Overland Park, Kan.-based Ash Grove Cement Co. announced in late August that its board of directors voted to cancel the company's planned $250 million, 1.5 million-tpy Moapa Paiute plant project, which was to have been located on the Moapa Indian Reservation north of Las Vegas.

The company said its decision about what would have been its 10th cement plant — and its first in the Southwest — resulted directly from a lengthy impasse in the project beginning in early 2007 as a result of changes in tribal government after a yearly election of new tribal leadership. These changes resulted in a tribal effort to restructure the negotiated commercial terms of the project.

“For the past four years, Ash Grove and the Moapa Paiute Business Council worked very cooperatively in moving the cement plant project forward,” said Ash Grove Chairman Charlie Sunderland. “From environmental permitting, to career training for members of the tribe, to infrastructure improvement and plant design, our respective representatives worked diligently to make the project a success for all involved. We appreciate the hard work of many supportive member of the tribe.

“You build cement plants to operate for decades. In the end, we made the decision to free the company from year-to-year uncertainty about both the construction of the plant and its future operation.”

Back in 2004, Ash Grove had said the location was perfect for cement production due to the reservation's high-quality limestone reserves and its proximity to the rapidly growing Las Vegas market. Ash Grove was slated to make sizeable land and water payments, as well as pay for limestone royalties and substantial tribal taxes.

ROANOKE RANKED BY EPA AS ‘TOP PERFORMER’

Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, has awarded Roanoke Cement Co., a subsidiary of Titan American LLC, the 2007 Energy Star for superior energy efficiency within the cement industry. The only active cement plant in Virginia, Roanoke Cement is one of only 10 plants (out of 118 in the United States) ranked in the EPA's “Top Performing Plants” in the country.

The Energy Star program recognizes manufacturer's energy efficient solutions that save money while protecting the environment and reducing greenhouse gas emissions. Roanoke's original plant, which began production in 1951, featured a kiln feed system that used long dry kilns that did not take full advantage of the heat energy leaving the system, resulting in significant energy consumption. To save energy, the modern cement plant introduces preheated raw materials into the kiln. The plant's pre-heater tower acts like a big heat exchanger utilizing hot exit gases from the kiln; literally a tower of high-efficiency cyclones, delivering the raw material into and through the kiln. The company obtains approximately a 40% reduction in fuel consumption through the heat exchange. Located in Troutville, Va., the Roanoke plant is now recognized as one of the most energy-efficient cement plants in the world.

The United States is the third-largest producer of cement behind China and India. The worldwide boom in construction has brought about significant supply issues and the environmental strides achieved by the domestic cement industry have further enhanced U.S. growth.

The score, which is based on actual energy use, is calculated using a tool prepared by the EPA called an energy performance indicator (EPI). It scores the energy efficiency of a cement plant and compares it to that of the entire industry using basic inputs unique to a plant. Where 100% is considered (unachievable) perfection, the EPA scored Roanoke Cement at 98%.

“While we are pleased at the plant's progress, we are not satisfied,” said Kevin Baird, Plant Manager for Roanoke. “We remain dedicated to continuous improvement, convinced that environmental stewardship is the most important characteristic to becoming a good corporate citizen.”

CEMENT TOTALS

Total shipments of portland and blended cement in the United States and Puerto Rico were about 10.9 million mt in June 2007, according to the U.S. Geological Survey. This was 11.9% lower compared with shipments for June 2006. Shipments year-to-date totaled about 54.4 million mt, down by 11.5% compared with those of the same period in 2006.

Clinker production totaled 7.6 million mt in June 2007, a 3.0% decrease compared with 2006. Cumulative shipments for 2007 through June was 42.4 million mt, down 2.2% from 2006.

Masonry cement shipments were about 400,000 mt in June 2007 were 22.2% lower compared with shipments in June 2006. Year-to-date shipments were 2.26 million mt, down 20.0% from the same period in 2006.

JUNE 2007