EX-15.1 12 d705069dex151.htm EX-15.1 EX-15.1

Exhibit 15.1

Disclosure of Mine Safety and Health Administration (“MSHA”) Safety Data

Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934 that operate mines regulated under the Mine Act. CEMEX’s U.S. quarry and mining operations are subject to MSHA regulation under the U.S. Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed or vacated.

In January 2012, the SEC issued final rules and regulations implementing the mine safety disclosure requirements of Section 1503(a) of the Dodd-Frank Act. Pursuant to those rules and regulations, we have provided the information below for mining operations in the United States only. The Dodd-Frank Act and the implementing rules and regulations thereunder do not apply to mining and quarry operations outside the U.S.

The information in the table below reflects citations and orders MSHA issued to various U.S. subsidiaries of the Company during the year ended December 31, 2018. The data was compiled primarily from the data maintained on MSHA’s public website, the Mine Data Retrieval System (“MDRS”), as of January 11, 2019. In evaluating this information, consideration should also be given to factors such as: (i) the number of citations and orders may vary depending on the size and operation of the mine, (ii) the number of citations issued may vary from inspector to inspector and mine to mine, and (iii) citations and orders may be contested and appealed, and in that process, may be reduced in severity and amount, and may be dismissed or vacated.

 

Mine ID

number(1)

  

Mine or Operating Name

  Section
104
Significant
and
Substantial
Citations (2)
    Section
104(b)
Orders (3)
    Section
104(d)
Citations
and
Orders (4)
    Section
110(b)(2)
Violations(5)
    Section
107(a)
Orders(6)
    Total dollar
value of
MSHA
assessments
proposed(7)
    Total
number
of
Mining
Related
Fatalities
    Received
Notice of
Pattern of
Violations
Under
Section
104(e)
yes/no
    Received
Notice of
Potential to
Have Pattern
under section
104(e)
yes/no
 
0800078    Alico Road Quarry     1       0       0       0       0       854       0       no       no  
4102885    Balcones Plant     11       0       0       0       0       22,231       0       no       no  
4100994    Balcones Quarry     1       0       0       0       0       6,724       0       no       no  
0405701    Black Mountain Quarry     5       0       0       0       0       75,419       0       no       no  
0801287    Brooksville South Cement Plant     9       0       0       0       0       59,766       0       no       no  
0800024    Brooksville Quarry     1       0       0       0       0       1,894       0       no       no  
0402763    Cache Creek Quarry     2       0       0       0       0       2,304       0       no       no  
0200988    CEMEX - 19th Ave     1       0       0       0       0       618       0       no       no  
0202585    CEMEX - APEX     2       0       0       0       0       1,715       0       no       no  
0200758    CEMEX - Bullhead     1       0       0       0       0       1,120       0       no       no  
0202606    CEMEX - Camp Verde     1       0       0       0       0       985       0       no       no  
0200717    CEMEX - Casa Grande     1       0       0       0       0       927       0       no       no  
0202896    CEMEX - Coolidge     0       0       0       0       0       118       0       no       no  
0201249    CEMEX - Globe / Bixby     0       0       0       0       0       128       0       no       no  
0202851    CEMEX - Gray Mountain     3       0       0       0       0       1,331       0       no       no  
0200722    CEMEX - Hwy 95     3       0       0       0       0       2,721       0       no       no  
2600789    CEMEX - Paiute Pit     2       0       0       0       0       1,649       0       no       no  
0202849    CEMEX - Prescott / Fain     0       0       0       0       0       118       0       no       no  
2602082    CEMEX - Sierra Stone Quarry     1       0       0       0       0       1,772       0       no       no  


Mine ID

number(1)

  

Mine or Operating Name

  Section
104
Significant
and
Substantial
Citations (2)
    Section
104(b)
Orders (3)
    Section
104(d)
Citations
and
Orders (4)
    Section
110(b)(2)
Violations(5)
    Section
107(a)
Orders(6)
    Total dollar
value of
MSHA
assessments
proposed(7)
    Total
number
of
Mining
Related
Fatalities
    Received
Notice of
Pattern of
Violations
Under
Section
104(e)
yes/no
    Received
Notice of
Potential to
Have Pattern
under section
104(e)
yes/no
 
0202062   

CEMEX - Sierra Vista

    1       0       0       0       0       10,499       0       no       no  
0202753   

CEMEX - West Valley

    0       0       0       0       0       163       0       no       no  
0800750   

Center Hill Mine

    0       0       0       0       0       236       0       no       no  
0400173   

Clayton Plant

    1       0       0       0       0       387       0       no       no  
0900053   

Clinchfield Plant

    9       0       0       0       0       17,141       0       no       no  
0801271   

Davenport Sand Mine

    0       0       0       0       0       236       0       no       no  
3800127   

Deerfield Sand

    0       0       0       0       0       630       0       no       no  
0100016   

Demopolis Plant Cemex Inc

    24       0       0       0       0       37,289       0       no       no  
0401891   

Eliot Plant

    2       0       0       0       0       13,199       0       no       no  
0800519   

FEC Quarry

    0       0       0       0       0       444       0       no       no  
0801308   

Gator Sand Mine

    0       0       0       0       0       354       0       no       no  
0801035   

Inglis Quarry

    0       0       0       0       0       236       0       no       no  
4000840   

Knoxville Cement Plant

    19       2       0       0       0       154,845       0       no       no  
1504469   

KOSMOS Cement Co.

