Overview of Canada’s Cement Sector and Climate Change Action Asia Pacific Partnership for Climate and Clean Development Cement Task Force Meeting Charleston, South Carolina, USA May 13, 2008

Overview 2 Overview of the Canadian Cement Industry Canada’s Cement Industry and Climate Change Participation in APP CTF

Cement Association of Canada 3 Eight CAC Member Companies CIMENT QUEBEC INC. Head Office and Plant: St. Basile (Portneuf), QC ESSROC ITALCEMENTI GROUP Head Office: Mississauga, ON Plant: Picton, ON FEDERAL WHITE CEMENT LTD. Head Office and Plant: Woodstock, ON [White Cement Producer] GLACIER NORTHWEST CANADIAN LTD. Head Office: New Westminster, BC [Non-Producing Member] LAFARGE NORTH AMERICA INC. Head Office: Calgary AB, Detroit, MI Plants: Richmond, BC; Kamloops, BC; Exshaw, AB; Bath, ON; Woodstock, ON; St. Constant, QC; Brookfield, NS LEHIGH - HANSON CANADA LIMITED Head Office: Richmond, BC Plant: Delta, BC; and Edmonton, AB ST. LAWRENCE CEMENT INC. Head Office: Concord, ON Plants: Mississauga, ON; Joliette, QC ST. MARYS CEMENT COMPANY Head Office: Toronto ON Plants: St. Marys, ON; Bowmanville, ON The Cement Association of Canada (CAC) is the voice of Canada’s cement industry. Its membership comprises eight companies with clinker and cement manufacturing facilities, granulating and grinding facilities, and distribution terminals from Atlantic Canada to the Pacific coast.

A National Industry 4 Seven (7) companies operate 16 plants and produced 14.3 million tonnes of cement in 2006:  Alberta: 2 plants; 2.1 million tonnes  BC: 3 plants; 2.1 million tonnes  Nova Scotia: 1 plant; 0.5 million tonnes  Quebec: 3 plants; 3.3 million tonnes  Ontario: 7 Plants; 6.3 million tonnes Note: Excludes the operations of CEMCO (not a CAC member company)

A Global Industry 5 Nearly 90% of production from 5 globally-based multi-national cement companies: (% of Installed Capacity)

Competitiveness 6 Canadian producers export approximately 40% of production annually: – Access to US export markets is critical to the competitiveness of Canadian cement producers Climate change initiatives must be developed such that the competitiveness of the industry is not adversely impacted Canadian Share of US Imports

Cement Industry’s Greenhouse Gas Emissions 7 Cement industry accounts for 1.6 % of Canada’s total greenhouse gas emissions (6.7% of industry total of 24%): Source: Government of Canada (2005)

Cement Industry’s Air Pollutant Emissions 8 Cement industry accounts for 1.0 % of total Canadian air pollutant emissions (2% of industry total of 52%): Source: Government of Canada (2002)

Provincial Clean Air and Climate Change Regulatory Frameworks 9 Clean Air and Climate Change Regulatory Regimes are being initiated in all provinces where Canadian Cement companies are located:

Response to the Climate Change Challenge 10 Improvements in energy efficiency Increased use of alternative and renewable energies Increased use of supplementary cementing materials

Continued Improvements in Energy Efficiency 11 Between 1990 and 2006, 11% improvement in the energy intensity CAC and Natural Resources Canada are jointly undertaking a comprehensive energy benchmarking study to guide further improvements

Alternative and Renewable Energies 12 Source: World Business Council on Sustainable Development, Cement Sustainability Initiative, 2004 and PCA Annual Yearbook Proportion of Alternative and Renewable Energy Use in the Global Cement Industry vs. Canadian Cement Industry In Canada, 91.7% of primary energy used in the manufacture of cement is derived from fossil fuels (coal and pet coke). Alternative and renewable energies currently used by cement producers in Canada include: used oils, scrap tires, oily waters and shales, recovered solvents, etc…

Supplementary Cementing Materials 13 Since 2003, improved the clinker/cement factor from 86.9% to 83.9%

APP Cement Task Force 14 Canada’s cement industry is pleased to participate in this important international partnership: – Canadian Input to Project 1 Complete – Canadian Input to Projects 2, 3, 7, and 10 underway – Interest in potential projects on alternative and renewable energies and supplementary cementing materials

Thank you 15