JADE T I L E F E A S I B I L I T Y STUDY NOVEMBER, 1 9 8 6 PREPARED B Y : M. WALDNER E . PLANK Jj&fis and Vttnlem Kwowcei / <y Victoria, E & TABLE OF CONTENTS INTRODUCTION 1.1 History 1.2 Terms o f R e f e r e n c e SUMMARY NEPHRITE J A D E CHARACTERISTICS CUTTING, GRINDING AND P O L I S H I N G 4.1 4.2 Cutting PROCESSES Processes 4.1.1 H i g h P r e s s u r e Water 4.1.2 Laser 4.1.3 Abrasive 4.1.4 D i a m o n d Saws Slurries G r i n d i n g And P o l i s h i n g Processes T I L E MANUFACTURING PLANTS 5.1 Breton s.p.a. 5.2 Gregori s.p.a. 5.3 Pedrini s.p.a. 5.4 C a r l Meyer 5.5 Loffler 5.6 Hensel 5.7 Mohawk - Maschinenbau OHG 5.7.1 Current Plant Configuration 5.7.2 Mohawk P l a n t I m p r o v e m e n t s 6 6. PREFERRED MANUFACTURING SYSTEM 6.1 7. 8. D e t a i l e d Cost A n a l y s i s - C a r l Meyer PLANT SITE SELECTION 7.1 Terrace 7.2 Surrey 7.3 C o n c l u s i o n s and Recommendations BIBLIOGRAPHY TABLES AND FIGURES FIGURE 1 LOCATION MAP AND WEATHER COMPARISONS FIGURE 2 BRETON SYSTEM FIGURE 3 GREGORI SYSTEM FIGURE 4 PEDRINI FIGURE 5 CARL MEYER SYSTEM FIGURE 6 LOFFLER FIGURE 7 HENSEL FIGURE 8 MOHAWK SYSTEM TABLE I PLANT COMPARISONS TABLE I I MOHAWK PLANT COSTS TABLE I I I S I T E COSTS V S . JADE RECOVERY TABLE I V B U I L D I N G CONSTRUCTION COST ESTIMATE SYSTEM SYSTEM SYSTEM APPENDICES APPENDIX I EQUIPMENT MANUFACTURERS APPENDIX I I JADE T I L E FEASIBILITY APPENDIX I I I B.C. HYDRO - POWER COST ESTIMATES APPENDIX IV MOHAWK JADE T I L E PLANT EQUIPMENT APPENDIX V STONE WORKING INDUSTRY STUDY PLAN COMPANIES - 1 - 1. INTRODUCTION This report, prepared jointly b y M.W. i n d e p e n d e n t c o n s u l t a n t E.M. P l a n k d e t a i l s determine for t h e p r o d u c t i o n and c a p i t a l manufacturing tiles and s l a b s products a r e t o b e made f r o m hitherto had been and production. report Mines were funded costs associated with o f which Columbia attractive These nephrite which volume o f r e s e r v e s O i l Co L t d . , t h e D e p a r t m e n t under system i s a t t a c h e d a s Appendix I I , a n d o f Canada and t h e M i n i s t r y British an optimum Columbia N e p h r i t e J a d e . lower grade, y e t s t i l l b y Mohawk O i l Co. L t d . and the f i n d i n g s o f a study conducted t o from B r i t i s h The s t u d y , a p l a n jointly of o f Mohawk unsaleable but represents a significant and Resources Resources Waldner o f Energy, Mines the Canada/British of Energy and Petroleum Columbia Mineral Development Agreement. The s t u d y encompassed international technologies available research Mohawks' own e x c l u s i v e into eventually impetus to primarily research into various cutting l e d t o the stone c u t t i n g for researching the t i l e enhance t h e economics the cost of manufacturing The are specific British this Columbia jade production Nephrite Jade. precluded system. and Europe, manufacturing techniques. industry i n W e s t Germany including The r e s e a r c h and I t a l y . The m a n u f a c t u r i n g t e c h n o l o g i e s came f r o m t h e n e e d jade material. findings America o f mining and marketing construction quality study i n North and g r i n d i n g the d i r e c t tiles and nephrite slabs manufactured to production of t i l e s The p h y s i c a l application jade and t o reduce from and s l a b s the from a and c h e m i c a l c h a r a c t e r i s t i c s o f of a "standard" stone tile - 2 - 1.1 HISTORY The C r y Lake Jade Mines L t d . p r o p e r t i e s , located i n the Provencher Columbia product been (see Figure from from this has to been area alluvial lenses of jade. 1) . boulders, from shore market i s mainly carving most California simplified lower jade grade a n d 4x4 i n c h tiles jade. period approximately total investigations manufacturing British as a primary production mining B.C. has in-situ 830 t o n s o f j a d e t o t h e camp t h e n c e by a i r M o s t B.C. J a d e p r o d u c t i o n primarily quality production. into jade. Taiwan. jade The tiles this plant were p r o d u c e d allowed grading process A marketing a developing Jade f o r marketing techniques process the jade some are This which off- accounts remaining 75% o f below exploration, a market f o r the non- costs. mechanism manufacturing Northern n e p h r i t e jade been u n s a l e a b l e o r f e t c h e s p r i c e s initiated attractive O i l Co. L t d . p r o d u c t i o n has been t o o f f - s h o r e markets, and n o n - j e w e l l e r y q u a l i t y researching tile 10 y e a r 2 5 % o f Mohawk's has g e n e r a l l y 1982 Mohawk the primary of Although f o r c a r v i n g and j e w e l l e r y development and m i n i n g In area has been m i n i n g by t r u c k t o S o u t h e r n i t s way, i n raw f o r m , production Creek the minesite v i a "cat-train" finds approximately Kutcho t h e mid 1970's. the past Dease Lake and f i n a l l y for - Mohawk since During shipped Lakes now owned b y Mohawk tiles "lower was the l i b e r a t i o n grade" beginning of higher as the jade. After in southern i n 1983. quality t o enhancing c a m p a i g n was o r g a n i z e d a n d "JADE INTARSIA" was e s t a b l i s h e d identified established and s o l d i n addition were jade and the value of the for introduction as the t i l e The o f the s e c t o r o f Mohawk's jade business. Manufacturing thick jade tiles the p a s t y e a r . tile and business distribution has c o n t i n u e d After of the four inch s i n c e 1983, a l b e i t square on a an e x p e n d i t u r e o f a p p r o x i m a t e l y and w i t h three years became e v i d e n t t h a t t h e p r i c e marketing o f the t i l e s by one-eighth reduced scale $1.5 m i l l i o n and m a n u f a c t u r i n g h a d t o be r e d u c e d inch during i n the jade experience i t i f the necessary - s a l e s v o l u m e s w e r e t o be sell or f o r more t h a n $150 less per production that the lower sets, the costs foot can including grade be has and slab "value-added" part e v e n t h o u g h an be been also the Designer Net. set and this reduced. slabs, must b u s i n e s s and economic a n a l y s i s aspects from m i n e s i t e to s a l e a b l e of the be bulk achievable research blocks. and p r o d u c t s can table i f the if be for legs, desk However, remainder t o be tile uses items. are $100 indicates Other gift jade sales also business would n e c e s s a r i l y products. currently target p r i c e of including profitable the A tiles v a r i e t y of and identified The only Market i f a greater tiles, been is home, c o m m e r c i a l , s o u v e n i r manufacturing of a viable operation. enhanced size - foot, drastically have other for square different jade b o o k - e n d s and tile per s a l e s volumes can offered, the square achieved 3 of the economic, include a l l YUKON Afh WEATHER CONDITIONS COMPARISON Annual P r e c i p i t a t i o n F.F.D.