Document o9qyBgn5Vm89pzZOdD5E8Z8dX

I rLnitNlin ^ EXHIBIT - liis ) Ifc.* * WRQr*061J . 0626803 1224 Industrial Minerals and Rocks scrubbing and dcsliming operaI tom the *trmicuiile it concentrated, dewatered, and dried in a dryer at a controlled temperature. The products arc separated by standard screens and stored in bint or silos for later shipment. A scries of ponds it maintained for tcttlinf and confining all mill waste. Clarified water it pumped back to the mill in a closed system. Processing Vcrmiculitc is used mostly in the expanded form, exfoliated by heating. The expanded ma terial weighs from 4 to t lb per cu ft, depend ing on the site of the particle and method of furnacing. ft it therefore uneconomical to ship the expanded material long distances. The un expended ore concentrate weighs from 50 to 60 lb per cu ft and can be shipped in bulk hopper cars at commodity rates and for long distances. The ore concentrate from the two mill locations is shipped to many capanding plants located throughout the United States and Canada. Standard sites are produced by the mills to that when the concentrate is shipped to the expanding plant and exfoliated it will be a finished product ready for the carious market requirements. The standard commercial screen sites for the concentrates arc --3 + 10, --6 + 14, --g + it, --20 + 65, --50 mesh (Tyler standard screen sites). When the bulk car of concentrate arrives at a plant it is unloaded by conveyors and bucket elevator into dosed stor age bins or silos. From storage it is fed at controlled rates into vertical furnaces that arc fired by gat or oil. Depending on the type of furnace the Aa me temperature may vary from 2000* to 3S00*F. Rapid expansion controlled by the time-temperature relationship is critical for minimum bulk density and good quality. After leaving the furnace the material is passed over a separator which cools the vcrmiculitc and removes rock impurities. The expanded vcrmiculitc is normally packaged in 3 or 4-cu ll paper or plastic hags, hut may also he shipped in bulk railroad cars. Most furnaces arc equipped with bag collectors for dust control. A few use wet scrubbers. In addition to cr- miciilitc itself, various products using expanded vcimiculitc as a base are manufactured at some of the plants. Production Although the mineral vcrmiculitc has been known since IK24 it remained a curiosity until almost 100 years later. The first tepon of mining was in 1913 in the Turrctt Mining Dis trict near Salida. Colo, where eight carloads were produced. However, it was not until the deposit at Libby. Mont, was developed in the 1920s that commercial production began. Pro duction developed slowly until 1940, when 22.000 tons was produced in the United States. By 1950 the U.S. production had grown to 20t,000 tons. In I960 it was still at the 200.000-ton level, but by 1970 had reached 2t5.000 tons. In 1973, reported U.S. produc tion was approximately 365.000 tons (Fulker son. 1973). Current production at the Palabora deposit is estimated at approximately 170.000 tons. Capi tal expansion plans for the major producers in ihe United States and the Republic of South Africa, when fulfilled, win have the effect of increasing production capacity by one-third. Marketing and Uses An estimated t0% of sales of expanded vermiculiic goes for construction industry uses. Nonrcsidcntial building consumes about threefourths of that figure, with the balance going to new work and renovation in residential buildings. The remainder of nonconstruction applica tions occurs in the agricultural, horticultural, and industrial markets. Primary construction uses include: (1) loose fill insulation for horitontal areas such as attics: (2) treated vcrmiculitc granules for insulation of masonry walls; (3) lightweight aggregates combined with setting materials, such as gypsum, asbestos, or Portland cement; (4) acoustical plaster formulations combining vcrmiculitc with binders such as bentonite: and (5) rigid board or tile products employing vcrmiculitc at a component. Marketing of vcrmiculitc it deceptively com plex. Depending on the industry served, a variety of marketing tools arc required. Vcrmiculitc producers achieve basic distrihulion of ore by setting up their own processing plants, by telling to licensees, or by a combina tion of the two. Those products emailing specification hy architccit or engineers call for a sophisticated, technical, competent specification sales effort. Supporting technical data must he factual, in formative. wcll-organitcd, and based on test ing procedures set forth by such organisations as the Bureau of Standards, Underwriter's Lab oratories, Inc, and the Amctican Society lor Testing and Materials. The technical products offered to the building  r.