Document X7vMoK6r0813bx0azMjOw91Zy

PLAINTIFFS EXHIBIT CAM-298 Talc and Pyrophyllite By Robert L. Virta The mineral talc is a hydrous magnesium silicate. A massive talcose rock is called steatite and an impure massive variety is referred to as soapstone. Talc is used commercially because of its softness, purity, fragrance retention, whiteness, luster, moisture content, oil and grease adsorption, chemical inertness, low electrical conductivity, high dielectric strength, and higfa thermal conductivity. Major markets for talc include ceramics, paint, and paper. Pyrophyllite is a hydrous aluminum silicate with a structure similar to talc. Properties such as softness, whiteness, chemical inertness, high melting point, low electrical conductivity, and high dielectric strength make pyrophyllite useful for ceramic and refractory applications. Domestic production and sales data for talc and pyrophyllite are developed by the U.S. Bureau of Mines (USBM) from a voluntary survey of U.S. mines and mills. Survey forms were sent to 15 companies. Twelve companies that account for approximately 95% of the domestic production responded to the survey. Production data for the nonrespondents were estimated from reported prior-year production levels adjusted by trends in the industry and other guidelines. (See table 1.) Legislation and Government Programs The Mine Safety and Health Administration (MSHA) continued to review its proposed revisions to its air quality, chemical substances, and respiratory protection standards. The proposed permissible 8-hour time-weighted average exposure limit is 2.5 milligrams per cubic meter (mg/m3) of air for talc (containing no asbestos), 3 mg/m3for respirable soapstone, and 6 mg/m3 for total soapstone dust. The nonasbestiform varieties of tremolite, anthophyllite, and actinolite would be covered under the proposed respirable mine dust standard.1 MSHA continued reviewing its proposed rule that would create a hazard communication standard. Mine operators would be required to provide information to their employees through labeling, material safety data sheets, and employee training if hazardous chemicals were produced or used on the premises. Production Talc.--Twelve companies operating 16 mines in 7 States produced talc, soapstone, and steatite. These companies generally were structured to cover all aspects o f talc production, from mining to processing. Only a few companies hired custom grinders to mill the ore. The largest domestic producers, ranked in decreasing order, were Luzenac America Inc., Gouvemeur Talc Co., Barretts Minerals Inc., and Dal Minerals. U.S. mine production of crude talc was 935,000 tons, valued at $30.4 million in 1994. (See tables 1 and 2.) Production in Montana and New York increased while that of California, Texas, Vermont, and Virginia decreased. Mines that operated in Montana, New York, Texas, and Vermont accounted for 96% ofdomestic talc production. Montana led all States in the tonnage and value of talc produced, followed by Texas, Vermont, New York, California, Virginia, and Oregon, in decreasing order o f production. Luzenac America hie. purchased Montana Talc Co., a subsidiary of Costain PLC. Luzenac America closed Montana Talc's mine but will continue to operate the mill at Sappington, MT.2 Zemex Carp. (Canada) purchased the Pioneer Talc Co. talc mining and milling operation in Van Horn, Texas. Pioneer Talc was owned by Whittaker, Clark, and Daniels Inc.3 Pyrophyllite.--Pyrophyllite was mined by two companies operating three mines in North Carolina and one company operating one mine in California. U.S. mine production of crude pyrophyllite increased 20% from that of 1993. Consumption Talc.