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Kent Ward Gypsum Consulting Services Inc. In cooperation with Innogyps Inc. Slide 2 About GCSI and Myself Based in Halifax Honors BSc in Applied Chemistry from Guelph 13 years in the gypsum Industry North America, Europe, Middle East & Asia Support for business start-ups, operational improvement, product and process development, people development Slide 3 About Innogyps & Bob Bruce Based in Hamilton, ON PhD in Sulphur Chemistry 35 years in the gypsum industry world wide Global Leader in gypsum technology and business development Slide 4 The problem! Slide 5 The Effect! Gypsum production drop at an alarming rate Operations reduce/suspend production Impact: Direct and indirect employment dropping Royalty / tax revenue dropping Future business development is being stifled Slide 6 But.Gypsum is growing globally Demographics Growing middle class Affordability Standard of housing Credit availability Global standards Renovation Why? Slide 7 The opportunity! The gypsum industry is growing globally at a rate faster than population or GDP Growth is driven by market demand Growth is constrained by access to expertise, low cost energy and usable gypsum Nova Scotia is in a good position to lead this business development globally Slide 8 The Action MRB initiates strategy session (Feb 2012) Re-examine the future of gypsum industry in NS Participants are MRB, ERDT, NS Ag, Producers/Users, GCSI and Innogyps Slide 9 The Outcome Conviction to develop a long-term, sustainable gypsum industry over 5 10 years Develop value-added gypsum businesses in NS capable to export products to the rest of the world Move from selling rocks to selling products/expertise Slide 10 Potential Businesses Agricultural Soil Additives Gypsum Based Absorbents (oil absorbents and pet litter) Architectural Products (floor screeds, plasters, decorative products) Ground Control Applications (slope stability, erosion control, subsidence prevention) Slide 11 Applications of Gypsum in Agriculture Research has demonstrated that gypsum has the potential to significantly improve crop yields and quality by addressing several issues that face the agriculture industry. Soil Acidity The high content of Ca 2+ in gypsum buffers the pH of the soil Alkali Soil The high content of Ca 2+ in gypsum can increase the cation exchange capacity, reducing high salt levels in the soil Exchangeable Aluminum & Magnesium Toxicity Gypsum provides SO 4 2- to neutralize Al 3+ and Mg 2+ (along with other toxic substances) Slide 12 Applications of Gypsum in Agriculture Soil Structure Reduced run-off and erosion by clay flocculation Infiltration & Saturation Ca 2+ and S are fundamental for positive crop growth Nutrient Availability Facilitates active transport pathways Slide 13 Effect on Soil Structure With Gypsum Without Gypsum Reference - Norton, 2008 Slide 14 Remediation of Sodic Soils Gypsum 26t/ac No Treatment Reference - Xu, 2006 Slide 15 Improved Yield (Tomato) July 2005 August 2005Gypsum Treatment T/acre 0202 0202 Yield lb/10 ft row 40 48 28 34 0.46 0.67 Skin Ca % 0.56 0.71 Reference - Summer & Larrimore, 2006 Slide 16 Improved Shelf Life No GypsumGypsum 1100 lbs./ac Cantaloupe stored for 4 weeks @ 40 F Reference - Summer & Larrimore, 2006 Slide 17 Potential Market Ag Gyp Producers Slide 18 Competition Closest competing locations are: West of Mississippi in USA Southern Ontario in Canada Spain, Morocco FGD Gypsum Hazardous ??? EPA Phosphogypsum radioactive Nova Scotia is lowest cost natural product! Slide 19 Gypsum Calcining The price of conventional gypsum can range from $5-10/ton Conventional Gypsum $5-10/ton Plaster of Paris $25-500/ton -High Strength Gypsum Cement $250-800/ton Gypsum calcining can significantly raise the value of gypsum products. Slide 20 Absorbents High value-added products Natural Calcined gypsum is naturally absorbent and clumps Can engineer to maximize absorbency Can control density (light weight products) Can modify surface for specific applications (carriers) Use alone or blend with existing products Slide 21 Absorbents Slide 22 Employees - 856 Slide 23 Architectural Applications Gypsum plasters, gypsum cements, decorative stone High value-added products Natural Fire resistant Breathable and regulate humidity in interior applications Can formulate to impart desirable properties Moldable (can produce intricate designs) Slide 24 Floor Screed (Gypsum Cement) 25% to 40% lighter than concrete based products Better fire resistance Nuetral pH Quick cure (can build the next day) Can incorporate NS aggregate Slide 25 Decorative Applications Decorative StonePlaster Castings Slide 26 Ground Control Applications Erosion control/slope stabilty Ease of application Sets to form crust/stays where you put it/steep slopes Can blend in seed/nutrients/absorbents Improves drainage of soil Subsidence prevention (fill underground voids) Pumpable Control set time to ensure even distribution in void Slide 27 Ground Control Applications HydroseedingSubsidence Slide 28 The Nova Scotia Advantage Slide 29 Extensive High Quality Gypsum Reserves Slide 30 Low Cost Energy Slide 31 Educated, Talented Workforce Slide 32 Transportation Slide 33 Government & Industry Partners Slide 34 Benefits to Nova Scotia Potential Opportunity Agricultural Gypsum AbsorbentsArchitectural Applications Ground Control MarketsLocal/US EastGlobalLocal/US EastGlobal Volume (t/yr.)1,000,000200,000500,000700,000 Gypsum Value (Million $/yr.) 20 5035 GDP Value (Million $/yr.) 80 7595 Jobs500 630 Note: 75K/yr. Jobs based on 50% labour content of GDP value Slide 35 Jobs are: Mining Mineral processing, manufacturing, Quality, Development Trucking Packaging, Design Marketing, Advertising, Selling, Field Support Export, Dock workers, Marine shipping Maintenance, Personnel, Finance, Legal Multiplier effect jobs in NS economy Slide 36 Path Forward Develop Agricultural Gypsum and Absorbents Businesses 3 Stage proposal to government to take these forward. Slide 37 Stage I Market Study $100K to develop detailed 5 year business plans Stakeholder participation Existing producers Existing businesses Industry associations Research institutions Slide 38 Stage II - Demonstration Business Financed (express interest) Demonstration and test market development Set up operating businesses Slide 39 Stage III - Gypsum Centre of Excellence Support & promote gypsum use worldwide. Develop new applications. Develop intellectual and human capacity in NS to support and expand the gypsum industry. Make NS the leader in gypsum technology and expertise. Slide 40 Future (6 Months) Market studies and business plans complete Clear picture of investment required to move forward Interested business partners Initial steps to establish The Gypsum Centre of Excellence Slide 41 Nova Scotia Why Not Here!