The inside scoop on industry news, views, and products
The inside scoop on industry news, views, and products
Vol. 3, No. 8
Cemex SA, the world’s third-largest cement producer, agreed to buy Rinker Group Ltd. after raising its offer 22 percent to $14.2 billion to add sales in the three fastest-growing U.S. states. Directors accepted an offer of $15.85 in cash per share, 5 percent more than the previous closing price, Sydney-based Rinker said in an April 10 statement. The takeover by Monterrey, Mexico-based Cemex is the largest in the global building materials industry. The acquisition will boost Cemex’s annual sales by 32 percent to $24 billion and add production in Florida, Arizona, and Nevada. Rinker opposed the initial offer, made after shares in the Australian company tumbled 36 percent amid a slump in U.S. homebuilding. John Sevior, head of equities at Sydney-based Perpetual Investments, which owns a stake large enough to block the bid and rejected the initial offer, didn’t immediately return a telephone call seeking comment. Rinker Chairman John Morschel said he hasn’t spoken to Perpetual yet. About 60 percent of the company’s investors are based in Australia. Australian Dollar Cemex’s initial $13-a-share offer, made in U.S. dollars, had declined in value for Australian shareholders as the Australian dollar gained. The currency reached a 17-year high 82.27 U.S. cents, up 7 percent since the first bid was announced. The Mexican company will give shareholders the option to receive a fixed Australian dollar price of A$19.50 a share for their first 2,000 shares. Cemex said it won’t increase its offer in the absence of a rival bid. The agreement ends a five-month takeover battle after Rinker rejected the initial offer as too low. Investors held out for a higher bid, arguing the U.S. housing slump is temporary and Rinker is well placed to benefit because of its position in the growth states. No Alternative “We couldn’t find an alternative to this bid” with comparable returns, Morschel told reporters in Sydney today. “The impact of the downturn this financial year is difficult to predict.” U.S. new-home sales fell to the lowest in almost seven years in February, according to the Commerce Department. Rinker gets more than 80 percent of its sales in the U.S., mostly from Florida, Arizona, and Nevada, the three states forecast by the government to have the fastest population growth in the next 25 years. The takeover values Rinker at $15.3 billion, including debt, and will be Cemex CEO Lorenzo Zambrano’s largest since he began acquiring companies two decades ago. Cemex two years ago paid $5.8 billion in cash and debt for the U.K.’s RMC Group Plc in March 2005. Cemex moved quickly to stitch up the deal after winning U.S. regulatory approval on April 5, the last business day before the four-day Easter holiday in Australia. Under a settlement with the Justice Department, Cemex will sell 32 ready-mix concrete and concrete block plants in Florida and seven ready-mix concrete and gravel facilities in Arizona to preserve price competition in the two states. The assets are valued at $300 million to $500 million, according to Goldman Sachs JBWere. The takeover already has regulatory and government approval in Australia. Cemex extended its offer until May 18. UBS AG is advising Rinker. Cemex is being advised by Citigroup Inc. and JPMorgan Chase & Co. (Source: Aggregate Research Industries, April 10, 2007)
Rinker’s third-largest shareholder, Australian Foundation Investment Co., has rejected outright Mexican predator Cemex’s sweetened $US15.85 ($19.41) a share takeover offer for the building materials company. AFIC which holds 6.5 million Rinker shares, would like to see the hostile $18.7 billion takeover bid fail. AFIC would also be encouraging other major stakeholders to rebuff Cemex’s revised offer. AFIC’s rejection of Cemex’s higher offer comes as Rinker’s biggest investor, Perpetual Investment, may use its 10.5 per cent stake to block the biggest takeover deal in Australian corporate history. Perpetual’s fund manager John Sevior refused to disclose whether the sweetened $US15.85 offer was attractive enough for Perpetual to cross the line. Cemex’s revised bid, which is 22 percent higher than its initial offer, has been unanimously recommended by Rinker’s board, but is conditional on 90 percent acceptance. Rinker’s number four shareholder, Argo Investments, is also in no hurry to accept the revised offer. (Source: The Australian online edition, news.com.au, By Teresa Ooi.)
