The inside scoop on industry news, views, and products
The inside scoop on industry news, views, and products
Vol. 3, No. 9
Six recent fatalities of metal and nonmetal employees in the span of just more than three weeks has set the Mine Safety and Health Administration (MSHA) in motion with a “Stop the Fatalities” campaign. The deaths, which occurred between March 23 and April 18 this year, brought this year’s total number of deaths in the metal and non-metal mining industry to nine, according to MSHA. MSHA is moving forward with its campaign and is urging producers and contractors to talk to their employees about what’s causing the accidents. “We need to take action now to STOP the Fatalities,” MSHA says in its campaign literature on its Web site. “Sharing information and discussing these recent accidents with the employees can help them to avoid these types of accidents in the future. The government agency says that a significant contributing cause in most accidents is insufficient attention to the task at hand or multi-tasking. It also says that employees must pay careful attention to what is going on around them and to the tasks they are performing. To read a copy of the letter to metal and
non-metal mine operators and contractors, go to To view a list of MSHA talking points on this issue as well as see a list of best practices to prevent against accidents, go to www.msha.gov/FocusOn/StoptheFatalities/STOP%20the%20Fatalities%20talking%20points.pdf . The fatalities that spanned those three weeks are the following: Fatalities
Mexico-based Cemex has extended its $18 billion takeover offer for Australia-based Rinker Group Ltd., according to an Aggregate Research Industries report. Cemex has extended its offer to May 18, 2007, giving Rinker shareholders an additional month to consider the proposal, according to the report. Cemex, the world’s third-biggest cement maker, on April 10 raised its initial takeover offer of US$13 per for Rinker to US$15.85 cash per share. The original takeover offer, which Rinker quickly rejected, was given in October last year. If successful, it would be the largest takeover in Australian corporate history, unless takeover target Coles Group Ltd. fetches the expected $20 billion mark, according to the report.
Vulcan Materials Co. has been asked by the U.S. Justice Department to provide more information about its $4.6 billion merger with Florida Rock Industries Inc. In a filing with the Securities and Exchange Commission, Vulcan officials said the department had a “second request” for additional information and extended the waiting period under the Hart-Scott-Rodino antitrust law 30 days until the parties “have substantially complied with this request.” Vulcan Materials spokesman John English said it is a routine request in a merger of this size, but would not give details about the information sought. Vulcan Materials and Florida Rock officials turned in required notification forms to the Federal Trade Commission and the Justice Department’s antitrust divisions March 12. Vulcan Materials announced plans to buy Florida Rock Industries Inc. in a cash-and-stock deal valued at $4.6 billion in mid-February. The boards of both companies already have approved the deal. Pending shareholder and regulatory approval, it is expected to close in the middle of this year and should be counted as part of Vulcan’s earnings starting in 2008. Headquartered in Birmingham, Vulcan Materials produces construction aggregates and other construction materials. Florida Rock, based in Jacksonville, Fla., produces construction aggregates, cement, concrete, and concrete products in the Southeast and Mid-Atlantic. The acquisition will boost Vulcan’s aggregate reserves more than 20 percent to about 13.9 billion tons. The company expects pre-tax cost savings of $50 million a year as a result of the merger. (Source: Birmingham Business Journal, April 13, 2007) Several of Orica’s biggest shareholders yesterday backed the rejection by the company’s board of a $10 billion takeover offer from a private equity