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Aggregate production up 7.1 percent in 2014
Total aggregates production rose 7.1 percent in 2014, according to new information from the U.S. Geological Survey (USGS). In its just-released Mineral Commodity Summaries 2015 report, USGS says 2.17 billion metric tons of aggregate were shipped last year compared to an estimated 2.03 billion metric tons in 2013. The report breaks down crushed-stone and sand-and-gravel figures as follows: In 2014, 1.26 billion metric tons of crushed stone valued at more than $12.8 billion was produced by 1,550 companies operating 4,000 quarries, 91 underground mines, and 210 sales/distribution yards in the 50 states. This compares with 1.18 billion metric tons produced in 2013, an increase of 6.8 percent. Leading states were, in descending order of production, Texas, Pennsylvania, Missouri, Ohio, Florida, Illinois, Kentucky, North Carolina, Georgia and Virginia, which together accounted for more than half of the total crushed stone output. Of the total domestic crushed stone produced in 2014, about 69 percent was limestone and dolomite; 14 percent, granite; 7 percent, traprock; 5 percent, miscellaneous stone; 4 percent, sandstone and… Keep Reading
Frac sand market: Conflicting reports
Will the drop in oil prices affect the frac sand market in 2015? Optimists say no, but the impact may already be happening. A number of sources are reporting it's business-as-usual for frac-sand operations despite the price of oil. An industry consultant told Pit & Quarry last month that he doesn't expect any effect on frac-sand suppliers this year, and I've been reading similar opinions online. Further support for that argument comes from BusinessNorth.com, which reports that Superior Silica, a Texas company, has plans to open its fourth Wisconsin frac-sand operation. The story quotes Superior Silica's President and CEO Rick Shearer as saying the company will likely be the largest frac-sand supplier in the industry. And Superior Silica is considering a fifth Wisconsin plant, which would add 2.5 million tons additional capacity in early 2016. The Leader-Telegram of Eau Claire, Wis., reports, "Officials in three of the area counties with the most sand-mining activity said they have seen no evidence of cutbacks yet in either production or new mine development."… Keep Reading
More than 300 attend OSSGA safety seminar
The Ontario Stone, Sand & Gravel Association (OSSGA) held its annual Operations, Health & Safety Seminar, Jan. 21-22 in Toronto. In addition to a variety of educational sessions, the event included a supplier expo, guest speakers and a casino-night dinner reception. Thirty-two vendors filled the exhibit hall to discuss their products and services, and 320 people attended the two-day event. The guest speaker for the association's awards luncheon was Carl Dixon of the Canadian band, The Guess Who. The event's second day included a keynote speech by Clint Malarchuk, a former National Hockey League goalie who now tours as a motivational speaker. Malarchuk signed copies of his book, "The Crazy Game." Seminar topics included working safely with jaw crushers, tires, blasting equipment, electricity and more. Keep Reading
Renewable energy for the aggregates industry
Like some other types of mining, change comes very slowly to the aggregates industry. Pick up a 1950s-era photo of an aggregates plant from our extensive photo archive, and unless a vehicle is in the shot to give a clue to the date, the picture looks like it could have been taken yesterday. So the move to renewable energy sources for mines of all types around the world is a big change. We’ve reported on this change in the recent past, such as our article “Here comes the sun” from last October, detailing the use of solar power at the Stony Point Rock Quarry in California. NBC News covered the subject recently in the article “Who Digs Solar and Wind Power? That’s Right: Miners.” Author John Roach says mines from the Americas to Africa and Australia are slowly becoming unlikely hotspots for the production and use of green energy. “Mining companies are powering a portion of ongoing operations with renewable energy, which is now cost competitive with traditional fossil fuels… Keep Reading
Countdown to to AGG1 Aggregates Academy & Expo