It has been a big year for Vulcan Materials Co. — a blockbuster acquisition, construction of a new oceangoing freighter, and shares that have risen 36 percent in the past 12 months. For those reasons and more, Vulcan Chief Executive Don James was voted The Birmingham News CEO of the Year by a panel that included investment professionals, financial journalists, and university business professors. Last year, James finished second in the balloting. His accomplishments in the past year include the largest acquisition in Vulcan’s 50-year history as a publicly traded company, the $4.6 billion purchase in February of Florida Rock Industries. James has been Vulcan’s CEO since 1997, after a short stint in other roles and a long career as the company’s outside lawyer at the Bradley Arant Rose & White law firm. He was chosen for the job because he understands Vulcan’s simple business: Mine rock, crush it, and sell it to paving contractors. “We are kind of a boring company,” James said. “If this had been a glamorous company, they probably never would have hired me.’” Major acquisition The company did take center stage after the Florida Rock acquisition. James said Vulcan’s founding family and Florida Rock’s founding family briefly discussed combining back in the 1950s. Even though it took 50 years, Vulcan added billions of tons to its rock reserves, and valuable markets in fast-growing Florida. That’s important because crushed rock doesn’t travel well; quarry operators want to mine, crush and sell in the same vicinity, James said. James, a native of Russellville, graduated from the University of Alabama with a bachelor’s and master’s degrees. He finished law school at the University of Virginia in 1977, when he started at Bradley Arant. He was Army ROTC commander at Alabama, and served from 1972 through 1974 as a first lieutenant and aide-de-camp to the commanding general of thhe U.S. Army Finance Center. James, who is fond of ranching and other rural pursuits at his weekend spread in Russell County, is also in the maritime business. Vulcan owns two oceangoing freighters that ply the Gulf of Mexico between the company’s quarry on Mexico’s Yucatan Peninsula and nearby U.S. states such as Florida and Texas that snap up as much mined rock as the big ships can unload. The business mining Mexican rock and selling it in the Southeast is so good, Vulcan is building another ship. Like the others, it is specially designed to load and unload crushed rock as fast as possible. The waiting-around-time is what makes shipping costly, James said. So he prefers Vulcan operate its own state-of-the art ships, which can handle 65,000 tons of rock per load, as opposed to hiring the work out to shipping contractors who are aren’t so specialized. “There is a big cost saving for us to do it ourselves,” James said. The third ship is under construction in China. Vulcan will take the keys sometime this year. The vessel will be named the “H.A. Sklenar,” after former Vulcan CEO Herb Sklenar. The ship will cost about $60 million, James said. (Source: The Birmingham News. By Russell Hubbard) ONTARIO, Canada—Opponents of the province’s plan to allow Lafarge to burn tires at its Bath cement plant will be able to appeal the government’s controversial decision at an independent hearing. Late on April 4, Ontario’s Environmental Review Tribunal, an impartial agency, released a critical report on the government’s decision and ordered a hearing to determine whether the plan should be stopped. “The Tribunal finds that the kinds of contaminants to be emitted from the Lafarge kiln from the use of both traditional and waste-derived fuels are potentially hazardous to the environment and human health,” states the 35-page report. Opponents of the burning plan, among them several high-profile environmental groups, citizens groups and local residents, are thrilled with the decision because it will give them a long-awaited opportunity to have their case heard. Rick Lindgren, a lawyer with the Canadian Environmental Law Association, which represents Lake Ontario Waterkeeper and Tragically Hip lead singer Gord Downie, said it’s promising to see an independent agency come out on side with those who’ve had concerns about the project since the proposal was first made public nearly four years ago. Lindgren also sees the tribunal’s
decision as a significant legal victory that will likely help others
who want to oppose similar decisions. They were outraged when, just a couple of days before Christmas, the ministry of the environment said it would allow Lafarge to burn tires at the waterfront plant, while at the same time implementing a ban on burning tires in the rest of the province. Following the tribunal’s decision, Lafarge remains committed to its project. Company officials view the hearing as an opportunity to demonstrate the merits of burning waste-derived fuel at its cement kiln. He said company officials will be reviewing the tribunal’s decision during the next few days to determine the next steps. A hearing by the Environmental Review Tribunal will give both opponents and Lafarge an opportunity to present their side before an independent panel of experts, after which the tribunal will render a decision. In Ontario, residents have to request the right to appeal environmental decisions. Yesterday’s [April 4] decision gives opponents of the Lafarge tire-burning plan the right to do that. Mark Mattson of Lake Ontario Waterkeeper said there is a high test for residents to pass in order to prove they should have the right to appeal these decisions. “Now we can actually appeal them because before we were appealing to be able to appeal them,” he said. In addition to Lake Ontario Waterkeeper and Gord Downie, other applicants given an opportunity to present their case at a hearing include Susan Quinton on behalf of citizen’s group Clean Air Bath; Martin Hauschild and William Kelley Hineman of the Loyalist Environmental Coalition; and other members of the Tragically Hip: Gordon Sinclair, Rob Baker, Paul Langlois and John Fay. Some local citizens who had requested a leave to appeal weren’t given standing, but may still be permitted to participate in a hearing. Te groups that were given standing
yesterday [April 4] have 15 days to file their notice of appeal in
preparation of the hearing. (Source: The Whig-Standard, April 5, 2007. By Jennifer Pritchett, Whig-Standard Staff Writer. Pritchett may be reached at jpritchett@thewhig.com.)