consortium led by Bain Capital Partners. Orica chairman Don Mercer yesterday revealed the consortium, which also included Blackstone Capital and Pacific Equity Partners, had offered to acquire the company for $32 a share. News of the thwarted play for Orica came amid speculation that U.S. building products supplier Owens Corning was preparing to mount a bid for James Hardie Industries. One big Orica investor, Rob Patterson of Argo Investments, warned that shareholders needed to grasp the long-term value of companies such as Orica in the flurry of private equity bids. Mercer said the all-cash offer for Orica was made three weeks ago in a letter sent to the board. Orica derives 70 percent of its earnings from its mining services business, which has enjoyed windfall business in the past three years as the global commodity boom has flourished. The company is the largest supplier of commercial explosives in the world and is expected to secure big cost savings in the next three years from recent acquisitions. (Source: Aggregate Research Industries)
Sandvik has reached agreement with private equity owners 3i to acquire Extec Screens and Crushers Ltd., near Birmingham, U.K. At the same time, Sandvik also has reached an agreement with the majority owner of Fintec Crushing and Screening Ltd. (Fintec), near Belfast, Ireland, to acquire the company. Sandvik currently has a minority shareholding in Fintec. After the deal is completed, Sandvik will be the only shareholder. The acquisitions are expected to be completed during the second quarter of 2007. Extec employs 450 people and had sales of 1800 MSEK in 2006. It has
manufacturing facilities in Birmingham and Northern Ireland as well
as sales and service facilities in Australia, the United States, and
Germany. “By acquiring Extec and Fintec, we will extend our customer offering by adding mid-size, and light crushing and screening equipment, and thereby become a strong supplier in this fast growing industry,” he continues in the press release. Josefsson says Extec and Fintec have modern manufacturing facilities, are strong in R & D, and have well-developed distribution networks. When combined with Sandvik’s global resources, it makes it possible “to grow our crushing and screening business into new markets and service our customers even better,” he says.
As the market focuses on Mexican group Cemex’s $17 billion second tilt at Rinker Group, speculation is mounting that private equity funds and investment bankers are having another look at Rinker’s poor cousin, CSR, which spun off Rinker in 2003. At the same time, the CSR board and its new chief executive Jerry Maycock are believed to be working on a new strategy for the company, which will be released to the market on May 16 when the conglomerate releases its annual results. It is understood the board has been debating the future of CSR and weighing the merits of continuing to run a portfolio of disparate businesses or a restructure of the company. This could include offloading its aluminium business and spinning off its sugar business into a separate listed entity, which would enable CSR to become an integrated building materials and property business. A spokeswoman for CSR said she was not able to comment on CSR’s plans. If CSR does decide to focus on building materials, it would need to go on an acquisition spree to get critical mass as this division is worth about $1 billion and its property business is worth up to $450 million. It would certainly be able to afford to, given its sugar business is worth about $1.5 billion and its aluminium business more than $1 billion. There are many building materials businesses it could buy — here, in New Zealand and in Asia. Indeed, Deutsche Bank analyst Emily Smith said she wouldn’t be surprised if CSR looked at buying Rinker’s Readymix assets in Australia if Cemex was successful in its bid. Rinker’s independent expert, Grant Samuel, recently valued Readymix at between $US2 billion and $2.15 billion. (Source: CT Financial, a subsidiary of Crosby Textor. By Adele Ferguson.)
