The inside scoop on industry news, views, and products
Back to Main Page |
Advertising Contacts |
Aggregates Manager
e-News
|
Vol. 3, No. 14
A hearing on H.R. 2768, the Supplemental Mine Improvement and New Emergency Response Act of 2007 (S-MINER), has been set for July 26 in the House Education and Labor committee’s Workforce Protections subcommittee. NSSGA will submit a statement for the record. It is unclear now if a mining sector representative will be invited to testify. To download a PDF, of the S-Miner bill, please click here. The National Stone, Sand & Gravel Association (NSSGA) called on their members of Congress to express concerns regarding the S-MINER bill. In addition, NSSGA sent a targeted legislative action alert was sent to those NSSGA members in congressional districts represented by members of the House Education and Labor committee. Separately, the ad hoc metal/non-metal coalition met with both subcommittee majority and minority staff. Although a majority staff member listened to industry’s concerns about the bill, he made it perfectly clear that this is a priority of Committee Chairman George Miller (D-Calif.) and Miller is committed to moving the bill through the House. Minority staff said that, although they are very sympathetic to NSSGA’s position and believe the bill is premature, as the MINER Act signed just last year has not yet been fully implemented, the Republicans do not have the votes to prevent the chairman from moving the bill through committee or the full House. No time frame has been set for full Committee mark-up of the bill. It could be before the August recess, or the chairman could decide to wait until after Congress returns to work in September. (Source: National Stone, Sand & Gravel Association Washington Watch & eDigest e-newsletter, July 17, 2007 edition) by Therese Dunphy, Executive Editor On Friday, July 13, U.S. District Judge William Hoeveler ordered a halt to rock mining on hundreds of acres in Northwest Miami-Dade County, claiming that quarries close to the county’s primary public water supply raised “grave concerns” of chemical and bacterial contamination. According to the Miami Herald, the judge shut down mining at operations owned by Florida Rock, Tarmac, and White Rock Quarries as part of a dramatically expanded protective zone around the drinking water wells. Hoeveler criticized local and federal environmental regulators and said that the U.S. Army Corps of Engineers showed “a disregard for its duty” with regards to its handling of the discovery of benzene, a petroleum component and solvent, in the Biscayne Aquifer in 2005. Despite a $1 million countywide investigation into the water contamination, a source was not pinpointed. A petroleum-based blasting agent was suspected, but not proven to be the source. Although industry experts disputed its culpability, miners switched explosives, and county regulators insist the wellfield water is safe. Although it may be too early to accurately assess the impact of the decision on statewide construction projects, signs point to short aggregate supplies, higher material costs, and lost jobs. “Judge Hoeveler’s decision threatens planned and future road and highway projects, threatens to further dramatically increase the cost for every construction job in the state, and threatens tens of thousands of jobs,” Kerri Barsh, an attorney for White Rock Quarries, told the Miami Herald. For example, Florida Rock’s quarry employs 68 people, produced about 2.5 million tons of construction materials in the nine-month period ended June 30, and generated $28.7 million in revenue, according to a report in the Florida Times-Union. A report produced earlier this year by the Florida Department of Transportation indicates that a 5-percent cut in Lake Belt mining would result in $2.4 billion of lost annual economic output and 24,000 lost jobs or layoffs. The Miami Herald reports that by initial state estimates, Hoeveler’s order could cut output by 30 to 40 percent. The Lake Belt area is home to four of the state’s five-largest aggregate mines. The Miami-Dade Limestone Producers Association — a coalition of 10 aggregate producers operating at 12 different sites — initially received permits to mine 5,409 acres within the Florida Everglades in April 2002. The group permitting effort spanned a decade, with producers paying approximately $46 million in impact fees to purchase and improve another 7,500 acres of wetlands adjacent to the Everglades (see “The Future of Mining in Southern Florida,” in the July 2002 issue of Aggregates Manager). At the time, Tom MacVicar, president of MacVicar, Federico & Lamb, who served as a technical consultant for the Miami-Dade Limestone Products Association told Aggregates Manager, “Lake Belt mining shares an area with Miami’s largest wellfield, which is where they get about half the county’s water supply. There are some technical issues with how large-scale mining is going to affect the flow of the wellfield. It has to be worked out and clarified, but I don’t expect them to be showstoppers.”
