cat C27 Acert engine that provides 813 horsepower. The 10.6-cubic-yard standard bucket further boosts production capability.

Caterpillar | www.cat.com

Precise digging capabilities in tough conditions Doosan says the 373-net-horsepower DX490LC-5 Tier 4-compliant crawler excavator has unmatched reliability and durability, making it perfect for quarry applications. With a bucket breakout force of 67,902 foot-pounds, the excavator is said to ensure precise digging capabilities even in the toughest digging conditions. Features include larger bushing in track rollers, thicker sprocket teeth, added reinforcement plates, and increased plate thickness to the excavator’s boom and arm. Four power modes allow the excavator to better balance fuel consumption and machine power to the working conditions, while four work modes maximize efficiency and fuel economy in specific applications.

Doosan | www.doosanequipment.com AGGREGATES MANAGER / July 2016

35

SUPPLYLINES 360-degree operating view display The exclusive All-Around Viewing Monitor system for 360-degree-surround virtual operating view displays on an 8-inch cluster-monitor in the operator’s cab of Hyundai’s HX series, including the mid-sized, 173-horsepower HX220L. The Intelligent Moving Object Detection system warns the operator when objects come within 16.5 feet of the machine.

Hydraulic system improvements include Boom Float mode for grading control, Fine Swing mode for load control, faster cycle times, Intelligent Power Control, and Eco Breaker mode.

The Tier 4 final unit weighs 49,960 pounds and has a max dig depth of 22 feet, 1 inch and bucket-digging force of 32,550 pounds.

Hyundai | www.hceamericas.com

Faster work cycles and greater productivity Equipped with a rugged Final Tier 4 diesel engine, the 870G LC boasts 512 horsepower and a maximum digging depth of 31 feet, 5 inches. The 96ton machine comes equipped with the exclusive John Deere Powerwise III engine management system. It features more hydraulic flow for faster work cycles and greater productivity, as well as a comfortable and spacious cab for improved operator comfort. The production class excavator is said to be easy to service with cab-level machine access and points of contact all around the machine. A five-year subscription of JDLink Ultimate telematics gives 870G owners real-time utilization data and alerts to help maximize productivity and efficiency while minimizing downtime.

John Deere | www.deere.com

NEW

New hydraulic regeneration system increases efficiency Kobelco’s 49,400-pound, Generation 10 SK210 is powered by a 160-horsepower Tier IV Final HINO engine, enabling it to remain fuel efficient while easily tackling heavy-duty applications. The new unit delivers a dynamic digging force of 29,330-foot-pounds to achieve what is said to be leading-class work volume. It boasts a 7-percent increase in work volume per hour, while providing up to a 10-percent increase in fuel economy in S-mode and a further 6-percent increase in ECO-mode. This boost in efficiency comes from a new hydraulic regeneration system, which aids the arm by reusing force generated by the boom, further minimizing energy loss and ensuring outstanding performance.

Kobelco | www.kobelco-usa.com

Boasts intelligent machine controls With an operating weight range of 105,670 to 110,220 pounds, Komatsu America’s PC490LC-11 is said to be an ideal option when there’s a need to move mass quantities of material in short order. It’s a large and versatile performance-oriented excavator equally at home excavating quarry rock or running a breaker. With rated bucket capacities up to 4.15 cubic yards, the PC490LC-11 is a good match to the Komatsu HM300 and HM400 articulated trucks.

Komatsu America | www.komatsuna.com

36

AGGREGATES MANAGER / July 2016

Ready whenever and wherever you are.

Aggregates Manager Magazine makes it easy to keep up-to-date while you are on the go. Get the latest news in the aggregates industry, along with insight from our award-winning editorial team, through our mobile version of AggMan.com.

Test it out for yourself and subscribe at AggMan.com.

Cubee the AggMan helping educate children about the importance of aggregate since 1998 “The Story of Cubee the Aggregate” helps teach children at the youngest ages about the important role aggregate plays in their daily lives. Geared for students in grades K-3, Cubee and his aggregate friends will take children on a magical journey from Cubee’s birthplace in the neighborhood quarry to his new home in the schools, roads and other structures that enrich our communities and our lives.

The “You’re on Rock” Workbook presents basic earth science information while emphasizing the vital role of the industry in our world. An aggregate activity book for junior geologists, mining engineers and earth scientists. Geared for students in grades 4-6.