Legislation could give state control over limestone rock mining Florida lawmakers are considering legislation that could limit or prevent local governments from regulating limestone rock mining. The Senate bill would require local boards to address how land use or permit decisions on mining proposals would impact rock supply for the local area, region or the state. A House version would block counties or municipalities from enacting any rule that prevents operation or construction of quarries on land zoned for mining. Both bills would create a task force to study the issue. The bills come on the heels of a Florida Department of Transportation study that predicted road and construction demands will outstrip rock supplies in five to 10 years. (Source: Aggregate Research Industries, April 9, 2007) U.S. Concrete announces joint venture with Edw C. Levy HOUSTON, Texas –U.S. Concrete, Inc. announced on April 4 the formation of a joint venture with the Edw. C. Levy Co. that will create the largest ready-mixed concrete producer in the state of Michigan. The transaction is expected to close effective April 1, pending the satisfaction of customary closing conditions. U.S. Concrete will contribute its ready-mixed concrete and related concrete products assets in Michigan to the joint venture in exchange for a 60 percent ownership interest, while the Edw. C. Levy Co. will contribute all of its ready-mixed concrete and related concrete products assets for a 40 percent ownership interest. The joint venture, which will operate under our trade name Superior Materials, will consist of 28 ready-mixed concrete plants, a 24,000-ton cement terminal and approximately 300 ready-mixed concrete trucks. Combined revenues for the joint venture on a pro forma basis were approximately $109 million for 2006, on ready-mixed concrete volume of approximately 1.4 million cubic yards.The Edw. C. Levy Co. is one of the largest aggregates producers in Michigan. The joint venture will enter into a long-term aggregates supply agreement with the Edw. C. Levy Co., which will provide the joint venture with aggregates from multiple Levy locations. For financial reporting purposes, U.S. Concrete is expected to consolidate the joint venture. The Company expects results from operations from the joint venture to be slightly accretive to its 2007 forecasted earnings per share. The joint venture will also establish its own credit facility apart from U.S. Concrete’s current revolving credit facility for working capital needs and general corporate purposes. U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and concrete-related products; and western pre-cast concrete. Excluding the ready-mix concrete assets to be contributed to the joint venture by the Edw. C. Levy Co., the company has 138 fixed and seven portable ready-mixed concrete plants, 10 pre-cast concrete plants, three concrete block plants, and eight aggregates facilities. During 2006, these facilities produced approximately 8.7 million cubic yards of ready-mixed concrete, 4.0 million eight-inch equivalent block units, and 4.6 million tons of aggregates. USGS to conduct National Mineral Resource Assessment The U.S. Geological Survey (USGS) Mineral Resource Program will conduct a new National Mineral Resource Assessment (MRA) beginning in 2010. In order to best meet the needs of a diverse audience, it is soliciting input on improvements to the final product to best serve stakeholder needs. The last USGS National MRA was completed in 1995. USGS seeks input to define the commodities of interest and importance, the formats of the reports and data, and any other input in designing the assessment and reports generated. To view an abstract, go to http://pubs.usgs.gov/info/assessment/assessment.pdf (abstract). To view the complete report, go to http://pubs.usgs.gov/of/2002/of02-198/. MSHA announces fatality at Oglebay Norton Ohio operation A 44 year-old tramway maintenance man with 26 years mining experience was killed on March 23 at the Oglebay Norton Industrial Sands, Inc. – Glass Rock Plant industrial sand operation in Ohio. A maintenance crew was adjusting a cable for an aerial tram. A tension jack was being used to tighten