The Bush administration released its mid-session budget review, which updates the data included in the President’s budget released in February. The budget estimate released in February forecasted a $700 million Highway Trust Fund (HTF) shortfall in Fiscal Year (FY) 2009. This recent update [July 11] update increases the forecasted shortfall to more than $4 billion dollars in FY 09. AGC is calling on the Bush
administration and Congress to maintain commitments to Because of the spending rate in the HTF, it will require Congress and the President to find additional revenues to plug the $4 billion hole or cut highway funding for FY 09 by an estimated $16 billion. The cuts in FY 2009 from the promised level of $43.4 billion to about $27 billion would result in a 37 percent reduction in spending on our nation’s infrastructure. That dramatic reduction in funding would impact every state in the country because gas tax revenues that are deposited into the HTF finance the highway program. If the deficit is not patched, it is estimated that in 2009, California will lose $1.35 billion, Florida would lose nearly $673 million, New York would lose approximately $634 million and Texas will lose more than $1.1 billion. The mid-session review also increased the forecast shortfall to $9 billion in 2010 and to $15 billion in 2011. Those amounts will also require significant reductions in spending if Congress and the administration cannot agree on methods to plug the funding gap. Transit funding will also be impacted long term, because it too is funded primarily by the HTF. The budget news comes at a critical juncture for the highway program, and federal, state, and local governments will all feel the pinch. AGC has been working with its allies in the State DOTs on solutions to fix the problem and has presented a menu of ideas to both the Bush administration and Congress. (Source: Associated General Contractors of America’s Highway Facts Bulletin) A Senate Bill, which proposed how to define asbestos, has continued to cause unrest in the aggregates industry. S. 742, known as the Ban Asbestos in America Act 2007, was introduced by Sen. Patty Murray (D-Wash.) and 16 other democrats in March. The proposed legislation — as currently drafted — may subject some of the raw materials used by aggregates industry to extremely stringent U.S. Environmental Protection Agency regulations because of how asbestos is defined. The aggregates industry has been disconcerted because the definition includes non-asbestiform materials mined from rock that may have asbestiform counterparts, although industry sources contend that there is no scientific consensus that indicates non-asbestiform materials have the same negative health impacts as asbestos. According to an Inside EPA newsletter report, a satisfactory definition was include in a previous version of the legislation that had been incorporated into a larger bill sponsored by Sens. Arlen Specter (R-Pa.) and Patrick Leahy (D-Vt.) The latter would set up an industry-funded trust fund to pay for health complications caused by occupational exposure to asbestos. If passed, the Murray bill would require the EPA to ban the manufacture, distribution and importation of asbestos-containing products. National Institute of Health (NIH)-relevant portions of the bill would require the director of the agency to establish an asbestos-related disease research and treatment network. The network would have to include “intramural research initiative” and at least 10 Extramural Asbestos-Related Disease Research Treatment Centers, according to a bill summary on www.billfinder.com. The bill also would authorize $10 million for each fiscal year 2008 through 2012. At Aggregates Manager press time, the bill had been referred to the Senate Committee on Environment and Public Works to be marked up prior to Congress’ August recess. However, at press time, the Senate was still involved in negotiations concerning aggregates industry concerns.
