D2p2 - Raw Material Investigations

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GEOLOGY, RAW MATERIALS AND CHEMISTRY Process Engineering Certification Program April 7 - 11, 2003 Raw Materials Investigations

Raw Materials Investigations

Development of costs, time and reliability versus risk

2

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Management

Search for Strategic Cement Raw Materials

3

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Management - RMM Learning Objectives



What is Raw Materials Management or RMM



How the Holcim RMM pyramid is applied



Gain an insight to the exploration process



Application of results for strategic decisions

4

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach

ƒ Identification of raw material resources ƒ Geological exploration and geological modelling ƒ Details of a deposit inventory ƒ Calculation of reserves ƒ Long and medium-term quarry planning ƒ Daily production scheduling 5

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach Raw materials exploration process: Desk Study Preliminary Investigation Overall Investigation Detailed Exploration

6

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Exploration a Exploration Securing the raw materials supply a

Raw Materials Investigations Define quantity and quality of reserves Determine quarry method

a

Methods Available Regional / detailed exploration Chemical & technical analyses

a

Conclusions and Use of Data Go / No - Go Proposals and recommendations 7

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Exploration Procedure Criteria governing scope and extent:  Geographical and infrastructure parameters  Geological knowledge of area of interest  Raw materials availability and inherent characteristics  Time and financial resources available

8

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Exploration

Development of costs, time and reliability versus risk

9

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach Raw materials exploration process: Desk Study

10

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Desk Study This involves the study of published information such as: ? Topographical maps ? Geological maps ? Documents and reports ? Remote sensing ? Photogeology

11

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Maps Î

Geological maps show the distribution of the stratigraphic units exposed on surface.

Î

Scale is dependant on the level of detail in mapping already conducted. Usually 1 : 1’000’000 to 1 : 250’000 or larger if available.

Î

Thematic maps such as hydrologeological, geotechnical or geophysical can also give valuable information. 12

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Maps

13

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Remote Sensing Tools ‘Passive sensors: ƒ Landsat Multispectral Scanner (MSS) ƒ Landsat Thematic Mapper (TM) ƒ SPOT Multispectral Scanner (SPOT-XS)

Active sensors: ƒ ERS-1 (Radar Satellite) ƒ Airborne Radar

14

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Photogeology

Black and White

15

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Photogeology

Color

16

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Exploration

Development of costs, time and reliability versus risk

17

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geology

End of “Desk study”

18

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach Raw materials exploration process: Desk Study Preliminary Investigation

19

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Preliminary Investigations

| Geographical situation - land situation | Geological situation - complexity | Surface sampling - ability | Quality and quantity of raw materials | Applied geophysics - evaluation

20

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geographical Situation Assessment of the geographical situation regarding: ƒ ƒ ƒ

Infrastructure and access to potential plant site Geomorphology of the site Possible quarry locations

ƒ ƒ

Climatic conditions Environmental implications

21

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Situation In this step the geological knowledge, experience and skills of the Geologist are predominant to ensure a sound basis for further work. Scope of work : ƒ geological outcrops are recorded on a map ƒ exposures are describe, lithology, color, mineralogy… ƒ structure of the formations are measured, dip and strike

The aim is to show the distribution of lithologies and make a first calculation of reserves. 22

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling The quality of deposits is determined from surface samples. These samples provide an initial tentative quality assessment of the deposit.

Sampling should be representative of the outcrop For example : ƒ a deposit with limestone beds with shale interbeds

limestone titration  shale titration  titration of whole outcrop 

90 % CaCO3 34 % CaCO3 72 % CaCO3 23

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling Limestone with interbeds shale

24

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling Weighted Average of the various layers

12’ thickness into a 30 lb sample - 1.2 / 12 * 30lb = 3 lbs. 25

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling

26

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling

27

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Surface Sampling Sample quantity for various tests Test Chemical analysis Mineralogical analysis Physical properties Water analysis Fuel Compressive strength Crushing properties Grindability properties Lime burning Slurry properties Filtration test

Required Quantity 1 – 2 kg per component or fist-sized specimens, eventually 1 liter 1 kg, or 1 liter 30 x 30 x 40 cm block blocks of >20 cm length or edges 10 – 20 kg 10 x 10 x 10 cm block 1 liter 50 – 150 kg 28

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Quality of Cement Raw Materials The quality of raw materials for cement manufacturing is appraised by : ƒ geological description of the outcrops ƒ chemical analyses ƒ physical features -

homogeneity

-

presence of other minerals

-

proportion of abrasive minerals (quartz grains)

29

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Quality of Cement Raw Materials Maximum levels of deleterious compounds in the raw material Constituents MgO SO3 K2O Na2O Na-K-equiv Low alkali Cl-

Max % in Raw Meal Remarks (LOI free basis) < 5 % (abs. max. 6 %) MgO comes mainly from the calcareous component <1% In general, SO3 comes from the argillaceous-sileceous component < 1.4 % < 0.8 % Argillaceous-siliceous components < 1.2 % contain alkalis < 0.6 % < 0.02 % All components can have high Clcontent 30

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Quality of Pozzolana Pozzalans (natural or chemical) are added to ordinary portland cement as activators. The quality of pozzolans can only be appraised by testing of samples through : ƒ petrographical and mineralogical description ƒ carrying out chemical analyses ƒ determining the pozzolanic activity

31

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Quality of Raw Materials To determine the quality of the resources, the outcrops need to be carefully described geologically. Several tests must be carried out on representative samples : ˜ physical tests ˜

mechanical tests ˜

uniaxial compressive strength

˜chemical analyses ˜alkali-silica reaction ˜organic content (Cl, VOC) 32

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach Raw materials exploration process: Desk Study Preliminary Investigations Overall Investigations