Polaris announces repayment of long-term debt VANCOUVER, B.C., Canada—Polaris Minerals Corp. has repaid the US$31 million long-term debt held by Ingalls and Snyder LLC. The US$31 million debt facility, drawn down in 2006 to facilitate construction of the Richmond California terminal, was repaid without penalty using proceeds from the recently completed equity financing. Further, in conjunction with the company’s first sale of construction aggregates in California, and in accordance with the terms of the debt agreement, the company will grant Ingalls and Snyder a total of 2,153,846 warrants, each warrant being exercisable into one common share at $4.80 until Nov. 30, 2010. ‘It’s Our Future’ campaign to educate D.C. beltway audiences American Road and Transportation Builders Association (ARTBA) has engaged Washington, D.C.-based Dittus Communications to assist in the development and execution of a multi-year image and branding program for the U.S. transportation design and construction industry. ARTBA’s “It’s Our Future” campaign will use research, advertising, and media to educate key inside the Washington beltway audiences about the many returns the industry provides on the public’s investment in transportation infrastructure improvements. In the second phase of the campaign, ARTBA will focus on building public and political support for significant increases in federal transportation investment. The current law, the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users (SAFETEA-LU) which funds the nation’s road, highway, bridge, transit, and transportation infrastructure programs, expires in 2009. Cat CEO earned $14.8 million last year Caterpillar Inc. CEO James Owens earned $14.8 million in total compensation last year, according to Chicago Tribune report. Owens earned a $1.35 million salary plus a $300,000 bonus and $7 million in stock options, according to the newspaper, which cites regulatory filings as its source. In 2005, Cat paid Owens $1.16 million. His total compensation for 2005 was $11.8 million, which included stock options worth $5.7 million. Lafarge Canada seeks input on noise study Lafarge Canada is hosting a meeting in regards to an upcoming noise study as part of the current modernization project proposed for the Exshaw cement plant, according to an April 18 report in the Rocky Mountain Outlook. At Aggregates Manager e-News deadline time for this newsletter, the meeting was set for April 30 to layout the scope of the planned noise study, the newspaper reports. The meeting is part of Lafarge’s community consultation in connection with the modernization and expansion project to increase output at the Exshaw plant up to 60 percent, according to the newspaper. The plant’s current production is 1.3 million metric tons. Hanson Material Service Corp. head testifies at Chicago transportation hearing Mike Stanczak, regional vice president of Hanson Material Service Corp. and first vice chairman of the National Stone, Sand & Gravel Association (NSSGA), testified April 19 at the National Surface Transportation Policy and Revenue Study Commission Chicago field hearing. Pam Whitted, director of government affairs for NSSGA, was also on hand for the two-day field hearings. The testimony, which was attended by Aggregates Manager, was in opposition to the proposed funding cuts to the U.S. Geological Survey’s Minerals Information Team. Look for a more detailed report on the hearings in a future print edition of Aggregates Manager. AASHTO releases third surface transportation system report The American Association of State Highway and Transportation Officials (AASHTO) released the third of six reports planned for the purpose of helping to inform the National Surface Transportation and Revenue Study Commission (Revenue Commission). The report is titled, “Transportation/Invest in Our Future: Revenue Sources to Fund Transportation Need.” It addresses the overall funding crisis Congress will face when the current surface transportation bill expires in 2009. It examines both short-term federal revenue options for the Highway Trust Fund (HTF) and short-term federal revenue options outside the HTF; state and local government revenue options and long-term federal revenue options. The report adds detail to two previous reports, issued March 7 and March 19, which examined the needs and called for up to a 10-cents-a-gallon increase in the gasoline user fee by the year 2015. The report projects that the HTF will show a shortfall of $200 million in revenue in FY ’09 increasing to $5.7 billion in 2010. The group reiterated that a 3-cents-a-gallon fuel tax increase, or its equivalent in other revenue, can avert an $18 billion highway program cut. (Source: National Stone, Sand & Gravel Association Washington Watch and eDigest e-newsletter.)