* Terrace 109 cm (43") 151 Prince Rupert 286 cm (113") n/a Vancouver n o cm (43") 198 62 cm (25") 68 P r i n c e George C Mean Temp. Spr. Sum. F a l l 6.3 15.5 Wint. 6.7 -3.1 n/a 9.6 16.9 10.7 4.0 n/a * F r o s t Free Days Source: M i n i s t r y o f A g r i c u l t u r e Climate o f B.C. FIGURE 1 NIN1U> - 4 1.2 The TERMS OF study focus production of equipment and analysis of production REFERENCE was to research nephrite optimum Mohawk's jade plant current inefficiencies. technologies were essentially focused southern (lower although tariff - to available tiles and determine design and location. tile manufacturing ascertained a northern mainland) and The plant considerations had central B.C. included an identification of A foreign plant techniques Plant plant site dictated a for manufacturing study and evaluated. previously technologies alternate or location. and preferred Additionally, available be on techniques Site Selection location was not United and versus a considered States plant location. Previous production determining experience the basic 4x4 inch criteria and for marketing the tile information assisted specifications. These in criteria were: 1. A $11.00. (approx This approximately $100 2. per 3. $45.00 square The up jade per to jade tile a square was to total foot and retail for less than manufacturer's cost a of retail price of under foot. rates of at e x p e c t e d b a s e d u p o n a 40 raw to cm^) translates Minimum p r o d u c t i o n t o be 100 blocks dimensions could of be 2x3x3 l e a s t 1100 square f e e t per month were h o u r work week. considered metres, but approved and t o be i n rough boulder commonly less than 1 form cubic metre. 4. A l l e q u i p m e n t m u s t be CSA compatible with a l l Canadian standards. 5. The plant inch, 6x6 was t o have the inch, minimum t h i c k n e s s 8x8 capacity inch, 4x8 to produce s l a b s inch o f a p p r o x i m a t e l y 1/8 and 12x12 inch. and inch bevelled tiles with 4x4 a - These criteria types and plant expandability capital served as techniques equipment manufacture's training the bases available. assessed, costs after - for comparison Production yield from service actual user of rates raw identified. sales programs, 5 and jade done feedback costs of equipment were compared, determined, individual including and various boulders Assessment was the general parts and equipment availability, industry stature and performance. Plant Site Columbia "value jade Selection mineral added" based upon Jade) would (Nephrite approach industry processing was to practice off-shore. the of The m a t e r i a l and 2. Availability o f an 3. Availability and would of support Proximity and to Europe. serious the appropriate cost of in i n the the departure material level, heavy in well native British Province. from the the raw This previous form for P l a n t S i t e S e l e c t i o n were: costs. force. electric power and to a lesser land). drained production light equipment industrial without land the which need for preparation. domestic This work water, (Serviced expensive foundation 5. is a this f i n i s h e d product transportation n a t u r a l gas. Availability that processed primary c r i t e r i a Raw 4. premise be exporting 1. extent jade the and f o r e i g n markets includes estimated p r i m a r i l y the differences U.S., Asia i n marketing costs between l o c a t i o n s . 6. Impact of weather c o n d i t i o n s associated costs of on operating the a operation, high water e s p e c i a l l y impact use plant in and freezing conditions. 7. Availability and level Government a s s i s t a n c e of programs. Federal, Provincial and Municipal - 6 - 2. SUMMARY This report manufacturing This study describes the results 4x4 inch thick was by 1/8 jointly funded P r o v i n c i a l Governments. of the per venture square was The study polishing lasers, and/or and square of into and jade. The techniques as of f o o t or appropriate set research stone the than Jade. Federal the and feasibility $100.00 manufacturing Canadian costs relevant cutting, to or impregnated identifying tools appraisal and be could of for cutting Mohawk's identified economically as and water, assessing others. equipment were which grinding the use o f h i g h p r e s s u r e included working equipment L t d . , and Nephrite of less. diamond as feasibility Columbia for less total a l l possible well the for establishing techniques including slurries, European manufacturers suppliers O i l Co. require t e c h n o l o g i e s and technology Mohawk That would into from B r i t i s h primary c r i t e r i a included research grinding tiles t i l e s must r e t a i l foot. abrasive research t h a t the a p p r o x i m a t e l y $45.00 p e r The by of own Six possible produce jade tiles. A p r e f e r r e d manufacturer identified to be and a plant site establishing the S u r r e y area) manufacturer lowest cost; of a tile equipment and recommended. manufacturing a The tile manufacturing a p p r o x i m a t e l y $39.00 p e r manufacturing best alternative technique by C a r l M e y e r . test square work (probably T h i s W e s t German successfully f o o t f o r 4x4 was i s considered p l a n t i n t h e Lower