33

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Overall Investigations ƒ Geological mapping ƒ Geological cross sections ƒ Drilling  

Diamond drilling Alternative drilling methods

ƒ Core sampling ƒ Reserves calculations ƒ Overburden 34

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Mapping and Cross-Sections A geological map is a representation of the outcropping rock types on a topographic map. Essential for ƒ the study of the distribution of rock formations ƒ determining stratigraphic sequence and thickness ƒ investigation of the geological structure ƒ designing a drilling campaign

A geological cross-section shows in vertical plan a postulated distribution of rocks at depth. 35

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Mapping and Cross-Sections

36

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Description of the Outcrops ƒ Type of rocks, mineral content ƒ Grain size ƒ Color ƒ Fossil content ƒ Structure

37

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Mapping and Cross-Sections Geological cross section

38

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Geological Mapping and Cross-Sections

Stratigraphic column

39

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Drilling Diamond or core drilling (preferred) ƒ Alternative drilling methods

- auger drill - rotary drill - percussion drill ƒ Volume required

- 1’000 m to 2’000 m core for a limestone deposit - 500 m to 1’000 m core for silica components ƒ Purpose

-

description of lithology, mineralogy and structure fresh core samples for chemical analysis fresh core samples for physical tests undisturbed core samples for technical testing 40

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Core Drilling Samples

Sample preparation procedure

41

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Chemical Analyses Purpose To determine the quality parameters of the deposits Îmain elements - SiO2, Al2O3, Fe2O3, CaO, MgO, K2O,

Na2O, Cl-, P2O5 and TiO2 using XRF on fused beads ÎSO3, using Leco ÎLOI at 1050 °C or 1940 ° F Îsecondary elements, heavy metals, TOC, VOC, NH3 Îinherent moisture and density Îmineralogical investigations 42

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Max. % of a Few Constituents in the Raw Meal

Constituent

Max % (LOl free basis)

Remarks

MgO

<5% (6%)

MgO comes mainly from the carbonaceous component

SO3

<1%

In general, SO3 comes from the argillaceous-siliceous component

K2O

<1.4%

Na2O

<0.8% (1%)

Cl

<0.02%

Argillaceous-siliceous component contains the alkalis All components can have a high Cl content 43

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

The Problem of Data Correlation

44

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

The Problem of Data Correlation

45

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Drilling Data

46

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Key Questions ƒ Where is the limestone below the surface?

ƒ How can a correlation be established?

ƒ How can we be sure that our interpretation

corresponds to reality?

47

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Possible Interpretation = Isolated Blocks

48

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Possible Interpretation = Faulting

49

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Possible Interpretation = Folding

50

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Additional Information Regional geological setting

51

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Additional Information Direct measurements Field observations

52

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Additional Information Detailed geological map

53

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Final Interpretation

54

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Investigations

Development of costs, time and reliability versus risk

55

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

The Holcim Approach Raw materials exploration process: Desk Study Preliminary Investigation Overall Investigation Detailed Exploration

56

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations In order to calculate the reserves, the following parameters have been investigated and evaluated: ƒ geological dimensions of the deposit : limits of formation ƒ geological structure: dip & strike of strata, folds & faults ƒ overburden magnitude ƒ groundwater level, natural drainage ƒ qualitative parameters: chemical and mineralogical ƒ physical properties ƒ economical aspect 57

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations From a mining and legal point, the base level and the final pit slopes must be agreed on

The volume of exploitable materials are calculated using computer programs such as Surfer or Surpac.

Reserves can also be calculated ‘by hand’ using one of the following geometric constructions

58

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations Geometric pattern for reserves calculations

59

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations The most suitable method of ‘hand’ calculations relies on a series of parallel geological cross sections. By applying the formulae: V = An + An+1 * dx 2 T = V*r

where V A d T r

= = = = =

volume in cubic meters cross section surface area in square meters distance between cross sections in meters metric tonnes density 60

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations

Significance of the dip of strata for reserve calculations

61

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations Reduction of limestone reserves by fault tectonics

62

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Reserves Calculations Significance of folding on reserves

63

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Classification of Reserves Obviously a potential deposit of raw materials has areas which are not considered as exploitable for reasons of: ƒ degree of investigation and level of confidence ƒ quality parameters ƒ accessibility for exploitation

ƒ overburden, infrastructure ƒ economic, legal, environmental and social factors

Holcim apply the Classification of Reserves, summarised as follows 64

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Classification of Reserves Figure 1 Relationship between Mineral Resources and Mineral Reserves

EXPLORATION RESULTS

MINERAL RESOURCES

MINERAL RESERVES

INFERRED Increasing level of geological knowledge and confidence

INDICATED

PROBABLE

MEASURED

PROVED

Consideration of mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors (the ‘modifying factors’) 65

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Overburden Overburden is material of any nature which overlies the deposit of useful materials. The amount and quality of overburden material is defined during overall / detailed investigations as : stripping ratio

= total waste material (m3) total suitable material (m3)

overburden ratio

= total thickness waste (m) total thickness suitable (m)

or

66

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Overburden This material should where possible ƒ be used as a raw materials component, or failing that ƒ be dumped in appropriate areas:

67

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Slope Failures Plane failures occur when a geological discontinuity intersects the pit face

68

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

69

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

70

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

71

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

Reclamation

72

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

73

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

Raw Materials Exploration

74

Holcim (US) Inc - CTS

Geology, Raw Materials and Chemistry

12.12.2005 PECP02 -2002

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