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SUPPLYLINES

NEW

Performance-enhancing technology boosts productivity Liebherr’s R936 excavators are equipped with integrated, performance-enhancing technology, based on the Positive Control hydraulic system with sensors attached at strategic points on the excavator.

When the operator moves the machine, the intelligent control for the engine and hydraulic system optimizes each movement, facilitating fast, fluid, and precise working movements. The pump circuits can work independently or together, making optimal energy utilization possible. Its operating weight is between 30 and 38 tons, and the engine power is 231 horsepower. The R 936 is said to achieve maximum digging and breakout forces for a significant increase in productivity of up to 13 percent over the previous model.

Liebherr | www.liebherr.com

Features six working modes LiuGong introduces the 925E Series Excavator. The 65,612-pound machine is powered by a Cummins engine and meets Tier 4 Final requirements. The unit has a maximum digging depth of 22 feet, 7 inches. Standard features include six selectable working modes and a multi-functional LCD display with maintenance information that is available in seven languages. Audible alarms provide alerts while safety is also enhanced by a built-in, rear-view camera.

LiuGong | www.liugongna.com

Suitable for a range of hydraulically controlled attachments The TB1140 Series 2 excavator, from Takeuchi, features a pivot boom and standard backfill blade, giving it the functionality of a compact excavator. The hydraulic system, dual auxiliary hydraulic circuits, and proportional auxiliary hydraulic controls are said to make it suitable for a range of hydraulically controlled attachments. With an operating weight of 34,116 pounds, it has a maximum digging depth of 18 feet, dump height of just over 20 feet, and maximum reach of nearly 29 feet. The excavator has a bucket breakout force of over 22,000 foot-pounds. Powered by an Isuzu engine, the 103.3-horsepower unit can travel up to 3.3 miles per hour.

Takeuchi | hwww.takeuchi-us.com

Responsive operation for greater productivity and cycle times The 22-ton Volvo EC220E is powered by a Tier 4 Final Volvo D6 engine. The fully optimized hydraulic system and ECO mode deliver the power required to complete a task, while auto engine shutdown helps reduce fuel consumption and emissions. The increased pump power enables responsive operation for greater productivity and cycle times — and with the boom float function, the pump power normally used for boom lowering can be saved or used for other functions, also reducing cycle times. The new valve controls the boom operation proportionally according to the arm operation while grading. This system also improves lifting controllability while traveling simultaneously.

Volvo Construction Equipment | www.volvoce.com AGGREGATES MANAGER / July 2016

39

by Peter s. Almaas

ROCKLAW

Clarity on Crystalline Silica For a preview of MSHA’s respirable crystalline silica rule, look at OSHA’s final rule.

D

Peter S. Almaas is an associate in the Denver office, practicing in the Occupational Safety and Health Practice Group. He can be reached at 303-390-0178 or palmaas@jacksonkelly.com.

40

ust control can be a major concern on industrial worksites and is particularly relevant to the production of aggregate materials. Airborne dust particles present difficulties that are relevant to equipment maintenance, employee comfort, and, most importantly, employee health. Exposure to crystalline silica is of particular importance. In an effort to reduce employee exposure to silicosis, lung cancer, and other diseases, both the Occupational Safety and Health Administration (OSHA) and the Mine Safety and Health Administration (MSHA) have taken steps to limit employee exposure to crystalline silica. On March 24, 2016, OSHA announced a final rule that revises downward the permissible exposure limit (PEL) for exposure to crystalline silica in the workplace. The expectation is that MSHA’s version to lower exposure limits may soon follow.

MSHA is currently in the process of developing a respirable crystalline silica rule of its own that will establish a new PEL for work activities subject to MSHA regulation.

At the outset of rulemaking, MSHA intended to publish a final rule by October 2015. The timeline for publishing the new rule has suffered significant delays. At an MSHA Stakeholder Meeting held on May 12, 2016, MSHA was reticent to discuss the specifics of its proposed crystalline silica rule. When asked about the rule, MSHA representatives responded that the process to create the rule was underway, but that they could not comment at this time.