--Domestic producers reported that overall sales (including exports by producers) was 923,000 tans, valued at $116 million in 1994. (See table 1.) Domestic markets for talc were in ceramics (pottery, sanitaryware, tiles, etc.), paint, paper, plastics, roofing, cosmetics, rubber, insecticides, and refractories, in decreasing order ofconsumption. (See table 3.) Consumption o f talc in ceramics and paper increased slightly from that of 1993. The cosmetic and paint markets remained stable. Small decreases were reported for insecticide and rubber markets. The use of talc in plastics continued to grow, with consumption approaching levels last observed in 1990. A large decrease was reported for roofing applications, where competition from competing minerals affected the markets. Approximately 97,000 tons of talc were reported under the "Other" category by respondents. O f this amount, 8,000 tons were used in automobile body fillers, food or medicines, and sculpture media and 70,000 tons were used in caulks, joint compounds, paint, and putties, and vinyl sheet and tile flooring. Approximately 19,000 tons of talc were used in applications that were not identified by respondents. More than 90% ofthe data presented in table 3 was reported by the companies, the remainder was estimated from reported prior-year data adjusted according to industry trends. An additional 155,000 tons of imported talc were not included in the end- use breakdown shown in table 3. The imported talc was purchased primarily by mineral brokers who do not participate in the USBM survey. A large percentage of the imported talc was believed to have been used in plastics. Imports amount to 17% of the total domestic consumption. Pyrophyllite.--Domestic consumption of pyrophyllite increased 20% from that of 1993. The largest portion of domestically produced ground pyrophyllite was used in ceramics, followed by refractories, paint, plastics, insecticides, and rubber, in decreasing order of consumption. Prices Talc prices varied depending on the quality and on the degree and method of processing. The unit value o f cmde talc based on data reported by producers was $33 per ton. The average reported unit value of processed talc was $ 126 per ton. The average unit value of crude and processed pyrophyllite was essentially unchanged from that o f 1993. Unit values for imported crude and ground talc ranged from $42 per ton to $815 per ton for shipments exceeding 100 tons. Unit values for cut or sawed talc ranged from $416 per ton to $805 per ton for shipments exceeding 100 tons. The average unit value for all shipments, 1 including those of 100 tons or less, was $80 per ton for crude talc; $82 per ton for ground talc; and $1,172 per ton for cut or sawed talc. The average unit value fin: cut or sawed talc was extremely high because of the large number of low tonnage-high value shipments made during the year. The average unit value for all imported talc was $96 per ton. Unit values for exported talc ranged from $71 per ton to $499 per ton for shipments exceeding 100 tons and averaged $180 per ton for unground talc and $ 195 per ton for ground talc. The average value for all exported talc was $194 perton for all exports. The unit values for the crude and unground talc categories for imports and exports were greater than expected because of several low tonnage-high value ($237 to $5,000 per ton) shipments made during the year. These shipments were probably sculpture-grade steatite, surfacetreated talc, and/or talcum powder products. Prices, quoted by the American Faint & Coatings Journal, December 28, 1994, in U.S. dollars per metric ton for paint-grade talc in carload lots ranged from $99 to $220. Approximate equivalents, in dollars per metric ton, of price ranges quoted in Industrial Minerals (London), December 1994, for talc, c.i.f. main European ports, ranged from $92 to $330. (See table 4.) Quoted prices should be used only as a guideline because they depend on the terms o f the contract between seller and buyer. Foreign Trade Talc exports increased 14% in tannage