M a i n l a n d u s i n g equipment manufactured completed tile and at inch jade t i l e s . the - 7 - 3. NEPHRITE JADE CHARACTERISTICS There jade in are essentially (Nephrite) this of a two t y p e s and a pyroxene o f jade jade r e p o r t i s Nephrite Jade. matte of fibrous is tremolite. i n the continuous variable. The v a r i a t i o n s Mohawk's J a d e and magnetite. The unique very physical durable such composed of three aggregate characteristics but also primary than texturally minerals According i s an amphibole series the composition a very chromite, of Nephrite difficult due t o minerals chlorite, Jade occurs of make large random individual 3. Learning crystals. o f 61,000 l b s / i n 2 bundles, Jade i s i s t e x t u r e i n which tufts and s h e a f - granite has a very (Belyk e t a l 1973), Jade has a high d e n s i t y , about Jade i s minerals a l l Nephrite whereas Jade harder Granite accessory (1978), orientation, i ta constitute granite compositionally. as t w i s t e d and f e l t e d s t r e n g t h , i n excess steel. and and s e v e r a l minor to hardness m i n e r a l s which talc m a t e r i a l t o work. rock c h a r a c t e r i z e d by a p e c u l i a r i n interlocking composed compressive 185 different tremolite aggregates greater (chrome g a r n e t ) t o the primary a monominerallic microfibrous tremolite There a r e o f t e n minor amounts o f o t h e r material, i n nature. essentially life - ferroactinolite of composed o f b e t w e e n 6 a n d 7 o n t h e Mohs H a r d n e s s S c a l e , i t i s much i s much crystalline a rock the composition m a t e r i a l s as marble and onyx, a t a p p r o x i m a t e l y jade i s referred to i sessentially However, because t r e m o l i t e uvarovite about e q u i v a l e n t i n hardness but that i n the colour of nephrite are primarily and c h e m i c a l building At a hardness than including i n t h e w o r l d , an amphibole The j a d e Ideally, tremolite this compositional variation. in (Jadeite) . N e p h r i t e Jade a p p r o a c h e s C a 2 Mg5 S i g O22 (OH)2. mineral recognized i s an high which i s 3.0, e q u i v a l e n t t o a b o u t l b s / f t ^ , o r more t h a n 5% g r e a t e r t h a n t h e d e n s i t y o f g r a n i t e . - 8 - 4. The CUTTING, GRINDING AND POLISHING PROCESSES physical characteristics ground and generally inert, Therefore, working polished. o f the jade Chemistry essentially the following affect i s not very unaffected physical important, by s t r o n g since solvents, characteristics appear jade acids i s or bases. t o be c r i t i c a l f o r jade: 6 to 7 Hardness Compressive Specific +61,000 Strength lbs/in 2 3 a p p r o x . 3.0 ( 1 8 5 l b s / f t . ) Gravity m i c r o f i b r o u s m a t t e - random o r i e n t a t i o n Texture Certainly colour i s a criteria from an translucency and l u s t r e . m u s t be t h i n i s due t o t h e t r a n s l u c e n c y . the grind, cut, or polish. jade 4.1 how t h e m a t e r i a l c a n b e c u t , will aesthetic One o f t h e r e a s o n s viewpoint as f o r specifying that However, t h i s does i s the the t i l e s not affect how CUTTING PROCESSES Cutting technologies and techniques 1. High pressure 4. D i a m o n d s e t o r i m p r e g n a t e d saw b l a d e s These systems materials were including Manufacturers ineffective; abrasive water; lasers; identified metal, are listed overall results. sawing employing abrasive slurries; of various configuations. researching stone, wood, i n Appendix was g e n e r a l l y 3. by l a s e r beams may h a v e slurries favourable 2. investigated included: I. limited industries glass, High pressure specific unsuccessful; and which other water cut minerals. was g e n e r a l l y a p p l i c a t i o n s ; sawing diamond hard s e t saws g a v e using t h e most - 9 - 4.1.1 HIGH PRESSURE WATER High pressure crystalline, a system water cutting with b y Admac , w h i c h i s marketed some success when Flow Systems o f Kent, Washington natural material. that met has i s employed used on has developed i n cutting marble, g r a n i t e and o t h e r m a t e r i a l s . Discussions with system could system uses Failure Rod D r a u g h t o n c u t jade high i t would pressure o f the jade and J i m White test indicated n o t be v i a b l e water with cutting that although on a commercial abrasives was a t t r i b u t e d added their basis. t o t h e water t o thematerial's The stream. hardness, f i b r o u s n a t u r e a n d random o r i e n t a t i o n o f t h e f i b r e s . 4.1.2 LASER T e s t work h a s r e p o r t e d l y been c a r r i e d on A l a s k a n j a d e e m p l o y i n g '86) suggest proved an V was l e s s conducted Flat test cutting unsatisfactory. inverted cut that (ie: were automatic. $150.00 p e r hour. Vancouver, making the Cut-A-Die B.C. complex and l e f t successfully 525. internal cuts c o n t i n u o u s wave mode. The k e r f on the surface damage cutting (no s i g n i f i c a n t on t h e s i d e on e x i t slabs that side. and t i l e s . cutting a 600 w a t t and etching cutting loss rate a 2 4 x4'' - penetrative damage). There by Arvan T h i s machine w i l l of tile using The edges (burned) white was n o s i g n i f i c a n t and approximately have Royal rate o f o f 20 i n c h e s p e r m i n u t e andbleached could a 1/8" t h i c k sandpaper The l a s e r work some s u c c e s s . was a p p r o x i m a t e l y 0.2mm. entered of the c o n t r o l l e d and f u l l y o f 80 g r i t t h e beam Test laser, be done w lasers t h e depth residue. CO - Aug. t h e shape o f a t a charge-out can also c u t through a t a cutting t h e c u t were t h e roughness burning c u t using laser of slag-like Also o f M a r k h a m , O n t a r i o met w i t h laser Cut-A-Die's t o have o f the cut) . a glassy, (D. A n d e r s o n and i n t e r m i t t e n t T h i s machine i s computer does custom Custom steady were uneven and t e n d e d by Cut-A-Die Zenith - Coherent E v e r l a s e using a t t h e bottom than one i n c h slabs P e r s o n a l