the cable when the cable anchorage point failed. The victim was in a man basket, looking down the cable line, and was struck by the tension jack or cable. A co-worker was also injured. (Source: Mine Safety and Health Administration) Legislative group develops model silica, asbestos legislation The American Legislative Exchange Council (ALEC) has developed model state legislation to reduce the number of unimpaired asbestos and silica claims in order to preserve money for sick claimants, and to deal rationally with successor liability.To read more background on the Asbestos and Silica Claims Priorities Act and the Successor Asbestos-Related Liability Fairness Act, go to http://alec.org/fileadmin/newPDF/12988_Factor_feb07.pdf. (Source: Industrial Minerals Association of North America, IMA-NA) Dredge operator killed in Louisiana is fifth fatality this year On March 30, 2007, a 34 year-old dredge operator with 16 years of mining experience, was killed at Martin Marietta Materials Inc’s. Plant No. 5 dredge operation in Louisiana. This was the fifth fatality in construction sand and gravel this year, according to a Mine Safety and Health Administration (MSHA) report. The victim was correcting a problem with the deck mounted suction winch when he fell from the dredge. He was found floating in water behind the dredge. There were no eyewitnesses to the accident. MSHA offers the following advice to protect against future death:
This is the fifth fatality reported in calendar year 2007 in the metal and nonmetal mining industries. As of this date in 2006, there were three fatalities reported in these industries. This is the second other fatality in 2007. There were no other fatalities in the same period in 2006. (Source: Mine Safety and Health Administration) MSHA levies $1.5 million fine against Aracoma mine operator; possible criminal charges The Mine Safety and Health Administration (MSHA) on March 29 announced that it has fined the operator of the Aracoma Alma Mine No. 1 in Logan County, W.Va., where two miners perished in a fire on Jan. 19, 2006, $1.5 million for contributory safety violations. The fine is the largest ever assessed by MSHA in a coal mine accident. MSHA’s investigation team determined that 25 violations of mandatory health and safety laws contributed to the accident. “The number and severity of safety violations at the mine at the time of the fire demonstrated reckless disregard for safety, warranting the highest fine MSHA has levied for a fatal coal mining accident,” said Richard E. Stickler, assistant secretary of labor for mine safety and health, in a press release from MSHA. “MSHA has referred this case to the U.S. Attorney’s Office for possible criminal charges.” Stickler added: “We at MSHA extend our thoughts and prayers to the families for their losses, and we thank them for their patience as we worked to complete our investigation. We appreciate the cooperative working relationship we have had with the West Virginia Office of Miners’ Health, Safety and Training and the West Virginia Governor’s Office, as represented by Davitt McAteer.” MSHA referred this case to the U.S. Attorney’s Office for possible criminal charges in March 2006. To view MSHA’s investigation report, go to www.msha.gov/Fatals/2006/Aracoma/aracomareport.asp.
Rinker acquires JR & Sons Ready Mix ST. GEORGE, Utah—Rinker Materials has announced its acquisition of JR & Sons Ready Mix in St. George, Utah. The acquisition includes four concrete plants, a quarry and other aggregates assets and enables Rinker to enter a new market in one of the fastest-growing regions of Utah — the southwest corner of the state along Interstate 15. JR & Sons’ largest aggregate operation and concrete plant is located on-site to service Suncor’s 5,800-lot Coral Canyon master-planned residential development at St. George. The other concrete and aggregate operations are in smaller markets nearby. The business will continue to be managed by members of the Robinson family, the previous owners. Rinker CEO David Clarke said the JR & Sons acquisition will be a “bolt-on” to the group’s existing Las Vegas operations. “This will strengthen our aggregates and downstream positions in one of