from 135,000 tons to 154,000 and 10% in value from $27.2 million to $29.8 million. Canada was the largest importer of talc, followed by Mexico, Belgium-Luxembourg, Japan, the Republic of Korea (7,637 tons), and Germany (5,475 tons). (See table 5.) Talc imports increased 55% in tannage from 100,000 tons to 155,000 tons and increased 38% in value from $10.8 million to $14.9 million. Canada, China, and Japan supplied 85% o f all talc imports. (See table 6.) Most of the talc imported from Japan was likely to have been transshipments from other Southeast Asian countries. the purchase of Finnmincrals Oy by United Paper Mills and expansion of Haichcng Talc Mines Co.'s operations in Liaoning province. O utlook Domestic consumption of talc should grow slowly as the economy improves. Ceramics will continue to be the major domestic end use for talc, followed by paper, paint, roofing, plastics, and cosmetics, in descending order. For pyrophyllite, the major domestic end uses will continue to be in ceramics and refractories.*23& 'Federal Register. Mine Safety and Health Administration. Air Quality, Chemical Substances, and Respiratory Protection Standards. V. 56, No. 39, Feb. 27,1991, pp. 8168-8171. 2Montana Standard (Bozeman). Luzenac Buys, Then Closes, Talc Mine. May 26,1994, p. 1. 3Chemical Marketing Reporter. Talc Purchase Completed. V. 246, No. 25, Dec. 19,1994, p, 7. OTHER SOURCES OF INFORMATION U.S. Bureau o f Mines Publications Talc and Pyrophyllite, Ch, in Mineral Facts & Problems, 1985. Talc and Pyrophyllite. Ch. in Mineral Commodity Summaries, annual. (Also available by FaxBack by dialing 202-219 3644 and ordering document 650395). Talc and Pyrophyllite. Ch. in Mineral Yearbook, annual. Talc and Pyrophyllite. Directory of Companies Mining Talc and Pyrophyllite in the United States in 1994. (Also available by FaxBack by dialing 202-219-3644 and ordering document 650294). Information Circular 9220,1989. Other Sources Company annual reports. Industrial Minerals, monthly. Engineering and Mining Journal, monthly. Mining Engineering, monthly. Mining Journal (London), monthly. W orld Review China is the world's largest producer of talc, followed by the United States and Finland, in decreasing order of production. Japan was the largest producer ofpyrophyllite, followed by the Republic o f Korea and Brazil. China, Japan, and the United States produced 55% o f the world's talc and pyrophyllite. (See table 7.) Among the activities taking place in 1994 was 2 TABLE 1 SALENT TALC AND PYROPHYLLITE STATISTICS 1/ (Thousand metric tons and thousand dolais) 1990 1991 1992 1993 United States: Mine production, crude: Talc 1,190 1,040 997 968 Pvroohvllite 82 W W W Total 1.270 1.040 997 968 Value Talc $31,100 $32,100 $31,300 $27,800 Pvronhvllite WWWW Total $31.100 $32.100 $31.300 $27.800 Sold by producers, crude and processed: Talc 1,020 864 817 900 Pyrophyllite 80 W W W Total 1.100 864 817 900 Value Talc W $82,600 $94,700 $104,000 Pvrophvllite WWWW Total $111,000 $82,600 $94,700 $104,000 Exports 21 (talc) 200 178 175 135 Value $29,200 $30,100 $30,100 $27,200 Imports for consumption 65 67 80 100 Value $11,100 $11,900 $12,400 $10,800 Apparent consumoticm 1,050 926 902 3/ 933 3/ World: Production 9,370 ri 9.070 t 1 8,760 Tl 8.700 Tl d Estimated, r/Revised. W Withheld to avoid disclosing company proprietary data; not included in "Total." 1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown. 21 Excludes powders--talcum (in package), face, and compact 3/ Production, plus imports, minus exports, plus adjustments in Government and industry stock. Does not include pyrophyllite. 1994 935 W 935 $30,400 W $30.400 923 W 923 $116,000 W $116,000 154 $29,800 155 $14,900 936 3/ 7,890 d TABLE 2 CRUDE TALC PRODUCED IN THE UNITED STATES, BY STATE 1/ 2/ (Thousand metric tons and thousand dollars) 1993 1994 State Quantity Value Quantity Value Montana 350 11,900 WW Texas 236 5,660 225 5,860 Oregon (3/) 67 WW Other 4/ 382 10,200 710 24.600 TotaL 968 27,800 935 30.400 W Withheld to avoid disclosing company proprietary data; not included in "TotaL" 1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown 21 Excludes pyrophyllite. 