communications o f jade The c u t s wider f o r Mohawk jade lasers. o u t by Nana C o r p . o f A l a s k a a n d B a t t e l l e applications perform i n t e r n a l .5ram o f b u r n f o r e t c h i n g and (jigsaw) cuts or - 10 - external cats surfaces because cut on f l a t distance from by t h e d i s p e r s i o n becomes f u r t h e r 4.1.3 The l a s e r tested t h e l i g h t r a y must be f o c u s e d a t a constant limited surfaces. and s t r i k e thel i g h t source. o f t h e r a y which n o t c u t uneven thesurface The d e p t h occurs t o be of thecut as thesurface i s t o be c u t f r o m t h e f o c a l p o i n t o f t h e beam a s t h e c u t d e e p e n s . ABRASIVE SLURRIES Breton s.p.a. o f I t a l y manufactures a r e c i p r o c a t i n g which employs an a b r a s i v e cuttings and s t e e l the results test relies stone being cuttings satisfactorily as a c u t t i n g A detailed on t h ea b r a s i v e slot also 4.1.4 shot. c u t and/or steel slurry slurry the material and s a w - c u t t i n g s assist i n thecutting being perforated steel g a n g saw a g e n t composed o f l i m e , description from Breton's experiments, primarily lime, (see o f the system Sub S e c t i o n dislodging softer mineral than process. p r o b a b l y due t o t h e h a r d , f i b r o u s under The system crystals This and thus The system mineral follows 5.1). steel. i s recirculated from t h e slurry of the mineral failed t o perform nature o f the jade. DIAMOND SAWS T h e r e a r e e s s e n t i a l l y t h r e e s t y l e s o f d i a m o n d saws t h a t 1. would Disc and (circular) saws o f v a r i o u s d i a m e t e r s f o rblocking, investigated: slabbing, bucking ripping. 2. Reciprocating 3. B a n d saw p r i m a r i l y Blades were saws p r i m a r i l y for for blocking blocking f o r a l l o f t h e above saws and or slabbing. slabbing. are either continuous r i m - diamond set or impregnated b l a d e s , o r segmented - diamond s e t o r impregnated b l a d e s . Diamond cutting cutting industry. technology i s t h e most Virtually every common manufacturer i n t h e stone o f stone l e a s t o n e s t y l e o f saw d e s i g n e d t o a c c e p t d i a m o n d and mineral cutting blades. equipment has at - 11 The principle will cut the behind softer diamond jade Other physical sawing process, especially process for crystals, abrasive cutting or cutting the cutting nature of the texture of granite involves of jade b e t w e e n t h e c u t t i n g medium crystals. tool's softer is the of affect t o be by a harder the saw upon the j a d e . hardness this cut. The of meets The cuttings jets the are d i r e c t e d jade. Most of r e l y on between material t h e b l a d e and b l a d e and non-abrasive and r a t h e r than a s s i s t i n g , into e x c e p t i o n o f t h e b a n d saw t h e saw are the material The the cutting systems, tend The f l u s h e s t h e c u t t i n g s o u t o f t h e saw water cut. the diamond b l a d e m u s t be to able dislodge plug the process. near where with the possible high pressure h i g h s p e e d s f o r t h e b l a d e s and being cut. and difference the c u t t i n g c u t aimed a t o r typical individual hardness saw 7. mechanical The cuttings. the 10, b e t w e e n 6 and "plucking-out" primarily (diamond) and do the m a t e r i a l material based a hardness hardness t h a t comprise surface inhibiting, Commonly w a t e r blade a has i s t h a t diamonds, the randomly o r i e n t e d matte o f f i b r o u s n e p h r i t e r a t h e r than individual cutting which besides the m i n e r a l s for technology granite characteristics process to sever sawing - the saw a c t s as a c o o l a n t f o r - 12 - 4.2 The All GRINDING AND POLISHING PROCESSES physical c h a r a c t e r i s t i c s o f the jade the grinding diamond tools and and h a r d e s s e n t i a l l y one o f two The Lapping using 2. Grinding Mohawk of rotating plate lapping is a sanding discs polishing/lapping and the material involve working o r powder. i s worked. the jade The with techniques are polishing grits. using diamond tools and sandpaper type grit. System addition grit techniques how types: 1. diamond polishing affect employs a lapping grit slurry. The spins on t h e t i l e and p o l i s h i n g slurry surface floods process the t i l e and t h e t a b l e and p o l i s h i n g p r o c e s s u s e s two d i f f e r e n t g r i t which surface spins. sizes. relies on while a The t w o s t a g e The f i n a l polish dependent upon t i m e f o r e a c h s t a g e . The c o m m e r c i a l s t o n e g r i n d i n g universally heads, employ which combination diamond gradationally grind grinder/polisher and p o l i s h has been o f head set tool a n d p o l i s h i n g m a c h i n e s made i n Germany a n d I t a l y on diamond s e t t o o l a l s o (tool) finer the t i l e recommended pressure the surface oscillates. diamond set tools surface. f o r jade. on t h e t i l e t o be polished mounted Generally This an e i g h t technique surface, and on i n rotating relies head on a the r o t a t i o n of the some machines the - 13 - 5. T I L E MANUFACTURING PLANTS Many manufacturers contacted. fully high pressure manufacturers and slabs. 