Watsonville, Calif.-based Granite Construction Inc. on July 11 announced that its wholly owned subsidiary, Granite Construction Co., and the Oregon Department of Transportation (ODOT) have reached an agreement in principal on a negotiated temporary suspension of the U.S. 20 Pioneer Mountain to Eddyville Design-Build project. ODOT awarded the $130 million highway realignment contract to Yaquina River Constructors (YRC), a joint venture team comprised of Granite Construction Co. and Wilder Construction Co. (a majority-owned subsidiary of Granite Construction Co.) in July 2005. The design for the new seven-mile roadway included eight bridges to be constructed over creeks, rivers, and a railroad. During the course of construction, numerous and massive landslides at critical sections of the project were discovered. As a result of additional anticipated costs and time related to these landslides, in March 2007, Granite requested that ODOT either terminate or suspend its contract. After several months of negotiations, Granite and ODOT have agreed that in lieu of terminating the contract, it is in the best interest of the parties to temporarily suspend work. This suspension will allow time for both parties to jointly complete additional geotechnical site investigations and explore alternative, less-expensive landslide mitigation solutions. Under the terms of the agreement, construction work on the project will be suspended beginning on or about Sept. 1, 2007 and will resume no earlier than June 1, 2008. During the suspension period, a small team of YRC management will remain on the project to ensure that all environmental protection measures are maintained. Costs associated with the temporary suspension will be shared between ODOT and Granite. The negotiated temporary suspension agreement, however, does not stipulate responsibility for the landslide mitigation costs. Both parties have agreed to take the issue to the standing Dispute Review Board (DRB) under the dispute resolution provisions of the contract. Upon resolution of this issue, and agreement on the final cost and schedule to complete the project, Granite will restart construction under a signed change order issued by ODOT with no associated unresolved revenue issues or disputes. At March 31, 2007, the U.S. 20 project was forecasted at a loss of approximately $20.0 million. Although Granite believes there is the potential for this amount to be reduced, there is remaining uncertainty surrounding the ultimate determination of responsibility for the landslide mitigation costs. As a result, Granite says it does not anticipate recording any adjustments to its project forecast during the quarter ended June 30, 2007. (Source: Granite Construction Inc.) Everything you need to know about operations, equipment, and management can be found in Aggregates Manager. To sign up for a free subscription (for aggregates industry professionals), go to www.Aggman.com/circulation/subform.htmThe American Society of Business Publication Editors (ASBPE) honored Aggregates Manager July 19 with a regional Gold Award in the “Original Research, Under 80,000 circulation” category July 19 during the organization’s Azbee Awards of Excellence Midwest-South regional awards banquet dinner in Chicago. The award was for the article, “Producers Predict Strong Year in 2006,” which was published in Aggregates Manager’s January 2006 issue. The magazine will also be honored for a national award in the “Original Column, Under 80,000 circulation,” category. The award will be given at an Aug. 2 awards dinner in New York City during ASBPE’s National Conference for the February 2006 and July 2006 “Carved in Stone” columns. The level of the award won’t be known until the awards celebration. The contest had more than 2,600 entries regionally and nationally and is noted as one of the most competitive in the b-to-b industry. This is the third editorial award this year for Aggregates Manager, which also was a finalist in the American Business Media’s Jesse H. Neal National Business Journalism Awards in the “How-to, Less than $3 million revenue” category for the magazine’s “Operations Illustrated” section. The Neal awards have often been noted as the “Pulitzer Prize” of b-to-b media.
Cemex just 5 percent short in shares to take over Rinker Mexico-based cement giant Cemex has acquired 85.53 percent of Australia-based Rinker Group, just short of the 90 percent needed to automatically acquire the rest of the company, according to a report from Aggregate Research Industries. Rep. Duncan: Truck safety needs improvement Rep. John J. Duncan (R-Tenn.), ranking Republican of the Highways and Subcommittee, testified that, “despite all the benefits we receive from trucks, work still needs to be done to improve safety” during the Federal Motor Carrier Safety Administration’s July 11 hearing on its oversight of high-risk carriers. Duncan said that the 5,212 fatalities and 114,00 injuries related to trucks in 2005, it shows truck safety needs to remain a top priority. “In 2005, there were 2.34 fatal crashes per 100 million miles traveled by trucks,” Duncan testified. “While this rate has improved over the years, the number of fatalities is still to high. It is important that we develop strategies to further reduce this rate.” Duncan added, “84 percent of all the goods we use and consume get to us by trucks. “A strong trucking industry is essential to our economy.” House approves funds to help meet Great Lakes navigation needs Seventh District Congressmen Dave Obey (D-WI) announced today that the U.S. House of Representatives has approved increased funding in the FY2008 energy and water appropriations bill to help maintain commercial navigation on the Great Lakes. Obey, chairman of the House Appropriations Committee, notes that the energy and water appropriations bill includes the following three initiatives to help navigation on the Great Lakes:
