Happy New Year

From all of us here at Pit & Quarry, we wish you a happy new year and all the best in this holiday season. The Pit & Quarry editor's blog will back next year, or next tuesday, to be more accurate.

Sincerely,

Mark

Solid Gold

Aggregates is a growing market, but how about gold? Gold prices are up sharply this year, closing earlier this month at $527 an ounce. That's the highest value for gold in nearly 25 years -- and market observers expect the price may rise even further in the months ahead. I guess it's time to follow the yellow brick road. Your comment?

Fatalities rise for metal/nonmetal

The year isn't quite over, but when all is said and done, mining fatalities will likely have equaled last year's number, acccording to MSHA. This year so far, 55 people have died working at the nation's mines, 35 of them in the metal/nonmetal sector. That's up from 27 last year. Maybe next year if MSHA spent a little more time on accident prevention, and a little less time making stone producers use a FOIA request to get inspector's notes, that number will go down. Your comment?

Merry Christmas and Happy Holidays

The Pit & Quarry Editor's Blog will be on hiatus until next Wednesday. I wish you all the best this Holiday season.

On the Pinnacle

NSSGA announced its Pinnacle Award  winners, part of the association's Community relations awards program. The winners are:

Brechin Quarry
Eastern Canada – Central Ontario
Lafarge Canada
Brechin, Ontario

Brockville Quarry
401 East – Ontario
Lafarge Canada
Brockville, Ontario

Dundas Quarry
Eastern Canada – Central Ontario
Lafarge Canada
Dundas, Ontario

Uxbridge Pit
Eastern Canada – Central Ontario Division
Lafarge Canada
Uxbridge Ontario

Texas Quarry
Maryland Division
Lafarge North America
Cockeysville, Md.

Luck Stone Corporation
Richmond, Va.

Clinton Point Quarry
Tilcon New York
Oldcastle Materials, Inc.
Clinton Point, N.Y.

Dogwood Quarry
Georgia Division – Quarries East
Rinker Materials
Grovetown, Ga.

Southern Tennessee SBU
Rogers Group, Inc.
Tullahoma, Tenn.

Mosport Pit
Dufferin Aggregates Division
St. Lawrence Cement
Orono, Ontario

Dolcito Quarry
Southern & Gulf Coast Division
Vulcan Materials Company
Tarrant, Ala.

Puddledock Sand & Gravel
Mideast Division
Vulcan Materials Company
Prince George, Va.

Your comment?

Vulcan on fire

Vulcan Materials is getting the star treatment from stock-market analysts. Shares of the company's stock rose 6 percent last week following an upgrade by JPMorgan, which cited a strong U.S. construction market and other factors. JPMorgan lifted its rating to "Overweight" from "Neutral" and boosted its price target to $82 from $74, In a research report, analyst Mike Betts said he believes the United States is the most attractive market for construction aggregates in terms of highest long-term volume growth and pricing outlook. Hmmmm, maybe he's never heard of China. Your comment?

Cemex rocks

Hats off to Gilberto Perez, president of CEMEX, for presenting a large holiday gift to the Bush-Clinton Katrina Fund. Perez handed over a check for nearly $570,000 to the fund on behalf of his compay. The donation is the result of CEMEX employees' tremendous response to the company's matching gifts program. As part of the plan to contribute to Hurricane Katrina relief efforts, CEMEX matched, two-to-one, all employee contributions made by Sept. 30. For employees whose gifts equaled or exceeded 1 percent of their respective salaries, the company increased the match to three-to-one. Your comment?

The view from over the pond

I recently received the following letter from down under:

"My name is Tom Klinge. I head up a group of Companies in Australia, Indonesia, New Zealand and USA, we provide products and services to assist people gain longer life out of tyres and have been in business for over 30 years, we don’t sell tyres or get involved in the supply at all. The reason I comment on the article is in the current Off the Road (OTR) radial tyre shortage.

I am seeing and hearing of situations which are in my knowledge unheard of in history of rubber tyred earthmoving activity ie.:

1. Multi million dollar trucks being delivered to sit idle due to no tyres,
2. Second hand tyres of dubious quality being sold for more than double that of a new tyre ie USD$50,000.000.00,
3. OTR tyre repairers and retreaders being pressured by some equipment owners to perform repairs and or retread tyres which should be scrapped and discarded,
4. Equipment Operators using trucks with 4 tyres fitted which was designed to have 6 tyres,
5. Mining Companies spending millions (not budgeted) to acquire additional clean up equipment to clean up where their trucks are working to reduce tyre injury
6. Mining Companies deferring start up of New Mines until tyre supply can be guaranteed .

The OTR radial tyre shortage will, despite resent announcements by 2 of the big 3 manufacturers ie Firestone Bridgestone and Michelin to increase output, will be much worse in 2006 than it has been in 2005, all indications are that the shortage will be well and truly adversely affecting Quarrying, Construction and Mining companies until 2008 and beyond.