AGGREGATES MANAGER / July 2016

Although MSHA would not offer specifics, MSHA did mention that it had “looked at the OSHA Rule.” The National Institute for Occupational Safety and Health (NIOSH) recommends exposure limits of 50 µg/m3 averaged over an eight-hour shift, as selected by OSHA. Factors that indicate that MSHA may tack closely to the new OSHA rule include NIOSH’s endorsement of the new OSHA PEL and that the issues faced by MSHA in seeking to limit employee exposure to respirable crystalline silica are very similar to those faced by OSHA. The newly issued OSHA crystalline silica rule reduces the PEL for respirable crystalline silica to 50 micrograms per cubic meter of air (µg/m3), averaged over an eight-hour shift.

Under the rule, the limit of an employee’s exposure to crystalline silica varies according to the duration of exposure. Employees may be exposed to concentrations of respirable crystalline silica of 200 µg/m3 for a maximum two hours, 100 µg/m3 for a maximum of four hours, and 50 µg/m3 for a maximum of eight hours. This represents a significant reduction from the previous PEL for respirable crystalline silica of 100 µg/m3 averaged over an eight-hour shift for general industry and 250 µg/m3 averaged over an eight-hour shift for construction and shipyards.

To implement the reduced PEL for exposure to respirable crystalline silica, OSHA’s rule establishes several requirements that must be met by employers. Employers must employ engineering controls to limit or eliminate employee exposure to respirable crystal-

ROCKLAW line silica. OSHA has identified four categories of engineering controls to limit exposure: substitution, isolation, ventilation, and dust suppression. These controls can take the form of the use of water to reduce dust propagation and increased ventilation to clear areas of airborne dust, amongst others.

Employers are required to provide employees with respirators in situations where engineering controls are not sufficient to adequately limit exposure. Employers must take steps to limit employee access to areas that have, or have the potential to have, high concentrations of respirable crystalline silica.

Employers must also develop and implement a written exposure control plan that describes the tasks in the workplace that involve exposure to respirable crystalline silica.

The plan must take steps to ensure that the proper engineering controls are identified and implemented, procedures are developed to restrict employee access to high exposure areas, proper personal protective devices are identified and obtained for use in situations where engineering controls are inadequate, and employee training on work operations that result in high respirable crystalline silica exposure is performed and documented. The plan must also describe the housekeeping measures to be used to limit employee exposure.

OSHA’s new crystalline silica rule implements requirements for employers to provide medical exams and monitoring for employees who are exposed to concentrations of respirable crystalline silica in excess of the PEL for 30 or more days per year. Employers must provide a medical exam to employees within 30 days of initial assignment to a task that exposes them to crystalline silica. The exam must be repeated at least every three years.

The OSHA rule takes effect on June 23, 2016, triggering a five-year window during which employers must achieve compliance with the new standard. Construction employers must comply with the new rule by June 23, 2017, one year from the effective date. General industry and maritime employers must comply by June 23, 2018. Employers involved in the hydraulic fracturing industry must comply with all provisions except those related to engineering controls by June 23, 2018. The hydraulic fracturing engineering controls contemplated by the standard must be implemented by June 23, 2021.

We will continue to monitor MSHA’s regulatory activity and provide updates on any crystalline silica exposure rulemaking from MSHA. AM

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081-178 Equip World 4.5x4.5.indd 1 Untitled-7 1

41

AGGREGATES MANAGER / July 2016 2016-06-01 2:18 PM 6/6/16 2:14 PM

ADINDEX July 2016

Advertiser

Web

Aggregates Manager Atlas Data/CD Products

www.aggmanatlas.com

10

Aggregates Manager Community Outreach

www.aggman.com/community-outreach

38

Atlas Copco Construction Mining Technology

www.atlascopco.us

Bill Langer - Research Geologist

www.researchgeologist.com

43

C.L. Dews & Sons Foundry

www.dewsfoundry.com

43

Conexpo-Con/Agg 2017

www.conexpoconagg.com

20

Elrus Aggregate System

www.elrus.com

Great American Truck Show

www.gatsonline.com

13

Hammond Air Conditioning, Ltd

www.hammondac.com

41

HCEA

www.hcea.net

29

John Deere Construction Equipment

www.johndeere.com/big

IFC

Kespry, Inc.

www.kespry.com/aggregates

Kruse Integration

www.kruseintegration.com

Minexpo 2016 International

www.minexpo.com

NSSGA Legislative

www.nssga.org

25

Pugmill Systems, Inc.

www.pugmillsystems.com

43

Stedman Machine Co.

www.stedman-machine.com/save

43

Sweet Manufacturing

www.sweetmfg.com

43

Vermeer

www.vermeer.com

Volvo Construction Equipment

www.volvoce.com/exfactor

This index is provided as a service. The publisher does not assume any liability for errors or omissions.