the fastest-growing regions of the United States,” he said. Rinker Materials is the U.S. subsidiary of Rinker Group Limited, Sydney, Australia. (Source: Aggregate Research Industries, April 9, 2007) National Lime & Stone purchases assets of Delphos Co. FINDLAY, Ohio—The National Lime and Stone Co. purchased certain assets of the Suever Stone Co. on April 4, according to a report from the company. Suever Stone Co. is headquartered in Delphos, Ohio. National has purchased quarries in Delphos and Landeck, Ohio; an asphalt plant in Landeck; asphalt paving equipment; and the Suever trucking operation. Neal Lause, president of Suever, will continue to own and operate the Suever Concrete, Inc. Terms of the transaction were not disclosed. Palmer said the assets acquired from Suever will be managed by National’s Western Region Business Group in Lima. The purchase of the Suever assets was the second acquisition for National announced this year. In January, National acquired the sand and gravel assets of J. P. Sand & Gravel Co. based in Columbus, Ohio. National is the 14th-largest producer of crushed stone in the nation and is one of the largest suppliers of construction aggregates in Ohio. It is one of the largest independent companies in the industry and now has 13 quarries in Ohio. Titan America acquires Kentucky’s Cumberland Quarry Titan America LLC has completed its acquisition of the Cumberland Quarry, which produces limestone aggregates in Salem, Ky., from Cumberland River Resources LLC and Jim Smith Contracting LLC, according to a March 30 press release from the company. The operating quarry has more than a billion tons of reserves on the Cumberland River and barges aggregates to various locations along the Mississippi River, including the New Orleans and neighboring markets. Titan America is a heavy-building materials producer in the eastern United States with cement, aggregates, concrete, and fly ash operations and is headquartered in Norfolk, Va. Its parent, Titan Cement Co., S.A. is headquartered in Athens, Greece. (Source: Titan America) Trinity Industries acquires Armor Materials Dallas-based Trinity Industries announced that its subsidiary, Transit Mix Concrete & Materials Co., has acquired a combined group of East Texas asphalt, ready-mix concrete and aggregates businesses operating under the name Armor Materials. The businesses were owned by a common group of individuals and companies. The acquisition was made for cash and the purchase price was not disclosed. Revenues for the acquired businesses are estimated to be approximately $55 million per year. (Source: Construction & Maintenance News) CRH subsidiary acquires five asphalt plants in Ohio IRELAND—CRH plc subsidiary, Shelly Holding Co. announced on April 3 that it acquired five asphalt plants in Northeast Ohio from Akron, Ohio-based Kenmore Asphalt Products. Term of the acquisition have not been disclosed, but Tom Nolan, Shelly materials sales manager, said the company is interviewing employees at the plants to decide which employees it would retain. He said he did not have a figure for how many employees previously worked at the plants. The additional plants join eight other asphalt plants that Shelly operates in Northeast Ohio and more than 50 it operates in the state. (Source: Aggregate Research Industries, April 3, 2007)
Megatrends A Fine Cause
by Rick Zettler It’s an age-old industry problem. Some would call the issue an albatross in the aggregate business. The crushing process generates stockpile upon stockpile, ton upon ton of fine material. “I’d estimate 25 percent of our crushed limestone is what we consider fines (3/8-inch minus),” says Steve Powell, president and general manager of Lee Crawford Quarry, Inc. The bottom line is the amount fines currently available by far outweigh the markets where fines can be sold. And some of the traditional markets — such as aglime for producers crushing limestone — have been declining in portions of the United States. “Our aglime market is about one-third of the size it was 10 years ago,” Powell points out. “Farmers are spending their money in other ways, and now it is just as profitable for us to sell fines as fill material.”
