EX-15.1 43 d710878dex151.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 “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 the Company during the year ended December 31, 2013. The data was compiled primarily from the data maintained on MSHA’s public website, the Mine Data Retrieval System (“MDRS”), as of January 27, 2014. 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

   4   0   0   0   0     6,690      0   no   no
0401696   

Azusa Quarry

   0   0   0   0   0     138      0   no   no
4102885   

Balcones Plant

   18   0   0   0   0     68,043      0   no   no
4100994   

Balcones Quarry

   2   0   0   0   0     4,047      0   no   no
0405701   

Black Mountain Quarry

   13   0   0   0   0     114,464      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
0800800   

Brooksville Cement Plant

   0   0   0   0   0     117      0   no   no
0800024   

Brooksville Quarry

   0   0   0   0   0     200      0   no   no
0801287   

Brooksville South Cement Plant

   1   0   0   0   0     2,847      0   no   no
0402763   

Cache Creek Quarry

   1   0   0   0   0     ^      0   no   no
3503508   

Canby Pit

   0   0   0   0   0     127      0   no   no
0200988   

CEMEX - 19th Ave

   0   0   0   0   0     1,374      0   no   no
0202585   

CEMEX - APEX

   1   0   0   0   0     734      0   no   no
0202606   

CEMEX - Camp Verde

   0   0   0   0   0     200      0   no   no
0200717   

CEMEX - Casa Grande

   0   0   0   0   0     117      0   no   no
0202896   

CEMEX - Coolidge

   0   0   0   0   0     100      0   no   no
0202601   

CEMEX – County 19

   0   0   0   0   0     200      0   no   no
0201249   

CEMEX - Globe / Bixby

   1   0   0   0   0     463      0   no   no
0202851   

CEMEX - Gray Mountain

   3   0   0   0   0     1,255      0   no   no
0200722   

CEMEX - Hwy 95

   0   0   0   0   0     100      0   no   no
0202355   

CEMEX - Maricopa

   1   0   0   0   0     685      0   no   no
0202571   

CEMEX - McCormick

   1   0   0   0   0     543      0   no   no

 

2

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
2600789   

CEMEX - Paiute Pit

   0   0   0   0   0     1,421      0   no   no
0202670   

CEMEX - Pima

   2   0   0   0   0     1,194      0   no   no
0202849   

CEMEX - Prescott / Fain

   1   0   0   0   0     408      0   no   no
0202466   

CEMEX - Sheephill Plant

   0   0   0   0   0     100      0   no   no
2602082   

CEMEX - Sierra Stone Quarry

   0   0   0   0   0     200      0   no   no
0202062   

CEMEX - Sierra Vista

   0   0   0   0   0     434      0   no   no
0201037   

CEMEX - West Plant #72

   0   0   0   0   0     100      0   no   no
0202753   

CEMEX - West Valley

   0   0   0   0   0     ^      0   no   no
3300161   

Cemex Fairborn Cement Plant

   2   0   0   0   0     4,307      0   no   no
0400173   

Clayton Plant

   2   0   0   0   0     3,702      0   no   no
0900053   

Clinchfield Plant

   2   0   0   0   0     23,914      0   no   no
3800127   

Deerfield Sand

   0   0   0   0   0     100      0   no   no
0100016   

Demopolis Plant Cemex Inc

   0   0   0   0   0     3,162      0   no   no
4103816   

East Loop 375 Sand Plt

   5   0   2   0   0     5,480      0   no   no
0401891   

Eliot Plant

   2   0   0   0   0     1,734      0   no   no
0800519   

FEC Quarry

   3   0   0   0   0     2,611      0   no   no

 

3

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
4503424   

Granite Falls Quarry

   0   0   0   0   0     100      0   no   no
4000840   

Knoxville Cement Plant

   9   0   0   0   0     8,950      0   no   no
1500040   

Kosmos Cement Battletown Quarry*

   0   0   0   0   0     127      0   no   no
1504469   

KOSMOS Cement Co.

   7   0   2   0   0     56,283      0   no   no
0801015   

Krome Quarry

   0   0   0   0   0     300      0   no   no
2900445   

La Luz Pit

   2   0   0   0   0     775      0   no   no
0801269   

Lake Wales Sand Mine

   0   0   0   0   0     100      0   no   no
0402843   

Lapis Plant

   3   1   0   0   0     3,208      0   no   no
0401896   

Lemon Cove Plant

   3   1   0   0   0     864      0   no   no
0500344   

Lyons Cement Plant Cemex Inc

   5   0   0   0   0     13,041      0   no   no
0405216   

Lytle Creek Pit

   0   0   0   0   0     884      0   no   no
4101066   

McCombs Quarry

   1   0   0   0   0     785      0   no   no
4100046   

McKelligon Canyon

   1   0   0   0   0     5,906      0   no   no
0800046   

Miami Cement Plant

   3   0   0   0   0     7,996      0   no   no
0404140   

Moorpark Quarry

   1   0   0   0   0     897      0   no   no
4100060   

Odessa Cement Plant

   7   0   0   0   0     15,067      0   no   no

 