Martin Marietta Materials increases first-quarter guidance Martin Marietta Materials, Inc. says that it expects its first-quarter 2007 earnings to range from $0.70 to $0.73 per diluted share. The corporation had previously said that it expected first-quarter earnings to range between $0.36 and $0.52 per share. Martin Marietta attributes the anticipated increase to “excellent cost management, particularly labor and transportation costs, and strong pricing.” The company says that aggregates pricing was better than expected due to favorable product and geographic mix, according to a press release. Volumes were weaker than expected because of more severe winter weather conditions than anticipated. Demand from residential construction was down significantly, as expected. During the quarter, the corporation repurchased 2.335 million shares, or more than 5 percent of common shares outstanding, for $302 million, contributing $0.02 per diluted share to first-quarter results. The share repurchases were financed using the corporation’s existing commercial paper program and other short-term loans. Management expects to further increase leverage during the year with the available cash being used for additional share repurchases and/or implementing other shareholder value creating activities, including a wide range of business development opportunities. Management’s current outstanding share repurchase authorization is for an additional 1.9 million shares. The company’s board of directors will consider authorization for additional share repurchases as appropriate. The corporation will provide further definitive information on its capital structure and leverage targets when first-quarter earnings are reported on May 8, 2007. 2007 outlook Based upon the strong first-quarter performance and other favorable developments, the Corporation said that it is raising guidance for net earnings for the full-year 2007 to a range of $6.10 to $6.65 per diluted share, from a previously announced range of $5.95 to $6.50 per diluted share. For the second quarter of 2007, net earnings per share are expected to range from $1.85 to $2.10 per diluted share. Net earnings expectations for the second quarter and full-year 2007 are subject to certain previously disclosed risk factors that may affect performance. The level of aggregate shipments volume is primary among these risk factors, as a further decline in demand from residential construction, a pullback in commercial construction, delays in infrastructure projects, or some combination thereof could affect performance. Conference call information Martin Marietta Materials, Inc. will release results for the first quarter ended March 31, 2007, before the market opens on May 8, 2007. The corporation will provide an online Web simulcast of its first-quarter 2007 earnings conference call at 2 p.m. ET that day. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue for one year. A link to these events is available at the company’s Web site, www.martinmarietta.com. For those investors without online web access, the conference call may also be accessed by calling 913-981-5522, confirmation number 8802467.
Maintenance How to Make Automation Work for You
by Shamus Coughlin
The benefits of total plant automation can be many — lower operating costs, improved process efficiency, and higher production capacities are just a few. In some automated crushing plants, the operator is able to start the plant with the push of one button and then monitor the status of every single feed bin, crusher, and conveyor from a remote location. Some plants are designed to run all night with little or no staff, allowing daylight hours for maintenance. But to fully reap these rewards, you must do your homework, particularly when it comes to understanding the maintenance parameters involved. After all, you want automation to work for you, rather than becoming a slave to sensors and senseless operational glitches. Automation game plan?
Obviously, total plant automation doesn’t happen overnight. Major systems are often years in the making and are typically approached incrementally. As each step is carefully completed, the payback continues to build. As such, highly successful automation stems from considerable patience, significant planning, and ongoing skilled maintenance. Some tips to help you achieve a highly successful automated plant follow. Get everyone in management and operation involved. Assemble a wish list, and take the time to sort through everyone’s thoughts and needs. Automation involves a lot of adjustment and change, and you’ll want everyone to buy in. Discuss how automation projects can be justified, and evaluate the costs versus the benefits. Invite an automation expert to your meetings to address the latest issues and the varying technological options. Determine your top automation goals. Examine your market, your customers’ needs, your current strengths and weaknesses , and then arrive at three to five top automation goals. For example, your market may be rapidly changing, requiring a system that allows for greater flexibility in product type and size. Or, your market may be experiencing increasing demand, and you need to ramp up for greater production with continuous operation, at a consistent feed rate, and with higher volume stockpiling capabilities. Design for future expansion and growth. The one thing everyone can all count on is change. So don’t design a system just for today’s needs. Talk to your automation engineer about building in additional input/output contacts and extra processing power to simplify future growth. Maintenance support and skill plan
Pre-plan a strategy for support and maintenance. Automated control systems require a different skill set or level of expertise to maintain the plant. Processors, sensors, communication cables, and software are often not the strength of the industry’s traditional “hard contact” electrician. It’s important to identify upfront the skill set of your labor force and whether specialized labor will need to be added. Keep in mind that third-party resources may be available in your area to help with long-term support. Consider also what training will be necessary for existing personnel and what parts will need to be inventoried on site. Consider outsourcing. Local third-party vendors can be a good resource for your service and repair needs. If you plan to rely on this approach, it is important to establish a relationship with a company that is service oriented and responsive to your needs. Think long term; familiarity with your system will reduce troubleshooting downtime. This vendor should also be able to help manage a unique parts inventory on your behalf. Outline employee training requirements. Even if you rely on outside vendors for troubleshooting and repair expertise, your workforce needs to be trained on operating the system and maintaining the new electronic components. Typically, your automation system designer will send a technician during installation and startup that will also provide training. Develop a plan for on-going training and support for after he/she leaves. We recommend that you consider setting up a system to allow your automation provider access to perform troubleshooting, software downloads, and offer continuing operator education on-line. Design your system for long wear life and ease of maintenance. A crushing plant environment is tough on automation systems. Vibration, dust, heat, intense sunlight, rain, snow, and ice all require special considerations. Be sure discuss the following design tips with your manufacturer:
What’s in an automation benefits package? Beyond the basics of cost reductions, increased productivity, and process efficiency, automation can deliver of host of bells and whistle benefits such as maintenance reporting, production reporting, task scheduling, remote monitoring, and operation. Automation allows modern plants to run safely and at a steady pace, for greater consistency and improved plant utilization. Incorporate a little expertise, proper training, and the right maintenance program and automation can continue to deliver benefits into the future.
