1. Aggregates Today Jennifer Joy Wilson President and CEO National Stone, Sand & Gravel Association

2. Improving Safety and Health Performance at NSSGA MSHA-NSSGA Alliance: –Data Analysis, Communications, Best Practices –CEO Newsletters –Rip and Share Communiqués Safety and Health Committee –Model Occupational Health Program –Discussion of developing a Safety and Health Management System –Continuing education and discussion of Behavior Based Safety strategies

3. Alliance Safety Pledge As an aggregate producer or supplier to the industry, our company is committed to a culture that promotes our employees as our most valuable resource. We believe that safety and health are important values. Our goal is to work with our miners to ensure they know how to prevent injuries and exposure to harmful substances in order to return home safely at the end of every shift. To accomplish this, we will improve employee safety and health practices, ensure the amount and quality of formal employee training is appropriate, and enhance employee participation in the safety and health process. We will continually enhance management's direct participation and commitment in all aspects of safety and health, specifically that of senior management, production and plant managers, field superintendents and supervisors. By voluntarily signing this agreement, we demonstrate our commitment to a work environment designed to eliminate injury incidents, which will ultimately result in zero fatalities. Our first milestone in this process will be to reduce the MSHA injury incident rate 50 percent by the end of 2007, with continuous improvement thereafter. Name_________________________________ Company _____________________________

4. Core Safety Principles Management leadership & commitment Training and development Auditing of work practices Employee involvement and participation Incident investigations Safety communications Regulatory compliance programs Operational best safety practices Accountability system Substance abuse prevention programs

5. Infrastructure 2007: A Global Perspective The U.S. faces a $1.6 trillion deficit in transportation, energy, water and wastewater through 2010 Poor road conditions led directly to $54 billion in needed car repairs annually. Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.

6. Survey of State DoT Planning Directors 44% feel that their transportation infrastructure “meets most” of current needs 50% say that it “meets some” current needs 6% says it “does not meet most” current needs 80% feel that their 10-year plans will “not meet needs” for future transport networks. Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.

7. Infrastructure 2007: A Global Perspective Conclusion: “At some point, the system is going to grind to a halt.” Note: Data from report published be Urban Land Institute (ULI) and the accounting firm of Ernst & Young.

8. AASHTO Reports The U.S. Interstate highway system should double in capacity in the next 50 years. The United States also should increase from $43 billion in fiscal year 2009 to $73 billion by the year 2015.

9. AASHTO Reports: An increase of 3 cents will be needed in 2009 to sustain the highway program at the levels guaranteed in SAFETEA-LU. –This effectively would restore the spending power to 1998 levels. Spending would have to be increased by another 7 cents or equivalent levels between 2010 and 2015. –The current funding level of 18.3 cents, the Federal excise tax has been in place since 1996. The cost to improve U.S. highways and bridges to the levels needed this year is $155.5 billion.

10. AASHTO Reports: 1 percent of total U.S. highway miles carries 24 percent of all traffic and 41 percent of large truck traffic. In 1955, U.S. highways carried 65 million vehicles. Today, the same roadways carry 246 million vehicles; the figure is expect to reach almost 400 million by 2055. U.S. population, which between 1955 and 2005, grew by 130 million to 295 million, is expected to increase to 435 million within the next 50 years.

11. AASHTO Reports: China is building a 53,000-mile national expressway system, which when finished in 2020 India is building a 10,000-mile system Europe (with a population of 450 million) is spending billions of Euros on a network of highways, bridges, tunnels, ports and rail lines.

12. AASHTO Transportation System Recommendations Supplement state and local revenues through alternative financing. Reduce annual highway fatalities by 10,000 each decade. Reduce congestion and energy consumption to improve air quality. Double transit ridership over 20 years. Establish a National Rail Transportation Policy for passenger and freight needs.

13. AASHTO Highway Recommendations Increase national highway system core program funding. Base project selection on strategic future planning instead of earmarking. Accelerate project delivery. Investigate adjustments to truck size and weight on a regional basis.

14. AASHTO Short-Term Options to Increase Highway Trust Fund Revenues A 10-cent fuel tax rate increase for a $75 billion program by 2021; A 10-cent rate increase, indexed to Consumer Price Index, for a $82 billion program by 2021; A 5% sales tax on gas (if fuel prices increase 4% annually) for a $85 billion program by 2021; or A 14.2% sales tax on gas in lieu of 28.4-cent gas tax (if fuel prices increase 4% annually) for a $95 billion program by 2021.

15. AASHTO Plan to examine alternatives to supplement or replace the fuel tax in the long-term A viability study of Vehicle Miles Traveled (VMT) taxes, 2010 to 2015; A field test for VMT technologies, 2015 to 2021; An implementation plan, 2021 to 2027; and

16. The Impact of the Aggregates Industry on the American Public…

17. Aggregates account for over 2/3 of the non-fuel minerals mined in the United States. (1/2 if coal is included.). The aggregates industry employs approximately 117,000 people. 3,100 quarries, 70 underground mines & 6,500 sand & gravel operations The Impact of Aggregates on the American Public…

18. Aggregate Operations in the United States In all 50 states and 70% gov’t jurisdictions…

20. Economic Impact of the Aggregates Industry, 2003 (in $billions)

21. Economic Impact For every new dollar of output in the aggregates industry, an additional $1.58 is generated in the U.S. economy. For each $1,000,000 in output produced by the industry 19.5 jobs are created.

22. +2.1%/yr. +2.9%/yr. *Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26.

23. -3.7%/yr.+2.4%/yr. *Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26.

