Carmeuse Industrial Sands

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1 Carmeuse Industrial Sands Barron County, WI Industrial Sand Project Presented to the Barron County Board of Supervisors Presented by Michael S. Miclette September 19, 2011 LIME the proven solution 9/21/2011 9:49 AM 1

2 Who is Carmeuse? A leading global producer of lime and limestone used in a wide variety of industrial, commercial, and household applications. We also produce sand for industrial uses. Founded in million tons of products sold Steel production Building products Food production, animal feeds Glassmaking, Paper coating, chemicals 12/2009 figures LIME the proven solution 9/21/2011 9:49 AM 2

3 Where is Carmeuse? Operations in 13 countries Over 90 plants employees Plants and terminals Industrial Sand operations LIME the proven solution 9/21/2011 9:49 AM 3

4 Who is Mike Miclette? 1986 Graduate of LSU Bachelor of Science in Petroleum Engineering Married for the past 26 years Two Daughters 25 years Industrial Operations and Engineering experience 18 years working with the Company in/on and managing Industrial Sand plants Will be the on site Manger for this facility LIME the proven solution 9/21/2011 9:49 AM 4

5 Why Barron County, WI? This is where the right sand is The mine will be located at the existing mine site in Arland. The Wet Processing facility will be near the mine site The Drying/Screening/Rail Loading will be near rail service Rail connections to users: Texas, West Virginia, Pennsylvania, Wyoming LIME the proven solution 9/21/2011 9:49 AM 5

6 Where are we in the process? Evaluating rail line from Barron to Almena. Carmeuse has concerns about this rehabilitation actually happening Investigating alternative sites to locate the drying/screening/load out facility Working with County on truck route plan. Conducted drilling for quantity and quality. Currently evaluating results Preparing plant design to apply for permitting Conducting wetlands assessment and other studies Evaluating availability and capacity of utilities LIME the proven solution 9/21/2011 9:49 AM 6

7 What are we going to do here? Mining No blasting anticipated Dozer, Front End Loader, Scraper, Excavator, Haul Truck Processing Washing Drying Screening Transportation Truck washed sand to drying/screening facility for final processing and loading onto rail cars Storage Silos Reclamation of mined areas Operate for 30+ years LIME the proven solution 9/21/2011 9:49 AM 7

8 Sand Process LIME the proven solution 9/21/2011 9:49 AM 8

9 Chemical usage Not a chemical-intensive process. Most chemicals are related to mobile and fixed equipment. Water Diesel & Gasoline (for equipment and vehicles) Natural Gas (or possibly Propane) Lubricants Flocculants used in the settling tank to reduce turbidity of wash water LIME the proven solution 9/21/2011 9:49 AM 9

10 Will the mine affect groundwater? Process water will be recycled Flocculants will not be used in ponds Groundwater will be used at the mine site. Amount will be minimized by re-use Water study will be conducted to determine number and location of supply wells LIME the proven solution 9/21/2011 9:49 AM 10

11 Will the mine affect air quality? Dust in the mining operation to be controlled by gravelling and/or watering haul roads and disturbed areas Wet processes don t emit dust Sprinkler system on stockpiles Dryer, dry product transfer points, screens and silo s to have dust collectors Trucks hauling washed sand to be covered LIME the proven solution 9/21/2011 9:49 AM 11

12 Sand Process LIME the proven solution 9/21/2011 9:49 AM 12

13 Sand Process LIME the proven solution 9/21/2011 9:49 AM 13

14 Sand Process LIME the proven solution 9/21/2011 9:49 AM 14

15 Is there a health risk from sand mining? Most of the surface of the earth is made of quartz Quartz sand, Playground sand, Beach sand, Golf course sand and Frac sand are Silica sand Silicosis is a health concern associated with long term occupational exposure to fine silica dust Silicosis is preventable and has been virtually eliminated at operations that adhere to the NISA OHP. Carmeuse is a signatory to the NISA OHP ( Includes medical surveillance, dust exposure assessment, dust control, employee involvement, smoking cessation program LIME the proven solution 9/21/2011 9:49 AM 15