3/ Less than 1/2 unit 4i Includes Arkansas (1993), California, Montana (1994), New York, Oregon (1994), Vermont, and Virginia. TABLE 3 END USES FOR GROUND TALC AND PYROPHYLUTE 1/ (Thousand metric tons) 1993 1994 Use Pyrophyl- Pyrophyl- Talc lite Total Talc lite Total Ceramics 253 W 253 265 W 265 Cosmetics 2/ Insecticides Paint Paper Plastics Refractories 31 -- 31 31 -- 31 7 W 7 6 w6 141 W 141 142 w 142 110 W 110 121 w 121 27 W 27 45 w 45 -- W-- (3/) w (3/) Roofing Rubber Other 4/ Total 68 . . 68 38 . . 38 21 W 21 19 w 19 114 W 114 97 w 97 770 W 770 764 w 764 W Withheld to avoid disclosing company proprietary data, 1 /Data rounded by the U.S. Bureau o f Mines to three significant digits; may not add to totals shown. 2/ Incomplete data. Some cosmetic talc known to be included in "Other." 3/ Less than 1/2 u n it 4/ Includes art sculpture, asphalt filler, auto body filler, construction caulks, joint compounds, flooring, food additives, and other uses not specified TABLE 4 PRICE OF TALC (U.S. dollars per metric ton) Canada: Fine micron. HegmanNo. 6 Montana: Ultrafine grind. Hegtnan No. 6 New York: Bags, mill: 98% through 325 mesh 99.6% through 325 mesh Trace retained on 325 mesh Italian, cosmetic-grade Chinese, normal (ex-store): UK 200 mesh UK 350 mesh Value 205 220 99 115 180 263 285-323 300-330 Sources: American Paint & Coatings Journal, Dec. 27,1994, and Industrial Minerals (London), Dec. 1994. TABLE 5 U. S. EXPORTS OF TALC 1/ 21 (Thousand metric tons and thousand dollars) 1993 1994 Country Ouantity Value Ouantity Value Belgium 10 $2,080 10 $1,210 Canada 3/ 47 8,740 54 9,930 Japan 7 958 8 1,330 Mexico 12 1,770 13 2,210 Other 4/ 59 13,600 69 15,200 Total 135 27.200 154 29.800 1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown. 2J Excludes powder-talcum (in package), face, and compact. 3/ Probably includes shipments in transit through Canadian ports. 4/ Includes 67 countries in 1993 and 62 countries in 1994. Source: Bureau of the Census. TABLE 6 U.S.IMPORTS FOR CONSUMPTION OF TALC, BY COUNTRY 1/ Country 1993: Brazil Canada China France Japan Other 3/ Total Not crushed or powdered Quantity Value (metric (thou tons) sands) - 38 36,800 - - 6,670 43.500 - $11 1,650 - - 604 2.270 Crushed or powdered Quantity Value (metric (thou tons) sands) 114 27,900 2,120 2,940 20,300 554 54.000 $25 4,480 257 288 706 283 6.040 Cut and sawed Quantity (metric tons) Value (thou sands) 264 918 675 (2/) 1 441 2.300 $155 888 360 3 2 1,050 2.460 Total unmanufactured Quantity Value (metric (thou tons) sands) 378 28,900 39,600 2,940 20,300 7,660 99.800 $179 5,380 2,270 290 708 1,940 10.800 1994: Brazil 33 97 25 250 164 350 Canada 272 49 31,000 5,280 600 598 31,900 China 50,200 2,140 5,360 452 705 346 56,200 France 620 505 3,090 314 10 5 3,720 Japan 8 171 43,200 745 2 4 43,200 Other 4/ 14,200 2,340 4,510 330 647 1,470 19.300 Total 65,200 5,210 87,300 7,150 2,210 2,590 155,000 1/ Peviously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown. 2/ Less than 1/2 unit. 3/ Includes 21 countries. 4/ Includes 24 countries. 192 5,930 2,940 824 920 4,140 14,900 Source: Bureau of the Census. TABLE 7 TALC AND PYROPHYLLITE: WORLD PRODUCTION, BY COUNTRY AND PRODUCT 1/ 2/ (Metric tans) Country 3/ Argentina: Pyrophyllite Steatite Talc Australia: e/ Pyronhyilite Talc Austria: Steatite Brazil: Pyronhyilite Talc Canada: Pyronhyilite, soapstone, talc d Chile: Talc China: Unspecified e/ Colombia: Pyrophyllite, soanstone, talc Egypt: Pyronhyilite, soapstone, steatite, talc Finland: Talc France: Talc e/ Germany: Talc (marketable) Greece: Steatite Hungary: T ake/ India: Pyronhyilite Steatite e/ Iran: Talc 5/ Italy: Steatite and talc Japan: Pyronhyilite Talc Korea, North: Unspecified d Korea. Republic of: Pyronhyilite Talc Macedonia: Talc e/ 6/ Mexico: Talc Nepal: Talc 7/ Norway: T ake/ Pakistan: Pyronhyilite Paraguay: Unspecified d Peru: e/ Pyronhyilite Tak Portugal: Tak Romania: T ake/ Russia: Tak South Africa, Republic of: Pyrophyllite Tak Spain: Steatite e/ Sweden: Talc Taiwan: Talc Thailand: Pyrophyllite Tak Turkey U.S.S.R.: T a k e /8/ See footnotes at end of table. 