1. specialty of a multifaceted were asked There were The m a j o r , integrated 2. The 3. After cutting tests With systems, the exception o f only the f o r t h e manufacture plant, integrated o f jade tiles decision: whereas d i d n o t have two properly could the supply a properly manufacturers sized equipment of f o r an equipment manufacturers could not supply the service from s m a l l , t o determine foreign but expected e q u i p m e n t m a n u f a c t u r e r s was t o be poor i n comparison to the firms. small training 5. equipment complete, f o r one o r perhaps system. equipment manufactures sized who p r o d u c e were plant. sales larger The and equipment t o d e s i g n an e n t i r e p l a n t . difficult 4. t o perform specialized expertise exclusively s e v e r a l reasons f o r t h i s engineered, polishing manufacturers manufacturing and l a s e r integrated specialized and a n d many more m a n u f a c t u r e r s , p r i m a r i l y i n equipment tile water grinding equipment equipment packages who p r o d u c e seqments cutting, are several integrated Italy, the There of companies assistance Only the larger test work generally could except a t a high not offer installation cost. equipment manufacturing companies c o u l d required t o determine i f a certain piece a n o v e r a l l p l a n t d e s i g n was v i a b l e . and perform the o f equipment o r - 14 From t h e the short l i s t necessary companies of tests agreed manufacturers companies and/or to also identified supply perform agreed a s s i s t a n c e on c o m p a n i e s who performed Mohawk d e l i v e r e d require that researched the jade The numbers most and manufacturers of and/or be of to their complete along with manufacturers names equipment a are shipped to do after and two full the preliminary comparisons include such because such performed are as Carl to i f their trials, full illustrated items as c o s t s were company incurred. tests take in best is economic Table chosen provided as and on Appendix of I. The by preferred, The for and six supplying Gregori Hensel. after designs Two of i t was agreeing looked viable comparisons. Two The costs results of the listed do not training, a l l manufacturers. these not their phone I. jade and i f manufacturer's scale testing jade. costs, and the equipment set-up A l l did firms; Breton, systems the a l l candidates evaluations test transportation, not these charge and addresses, Meyer, L o f f l e r delivery systems scale on tool descriptions of names, German c o m p a n i e s d i d p r e l i m i n a r y b e n c h scale manufacturers which t h r e e German f i r m s ; refused six of a t no of brief listed identified tests list and companies line, none facilities and Italian perform Several test i n t e g r a t e d equipment i n c l u d e d t h r e e I t a l i a n the plant. the appropriate Pedrini production eventually to perform A i n Appendix V, contact to to the equipment manufacturers. charge returned. important but able f r o m Mohawk f o r t e s t w o r k , a l t h o u g h s e v e r a l technology free being tile specify tests, t e s t work a g r e e d jade is detailed businesses. telex the tool as p o s s i b l y integrated perform companies were g i v e n j a d e d i r e c t l y contributed an tests to - additional taxes etc., Irrespective costs would of be 2 TABLE I - PLANT COMPARISONS (1,000 FT /MO. - 4" X 4" TILES) PLANT COUNTRY OF ORIGIN T I L E SIZES PRODUCED 4x8 6x6 8x8 12x12 4x4 SLABS TILE THICKNESS (4" x 4") BRETON ITALY X X X X X X 3-5mm GREGORI ITALY X X X X X X 3-5mm % YIELD (*3) FACTORY FROM PRODUCTION SUPPORT RAW COSTS & PARTS BOULDERS PER F T AVAILABLE 2 30% Approx. PLANT AREA (FT ) WATER REQUIREMENTS (LITRES/MO.) 4.9 m i l l i o n 2 $32.40 FAIR 7,800 $38.15 POOR 7,500 N/A 25% PEDRINI ITALY X X X X X X 3-5mm Approx. 5 $35.15 POOR 7,400 25% W. GERMANY X X X X X X 3-5mm 50% $22.55 GOOD 4,800 LOFFLER W. GERMANY x x x x x x 3-5mm 22% $34.25 F A I R TO 6,500 ( S l a b s m i n . 10mm) W. GERMANY X X X MOHAWK (*1) U.S.A. & CAN. x x U.S.A. & CAN. x x (Current GOOD million) (Est. approx. million) 1.5 m i l l i o n N/A ( E s t . approx. 3 million) 3-5mm 40% $26.52 GOOD 5,200 x 3mm 27% $97.68 FAIR 3,150 1 million x 3mm 35% $57.95 FAIR 4,800 3 million X X X 2.9 m i l l i o n Plant) MOHAWK (*D N/A 5 CARL MEYER HENSEL (Est.approx. 2 - Based on a c t u a l p r o d u c t i o n o f 225 f t p e r month. (*2) - E x c l u s i v e o f f r e i g h t , t a x e s , d u t y , s e t - u p c o s t s , e t c . (Complete $CDN. - F.O.B. O r i g i n ) . . (*3) - Labour, t o o l s , jade. TABLE I (cont'd) NO. OF POWER EMPLOYEES PLANT BRETON 450 h p PRODUCTION RATE (4"x4" TILES) +2,000 f t 2 PLANT SET-UP & TRAINING PROGRAM BACKING REQUIRED FOR PRODUCTION TOOLS AVAILABLE TEST WORK SUCCESS (*2) EQUIPMENT COSTS YES YES FAIR PARTIAL $773,300 650 kw GREGORI 740 h p R e q u i r e s b o u l d e r s be encased i n g r o u t Maximum w i d t h o f s l a b 4 0 " 7-8 510 kw PEDRINI MISCELLANEOUS Estimate NO 1,500-2,000 YES FAIR NO $674,600 S l a b s maximum w i d t h o f 4 0 " 2 ft /Mo. 620 h p High water consumption NO YES FAIR NO $910,750 430 kw S l a b maximum w i d t h 2 1 " B l o c k saw s t e p c u t s , n o t s i n g l e Allowing CARL MEYER 250 h p 4-5 2 1,720 f t / M o . YES NO GOOD YES $742,000 200 kw LOFFLER thinner blades - Can produce 62" wide s l a b s - Bandsaw o p e r a t e s w i t h segments m i s s i n g 261 hp A p p r o x ima t e l y 210 kw 1,500 YES YES FAIR NO $650,000 Low p r e s s u r e polisher 2 ft /Mo. S l a b s u p t o 1 0 8 " w i d e b y 10mm t h i c k can be c u t HENSEL 2 5 0 hp 5 1,650-1,850 5 225 f t / M o . 2 ft /Mo. YES YES GOOD PARTIAL $510,000 - Cut 18"xl2" N/A NO GOOD YES $216,550 - S l a b s maximum w i d t h 2 1 " N/A NO GOOD YES $461,550 s l a b maximum 200 kw MOHAWK 65 h p 2 48 kw MOHAWK 200 h p 145 kw pass 14 2 1,125 f t / M o . (total including current plant capital) TILE C O S T V S . J A D E $ 12.00 h- R E C O V E R Y - T A B L E III — ^ + 1 / / / $ 11.00 L_ 1 1 ° / $ 10.00 / : -! IL _ i i / — i i : $ 9.00 i j i ; i i , I i i 1 i i i i i /\ I / i | ] : , \ 1 I $ a oo / 1 \- / / $7.00 / i / / $6.00 1 1 ! ! i > / / i / / / / / $5.00 / 1 I / $4.00 1 $3.00 h 100 90 • * 80 — 1 — 70 JADE Jade c o s t - $ 1 . 