( / 0626804 / Vermiculite 1225 industry mutt be applied by subcontractors verted in Ibeir usage. This frequently places a burden on the manufacturer to supply tech nical service and know-how in proper applica tion. In some cases this hat led to the designa tion of approved applicators with whom the manufacturer develops a special relationship centered on proper use of his materials. Distribution methods vary according to end use of vermiculite products. Atlie insulation it purchased by the homeowner who must be motivated to buy through advertising and sales promotion. The product must be available to the consumer through local lumber, building material, and home center outlets-. The dealer must be encouraged to stock and promote attic insulation to prospects, and the distributor must be involved at the dealer's source for his requirements. Masonry fill insulation requires a specifica tion sales effort, and entails an additional dis tribution outlet, the concrete block producer, since it it sold as an adjunct to concrete block. The general contractor and masonry contrac tor need to be informed of the benefits and usage of the product, through technical data and advertising. Lightweight vermiculite aggregates are used extensively in insulated roof deck systems on nonresidential buildings, such as scboots, churches, warehouses, and hospitals. Special compounds with vermiculite aggregate as a key ingredient arc widely employed to fire proof high-rise office structures. In addition to the primary influences---archi tect. engineer, contractor, subcontractor, dis tributor. dealer--a number of other influences come into play in the marketing of vermiculite building products. These include building officials, insurance rating agencies, owners, roofing manufacturers and governmental agen cies. Manufacturers of fertilisers and agricultural chemicals for the home lawn and garden mar ket rely on vermiculite as a carrier for active chemicals. As the carrier, vermiculite often comprises 90S or more of the composition in agricultural Immolations. Vermiculite is sold as a soil conditioner at retail through garden supply channels. It is also combined with other growth materials into potting soils or toil substitutes, for the pro fessional grower or home gardener. Industrial uses, though accounting for only a small percentage of total expanded vermiculite consumption, arc many and t*aricd. A partial list of uses would include: Cryogenic insulation Insulation of appliance*, coolers, safes Insulating component in prefabricated chim neys Oil-less lubricant Aggregate in refractory components Slow cooling of steel Cushioning material in packaging applica tions Insulation of underground steam or hot water lines Window display material Crease or ou absorbent Sound-deadening applications Nuclear waste disposal No single use of vcrmicvliic will support a mining or processing investment. Seasonal fac-. ton. weather, competitive conditions, and the mis of grades emerging from the mill call for a diversified effort to achieve desirable results. Economic Considerations The average value of crude vermiculite in early 1975. f.o.b. milling plant, was $25.-31.00 per st. The value of crude vermiculite from South Africa, cxf. Atlantic pom. was $55.70.00 per st. No special taccs are imposed on the vermkulitc industry. Producers arc granted a de pletion allowance of 144 on domestic and foreign production. There are no tariffs on imports of crude vermiculite. Imported proc essed vermiculite carries a tariff of 7W4 ad valorttm. Bibliography and References Anon.. 1964. "A Hill Called Loolekop." Hie South Africmm Atimmg Emfmrrrmr Journal, Vol. 75. No. 5704. Ian. 51. pp. 209-210. Anderson. V.C.. 1925. "Jeeii*ic." Cucutar of In formation, Colorado School of Mines, 9 pp. Bassett, W.A., 1959, "The Otigin of the Vtrmicwlife Deposits of Libby. Montana." Amrrietn MinerZorin. Vol. 44, No. 5-4. Mar.-Apr., pp. 212-299. Boettcher. A.L. 1945. "Geology and Petrology of the Rainy Creek intrusive near Libby, Mon tana." Ph.O. Thesis. Pennsylvania State linkersity. 70 pp. Buie, B.F., and Stewart, O.F. 1954, "Origin of Vermiculite et TigervBle. South Caiolina" (abstract), Gcofogtrof Society of Amrrira Snllerin. Vol. *5. No. 12. hi. 2. PP- 1)54-1157. Deer. W.A., Howie. R.A, and Ztnunan, J-. 1945. "Veimkulitc." ffort forming Mmeeoil. Vol. ), John Wiley. New York. pp. 244U257. Fulkerson. F.B.. 1971. "Vcrmieutiie." Mnrw/t I'enehooh Ifft. IIS. Bureau of Mines, pp. 1215-1257. Fulkerson. F.B,, 1972. "Vftmieulite." - Minrrefr Feoehouh 1972. U.S. Bureau of Mines, pp. 1295-1291.