The industry is at a critical juncture in the push to find new markets for fine materials. The U. S. Geological Survey (USGS) estimates the amount of crushed stone produced in the next 25 years will total slightly more than the quantity produced during the last century. In some markets, however, the only aggregate reserves available are from deposits with large percentages of fines. So, producers can find themselves mining low-yield materials and handling larger than desired amounts of fine materials. “It’s a perpetual problem,” says Steve Lenker, vice president of operations for the National Stone, Sand & Gravel Association. “The reserves available may require producers to work with lower-yield quarries that result in higher fines content.” Black and white For producers with customers making asphalt and/or concrete mixes, the problem isn’t as critical. Both asphalt and concrete require a certain percentage of fine material to fill the voids. However, the trick is to have the proper gradation of fines, which often requires additional processing equipment. This results in additional expenses for quarries, but the increase in product sales potential can be worth the investment. Le Grand, Iowa-based producer, Cessford Construction Co., made the investment in washing and classifying equipment to make manufactured sand. “If you are recovering more than 50 percent, you are doing good,” says Ted Huisman, quality control manager at Cessford Construction Co. “The sand we produce works well in our higher EASL (Equivalent Single-Axle Loading) mixes to increase asphalt durability.” More opportunities for fines may be available in the asphalt industry. Paradoxically, David Newcomb, vice president of research and technology for the National Asphalt Pavement Association, says the rise in asphalt oil prices has led to the resurgence of more fine-grade mixes. Increasing the fines content in mix designs requires more oil to coat the aggregate, since there is more surface area to cover. Therefore, logic would dictate that using mixes with fewer fines would be on the rise. However, this is not the case when it comes to thin overlays using fine aggregates. “Thin overlays in the 3/4- to 1-inch range use less overall oil per lane mile because of the thickness of the overlay,” Newcomb says. National Center for Asphalt Technology studies have shown no increase in rutting problems with these fine-grade mixes if the overlay is not paved too thick. Newcomb also mentions that the industry is seeing more 4.75-mm Superpave mixes being applied. Some fine-graded stone matrix asphalt (SMA) mixes developed in Europe that are designed for rut resistance and noise reduction are also beginning to make their way into some U.S. markets. Microfines When it comes to microfines in manufactured sands, the tough nut to crack has always been the American Society for Testing and Materials (ASTM) C33 specification for concrete. This spec allows a maximum of 10 percent passing the No. 100 sieve and less than 7 percent passing the No. 200 sieve. There is also an abrasion concrete specification that reduces the percent passing the No. 200 sieve to less than 5 percent. The problem with this bottom number is, depending on the aggregate source, “approximately 7 to 20 percent would typically pass the No. 200 sieve from the crushing process,” says Dr. David Fowler, Ph. D., P.E., for the International Center for Aggregate Research (ICAR). To meet current ASTM C33 specs, a producer will typically purchase additional processing equipment to remove the excessive fines. This may be an unnecessary step, as other industrialized countries allow for a much higher percentage of No. 200 fines in their concrete mixes. For instance, in Australia, this bottom number is 10 percent for normal mixes but can be as much as 25 percent in certain circumstances. France allows from 12 to 18 percent of minus 200 fines, while Europe and the United Kingdom allow 16 percent. A primary ICAR objective since its formation in 1992 has been to study and promote high-fines concrete, especially those using manufactured sands. Throughout the years, Fowler has found that the use of manufactured sands comes down to economics. “The key to using more manufactured sand is to find an area where there is not an abundance of natural sand,” Fowler says. “The Dallas-Fort Worth area has only one good source of natural sand, so the Texas Department of Transportation is trying to use manufactured sand in concrete.” ICAR has conducted extensive research for the use of manufactured microfines, up to 17 percent, in concrete with promising results. ICAR 102 study, “Uses of Microfines in Portland Cement Concrete,” was conducted to determine the affects of higher amounts of crusher fines on fresh and hardened concrete properties. The study looked at seven different types of aggregate, representing 94 percent of the crushed stone produced in the United States. The amount of fines passing the No. 200 sieve ranged from 7.4 to 16.7 percent. Some of the study’s findings concluded that, compared to concrete made from natural sand, high-fines concrete generally had higher flexural strength, improved abrasion resistance, and higher unit weight and lower permeability due to filling the pours with microfines. These findings have been presented to the ASTM C33 Committee, but, to date, no action has been taken by the committee to allow for the increased percentage of fines in concrete. Undaunted by the lack of action, ICAR is currently working with the Texas Department of Transportation