5 0 Tile « 1/8" per lb. 60 50 RECOVER Y thick 40 ,, A 30 20 [0 - 15 - 5.1 BRETON s . p . a . Breton's block multiblade Another saws sawing gang saw u s i n g possible can only depth of technology saw t y p e produce blade) limitations. a i s a vertical, lime slurry oscillating and s t e e l shot i s a m u l t i b l a d e diamond d i s c slabs whereas less the The p o l i s h i n g than one-half reciprocating technique schematic detail of Breton's system i s essentially i s illustrated saw. does r e s e a r c h e d w i t h t h e e x c e p t i o n o f C a r l M e y e r who u s e s A as a c u t t i n g the blade saw, or reciprocating, agent. However, t h e d i s c diameter not (cutting have t h e same the same as the o t h e r s a lower p r e s s u r e p r o c e s s . i n Figure 2 and d e s c r i b e d i n below. STEP 1 Place the jade direction, grout) boulders i n a box-like pack as t i g h t l y jacket. as p o s s i b l e form. Orient the boulders i n t h e same and encase i n a cement and sand E a c h b l o c k t o be a p p r o x i m a t e l y (soft 1000x2000x1000mm. STEP 2 Load blocks reciprocating cutting under gang band, gang slurry of steel blocking saw was shot t o break other were tested and tested. cut into The s t e e l and l i m e f a i l e d r a t e , t h e blades tended two saws saw A vertical p e r f o r a t e d bands and a t o c u t t h e j a d e a t an a c c e p t a b l e a n d t h e minimum s l a b the o s c i l l a t i n g slabs. t h i c k n e s s was 10mm. Masterbreton HG and The rectilinear B o x e r b r e t o n HSE. A reciprocating, diamond segmented blade, gang saw, t h e " D i a b r e t o n - H S W " h a d t r o u b l e w i t h s e g m e n t s t e a r i n g o f f , a n d was c o n s i d e r e d A large was diameter segmented circular some t r o u b l e w i t h s e g m e n t s b r e a k i n g o f f . still h a d t o be e n c a s e d vertical blades automatically, uses diamond and one (disc) The O r t o b r e t o n horizontal cut-off sequence. a p p r o x i m a t e l y 425 1 / m i n . o f w a t e r saw p e r f o r m e d , I t was f o u n d i n grout. i n a step cutting unacceptable. blade This but there that the boulders 4EG o r 2EG w i t h will system, c u t up t h e most to 8 up t o 8 blocks successful, a n d h a s a t o t a l o f 1 8 2 . 5 h . p . (140 k w ) . BRETON JADE SYSTEM and 2 F I G U R E GROUT STEP STEP I 2 GROUT STEP 4 -ACRYLIC or FIBERGLASS STEP 9 STEP 3 STEP 7 - 16 - STEP 3 Apply acrylic cement sheet o r chop fibreglass t o t h e back o f each s l a b o f j a d e and aggregate. STEP 4 Polish the slabs spindle using grinding polishing. a L e v i b r e t o n KG 4 0 / 0 1 2 . heads f o r dressing I t can p o l i s h up This polisher (lapping) the slab t o 200 f t ^ p e r h o u r . has 7 v e r t i c a l and This 2 heads f o r machine uses 250 1/min. o f w a t e r a n d h a s a t o t a l o f 140 h . p . ( 1 0 5 k w ) . STEP 5 A jig-saw and i s used cement (manual) slabs. This t o c u t the polished involves cutting only jade slabs t h e cement o u t from grout the jade encasing the jade. STEP 6 Strips a r e then transversal are h.p. rectifying required strips c u t from holding t h e rough saw. This shaped jade saw w i l l 350mm d i a m e t e r diamond up t o 2000x400mm a n d s l a b s t o 7mm slabs using handle up t o 7 b l a d e s d i s c blades. thick. a Breton This This 190 ADR but only saw w i l l c u t saw h a s a t o t a l (13 kw) f o r t h e s p i n d l e m o t o r s , p u s h m o t o r a n d r o l l e r 2 o f 17.5 motor. STEP 7 The tile diamond cutting disc 600x300mm conveyor saw DXS/5 c u t s blade (24"xl2"). capable The t o the chamfering of the jade squaring tiles machine. strips tiles a r e then into with a transported tiles using maximum by a single dimension motorized of roller - 17 - STEP 8 The tile edges a r e chamfered and p o l i s h e d by a C h a m f e r i n g Breton Model IBS/28 h a v i n g a t o t a l o f 6 h.p. STEP 9 The t i l e s a r e washed, d r y e d , The Breton process s t e p where j a d e high i n s p e c t e d and packaged. h a s some flaws or d i f f i c u l t i e s i n the primary l o s s e s and t o o l p r e s s u r e s employing breakage other methods because cement a s w e l l i s considered production required allow rate of t o operate production month based c o u l d be h i g h . a multi-movement head cause service of thin failure slabs. the 1,000 best f t the plant. to increase The p o l i s h i n g 2 as jade of a An a d d i t i o n t o more o n a 40 h o u r w o r k week. than The p o l i s h e r t o l a p the slabs. process total firms of Breton f t This could seven 2 people At would two p e o p l e o f 4x4 i n c h than back-up and researched. o f approximately 2,000 r e l i e s on i s more e x p e n s i v e i s polished. the I t a l i a n p e r month (blocking) a be could t i l e s per - 13 - 5.2 GREGORI s . p . a . Gregori slab i s an I t a l i a n and employs plant tile production multi-blade including declined conveyors diagram o f a complete equipment. circular t o perform schematic manufacturer any o r d i s c saws. and other test of their Their primary o f marble block after handling the jade i s illustrated and g r a n i t e sawing They do p r o v i d e materials cutting system line technology a fully designed devices. arrived Gregori i n Italy. i n Figure 3 and of drying A described below. STEP 1 The blocks would preparation Bufalo-mg, 600 have f o r sawing i s capable t o be using secured a circular mm. Minimum standard This cut slabs step of slabs o f 380 v o l t s . requires (disc) a saw. blades grout This in saw, a i n diameters from 350-600mm i n d i a m e t e r . This a maximum d i m e n s i o n o f 3 5 0 0 x 1 8 0 0 x 1 8 0 0 i s estimated t o be 8mm. T o t a l power r e q u i r e m e n t carriage t r a n s p o r t e d by b r i d g e c r a n e with quick blocking c u t - o f f blade from b l o c k s thickness voltage bed o f c a r r y i n g up t o 19 v e r t i c a l t o 1200mm p l u s o n e h o r i z o n t a l , machine w i l l in a f o r the o r some s i m i l a r raw blocks. device This saw has a i s 250 h . p . (184 kw) . The cut slabs to a deposit are area. STEP 2 The slabs which This i s capable machine strips wide) . The strips a n arm c r a n e the Ghepard, t h e two o p p o s i t e are required, A 500mm b l a d e volts. up w i t h of feeding squares i f tiles 380 slab are picked is and s t a c k e d automatic squaring tilting sawing s i d e s o f a s l a b and c u t s to the desired normally on a used dimension i n t h i s machine. (ie: device machine. the slab 4", Standard 6" into o r 12" voltage i s Power d r a w i s 24 h . p . ( 1 6 . 