    9       0       0       0       0       5,708       0       no       no  
0402843   

Lapis Plant

    1       0       0       0       0       494       0       no       no  
0401896   

Lemon Cove Plant

    0       0       0       0       0       236       0       no       no  
0500344   

Lyons Cement Plant Cemex Inc

    1       0       0       0       0       3,425       0       no       no  
0405216   

Lytle Creek Pit

    0       0       0       0       0       236       0       no       no  
0800046   

Miami Cement Plant

    4       0       0       0       0       24,041       0       no       no  
0404140   

Moorpark Quarry

    0       0       0       0       0       118       0       no       no  
0801216   

Palmdale Sand Mine

    0       0       0       0       0       118       0       no       no  
0401906   

Patterson Plant

    2       0       0       0       0       3,910       0       no       no  
0401897   

Rockfield Plant

    0       0       0       0       0       725       0       no       no  
800075   

St. Catherine Mine

    0       0       0       0       0       138       0       no       no  
0401895   

Tracy Kerlinger Plant

    2       0       0       0       0       985       0       no       no  
0900912   

Union Sand Mine

    0       0       0       0       0       118       0       no       no  
0400281   

Victorville Cement Plant

    0       0       0       0       0       1,218       0       no       no  

 

(1)

The definition of a mine under Section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, and tools. MSHA assigns an identification number to each mine or operation and may or may not assign a separate identification number to related facilities. The information provided in this table is presented by mine identification number.

(2)

Represents the total number of citations issued by MSHA for violation of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated. It should be noted that for purposes of this table, significant and substantial citations that are included in another column, such as Section 104(b) citations, are not also included as Section 104 significant and substantial citations in this column.


(3)

Represents the total number of orders issued, which represents a failure to abate a citation under section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.

(4)

Represents the total number of citation and orders issued by MSHA for unwarrantable failure to comply with mandatory health or safety standards.

(5)

Represents the total number of flagrant violations identified.

(6)

Represents the total number of imminent danger orders issued under section 107(a) of the Mine Act.

(7)

Amounts represent the total dollar value of proposed assessments received from MSHA on the MDRS and do not necessarily relate to the citations or orders issued by MSHA during the period or to the pending legal actions reported below. Specific orders or citations may not have had proposed assessments on the MDRS as of the date identified above, and as a result, those citations or orders not yet assessed are not included in this column.


The table below sets forth the total number of reportable legal actions for the twelve months ended December 31, 2018.

 

Mine ID Number

  

Mine or

Operating Name

  Legal Actions Pending as of Last Day of Period (December 31, 2018)
(#)(8)
    Legal
Actions
Initiated
During
Period
(#)
    Legal
Actions
Resolved
During
Period (#)
 
  Contests
of
Citations
/ Orders (9)
    Contests
of
Proposed
Penalties (9)
    Complaints
for
Compensation
    Complaints of
Discharge /
Discrimination
/ Interference
    Application
for
Temporary
Relief
    Appeals to
FMSHRC
 
0800078    Alico Road Quarry     1       1       0       0       0       0       1       0  
4102885    Balcones Plant ^     0       0       0       0       0       0       0       7  
4100994    Balcones Quarry     1       1       0       0       0       0       1       2  
0405701    Black Mountain Quarry     11       11       0       0       0       0       11       1  
0801287    Brooksville South Cement Plant     0       0       0       0       0       0       7       7  
0900053    Clinchfield Plant     0       0       0       0       0       0       0       1  
0401891    Eliot Plant^^     0       0       0       0       0       0       0       2  
4000840    Knoxville Cement Plant     39       39       0       0       0       0       39       0  
1504469    KOSMOS Cement Co.^^^     0       0       0       0       0       0       0       4  
0800046    Miami Cement Plant     10       10       0       0       0       0       10       0  

 

^

Certain citations on the MDRS are designated as closed, but the MDRS has not yet updated the final order date.

^^

Certain citations were closed in 2016 but were not reflected as closed until recently on the MDRS.

^^^

Certain citations were closed in 2015 but were not reflected as closed until recently on the MDRS.

(8)

Pending legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) as required to be reported by Section 1503(a)(3) of the Dodd-Frank Act. This data represents legal action activity as derived from the MDRS on the date identified above.

The following provides additional information regarding the types or categories of proceedings that may be brought before the Commission.

 

  A

Contest Proceedings - a contest proceeding may be filed with the Commission by an operator to challenge the issuance of a citation or order issued by MSHA;

 

  B

Civil Penalty Proceedings - a civil penalty proceeding may be filed with the Commission by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order;

 

  C

Compensation Proceedings - a compensation proceeding may be filed with the Commission by miners entitled to compensation when a mine is closed by certain closure orders issued by MSHA. The purpose of the proceeding is to determine the amount of compensation if any, due to miners idled by the orders;

 

D    (i)    Discrimination Proceedings – a discrimination proceeding involves a miner’s allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint;
 


  (ii)

Temporary Reinstatement Proceedings – a temporary reinstatement proceeding involves a case in which a miner has filed a complaint with MSHA stating that he or she has suffered discrimination and the miner has lost his or her position;

 

  E

Applications for Temporary Relief-applications for temporary relief of any order issued under Section 104; and

 

  F

Appeals of judges’ decisions or orders to the FMSHRC.

 

(9)

Contests pending as of year-end on the MDRS, but which are subsequently vacated, are not included in any reports on the MDRS. As a result, discrepancies may appear between the prior reporting year’s “Legal Actions Pending as of Last Day of Period (December 31, 2018)” and “Legal Actions Resolved During Year” for current reporting period.