Over the past ten years, we have produced nearly 55 million tons of rock, sand, and gravel. As we grow towards eight million tons per year, the logical question is: where will the reserves come from. Despite acquiring more than 38 million tons of raw material in the Front Range and 65 million tons through the Higman acquisition, we need to keep a steady focus on downstream acquisition of reserves.
For this year’s winter meeting, we would like to turn everyone’s attention to one of the simple truths about the materials business: without raw land, it won’t matter how efficient we are or how much our customers value our product – we will produce our way into extinction!
On the Front Range, our Fort Lupton Mine has about 23 million tons in …show more content…
It bears noting that we started talking to the Hein brothers nearly 15 years ago. The Ewings (now both deceased) were somewhat prickly neighbors whom we met when we first permitted the original 240 acres in Fort Lupton. The estate now wants to sell the land. Our point is that it often takes many years of patience and goodwill to make a land deal, particularly adjacent to a sand and gravel plant. Making relationships with landowners can also span a number of generations (think Gotsch in Hawarden). Jay Van Den Top worked on buying this land for nearly 30 years; Todd Schuver bought it within six months!
We have included area maps for both Milliken and Evans, Colorado, for discussion of a large sand deposit on the Union Pacific Railroad.
Part of our broader ambition is to establish both a major sand reserve as well as a quarry, both situated on the Union Pacific Railroad. The goal, of course, is to supply the Denver Metropolitan Area with a rail-efficient source of materials for a very long time. We believe that by the year 2040, the price of rock and sand will accommodate rail delivery. Within the next five years, we should logically acquire options on raw land in order to be in a position to permit and build what we need by the year 2030. We continue to believe that we have the only 80-acre material receiving yard on the mainline rail in Denver that will be a factor …show more content…
Without question, we’ve had good experience building reservoirs – while putting together an excellent customer base. Timing was everything: just as the demand for storage became a reality, the independent concrete producers finally decided it wasn’t in their best interests to buy their raw materials from Martin Marietta or Aggregate Industries. Assuming the supply market stays the same, we can only project that the sand and gravel will come from further downstream, produce a smaller fraction of gravel, and gradually increase in price.
It would be tempting to purchase or option thousands of acres along the Platte, Poudre and St. Vrain rivers in anticipation of a never-ending water storage market. The real unknown is whether cities like Aurora, Denver, and Boulder will have the money they need in the future to build-out ahead of the demand. It is not impossible to think that there may be a cap on the population growth in the Front Range (government regulation, taxes, cost of living, and even a lack of water, regardless of the storage
For this year’s winter meeting, we would like to turn everyone’s attention to one of the simple truths about the materials business: without raw land, it won’t matter how efficient we are or how much our customers value our product – we will produce our way into extinction!
On the Front Range, our Fort Lupton Mine has about 23 million tons in …show more content…
It bears noting that we started talking to the Hein brothers nearly 15 years ago. The Ewings (now both deceased) were somewhat prickly neighbors whom we met when we first permitted the original 240 acres in Fort Lupton. The estate now wants to sell the land. Our point is that it often takes many years of patience and goodwill to make a land deal, particularly adjacent to a sand and gravel plant. Making relationships with landowners can also span a number of generations (think Gotsch in Hawarden). Jay Van Den Top worked on buying this land for nearly 30 years; Todd Schuver bought it within six months!
We have included area maps for both Milliken and Evans, Colorado, for discussion of a large sand deposit on the Union Pacific Railroad.
Part of our broader ambition is to establish both a major sand reserve as well as a quarry, both situated on the Union Pacific Railroad. The goal, of course, is to supply the Denver Metropolitan Area with a rail-efficient source of materials for a very long time. We believe that by the year 2040, the price of rock and sand will accommodate rail delivery. Within the next five years, we should logically acquire options on raw land in order to be in a position to permit and build what we need by the year 2030. We continue to believe that we have the only 80-acre material receiving yard on the mainline rail in Denver that will be a factor …show more content…
Without question, we’ve had good experience building reservoirs – while putting together an excellent customer base. Timing was everything: just as the demand for storage became a reality, the independent concrete producers finally decided it wasn’t in their best interests to buy their raw materials from Martin Marietta or Aggregate Industries. Assuming the supply market stays the same, we can only project that the sand and gravel will come from further downstream, produce a smaller fraction of gravel, and gradually increase in price.
It would be tempting to purchase or option thousands of acres along the Platte, Poudre and St. Vrain rivers in anticipation of a never-ending water storage market. The real unknown is whether cities like Aurora, Denver, and Boulder will have the money they need in the future to build-out ahead of the demand. It is not impossible to think that there may be a cap on the population growth in the Front Range (government regulation, taxes, cost of living, and even a lack of water, regardless of the storage