material supply capacity in the road sector aggregate producers perspective may 2006 alex hall...

Material Supply Capacity in the Road SectorAggregate Producers Perspective

May 2006

Alex HallGeneral ManagerHolcim Aggregate and Readymix (KZN)

2

RPF May 2006 18.04.23/AhalHolcim South Africa

Contents

Market Development

Suppliers to the market

Aggregate Market Map

Specific Requirements of the Road Sector

Capacity Constraints Reserves Production /Crushing Capacity

Conclusions

3


Market Developments

DME Sales ('000 tons) and annual change

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Est

200

6

Est

200

8

Est

201

0

-20%

-10%

0%

10%

20%

30%

40%

4


Contents

Market Development





Conclusions

5


Suppliers to the Market

Commercial Quarries - Mainly Fixed Plant

Borrow Pits

Construction Industry - Mobile Plants

Illegal Operations

Artisinal Miners - Hand Tools

6


Contents

Market Development





Conclusions

7


Market Map

90 million

ConstructionBorrow pit

InformalIllegal

Licensed suppliers providing

returns to theDME

CPM

Readymix

Asphalt

Reseller

Direct (building & civil)

Other ind.

Residential

Non-residential

Civil

OtherRoad (surf)

Road (base)

Road (sub-base)

Concrete (inc. RM & CPM's)

Mortar, plaster, screeds, etc

Total Aggregate &Sand Market, 2004

(tons)

Suppliers Channel Industry Sectors Product Application

50%

50%

67%

6%5%

9%

13%

33%

9%

52%

6%

40%

30%

12%

8%

5%5%

8


Contents

Market Development





Conclusions

9


Specific Requirements of the Road SectorTypical section through a South African Road

Surfacing and Wearing Course

Base Course

Sub-Base Course

Selected layers and/or sub-grade

Note: Road stone is the big challenge - specially single size small products!!

G6+

Grading loosely specified

PI controlled

CBR controlled

G4 + G5

Top size

Grading

PI specified

Workability

Compaction

Often stabilised

CBR or UCS/ITS

G1,2,3

Top size

Grading

Flakiness

PI specified

Compaction

Workability

Soundness

Water absorption

Road stone or

Concrete Stone

Single size

Particle shape

Particle angularity

Cleanliness

Toughness/Hardness

Soundness

Deleterious material

Water absorption

Relative density

Surface texture

PSV

10


Specific Requirements of the Road SectorMaterial - Properties

21 – 2550 - 55209 - 33013 - 180.34 – 0.672.64 – 2.79Quartzite

10.449380100.32.72Greywacke

32612.10.22.61Siltstone

55 - 61290 - 31812.7 – 13.20.50 – 0.602.69 – 2.72Tillite

1635289150.62.80 – 2.86Dolomite

28.249163 - 19518 - 240.26 – 0.302.91 – 2.93Norite

13.4 – 3347162 - 30013 - 200.40 – 0.522.63 – 2.66Granite

1645322140.452.68Felsite

8 – 12.753 - 58302 - 35412 - 130.30 – 0.532.90 -2.99Dolerite

84956460.362.92Andesite

LA Abrasion

PSV10% FACT

ACVWater AbsARD

Road stone potential

11


Contents

Market Development





Conclusions

12


Capacity ConstraintsReserves

Permitted reserves are currently not tracked by the DME

Currently permitted reserves are estimated to be in excess of 30 years given forecast market demand

Reserves is not the problem!

13


Capacity ConstraintsProduction/Crushing Capacity The Aggregate Industry has been characterised by surplus

capacity and marginal profitability since it peaked in 1988

Industry players are injecting new capacity as well as refurbishing existing capacity at an unprecedented rate

Mobile crushers are being used to bridge short-term capacity limitations

Demand for smaller and higher specification single size product will always be a problem

These products are expensive to produce particularly when they result in large recycle loads and/or the generation of waste products/unsaleables

14


Understanding Capacity ConstraintsExample - Basic Crushing Plant = Open Circuit

15


Understanding Capacity ConstraintsBasic plant running in design mode

Product* Throughput (t/hr) Product Split % 26 mm 19 mm 13 mm 9.5 mm (UTFC) 6.7 mm Crusher sand

49.6 57.5 52.1 45.1

(20.0) 33.8 111.9

14.17 16.43 14.89 12.89 (5.71) 9.66 31.97

Total 350 100 Recycle load (oversize >26 mm) = 17.9 t/hr

UTFC is screened and washed from concrete stone generating rejects or flats. The yield is in the region of 40% of 9.5 mm concrete stone

*Concrete Stone Specification

16


Understanding Capacity ConstraintsExample - Basic Crushing Plant = Recycle Circuit

17


Understanding Capacity ConstraintsBasic plant producing only 9.5 mm and finer

Product* Throughput (t/hr) Product Split % 26 mm 19 mm 13 mm 9.5 mm (UTFC) 6.7 mm Crusher sand

0 0 0

63.5 (24) 44.5 142

0 0 0

25.4 (9.6) 17.8 56.8

Total 250 100 Secondary crusher is closed up to a css of 28 mm from 32 mm

Plant throughput is reduced to 250 t/hr from 350 t/hr

Recycle load (oversize, 26, 19 and 13) = 279.6 t/hr from 17.9. Another crusher is required to crush fines

UTFC production increases by 4 t/hr

Crusher sand production increases by 30 t/hr

It is an expensive process to convert viable product into finer product

*Concrete Stone Specification

18


Contents

Market Development





Conclusions

19


Conclusions

Supply problems will not be improved by opening new quarries, specially in urban markets

Some shortages of concrete stone and road base have been reported

No shortage of sub-base!

Shortage of crushing capacity is being addressed Mobile Crushers Plant Upgrades

Rigid single size road stone specifications are problematic. Specifiers need to be more pragmatic and flexible

material supply capacity in the road sector aggregate producers perspective may 2006 alex hall...

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