on an implementation project that will involve three different paving projects using varying degrees of microfines. Tentative plans on each project call for one test section of concrete to include 5 to 6 percent microfine content, a second section to have 10 to 12 percent microfines, and a third section to have a concrete mix with 15 to 17 percent passing the No. 200 sieve. “Once a few DOTs start using high-fines concrete successfully, there will be a domino effect with other states,” Fowler says. Niche markets What about aggregate operations that do not sell fines to concrete or asphalt producers? They have to be creative in finding different markets for their fine materials. Cedar Rapids, Iowa-based producer, Lee Crawford Quarry, Inc., processes about 500,000 tons of spec products annually. The producer’s horizontal shaft impact crushing circuit generates approximately 25 percent of the material passing the 3/8-inch sieve, so the company has plenty of fines for sale. However, the quarry has no concrete or asphalt customers. One unique advantage this producer has is its location. Cedar Rapids is home to several large agricultural processors including Archer Daniels Midland (ADM), General Mills, Quaker Oats, and Cargill. Some of these processors burn coal for fuel, and Crawford’s limestone product is in demand for emissions reduction. Crawford has an agreement with ADM to supply material passing the No. 4 sieve to help the agricultural processor meet environmental regulations. “Limestone is blended with the coal, and the calcium carbonate removes sulfur emissions from the stacks,” Powell explains. The amount of limestone sold to ADM depends on a couple of factors, including the number of boilers operating and the coal’s source. “Low BTU/sulfur coal from the Powder River Basin will require less limestone than some of the higher BTU/sulfur coal from Illinois deposits,” he adds. As an added bonus, Crawford then takes back the burned fly-ash material and uses it for the quarry’s remediation efforts. Successful experimentation Whether selling fines to niche markets or to concrete and asphalt producers, quarries should not shy away from experimentation to develop new fines markets. For Cessford Construction, the experiment began by making some modifications and updates to its existing washing and classifying equipment, so the company could produce manufactured sand full time. “In the past, we purchased sand for our asphalt operations, but we also had a growing stockpile of fines at our Le Grand quarry,” Huisman explains. “Because those stockpiles weren’t going away, we decided to strictly use our own manufactured sand.” Huisman says that making sand for the asphalt mixes was just the beginning. After developing strategic marketing plans and conducting economic studies, doors have opened to other markets. “Producers cannot be afraid to think outside the box,” he adds. “Our new ideas have led us to markets such as cast flagstone, faux stone, and other landscaping concrete opportunities.” There is no doubt that finding markets for fines has been and will continue to be a topic at the forefront of industry discussion. However, with dwindling natural sand resources, new industry tools, and increasing technology, finding markets for this material is getting easier for those who aren’t afraid to experiment. With a little ingenuity, producers can turn that fines stockpile “albatross” into a financial windfall.
Two new utility-class hoes
Both machines are powered by a 164-horsepower diesel and are said to be heavier, stronger, faster and quieter than their predecessors, while also being more fuel efficient. The ZX200LC-3 has three new performance modes: economy, performance, and high performance; in E mode, it can get 13 percent better fuel efficiency than its dash-2 predecessor. The undercarriage, X-beam, side frames, idler brackets and front attachment have all been made stronger to improve durability. The unit has more horsepower, swing torque, and drawbar pull, and it carries 10.6 gallons more fuel and hydraulic oil. Engine oil requirements have been reduced by one-half gallon. Also new with the dash-3 models is a larger cab with a wider seatback, more legroom and 47 percent more glass on the right side for better visibility. The “Ultrashort” ZX225US LC-3 is a performance match to the ZX200LC-3, but with a swing radius that is shorter by 3 feet 6 inches and more weight. Super compact trommel
New fabrication techniques play a significant role in the unit’s compactness. The use of folded steel plate in the chassis in place of traditional welded construction gave engineers more strength and flexibility for their internal configuration of the trommel, according to McCloskey. The new crawler undercarriage also contributes; it can hydraulically raise and lower itself 36 inches in elevation, helping to increase its angle of departure for easier loading onto trailers and for dealing with difficult terrain. With the tracks retracted, the unit has a 10-foot, 10-inch overall height for easy transport on a trailer or for being loaded by smaller machines such as skid-steer loaders.
ASGCO Manufacturing has rolled out a line of modular impact beds that protect conveyor belts and help control spillage in the conveyor-loading zone. The beds come in 18-inch long units and in widths to match conveyor belts; they are closely fitted to form the bed length needed. The company says its impact bars allow the tightest segment fit in the industry, eliminating materials from getting caught between bars.