The squeeze on tyre owners to keep their machines working is in fact generating a demand for these tyres is sucking in crooks who think they can make a quick buck, the problem goes even further than stealing and dealing in stolen property as many of the tyres being offered are likely to endanger the well being and or the life of the tyre technician who installs it. Mechanics and operators of the trucks are also put in danger using these tyres. "

hmmmmmmm. There's some food for thought.

He's leaving

Just found out that Val Tepordei is leaving the U.S. Geological Survey after many years of service to the agency and its predecessor organization, the Bureau of Mines. I think it's fair to say most people appreciated his work. I think its also fair to say some people didn't appreciate his ego. Let's just leave it at that. Your comment?

Pit & Quarry Index

The December Pit & Quarry index -- published in the December issue of Pit & Quarry magazine, but leaked to the public here first -- dipped to 204, the third month in a row it has declined. The index remains above the benchmark 200 level. Used as a predictor, the index tells us that 4th quarter production and profit may be slightly lower than the third quarter, but nothing serious. Your comment?

Irving execs sentenced

Wow, that was harsh. A federal judge last Friday sentenced four current and former Irving Materials executives to prison for their role in a price-fixing scheme that also resulted in the largest domestic antitrust fine in U.S. history. Irving Materials Inc. President Fred ‘‘Pete'' Irving; vice presidents Price Irving and Daniel C. Butler, and retired executive vice president John Huggins were each sentenced to five months in prison and five months of probation on price fixing charges. Unbelieveable. Your comment?

Stealing tires

I know there's a tire shortage, but this is nuts. A supervisor with Santa Fe' Solid Waste Management Division was arrested on charges of embezzling Wednesday after the man suspected of being his accomplice was caught trying to sell city-owned tires to a local sand and gravel company, according to an article in the Albuquerque Journal Some companies will do anything to get those much-needed tires. Your comment?

Congress returns

Congress returned to work yesterday (and I use the term "work" lightly.) They intend to complete the legislative agenda for the first session of the 109th Congress. Topping the agenda is forging an agreement on budget reconciliation legislation. One item of contention, according to sources at NSSGA, is the FY 2006 Transportation, Treasury, Housing and Urban Development, Judiciary, and District of Columbia spending bill, which was recently signed into law. The bill earmarks $36 billion for the Federal Highway Administration, but that might change if Congress decides to include an across-the-board cut in one of the remaining spending bills or in the budget reconciliation package. Your comment?

Production breakout

Total aggegates production was up in the third quarter, according to USGS, but how does that break down according to product? I'm glad you asked. An estimated 472 million metric tons of crushed stone were produced and shipped for consumption in the United States in the third quarter of 2005, a slight increase compared with the same period of 2004. The estimated output of crushed stone produced for consumption in the first 9 months of 2005 was 1.2 billion metric tons, a 3.6 percent increase compared with the same period of 2004. The estimated U.S. output of construction sand and gravel produced and shipped for consumption in the third quarter of 2005 was 387 million metric tons, compared with 379 million metric tons in the same period of 2004. The estimated output of construction sand and gravel produced for consumption in the first 9 months of 2005 was 942 billion metric tons, a slight increase compared with the same period of 2004. So there you have it. Your comment?

Production rises in 3Q

The market had a great summer. An estimated 852 million metric tons of total aggregates were produced and shipped for consumption in the United States in the third quarter of 2005, compared with 846 million metric tons in the same period of 2004, according to the U.S. Geological Survey. The estimated output of total aggregates produced for consumption in the first 9 months of 2005 was 2.2 billion metric tons, compared with 2.1 billion metric tons in the same period of 2004. Your comment?

Florida rocks

Good news out of Florida. Florida Rock Industries Inc., this week reported that profit nearly doubled in the fiscal fourth quarter. Earnings during the quarter ended Sept. 30 rose to $46.5 million, or 69 cents per share, compared to $24 million, or 36 cents per share, last year. Hmmmm, that's a very impressive performance. Last month, the company's stock took a dip into the mid-forties for no apparent reason. People started talking. The stock is now trading in the mid fifties. The only talking that's going on is about a solid company. Your comment?

Gulf Coast Relief

The money is flowing. U.S. Transportation Secretary Norman Y. Mineta today provided an additional $40 million to Louisiana and Mississippi as part of the federal government's commitment to help Gulf Coast states rebuild roads and bridges damaged by Hurricane Katrina. The Federal Highway Administration will immediately advance each state $20 million in emergency relief funds that may be used to repair or rebuild portions of I-10, U.S. 90 and other federally-supported highways and bridges, according to Secretary Mineta. It's about time. Your comment?