Erdene is targeting 100 million tonnes of high quality construction aggregate
The Granite Hill project is a fully-permitted project awaiting a start-up production decision by the company’s partner Ready Mix USA LLC for expansion into the southeastern U.S. construction aggregate market. It is anticipated that production will start within nine months of a production decision by Ready Mix USA.
In addition, Erdene continues to evaluate several opportunities in the construction aggregate sector in eastern Canada and the southeastern U.S. Growth in this area recently has been flat due to the current economic slowdown, most severely impacting the U.S. housing industry. However, the long term growth projections are positive given the U.S. economic stimulus package that is anchored in "rock and steel". This has the potential to rapidly accelerate demand for crushed stone. As a result, Erdene continues to position itself with projects in the south-eastern U.S. and in Atlantic Canada where tidewater prospects continue to have competitive advantages particularly in light of the rapidly declining costs of seaborne freight.
The Granite Hill project is a former producing granite aggregate quarry located in Central Georgia directly on rail with a resource in excess of a 110 million tonnes. It is in the final stage of issuance of federal, state and local operating permits to enable development as a granite quarry, primarily to serve the southeastern U.S. markets by rail. Granite Hill has a proposed design capacity of 1.5 million tonnes of aggregate per annum. Based on current production projections, the Granite Hill quarry will have a lifespan well in excess of 30 years. Initial production is dependent on the company's partner, Ready Mix USA LLC's timing for expansion in the southeastern U.S.