6 k w ) . (or slabs) deposit area travel along where a c r y l i c a free roller sheet (slabs) are f e d into the c a l i b r a t i n g c o n v e y o r band t o t h e f i n i s h e d i s applied. machine. From this area the s t r i p s GREGORI SYSTEM 3 F I G U R E STEP 7 - 19 - STEP 3 The Polaris 620/30, desired thickness. (slabs) would fact i t may calibrating I t i s probable require application be necessary calibrating machine total o f 76.5 h.p. power machine motorized roller polishing machine. that prior this vertical (53 kw) . conveyor the s t r i p s backing, backing s p i n d l e diamond and/or machine with a strips motorized strips 2) a n d i n t o Step head t o the the jade (see Step prior The c a l i b r a t e d band (slabs) to calibration o f an a c r y l i c to apply has three grinds 2. The grinders with then tilting travel device a by a to the STEP 4 A Vega the 620/8+1, p o l i s h i n g final polish on the jade installed 214 h . p . (157 kw) . band another to transversal motorized cutting band, i f t i l e s strips 8 planetary polishing (slabs). The s t r i p s roller o f the s t r i p s travel conveyor and a l o n g r a t h e r t h a n s l a b s a r e t o be This along and another heads machine a free then completes has a roller to a motorized total conveyor machine roller for conveyor produced. STEP 5 A Mini-Super controls cuts Special, automatic the s t r i p s squaring into the desired length carries a 700mm d i a m e t e r strips). This machine installed H.P. (18 kw) , a s s t a n d a r d . chamfering machine The complete with (transversal circular tiles cutting blade a r e then hydraulic of the a n d h a s 23.5 conveyed to the step. STEP 6 An Orion, automatic These chamfering edge machine and c o r n e r chamfers polishing two m a c h i n e s i n tandem w i l l a total installed t h e edges machine finish chamfer t i l e s 27.25 H.P. (20 k w ) . of the t i l e s t h e edges and a Sirio, o f the tiles. o f minimum 8ram t h i c k , a n d h a v e - 20 - STEP 7 The tiles (to conserve grooving are f e d along space), machine moved a l o n g to which another a motorized another grooves roller roller conveyor motorized the bottom band, roller a motorized conveyor of the t i l e s . and into The t i l e s conveyor band t o t h e washing and d r y i n g curve the a r e then sequence. STEP 8 The final step conveyor band i n v o l v e s moving the completed t o t h e i n s p e c t i o n and p a c k i n g tiles along a motorized bench and f i n i s h e d product roller storage area. Some G r e g o r i taken saws a r e known that the e l e c t r i c a l standards. The c i r c u l a r losses the c i r c u l a r in from the form with single blade blades will missing failure to o f two p e o p l e 1,500 t o 2,000 f t 2 a r e known to require and c a l i b r a t i n g (sawdust) . occurs. month o f 4 x 4 i n c h t i l e s addition saws Circular and m u l t i - b l a d e be 3 t o 5mm Canada. Care components and w i r i n g conform t o Canadian sawing of cuttings, segments t o be i n u s e i n E a s t e r n I n order thick. gang consume saws can ruin t o c u t 3-4mm t h i c k The G r e g o r i plant w i l l slabs tiles produce and t h e a l o t of saws do n o t o p e r a t e allow production p e r month. o f 4x4 i n c h jade very well i f even a (slabs) the 2 1,000 f t p e r b a s e d o n a 40 h o u r work week a n d s e v e n e m p l o y e e s . should be electrical a l o to f water stages must tiles The to increase - 5.3. 21 - PBDRINI s . p . a . Pedrini i s an Italian granite slabs and tiles. and cutting slabs and polishing to but may required. Equipment each step below conveyors and estimated studying extensive a the saws f o r jade redesign j a d e p l a n t was illustrated cranes costs of for production if which not i n Figure would be agreed thin jade provided. The includes necessary for a marble raw that boulders their and cutting slabs were w e r e made a v a i l a b l e equipment l i s t e d such items complete t h i s equipment between the major p i e c e s and to perform c u t t i n g blades the 4, of blocking decided recommendations f o r working of and equipment Pedrini originally after require o v e r a l l design of They employ c i r c u l a r dimension. tests technology but manufacturer as in roller plant. The i s $85,000. STEP 1 This step securely is a slices to allow circular Block-cutter blade until into saw along a predetermined enough crane. slices The The with a width similar backing slab thickness depth cut slabs 3,200ram. w o u l d be of blocking totals the and The cut-off by 266 slabs. 8mm The by deeper the operator h.p. to Pedrini and to be anchored recommended m o d e l single horizontal Several the move have single vertical useful stroke would i n excess of saw. i s reached. removal the would progressively allow slabs to block $202,140. cut to inches), i s applied the making power The The single vertical require machine of at bridge are a p p r o x i m a t e l y 550mm (21 cutting slabs. proper operation M o d e l M535, p r i c e d diamond d i s c . of block bridge travels desired, a diamond cuts such cuts are employing cutting s t a t i o n where indicated that b l a d e w i d t h more t h a n the made mounted some depth i s a b o u t 3,850mm and a disc until horizonatally Maximum blade, 5mm. is useful acrylic the type or minimum PEDRINI I SYSTEM 4 STEP X FINISHED F I G U R E PRODUCT 6 - 22 - STEP 2 After slabbing and a c r y l i c would c a l i b r a t e t h e s l a b s $154,170. This and vertical three control total machine sheet to the desired required thickness. comes c o m p l e t e w i t h spindle grindling and automatic u n i f o r m installed a p p l i c a t i o n a Model 122.75 machine A motorized digital roller machine i spriced a t conveyor a t t h e feed end electronic t o o l consumption adjustment. h.p. t o move t h e s l a b s This a roller heads, M541, g r i n d i n g thickness The machine h a s a conveyor band would be t o the p o l i s h i n g machine. STEP 3 The Model M536, p o l i s h i n g machine with up t o 17 v e r t i