New-generation belt
Mining truck trainer
Fintec is bringing its 1107 track-mounted primary jaw crusher to North America. The unit features a 44- by 28-inch Sandvik jaw crusher. Its tracks give it on-site mobility, and Fintec stresses that the unit is also fully transportable on a low-boy trailer, giving it site-to-site mobility, too. The Sandvik jaw crusher’s innovative feed opening design accepts large feed material that can cause bridging and jaw plugging in conventional openings, avoiding the need for an additional breaker system, according to Fintec.
Kenworth Truck Co. has named its 2007 Kenworth Parts Council members. The council consists of leading parts managers from Kenworth dealerships in the United States and Canada. The council’s goal is to further enhance the quality and value of service to Kenworth customers. Kenworth Parts Council members are the following: Chairman – Mike McKay, Kenworth Sales Co., Salt Lake City, Utah; Mike Carwile, Truck Enterprises-Richmond, Richmond, Va.; Jo Frost, Edmonton Kenworth, Edmonton, Alberta, Canada.; Mike Lindsay, Kenworth of Birmingham, Birmingham, Ala.; Dale McCord, Kenworth of South Texas, Pharr, Texas; Mike Oswald, Wisconsin Kenworth, Madison, Wis.; Scott Smith, Central California Kenworth, Fresno, Calif.; Dan Villeneuve, Tandet Kenworth, Kingston, Ont.; and Kenworth Dealer Council Representative Ron Whiteford, Lower Great Lakes Kenworth, South Bend, Ind. The RMC Research Foundation Board of Trustees has voted to change the name of the Foundation to the RMC Research & Education Foundation. The foundation says that the change better reflects the mission of the RMC Research & Education Foundation since the education and professional enhancement of the industry’s personnel is an integral aspect of the foundation’s goals. The mission of the RMC Research & Education Foundation is to support research and educational programs that will increase professionalism and quality in the concrete industry. Martin Engineering, the Neponset, Ill.-based supplier of systems and services to improve the handling of bulk solids, will host one of the Martin Foundation’s workshops on improving belt conveyor operations on May 16. The workshop will discuss “Operations and Maintenance of Clean and Safe Belt Conveyors.” Topics featured will include: sources for fugitive material, the causes and cures for belt damage, the ways to correct belt mistracking, the value of wear liners to improve transfer points sealing, the matching of belt cleaners to application conditions, and tips on improving safety, working conditions, and profitability. Leading the workshop will be Larry Goldbeck, Martin Engineering’s manager of conveyor technology. Goldbeck has more than 30 years of “real world” experience in improving the operation of belt conveyors. For the last 10 years, he has presented this workshop to enthusiastic audiences of operators and managers around the world. The workshop will be presented from 7:30 a.m. to 3:30 p.m. at Martin Engineering’s headquarters in Neponset, Ill. The fee for the workshop is $250, which covers fees and supplies for up to five representatives per company. To encourage discussion, each workshop is designed for a minimum of ten and a maximum of 30 participants. For more information or to make a workshop reservation, send an e-mail to ginib@martin-eng.com or call 1-800-544-2947. Motion Industries, a distributor of industrial maintenance, repair, and operation (MRO) replacement parts, was recently recognized as a 2006 Vulcan Materials Co. Gold Award winner. In choosing Gold Award winners, Vulcan Materials managers evaluated suppliers on the criteria of product, service, support, ease of transactions, value, and overall performance. With 