16 What about the Noise? Preliminary plan is for the plant to be enclosed, mostly for cold weather operational considerations, but side benefit will be noise reduction Loaders will be outside feeding raw material into the plant Quiet backup alarms on equipment Hours of operation are estimated to be as follows: Mining- 12 hrs/day 6 days/wk Wet Plant: 24/7 for 9 months/yr (i.e. temps above freezing) Dry Plant 24/6 LIME the proven solution 9/21/2011 9:49 AM 16

17 What about truck traffic? Truck traffic between Arland and the drying/screening/rail loading facility will be on Highway P and U.S. 8 Anticipated Truck Haul 6a 8p 6 days/wk Carmeuse is willing to be part of the solution Working with County & Township officials on mutually beneficial solution LIME the proven solution 9/21/2011 9:49 AM 17

18 Property Values Protection of surrounding property values is uncommon in the industry. However, every case is unique and special circumstances should be considered Carmeuse is open to discussion on this issue with any landowner whose property abuts the mine. LIME the proven solution 9/21/2011 9:49 AM 18

19 Will we hire locally? Engineering & Permitting / Construction / Operations Engineering & Permitting: Krech Ojard & Associates Golder Associates Construction: Preference is to work with local companies, however, MUST be: Qualified, Capable and Cost Competitive. Operations: Will hire locally for most, if not all, hourly positions May be able to hire locally for salaried positions depending on skill set LIME the proven solution 9/21/2011 9:49 AM 19

20 How many jobs will this create? Depending on plant design and scheduled operating days Estimate of between 35 and 50 hourly positions Estimate of 8-10 Salary Staff Potential outsourcing for mining Potential outsourcing of trucking Staff likely to include Managers to oversee the Mining, Processing, Shipping, Regulatory Compliance and Quality Assurance Indirect employment could range from increases in fuel and parts suppliers to delivery personnel to mobile equipment mechanics to increases in local restaurant utilization, etc. LIME the proven solution 9/21/2011 9:49 AM 20

21 What is the pay rate going to be? Pay will be based on local wage & benefit surveys to determine required amount to attract & retain the skill sets needed. To venture an estimate at this point in time, we would think the majority of the hourly positions will be in the $17 - $20 per hour range. LIME the proven solution 9/21/2011 9:49 AM 21

22 Does Carmeuse offer benefits? Carmeuse offers a very competitive benefits package which currently includes: 401K with partial company match Healthcare, dental and vision coverage (with reasonable contribution rates, co-pays and deductibles) Holidays and vacation. LIME the proven solution 9/21/2011 9:49 AM 22

23 Timeline 2011 Land/Engineering/Permitting 2012 Engineering/Permitting/ Construction 2013 Construction/Commissioning/Operations LIME the proven solution 9/21/2011 9:49 AM 23

24 How we do business Nothing We Do Is Worth Getting Injured Environmental Responsibility is our Way of Life Active in the communities that we operate We reclaim our sites Productive relationship with regulatory agencies LIME the proven solution 9/21/2011 9:49 AM 24

25 How we do business Carmeuse Foundation formed for 150 year celebration Contributing $400,000 to local organizations in communities where we operate Examples of Reclamation Projects: Oxford Thames River Trail a portion of a quarry was reclaimed and was converted into a walk path for local community use. Portion of an active Ohio quarry left alone for several months a year for swallow nesting Eastern Pennsylvania quarry reclaimed and will be donated to local college as ball field Annual Beachville Public School Cross Country Race on reclaimed Carmeuse property at an active quarry and lime plant Sponsored Anna Tunnicliffe in 2008 Olympics LIME the proven solution 9/21/2011 9:49 AM 25

26 Anna Tunnicliffe Wins Gold in 2008 Olympics LIME the proven solution 9/21/2011 9:49 AM 26

27 Thank You Michael Miclette Area Operations Manager Carmeuse Industrial Sands P.O. Box 249 San Juan Capistrano, CA (951) LIME the proven solution 9/21/2011 9:49 AM 27