4

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
0801216   

Palmdale Sand Mine

   1   0   0   0   0     ^      0   no   no
0401906   

Patterson Plant

   0   0   0   0   0     100      0   no   no
4503692   

Portable #2

   0   0   0   0   0     108      0   no   no
0403623   

Red Hill

   4   0   0   0   0     2,627      0   no   no
0200758   

Rinker Materials Bullhead

   0   0   0   0   0     100      0   no   no
0401897   

Rockfield Plant

   1   0   0   0   0     707      0   no   no
4103278   

South Quarry

   2   0   0   0   0     937      0   no   no
0401895   

Tracy Kerlinger Plant

   4   0   0   0   0     5,676      0   no   no
2902128   

Vado Quarry

   1   0   0   0   0     3,261      0   no   no
0400281   

Victorville Cement Plant

   4   0   0   0   0     3,083      0   no   no
4104308   

West Quarry

   2   0   0   0   0     1,180      0   no   no
0801000   

474 Sand Mine

   1   0   0   0   0     390      0   no   no

 

 * A third party leased and operates this site, effective June 28, 2013. This data represents citations, orders, violations, assessments, etc. for the period of January 1, 2013 through June 28, 2013.
 ^ As of December 31, 2013, the penalty had not yet been assessed or not yet contested.

(1)

    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.

 

5

(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.

(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 and do not necessarily relate to the citations or orders issued by MSHA during the period or to the pending legal actions reported below.

 

6

The table below sets forth the total number of reportable legal actions for the twelve months ended December 31, 2013.

 

Mine ID Number

   

Mine or Operating Name

   Legal Actions Pending as of Last Day of Period (December 31, 2013)
(#)(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

   0   0   0   0   0   0   0   1
4102885   

Balcones Plant

   7   7   0   0   0   0   3   7
4100994   

Balcones Quarry

   6   6   0   0   0   0   1   0
0100578   

Bellwood**

   0   0   0   0   0   0   0   1
0405701   

Black Mountain Quarry

   48   48   0   0   0   0   15   12
0800800   

Brooksville Cement Plant

   0   0   0   0   0   0   0   1
0800024   

Brooksville Quarry

   0   0   0   0   0   0   0   2
0801287   

Brooksville South Cement Plant

   2   2   0   0   0   0   0   0
0402763   

Cache Creek Quarry

   11   11   0   0   0   0   2   0
0800511   

Card Sound Quarry

   0   0   0   0   0   0   0   1
0200722   

CEMEX - Hwy 95

   0   0   0   0   0   0   0   2
2600789   

CEMEX - Paiute Pit

   2   2   0   0   0   0   2   0
2602082   

CEMEX - Sierra Stone Quarry

   0   0   0   0   0   0   0   3
0400173   

Clayton Plant

   7   7   0   0   0   0   4   18

 

7

0900053

    Clinchfield Plant   4   4   0   0   0   0   4   4

3500965

    Coyote Springs Sand & Gravel   0   0   0   0   0   0   0   1

0100016

    Demopolis Plant Cemex Inc   0   0   0   0   0   0   0   4

4103816

    East Loop 375 Sand Plt   3   3^   0   0   0   0   3   0

0401891

    Eliot Plant   4   4   0   0   0   0   4   13

0800519

    FEC Quarry   0   0   0   0   0   0   0   9

4503039

    Fisher Quarry   6   6   0   0   0   0   4   0

4000840

    Knoxville Cement Plant   11   11   0   0   0   0   1   12

1500040

    Kosmos Cement Battletown Quarry*   0   0   0   0   0   0   0   1

1504469

    KOSMOS Cement Co.   2   2   0   0   0   0   2   18

2900445

    La Luz Pit   0   0   0   0   0   0   0   2

0801269

    Lake Wales Sand Mine   1   1   0   0   0   0   1   0

0402843

    Lapis Plant   13   13   0   0   0   0   13   0

0401896

    Lemon Cove Plant   4   4   0   0   0   0   4   0

0500344

    Lyons Cement Plant Cemex Inc   1   1   0   0   0   0   0   26

4100046

    McKelligon Canyon   0   0   0   0   0   0   1   13

0800046

    Miami Cement Plant   11   11   0   0   0   0   14   26

4100060

    Odessa Cement Plant   11   11   0   0   0   0   2   1

0801216

    Palmdale Sand Mine   0   0   0   0   0   0   0   2

4503692

    Portable #2   0   0   0   0   0   0   0   1

 

8

0403623

    Red Hill   1   1   0   0   0   0   1   0

0401897

    Rockfield Plant   3   3   0   0   0   0   3   0

4103278

    South Quarry   0   0   0   0   0   0   0   1

0401895

    Tracy Kerlinger Plant   0   0   0   0   0   0   3   3

2902128

    Vado Quarry   2   2   0   0   0   0   0   0

0400281

    Victorville Cement Plant   4   4   0   0   0   0   4   5

4104308

    West Quarry   0   0   0   0   0   0   0   1

3503596

    West Salem Aggregate***   0   0   0   0   0   0   0   1

 

(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 Act.

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;

 

9

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, 2012)” and “Legal Actions Resolved During Year” for current reporting period.
^ As of December 31, 2013, the penalty had not yet been assessed or not yet contested.
* A third party leased and operates this site, effective June 28, 2013. This data represents activity through June 27, 2013.
** Site sold by the Company, effective July 1, 2012. This data represents Legal Actions during the reporting period which relate to citations, orders, violations, assessments, etc. issued prior to July 1, 2012.
*** Site sold by the Company, effective February 15, 2013. This data represents activity through February 14, 2013.

 

10