2006 sales of $3.1 billion, Motion Industries is a leading industrial parts distributor of bearings, power transmission, electrical and industrial automation, hydraulic and industrial hose, hydraulic and pneumatic components, industrial supply products, and material handling. Motion Industries has more than 500 operations including nine distribution centers throughout North America and serves more than 116,000 customers from the automotive, chemical, food and beverage, wood and lumber, iron and steel, pulp and paper, mining and aggregate, and pharmaceutical industries. Motion Industries is a wholly owned subsidiary of Genuine Parts Company For the seventh year in a row, Bridgestone Firestone Off-Road Tire Co. (BFOR), a division of Bridgestone Firestone North American Tire LLC (BFNT), has received a supplier award from Vulcan Materials Co. Vulcan bestows this honor annually on those of its alliance suppliers rated highest by Vulcan employees at more than 300 production facilities across the nation. For its dedication to high standards, BFOR was awarded the 2006 Gold Alliance Supplier Award. Russ King, manager corporate accounts, and Danny Pierce, corporate account manager, accepted the award on behalf of BFOR during a recognition ceremony held March 5 in St. Petersburg, Fla. BFOR supplies Bridgestone and Firestone branded quarry and support tires for Vulcan operations and also supports Vulcan with the TreadStat Tire and Rim Management System.
Hambley has more than 30 years of experience in mining engineering and geology throughout North America. He holds a Ph.D. in Earth Sciences from the University of Waterloo, Canada, an MBA from Lewis University, Illinois, and a B.Sc. (Hons) in Mining Engineering from Queen’s University at Kingston in Canada. He is an active member of the Society for Mining, Metallurgy, and Exploration of AIME, the Canadian Institute of Mining, Metallurgy, and Petroleum; the Association of Engineering and Environmental Geologists; ASTM International; and the Society of American Military Engineers. He is a licensed professional engineer in five states and Ontario and a licensed professional geologist in four states. He brings to Agapito extensive experience in underground mine and tunnel design, rock mechanics, mine ventilation, hydrogeology, evaporate geology and mechanics, and environmental engineering. Hambley is a native of Montreal, Quebec, Canada, and he and his wife, Paulette Dyon, make their home in Wheaton, Ill. Sponsored by:
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Shamus Coughlin is a graduate of Milwaukee
School of Engineering (MSOE) and works for Telsmith as an electrical
design engineer
Optibelt says its new Kraftband Super
KBX-POWER employs advanced production processes, improved materials,
and optimized molded cogs to achieve a new level in belt quality.
Compared to the conventional Optibelt KBX Kraftband, the new belt is
said to offer up to 15 percent better performance. Its very
low-stretch polyester cord construction makes it a low-maintenance
belt. Optibelt says the new product makes possible space-saving
designs and economic solutions, even with extremely high-drive
requirements.
Simlog has unveiled the first PC-based
off-highway truck simulator. The system was developed to put
trainees at the controls of a modern heavy hauler, providing
mission-critical skills assessment, and skills development. Even
experienced operators can use the simulator for refresher training.
The product includes six training modules of increasing difficulty;
the final module combines loading, driving, and dumping.
On-site mobility
Dr. Douglas F. Hambley has joined the
professional staff of Agapito Associates, Inc.’s Chicago Office as
associate.