1990 - r/ 200 if 17,800 if 5,000 200,000 134,000 165,000 280,000 148,000 898 2,550,000 10,100 6,340 385,000 328,000 4/ 21,400 1,440 10,000 80,000 ef 406,000 31,100 152,000 1,210,000 61,600 170,000 658,000 182,000 XX 13,500 1,800 100,000 30,200 200 7,500 1,500 7,930 20,000 XX 2,760 11,200 70,000 15,000 22,100 29,300 4,360 5,560 500,000 1991 - if 274 r/ 22,800 t/ 6,000 210,000 161,000 186,000 292,000 123,000 536 2,600,000 11,100 9,090 361,000 310,000 22,600 790 10,000 84,600 424,000 6,680 161,000 1,230,000 65,600 170,000 573,000 171,000 XX 11,900 3,170 r/ 80,000 33,600 200 8,000 2,100 8,000 e/ 10,000 XX 4,450 8,240 70,000 19,200 18,500 43,000 5,580 6,120 450,000 1992 1993 1994 d - if 425 if 21,200 if - r1 840 r1 17,200 r1 -- 500 17,300 5,000 210,000 146,000 5,000 210,000 137,000 r1 5,000 210,000 130,000 144,000 286,000 104,000 1,490 11 2,650,000 13,300 9,000 e/ 371,000 300,000 23,500 700 ef 10,000 150,000 ef 290,000 d 108,000 rf 5,060 ri 2,700,000 19,600 r/ 2,090 rt 399,000 rt 280,000 rt 21,200 r/ 700 d 10,000 150,000 290,000 130,000 4/ 3,000 2,400,000 20,000 2,000 400,000 275,000 20,000 500 10,000 85,000 e/ 425,000 23,700 184,000 r! 81,600 r/ 360,000 r/4/ 18,000 rI 165,000 d 82,000 360,000 18,000 150,000 1,060,000 61,000 170,000 1,030,000 rI 57,200 r/ 180,000 936,000 4/ 63,100 4/ 180,000 603,000 150,000 15,000 19,600 3,820 if 60,000 23,700 200 645,000 r/ 53,900 r/ 10,000 14,400 r/ 1,340 r/ 50,000 46,800 r/ 200 650,000 60,000 10,000 15,000 1,500 50,000 45,000 200 8,000 2,000 9,170 r/ 6,330 4/ 150,000 ef 8,000 2,000 9,350 r/ 6,500 132,000 8,000 2,000 9,000 6,500 100,000 3,050 13,900 70,000 10,000 ilet 6,090 4,290 r/ 8,800 r1 65,000 - ri d 5,020 r1 4,110 4/ 6,850 4/ 65,000 _ 5,000 34,600 4,790 3,920 XX 43,400 r1 7,010 r/ 4,000 d XX 38,000 5,000 4,000 XX TABLE 7--Continued TALC AND PYROPHYLLITE: WORLD PRODUCTION, BY COUNTRY AND PRODUCT 1/ 2/ (Metric tons) Country 3/ 1990 1991 1992 1993 1994 d United Kingdom: Talc, soapstone, pyrophyllite 14,800 10,800 5,220 5,320 r/ 5,500 United States: Pyrophyllite 82,000 W W W W Talc 1,190,000 1,040,000 997,000 968,000 935,000 4/ Uruguay: Talc, soapstone, pyrophyllite d 1,500 1,500 1,500 1,500 1,500 Yugoslavia: Talc 6/ 9/ 18,000 17,000 d XX XX XX Zambia: Talc 160 89 336 350 d 350 Zimbabwe: Talc 1,790 1.680 2,200 1.350 r/ 1.500 Total 9.370.000 r/ 9.070.000 r/ 8.510.000 r/ 8.340.000 r/ 7.880.000 Of which: Pyrophyllite 2,270,000 r/ 2,170,000 1,970,000 r/ 2,010,000 r/ 1,920,000 Steatite 612,000 r/ 656,000 642,000 564,000 r/ 556,000 Talc 3,430,000 r/ 3,150,000 r/ 2,760,000 r/ 2,580,000 r/ 2,510,000 Unspecified 3,060,000 3.090.000 3,140,000 r/ 3,190,000 r/ 2.890.000 d Estimated r/ Revised W Withheld to avoid disclosing company proprietary data; not included in "TotaL" XX Not applicable. 1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown. 2/ Table includes data available through May 15,1995. 3/ In addition to the countries listed, the former Czechoslovakia produces talc, but information is inadequate to make reliable estimates of output levels. 4 /Reported figure. 5/ Data based on Iranian fiscal year beginning Mar. 21 of year stated 6/ All production in Yugoslavia from 1990-91 came from Macedonia. 7/ Data based on Nepalese fiscal year beginning mid-July ofyear stated. 8/ Dissolved in Dec. 1991; however, information is inadequate to formulate reliable estimates for individual countries, except Russia. 9/ Dissolved in Apr. 1992.