The Senate and President Bush must still approve the bill. (Source: Great Lake Carriers’ Association) Bill would expand Clean Water Act jurisdiction Congressman James Oberstar (D-Minn.) has introduced H.R.2421, the “Clean Water Authority Restoration Act of 2007,” that would amend the federal Clean Water Act (CWA) and greatly expand its jurisdiction. This legislation is similar to bills introduced by Oberstar and Senator Russ Feingold (D-Wisc.) in past years (H.R. 1356 and S. 912). The legislative proposal would remove the term “navigable” from the CWA and insert a long list of water types that would fall within the new definition of “Waters of the U.S.” This action potentially would bring all wet areas at aggregate operations under the jurisdiction of the U.S. Army Corps of Engineers and the U.S. Environmental Protection Agency (EPA), including active silt ponds and waters created incidental to mining. Also, any manner of water conveyance including ephemeral and intermittent streams, ditches, pipes, gutters, and even groundwater may trigger federal jurisdiction under this proposed bill. Further, any activity that may affect the “Waters of the U.S.” would also be regulated. Reclamation plans that include the creation of water bodies may be in jeopardy if jurisdiction areas are impacted. For a frequently asked questions fact sheet compiled by the National Stone, Sand & Gravel Association about this issue, please click here. (Source: National Stone, Sand & Gravel Association)Granite Construction will announce second-quarter 2007 results on July 25 Watsonville, Calif.-based Granite Construction Inc. says the company will release its second-quarter earnings after the close of business on July 25. Granite will host a conference call to discuss the results on July 26 at 8 a.m. PT. The conference call may be accessed by calling 877-864-2735 in the U.S. and Canada and + 1 706-634-7039 for anyone outside these areas. The conference ID for the call is 6841772. A live Web cast will also be available via the Internet at www.graniteconstruction.com/investor-relations. The conference call will be recorded and available for replay from approximately two hours after the live call through Aug. 9 by calling 800-642-1687 or 706-645-9291. The conference ID for the recording is 6841772. An audio archive of the call will also be available on the Granite Web site. Vulcan cuts second-quarter earnings guidance Birmingham, Ala.-based Vulcan Materials Co. has lowered its second-quarter earnings guidance, citing the slowdown in residential construction as the reason for a drop in aggregates demand. Vulcan said it now expects its earnings from continuing operations for the quarter to be about $144 million, or $1.46 per diluted share. Its previous guidance projected earnings to be $1.55 to $1.70 per share. Earnings from continuing operations in the second quarter of 2006 were $1.50 per diluted share and included gains or $0.15 per share, a result from Vulcan’s sale of its Bellwood Quarry in Atlanta. The company said it recognized a $25 million pre-tax gain from its contractual rights to this quarry, which the City of Atlanta plans to convert into a city park and greenspace. “The significant slowdown in residential construction, driven by excess inventory of single-family houses in many markets, resulted in lower than expected volumes in all major product lines, despite growth in private non-residential and public infrastructure construction,” Vulcan CEO Don James said in the earnings guidance statement. He also noted that aggregates volumes were down 10 percent and aggregates pricing was up 14.6 percent from the second quarter last year. James predicts that aggregates volumes in the second half of 2007 to drop 2 percent in the second half of 2007 as compared to 2006. However, he points out that aggregates prices in the second half of 2007 will increase 10 to 12 percent from the same time in 2006. James said he expects earnings from continuing operations to be between $2.80 to $3.15 per diluted share. Vulcan noted that its earnings guidance does not reflect the $4.6 billion pending merger with Florida Rock Industries. Cemex expects increased U.S. sales in 2007 following Rinker acquisition MEXICO CITY—Mexican cement giant Cemex SAB expects to increase its sales in the U.S. in the second half of 2007 thanks to its recent acquisition of Australia’s Rinker Group Ltd., company leaders said July 21. The purchase makes Cemex one of the world’s largest building material companies. The company will begin integrating the operations of Rinker — which obtains about 80 percent of its income from the U.S. — during the second half of the year, helping U.S. cement volume to grow for the whole year in the “mid-single-digit range compared