24. 4.84 bill 2.94 bill 1.89 bill *Source: Nelson, Tom. “Aggregates Industry Forecast”, Aggregates Manager, April 2006. Pp 24-26. Assumes annual growth rates of 3.0% for crushed stone and 2.1% for sand & gravel.

25. 3.80 bill 2.26 bill 1.55 bill *Based on USGS estimates. Assumes 2.1 percent annual increase for crushed stone production and 1.3 percent increase in sand & gravel production.

26. U.S. Production of Aggregates by Size of Company’s Tonnage Production… Rank Number of Companies % of all Companies Production/ Company (Millions of metric tons) Total Production (Millions of metric tons) % of U.S. Production 1-13130.3  25 1,07037.9 14-30180.4 10 – 25 2739.6 31-58280.6 5 – 10 2047.2 59-3562976.2 1 -5 58120.5 357-128292619.4 0.25 – 1 45516.1 1283-223595420.0 0.1 – 0.25 1515.3 223-4777254153.1 < 0.1 96.33.4 Total4777100.0 NA 2,830100.0 *Based on USGS data.

27. Most companies are small companies (85%+), many family-owned businesses (still true) Most aggregate produced by largest producers (The top 30 produce close to 48% of the aggregates.) Consolidation is increasing; the number of small companies is decreasing. The number of people in the workforce has not increased over the past 15 years –Approx. 125,000 in 1990 to 117,000 currently –During same time period production as increased 46% Who will produce aggregates?

29. Where will these aggregates come from? Better use of technology

30. Casper Stolle Quarry & Contracting Co., Falling Springs Quarry Dupo, Ill. Vulcan Materials Co., McCook Quarry McCook, Ill. Automation in every part of the industry

31. NSSGA Automation Conference Dallas, Texas, Oct. 21-24, 2006 Use of GPS in dredging Automation of Cone Crushers Wireless mine operations Automated weigh out and scale house controls Fractionated plant design Remotely controlled operations Particle size analysis Automated telestacker controls Plant Flow Control Software, Techniques and Analysis Use of GPS in mine planning and mapping Liquid flowmeters Plant Flow Modeling Control room design Automation in sand classifying tanks

32. Where will these aggregates come from? Better use of technology –Within operations –To mine a broader range of deposits

33. More Underground Aggregates

34. Where will these aggregates come from? Better use of technology –Within operations –To mine a broader range of deposits Best use of available materials –End users –Zoning & permitting –Government regulation

35. Of course, quarries‚ and other mining operations‚ operate with the permission of the public…

36. Terms Related to Long Range Planning Issues CAVEs NIMBYs NOPEs LULUs BANANAs

37. Aggregates Industry Community Relations Past practice –stay below the radar –hide operation from view –let others take credit Current practice –openly engage surrounding community –publicize what we do visit schools, open houses let people see what we really do RBAF alliance with Smithsonian

38. Defining Sustainability Brundtland Commission, 1987: Humanity has the ability to make development sustainable – to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs.” NSSGA Sustainability Task Force (working definition), 2006: Sustainability is a business approach that integrates environmental, social and economic aspects to ensure the long-term supply of aggregate materials to society. World Business Council on Sustainable Development (WBCSD): Forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.

39. Sustainability Defining Sustainability

40. The terms ‘sustainable development’ or ‘sustainability’ can be misinterpreted when describing the operations of NSSGA members. The term ‘sustainability:’ –IS NOT addressing the sustainability of mining, a specific mine, or a resource. –IS addressing the contributions that a specific mine, company, industry and industry products make towards a sustainable society. The largest contribution of NSSGA members to sustainability is providing the continuous supply of aggregates necessary for ongoing economic prosperity in the United States. NSSGA & Sustainability

41. The operations of NSSGA members make contributions to sustainability by: providing local employment opportunities and taxes, demonstrating environmental stewardship maintaining and/or improving safety and health of employees, developing and implementing closure plans that enhance communities, and contributing to local communities in the form of educational programs and other long-term investments. NSSGA & Sustainability

42. Guiding Principles for Sustainable Aggregates Operations Follows a mining “life cycle approach,” provides general, voluntary guidelines –general Overarching Principles –planning –operation –post closure, reclamation Focuses on –prevention and minimization of environmental, safety and health related risks –stakeholder engagement, corporate responsibility –profitability, efficiency, preventing waste

45. –Greenfield permits take 3 years and $3 million (10 years ago: 3 months and $30,000) –Many areas: Denied renewal of existing permits. Denied expansion of operation Other states are preserving aggregate deposits (Ohio mining act). Don’t sit on the sidelines. Get involved! Your job depends on it. “Smart (No) Growth” Movement and opposition to Aggregate Permits Current Trends to Watch…

46. OR

47. Approach to Government Regulation… Consider the cost as well as the benefits. Regulations cost money. That cost is ultimately passed on to the consumer and effects the national economy. –Highway example. 15 mph speed limit saves lives but no one gets anywhere. OR

48. In California, aggregates producers must meet the requirements of up to 80 different agencies in a process that takes from 2-10 years to complete.

49. Conclusions… The aggregates industry in the USA will continue to grow. Consolidation of companies in the aggregates industry will continue. The aggregates that are needed to sustain the economy will come from: –automation (doing more with less). –use of technology to reach more material (underground, deeper dredging), and –use of a broader range of aggregates. Keeping aggregate reserves available will be critical to the survival of the US Economy. –Sites need the permission of the public to operate. –Potential reserves can’t be covered up or made off limits. –Regulation must be within reason and must be based on sound science. (Would you like a 15 mph speed limit?)

50. Thank you! Questions? 4.92 million lbs. Stone, Sand & Gravel