42

AGGREGATES MANAGER / July 2016

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STICHWEH DEWATERING BUCKET WHEELS RECOVERS SAND

Experience: Retired November 2011 following 41 years with the U.S. Geological Survey • USGS Aggregate Resource Geologist 1977-2011 • Past Chair and Distinguished Service Award recipient, Society for Mining, Metallurgy, and Exploration, Industrial Minerals and Aggregates Division • Author of ASBPE award-winning columns - Carved In Stone, Aggregates Manager, 1998-Present

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Services Offered: Applied geology and geological research for construction rocks and minerals, with an emphasis on aggregates.

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Call: 855-766-9233

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AGGREGATES MANAGER / July 2016

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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

Kartchner Caverns:

A World-Class Geologic Wonder Speleotherms, such as stalactites and stalagmites, continue to grow in this living cave.

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Photo copyright Arizona State Parks.

y wife, Pam; grandkids, Donovan and Delaney; and I spent spring break camping in southern Arizona around Tucson. The highlight of the trip was our visit to a world-class geologic wonder Kartchner Caverns State Park.

The obvious draw to the park is Kartchner Caverns and its intricate formations, called “speleothems.” Kartchner Caverns is considered a “living cave” because its speleotherms are still growing, and new speleotherms continue to be formed.

Rainwater, combined with carbon dioxide from the atmosphere and decaying vegetation, forms carbonic acid that percolates through fractures in the surrounding limestone. The acid dissolves rock, creating openings. Over geologic time, these openings enlarged, forming Kartchner Caverns with its ceilings and floors ornamented with speleotherms, such as stalactites hanging from the ceiling (where they hang on tight) and stalagmites on the floor (where you might trip on them).

There are two 90-minute guided tours through the caverns. The Throne-Rotunda tour has grand vistas overlooking the cave formations. The tour through the Big Room offers visitors an up-close look at the formations. We went on both tours; both were fantastic.

We saw one the world’s largest soda straws (in the Throne Room), bacon, ‘turnip’ shields (Big Room), totems, waterfalls, columns, helictites, fried eggs, cave coral, popcorn, draperies, ‘birds nest’ needle quartz formations (Big Room), strawberry flowstone, and the world’s most extensive formation of brushite moonmilk (Big Room).

Kubla Kahn is a 58-foot tall column. Notice person The shape of a speleotherm depends on whether the water is seeping, dripfor scale. ping, or flowing and whether the water is under pressure or not. Seeping water forms shields. Fast dripping water forms stalagmites. Slowly dripping water forms stalactites and soda straws. Water flowing along fractures forms waterfalls or flowstones. Water under pressure forms helictites, which are stalactities that defy gravity by branching out in various directions.

Calcite that forms speleotherms is naturally white. However, it can be colored by other minerals in the water – red from iron oxide (rust), blue or black from manganese, and brown or tan from organic matter.

The speleotherms were formed over the past 200,000 years; many have been continuously growing for tens of thousands of years. A soda straw, for example, grows just 1/64th of an inch in a year, and a cubic inch of calcite takes a century to form.

In addition to a place of beauty, the Big Room is a cave bat maternity ward. There is black grime on the ceiling where the bats hang and piles of guano line the floor. There even is a bat’s body entombed in one of the cave’s formations.

Bats do not occupy the Throne Room. When the guide asked if anyone knew why, Delaney (11 years old) popped up, “Because they don’t have food.”

“Right!” a somewhat surprised guide replied.

When I asked Delaney how she knew the answer she said, “It’s common knowledge. You need food, water, and shelter to live.

There is plenty of water, and the cave provides shelter, so the only thing missing is food.”

Common knowledge, indeed.

Kartchner Caverns is one of the top 10 living caves in the world and was voted the best cave in America (2016 USA Today 10 Best Readers’ Choice Awards). But the geology is only half the story. How the caverns were discovered and developed is a story in itself. More about that next month.

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AGGREGATES MANAGER / July 2016

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To learn more visit: www.elrus.com, email: info@elrus.com or call 888-535-7877

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