Cyclonaire Corp., a manufacturer of pneumatic conveying systems and controls for handling bulk materials, is building an addition to its York plant to accommodate increased demand for its product lines. Company executives participated in a groundbreaking ceremony on March 16 to signal the start of work on a 14,000 square-foot addition. The new construction will provide added capacity for production and assembly, as well as a paint facility. It will also facilitate the handling of larger conveying vessels. When complete, the expansion will bring Cyclonaire’s York operation to 57,000 square feet. This is Cyclonaire’s second addition this year, following completion of a 5,000 square-foot storage building in January for its research and development laboratory. Cyclonaire manufactures single components and complete systems for dilute, semi-dense, and dense phase applications. It makes vacuum, pressure, and vacuum/pressure systems, individual conveyors, and related equipment to create conveying solutions for virtually all pneumatically transportable materials. The company pioneered the invention of semi-dense phase conveying systems and has developed this technology for a broad array of materials and applications. Services range from concept engineering and project management to start-up supervision. Birmingham, Ala.-based Vulcan Materials Co. has named Akron, Ohio-based Goodyear Engineered Products as one of its top suppliers. More than 170 plant managers at Vulcan Materials facilities evaluated suppliers based on products, services, technical support, value propositions and ease of conducting business. Goodyear’s conveyor belt business garnered one of the highest scores and captured Vulcan’s 2006 Gold Supplier Award. Kenworth Truck Co. announced that it will extend a successful rebate program with Landstar System, Inc. through 2007. The program offers a $1,000 rebate on qualifying purchases of new Kenworth sleeper trucks to independent contractors who provide Landstar with transportation capacity under exclusive lease arrangements. Kenworth Class 8 trucks eligible include the Kenworth T660, T800 and W900 models with 72-inch AeroCab or 86-inch Studio AeroCab sleeper, and the Kenworth T2000 model with 75-inch AERODYNE sleeper. Under the program, purchasers negotiate their best deal at the Kenworth dealer of their choice and then send copies of the paperwork to Landstar. Upon confirmation of eligibility by Landstar, Kenworth Truck Company will send the $1,000 rebate directly to the purchaser.The RMC Research Foundation has released a Spanish version of the National Ready Mixed Concrete Association’s (NRMCA) Concrete Delivery Professional (CDP) Program Study Guide. This is the second of two Spanish language translations of popular NRMCA training materials. The first, the Spanish version of NRMCA’s Truck Mixer Driver’s Manual, was released this past January. More than 2,900 concrete delivery professionals have already been certified to-date since the program was first started in 2000. Copies of the Spanish Concrete Delivery Program Study Guide are available through the NRMCA. Please visit www.nrmca.org for more information. Additional information about the RMC Research Foundation and those programs funded by it may be found at www.rmc-foundation.org.
James Hardie announced today that Don DeFosset has been appointed chairman Stedman’s supervisory and joint boards, effective April 1, 2007. DeFosset replaces John Barr who was appointed as acting chairman following the resignation of Meredith Hellicar from the board on Feb. 20. DeFosset was appointed to the board on Dec. 14, 2006. and has broad experience in the home building and finance, energy, automotive, and industrial sectors. He is a former chairman, president, and CEO of Walter Industries, Inc. and previously served in executive positions at other companies including AlliedSignal and Rockwell International.
Giffin began at Stedman in 1971 as a sales engineer and received promotions to Assistant Sales Manager, Manager of Special Projects, Vice President of Operations and Executive Vice President before he was promoted to President. Giffin will continue to work with Stedman as a Consultive Executive.
Since his hire, Gilmour has held such positions as District Sales Supervisor, Sales Manager, Vice President Sales & Marketing and Senior Vice President Michael Ellis of the University of Arizona and Rob Knowlton of Queen’s University, have been named the winners of the second annual Michelin Mining Essay Contest. Both recipients received a check for $3,000 and a plaque symbolic of their award. A panel of judges selected the winners, and selection was based on whether the essay addressed and answered the topic chosen, originality, writing ability and communications skills. Through its first two years of offering the contest, Michelin has received 38 entries from 11 colleges and universities. All essays addressed the topic “How competitive is the North American mining industry? What advantages and disadvantages does our industry have over other geographic areas such as South America and Australia?” The Michelin Mining Essay Contest is an annual event. It is open to all full-time undergraduate students pursuing a degree in a mining-specific field at an accredited university. Students for this year’s contest were required have at least 30 credit hours and graduate after December 2006. Sponsored by:
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Hitachi has rolled out two new dash-3
models in its excavator line, the 47,000-pound ZX200LC-3 and its
reduced-tail-swing stablemate, the 53,400-pound, ZX225US LC-3. 
McCloskey International developed its
new 512 REGT trommel to meet the world’s most demanding road
restrictions. The screening plant is 30 percent shorter in length, 2
inches narrower in width, and 3 feet lower than the wheel-mounted
512 that preceded it. 
Modular
impact beds
Larry C. Giffin has announced his
retirement as Stedman president after serving in the position since
1984. 
Stedman announces the promotion of Dennis M.
Gilmour to president. Gilmour has been with Stedman for nearly
30 years, starting with the company in 1978 as a sales engineer.