L LAFARGE

bringing materials to rife

World leader in building materials L LAFARGE

• Operations in 76 countries with 90,000 employees

• World leader in cement, No. 1 in Aggregates; No.3 in Concrete; No.3 in Gypsum

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us CCP Utilization (from ACAA) J!AFARGE

• Utilization of Fly Ash Bulk Powder reached 44%

70,000

60,000

50 ,000

40,000

30,000

2 0 ,000 12,433

10,000

Fly Ash Usage (ODDs MT)

64,502

3,298 2,432 1,120 1,185 1,098

Cement Sub. Structural Fills Waste Soils/Rd Raw Mining Other Total Usage Production Stabilization Stabilization Feed/Blended

Cement

• Utilization of other CCPs reached 35%

Other CCP Usage (ODOs MT)

Total ')~~~~~~~~~~~177 n5 49,540 ~~~~~~~~~~3Z~~====~ FBC Ash !:r"t155

FGD Other ~ 2,222

DryFGD ~1644 j. Usage ; , Ia Production

~ 15,060WetFGD ) -"~735~~~~~~

FGD Gypsum 8.372 11 ,159 ;

Boiler Slag ~11~J9o

~~~~~~ ________ __________~________ ~________~~mAsh )~~~~~6;.~'626 16,420 -. -. , 10,000 20,000 30,000 40,000 50,000 60,000

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L LAFARGE

Lafarge Utilizes CCP's in the Following Applications:

• Portland Cement Replacement in Concrete

• Treatment of Soils and Base Materials to Improve Engineering Properties (Under Pavements & Buildihg Slabs)

• Ingredient in the Manufacture of Portland Cement (Raw Feed)

• Underground Mine Stabilization

• Ingredient in the Manufacture of Gypsum Wallboard

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Lafarge Annual CCP Utilization-Primary Applications L LAFARGE

• Volumes for North America (K-MT)

Coal Ash Coal Ash Coal Ash Coal Ash Syn Gyp Region Concrete/Cement Rel!lacement Soil/Base Treatment Raw Feed Underground Mine Stabilization Wallboard TOTAL

Lakes & Seaway 700 100 300 500 1600 River 600 500 200 300 1600 East 200 200 West 500 100 100 700

Gypsum 2000 2000 1800 700 800 800 2000 6100

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Portland Cement Replacement in Concrete

~FARGE

• Why it's utilized:

• Economics (reduces the cost/yd cost of concrete)

• Reduces the carbon footprint of concrete (less C02/yd)

• Available locally

• Performance • Necessary ingredient in High Performance Concrete

~ ie. High rise const, thinner bridge sections, etc.

~ Can allow poor quality aggregates found locally to be utilized

• Durability • Reduces permeability of concrete

• Improves sulfate resistance

• Improves resistance to Alkali Aggregate Reaction

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L LAFARGE

Implications of Hazardous Waste Designation on Cement Replacement

• Specifiers would not want it in their buildings, projects

• Hampering sustainable development (LEED credits)

• Not in my schools, churches, stadiums!

• DOT's would procure other more costly materials for their projects

• Additional C02 generation at cement plants to produce add'i ope to fill binder needs for these projects

• Marketers through end users would not want the risk associated with the product

• Increased Tort exposure

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- - -~~- --~--- ~ - - ~ ~--.. . . ..

L LAFARGE

. -.-.~~. .

Treatment of Soils and Base Materials

• 10-20% Self - Cementing fly ash mixed with soil/base material (Very different from structural fill)

• Mixture is adjusted to proper moisture content for fly ash hydration and maximum density and then compacted

• Cementing action resulting from hydration of fly ash improves engineering properties of the soil or base material

• Treated areas are subsequently covered with a pavement or building slab

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Self Cementing Fly Ash -Types of Soil/Base TreatmentL LAFARGE

• Soils

• Clays - used in lieu of manufactured lime to reduce shrink/swell potential

• Granular Soils - used in lieu of Portland Cement to increase strength of soil

• Base Materials

• Natural Aggregates - used in lieu of Portland Cement to increase strength of the aggregate base

• Recycled Asphalt Pavement - used in lieu of asphalt emulsions and other bituminous binders to cement and increase strength of pulverized asphalt pavement

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Treatment of Soils and Base Materials using

Self Cementing Class C Fly Ash

L LAFARGE

Benefits of Self-Cementing Fly Ash for Soil and Base Treatment

• Improves Engineering properties of soils and base materials (strength, shrink swell, etc.)

• Economics of improving properties of in-situ soils and therefore not having to remove and replace with select virgin materials

• Ability to recycle in place existing deteriorated asphalt pavements already paid for with tax dollars

• Less C02 generated - less hauling of virgin soils/aggregates, less Portland Cement and manufactured lime production

• Conserving natural resources

• Specified by state DOT's

• State utilization/implementation plans work (ie. WI, MN, MO)