to operations last year,” Medina said. He said the company expects a 20-percent increase in ready-mix volumes in the U.S. in 2007 and a 100 percent increase in aggregate volumes. Cement volumes in the U.S. decreased 11 percent in the second quarter, compared to the same period last year. Ready-mix volumes decreased 21 percent, and aggregate volumes decreased 16 percent. Last month, Cemex lowered its outlook for the struggling U.S. market, predicting the 11-percent drop in cement sales for the quarter and a 4-percent drop for the year. (Source: Associated Press via International Herald Tribune) MDU Resources Group acquires North Dakota operation MDU Resources Group has acquired Ames Sand & Gravel, a ready-mixed concrete company headquartered in Fargo, N.D. Ames will become part of Knife River Corp., the construction materials and mining subsidiary of MDU Resources. Ames will operate as part of Atlas Inc., a Knife River subsidiary headquartered in Bismarck, N.D. (Source: National Stone, Sand & Gravel Association Washington Watch & eDigest e-newsletter, July 17, 2007.) Holcim cleared to acquire Bulgarian company Global cement maker Holcim has been cleared by Bulgaria’s anti-trust regulator to acquire a majority stake in building materials manufacturer ZSK Kremikovtzi, newswire service SeeNews reports. The Bulgarian company’s only valuable asset is a gravel pit near Bulgarian capital, Sofia, Holcim Bulgaria’s CEO Todor Kostov to the newswire. Kostov also told SeeNews that Holcim Bulgaria could extract between 400,000 and 500,000 tons of gravel each year if demand requires it, according to the newswire report. Holcim has two cement factories in Bulgaria as well as two sand-making factories and concrete mixtures plant in Bulgaria.
AggBeat Beefed up chemical regulations may affect aggregates operations Department of Homeland Security tightens security for facilities that keep chemicals, such as those used in blasting, on hand. A new rule from the U.S. Department of Homeland Security (DHS) may require some aggregates producers whose facilities preliminarily qualify as high risk to prepare and submit an assessment of its vulnerabilities and a site security plan (SSP). The “Department of Homeland Security Chemical Facility Anti-Terrorism Standards” interim final rule, which DHS published in the April 9 Federal Register (Vol. 72, No. 67, Page 17867) and became effective on June 8, requires the facility owners/operators to complete an online screening assessment by Aug. 7 to determine if their facilities are a high security risk because of chemicals on site. Operations storing “Appendix A Chemicals of Interest” would qualify as high risk. The list of chemicals includes some of those used in conjunction with blasting such as ammonium nitrate (with a nitrogen concentration of 28 to 34 percent). Completion and submission or a “Top Screen” — triggered by the presence of an Appendix A chemical — must be done within 60 days of publication of the final list of included chemicals. The Top Screen is done online using the Chemical Security Assessment Tool (CSAT), a suite of four applications including user registration, Top-Screen, Security Vulnerability Assessment (SVA), and SSP through which DHS collects and analyzes key data from the facilities. The facilities are then categorized into risk tiers of one to four, depending on the apparent risk. Each tier will have performance-based security obligations. There are very few exceptions to the type of facilities potentially covered by the rules. Mines and quarries, educational institutions, manufacturing plants, chemical producers, power plans, laboratories, and commercial facilities are all potentially included, according to the DHS New Chemical Security Requirements prepared in a report by Reading, Pa.-based Liberty Environmental. The rule requires covered facilities to maintain various records related to security and emergency preparedness for three years. The rule also contains provisions concerning inspections, audits, recordkeeping, and the protection of sensitive information, according to the Liberty report. The new rule also gives DHS the authority to seek compliance by imposing up to $25,000 per day in civil penalties and to shut down non-compliant facilities. “I know that the vast majority of people in this business are by culture and by training very attuned to doing the right thing — making sure you don’t endanger your communities....” Homeland Security Secretary Michael Chertoff said at the 2007 Chemical Sector Security Summit. “I have little doubt that the vast majority of people are going to comply energetically and in good faith. But my experience...is that every once in a while you do find some people who think they’re going to cut corners...therefore, I do need to make it clear that we will hold everybody accountable.” For the complete report and full list of “Chemicals of Interest,” click here.
(Source: Liberty Environmental for U.S. Department of Homeland Security)
Rexnord claims its new 6000 series Shurlok Adapter Mount Roller Bearing is easier to install than other bearings and cuts maintenance and downtime costs. A two-year warranty is standard. Its positive locking system is said to allow vibration-free operation and a proprietary sensor determines optimal shaft grip to avoid a common installation error.