The industry will come together this March for AGG1 and the NSSGA Convention. Baltimore is the site of this year’s AGG1 Aggregates Academy & Expo. The show will offer more than 130,000 sq. ft. of exhibit space together with World of Asphalt, as well as a full slate of educational sessions. It will be held Tuesday, March 17 through Thursday, March 19, at the Baltimore Convention Center. AGG1 focuses exclusively on the aggregates industry and features in-depth, industry-focused educational programming and comprehensive exhibits that showcase the latest technologies and innovations in aggregates-related equipment, products and services. The event is geared toward crushed stone and sand-and-gravel producers, equipment manufacturers, dealers and even those involved with highway construction. While most visitors come from North America, there is a global presence at the show. Products and technologies that will be on display at AGG1 are conveyors, crushers, screens, loaders, excavators, haul trucks, and drilling and blasting equipment. AGG1 features a New Products & Technology Program as another way for attendees to quickly find… Keep Reading
The year ahead
Since 2008, when the bottom fell out of the economy, the North American aggregates industry has been on a slow and steady climb back to profitability. With most signs pointing in a positive direction, the industry heads into 2015 with more optimism than at any time in nearly a decade. So, what’s on tap for the coming year? It kicks off this month with the announcement of the 2015 class of the Pit & Quarry Hall of Fame. You may have already read the news in our P&Q Weekly Report newsletter or on our website. You will also see it in the February issue of Pit & Quarry. In March, Baltimore will be the site of the AGG1 Aggregates Academy & Expo and the National Stone, Sand & Gravel Association’s annual convention. Already, more than 130,000 sq. ft. of exhibit space has been reserved for AGG1 and the co-located World of Asphalt. (More about the events on page 54.) At the end of May, current transportation funding expires, so we… Keep Reading
2014/15 State of the Industry
Large industry mergers lead the news as the aggregate industry’s outlook continues to climb. The North American aggregates industry is in good shape based on recent aggregate production trends and predictions of near-term construction growth. And the nation’s two largest aggregate producers – Martin Marietta and Vulcan Materials – are also reporting positive news. The past year kicked off with a successful ConExpo-Con/Agg trade show and Martin Marietta’s purchase of Texas Industries. The year also saw changes at the top of Vulcan Materials, where Tom Hill replaced Don James as president and CEO. James is now the company’s executive chairman. Also, in 2014, the National Stone, Sand & Gravel Association operated for its first full year under the leadership of Mike Johnson. With Johnson, the association is revitalizing its efforts to secure a long-term highway bill, which saw another short-term extension this year: Congress passed an extension of Moving Ahead for Progress in the 21st Century, or MAP-21, through May 31, 2015, and authorized an additional $11 billion of transfers… Keep Reading
Reading their lips
As we detail in our State of the Industry report beginning on page 14, things are looking up for the aggregates industry heading into next year. Construction starts are on the rise, and aggregate production numbers are up, as well. But there continues to be one issue preventing a faster, stronger recovery for this industry – the lack of a multi-year highway bill. In recent years, the National Stone, Sand & Gravel Association has made the lobbying of a highway bill its number-one priority, and that is certainly the case with the new NSSGA administration. But the association is up against a much more powerful lobbying group – the general public. And the public does not want to see an increase in the gas tax. In his Innovation NewsBriefs e-newsletter, Ken Orski says the November mid-term elections have put an end to any hope of passing a long-term bill during the congressional lame-duck session. “With the November elections heralding a fiscally more conservative political climate, and with Congress preoccupied with… Keep Reading
Global energy war: Will frac sand producers be a casualty?
When OPEC decided last week to not scale back oil production, it was a shot across the bow of the North American shale industry in what is amounting to a war for the global energy market. And one of the casualties could become North American frac sand producers. CNN Money reports that the oil cartel's decision was widely seen as an attempt to choke off the U.S. shale boom. "OPEC figures that by driving down oil prices, North American producers will collapse." But it won't be easy to derail the shale industry. CNN Money cites a report from the International Energy Agency: "Most producers in North Dakota's Bakken formation, an area that's been a key contributor to the shale revolution, can remain profitable even if oil falls to $42 per barrel (it's currently at $68)." The CNN article says OPEC appears to be following its 1986 script, when Saudi Arabia ramped up production and sent prices tumbling. The strategy forced many oil drillers in Texas, Oklahoma and Louisiana out of… Keep Reading