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Soil/Base Treatment vs. Geo-Tech/Structural FillL LAFARGE

• Soil Treatment

• Self cementing fly ash required

• Soil base material treated with 10-20% fly ash

• Strength is developed through cementitious hydration reaction

• Covered with pavement or building slab

• Structural Fill

• Non-cementing fly ash may be used

• 100% fly ash is used as a soil replacement

• No strength development if non-cementing fly ash is used

• May not be covered with pavement or building slab

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Ingredient in the Manufacture of Portland Cement (Raw Feed) L LAFARGE

• Why it's utilized

• Primarily used as an alumina source (important ingredient in the recipe)

• Often get added fuel benefit that fly ash still contains unburned carbon

• Utilizing the fly ash often results in less cement kiln dust wasted

• Previously used mined aggregates increased plant voc's

• Conserve natural resources

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r FARGE Lafarge Alpena Plant

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L LAFARGE

Implications of Hazardous Waste Designation on CCP's in the Manufacture of Portland Cement

• Cement manufacturers would not want to utilize as an ingredient in their product

• Additional costs to mine other natural materials

• Additional vac's emitted with these other natural materials

• Additional solid fuel consumption due to loss of fuel benefit of fly ash

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Underground Mine StabilizationL LAFARGE

• Where it's utilized

• Underground limestone mines with the appropriate hydrological engineering properties

• Why it's utilized

• To stabilize mine from future collapse

• To get property in position to support surface development

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ClIENT: WAAGE HOftI'H .ulERICA INC.

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DRAWN BY OiECKED BY Al'PR<MO Ell' ntS GWS LBV

PROJEC1 NO, DAl£ DAA'IW-K: NO. 16530222 JAN .2007 2

Drilling of Injection Holes L LAFARGE

Implications of Hazardous Waste Designation on L LAFARGE Underground Mine Stabilization

• Underground Mine Stabilization would end

• Mines would not be stabilized and risk future collapse

• No surface development would take place forgoing future tax revenues

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Underground Mine Stabilization vs. Surface Mine Reclamation#;AFARGE

• Underground Stabilization • Surface Reclamation

• Appropriate geo-hydrological • Site conditions vary conditions significantly

• Surface water runoff not an • Surface runoff of concern Issue

• No fugitive dusting • Significant potential for fugitive dusting

• Self cementing fly ash used • Non-cementing fly ash most develops significant strength often used

• Potential for future mine • Mine collapse is not an issue collapse is eliminated

• Mine stabilization necessary for • Opportunities for surface future surface development development without ash

reclamation, golf course, lake, etc.

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L LAFARGE

Ingredient in Wallboard Manufacture

Why FGD Gypsum

• FGD Gypsum is a Consistent, High Quality Substitute for Natural Gypsum

• Conserves Natural Resources

• Provides a Beneficial Outlet for Recycled Material

• Provides Our Customers and Their Contractors with LEED Certifiable Products

• FGD Production Has Led to Lafarge Building New, Modern Plants in Rural Areas Creating High Paying Jobs

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,. _

L LAFARGE

Ingredient in Wallboard Manufacture

A Hazardous Waste Designation Would

• Create a Negative Impression in the Minds of Consumers that Wallboard Products Are Dangerous ·

• Homeowners Whose Houses Already Contain Wallboard Manufactured with FGD Could Suffer Perceived Loss in the Value of their Homes

• A Perfect Example of Beneficial Use of a Recycled Material Would be Eliminated

• Elevate Product Liability (Insurance Costs)

• Tort Exposure

• Effectively Eliminate 100% of Lafarge's 2009 Capacity

• Hundreds of Jobs Would Be Lost

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-_._-_. ..... -.--. - . -."._--­

Wallboard Plants

L LAFARGE

Silver Grove, Kentucky

Buchanan, New York

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~- ~ - - -~- - ~- - ---

L LAFARGE Summary Takeaways

• A hazardous designation of CCP's would have a negative impact on:

• C02 generation - increase carbon footprint

• Sustainable development initiatives

• Conservation of natural resources

• Concrete performance and durability

• Costs - to manufacture concrete, manufacture cement, manufacture wallboard, stabilize sub bases

• Utility/Marketer/End User perception and liability concerns

• Utility would need to construct additional landfills to handle increased disposal volumes

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