Phoenix Process Equipment has published a new brochure cover its Model D auto/CHEM dry polymer system and its Model E auto/CHEM Emulsion polymer system. The Model D system meters and mixes dry chemicals with water and then delivers the slurry to thickening and/or dewatering equipment.
Conveyor solutions brochure Flexco has issued a new brochure highlighting its full line of belt conveyor products for the aggregates industry. The 16-page publication features Flexco’s solutions for conveyor belt maintenance and installation, including its VP Rubber Covered Fasteners, bolt fastener, and rivet fastener systems.
For more new products for the industry, check out
the
RollOuts
section
|
Cuts maintenance, downtime
New process literatureCustomer Safety Services, a division of the Caterpillar Technology & Solutions Division, has launched SAFETY.CAT.COM, a new Web site dedicated to promoting the safety and health of everyone in, on or around Caterpillar products.
Formally launched by Caterpillar Chairman James W. Owens on June 5, 2007, SAFETY.CAT.COM “builds on Caterpillar’s commitment to providing its customers with the safest and most reliable products and services available,” according to a press release from Caterpillar.
Visitors to the site will find information that reinforces safety messages found in the company’s official Operation and Maintenance Manuals (OMM). The site also covers the world of safety in motion. Videos on walkaround inspections and operating tips are available on demand from one online source.
Other site offerings include OMM excerpts, multimedia pieces, and toolbox talks on a variety of safety topics.
Mequon,
Wis.-based Telsmith, Inc., an Astec company, has launch
its interactive Web site,
www.telsmith.com.
The new site offers complete product line information and new product highlights, and visitors to the site are able to access listings on used or certified rebuilt equipment — and can immediately locate and contact a Telsmith territory manager within their region. Telsmith equipment literature also can be downloaded.
Vulcan Materials Co. named Deister Machine Co., manufacturer of vibrating screens and feeders, as the company’s top supplier and honored Deister with its new 2006 Platinum Award — the highest distinction given by the aggregates producer.
Vulcan plant superintendents and area managers evaluated each of the suppliers on product quality, service and support, ease of transactions, value, and overall performance. Award candidates for Bronze, Silver or Gold Awards must achieve a set minimum point level and must be rated by no less than 25 plant managers or locations. To be considered for the newly created Platinum Award, no less than 100 managers or locations must evaluate suppliers. Only three Platinum Awards were given for 2006.
The latest people news on who’s who and who has moved where within the industry. |
New Berlin, Wis.-based WEM Automation has hired Michael Caldwell as a regional sales manager for the Construction and Aggregates Division.
Caldwell brings more 30 years experience in the industrial control and machinery field with him, according to WEM Automation. He has extensive experience in the areas of retrofit controls and both PC and PLC based automation, the company says.
Atlas
Copco Construction Tools LLC has appointed Rich Aaronson as
its new vice president of marketing and communications. In this new
position, Aaronson will oversee and direct all advertising, public
relations and marketing efforts for
Atlas
Copco’s Construction Tools division in the United States.
Prior to joining Atlas Copco, Aaronson spent two years as director of marketing for fasteners at Danaher Corp. Aaronson’s previous industry experience also includes five years in the Netherlands with Skil Power Tools, where he served as director of marketing for the company’s European division.
Originally from Long Island, N.Y., Aaronson has a bachelor’s degree in mechanical engineering from the University of Pennsylvania, and a master’s degree in business administration from the Kellogg School of Management at Northwestern University.
Vulcan Materials Co.’s board of directors has elected Ann McLaughlin Korologos, a former U.S. Secretary of Labor, as Vulcan’s director. Korologos comes to Vulcan from the Rand Corp. Board of Trustees, a non-profit institution that helps improve policy and decision-making through research and analysis. Korologos served as director of the company from 1990 to 2004. At Vulcan, she makes the tenth board director, with nine being outside directors
Sponsored by:
Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to e-news@aggman.com or call (630) 364-2306.Interested in being a sponsor of our newsletter? Contact your sales representative for more information. Click here for list of contacts.
Aggregates Manager e-News
Aggregates Manager magazine
Click here for your FREE subscription!
Click here for your FREE subscription!
Go to AggMan.com