c a l spindle heads and p l a t e s would p o l i s h t h e s l a b s . Probably a nine slow polish. The n i n e speed would accomplish p r i c e d a t $294,840. This c o n v e y o r w o u l d be r e q u i r e d the desired polishing head machine run at head polisher i s machine h a s a t o t a l power o f 138.5 h.p. A motorized t o move t h e p o l i s h e d slabs t o the next step. STEP 4 A Model (strips) single, M539 cross cutting to the desired 350mm d i a m e t e r length diamond a n d t o w i d t h s o f 510mm; feed the t i l e s machine priced a t $24,390 t o produce the f i n a l disc will t o t a l power i s cut tile 10.5 h.p. would c u t the slabs dimensioned product. lengths This f r o m 125mm t o 800mm A motorized conveyor would t o the chamfering machine. STEP 5 The Model M538/G-3, c h a m f e r i n g edges, grooves t h e t i l e s , packaging. total This 44.25 h . p . machine machine washes, bevels the t i l e blow d r i e s and b u f f s i s priced a t $150,210. A packaging table i s included edges, polishes the the finished t i l e s f o r A l l motors for this as p a r t o f t h i s equipment. step - 23 - P e d r i n i d i d n o t quote on a p l a n t slab manufacturing would be tiles and tiles. per capable the o f 4x4 production addition would reduce of between The and considered an jade the plant extra jade this tiles would equipment 4,000 5,000 2 f t would require approximately added c o s t o f equipment cost of At a production approximately s i x people including m a c h i n e s w o u l d be a b o u t $ 9 1 0 , 7 5 0 . The per 4x4 3,000 tile Pedrini month of produce upon an 8 hour a t an 2 p e r month based of people. tiles f t equipment jade, thus g r a n i t e appropriate. estimated approximately inch capital was producing t h e number m o n t h o f 4x4 i n c h plant. of I t i s estimated that month full slabs equipment f o r manufacturing and plant of granite inch granite t o 3,500 f t d a y , 5 d a y week. nine people, of 1,000 roller $98,000 f t w o u l d be r e q u i r e d turntables, At although approximately rate 2 2 per i n the conveyors - 24 - 5.4 CARL MEYER T h i s W e s t German m a n u f a c t u r e r o f stone cutting and p o l i s h i n g t h e most c o m p r e h e n s i v e s e r v i c e o f any m a n u f a c t u r e r and polishing. They p r o v i d e c o m p l e t e e n g i n e e r i n g are considered superior f o r equipment performance. Carl specifications, estimated recommended system blocking, cutting, expects t o have continuous Meyer is a where tool five complete production locations provided polishing a very costs, step approached technical detailed water sequence using primary line set-up Test equipment work to-date i s operating. system i s d e s c r i b e d below and i l l u s t r a t e overall on plant consumption. and s l a b s and chamfering by December and information five cutting support and support a n d power provides f o rtest and p l a n t d e s i g n tiles testing. their design, machines Their machines f o r tiles. Carl Meyer o f 1986 f o r f u l l scale was c o n d u c t e d Details on at several the Carl Meyer i n F i g u r e 5. STEP 1 Carl Meyer manufactures diamond d i s c fully to automatic, any d e s i r e d uses a t l e a s t is This tool costs saws t h i c k n e s s making 30 p e r c e n t results close than and c a n o p e r a t e i n low jade a c u t or during from This diamond d i s c types c u t slabs as t h i n slabbing 463K. a This a s 4mm a n d up and b l o c k i n g saw. segments m i s s i n g It The saw from the cutting and s u b s t a n t i a l l y lower or circular ( d i s c ) saws) t h a n other The allows does band does the f i r s t not require not deflect c u t t o be blades. 1. W i l l c u t b l o c k s up t o 2200mm l o n g a n d 1600mm h i g h 2. Sawblade k e r f l o s s when started regular "tensioning" i s a summary o f t h e t e c h n i c a l d a t a f o r t h i s saw: i s 4mm including a n y e q u i v a l e n t b l o c k i n g saw. slabbing. The band saw bandsaw, M o d e l w i t h diamond losses cutting. edge. f o r l a r g e diameter following or several unique i t an i d e a l l e s s water f o r blocking t o the boulder necessary their ( e s t i m a t e d a t 1/2 r e c i p r o c a t i n g designed initiating recommending tested diamond segment bandsaw, w i l l q u i e t , low pressure band. The saw b e f o r e and a c t u a l l y CARL MEYER STEP 5 SYSTEM r > e u - 25 3. Will cut 1.2 approximately 4 Production to 5. 3200 month to 7. Space r e q u i r e d - 8. U s e s 100 9. Foundation 10. Price per day with jade $26.50 p e r m Power r e q u i r e m e n t f t 2 per hr.) This basis the (5 d a y translates 8 hour per day work week c a n addition of a week. be second to expanded turntable $30,000). cut 6. (12 p e r month b a s e d on a 5 d a y , per Tool at 2 hr. shift cost estimated per a one 2 (approximate costs 2 2000 f t on f t m - (diamond 2 and band is 2 (16 kw). 7.5m long 5.0m high 4.5m wide l i t r e s of water per minute (IV water line). m deep c o n c r e t e on e a c h s i d e o f F.O.B. W e s t Germany consumption) ($2.50 p e r f t ) . i s 21 h.p. r e q u i r e s 1.6 segments including pallets, saw. o i l s y s t e m and other extras $415,000. STEP 2 This step squares diamond d i s c blades which motorized Bucking will the Saw, cut to r o l l e r conveyor 1. Power t o t a l 2. Requires 3. C u t s 20 4"x4" up i s 6 h.p. s l a b s and produces M o d e l 442. This a depth to Step (4.4 of 3. 70 strips saw to will 120mm. Technical data up t o 2000x1200mm u s i n g accept The 300, 350 strips f o r t h e saw or a 400mm move a l o n g a are: kw) 6 a t u o f compressed a i r linear metres per hour. This i s approximately 16 tiles 4. Tool c o s t s are estimated 5. Price a t $10.50 p e r m i n c l u d i n g c o n v e y o r and 2 2 ($1.00 p e r f t ) conveyor d r i v e $17,000. f t 2 per hour of - 26 - STEP 3 The slabs spindle, (strips) low pressure conveyor. any are polished The h i g h i n this p o l i s h e r , Model speed heads w i l l b a c k i n g on t h e s l a b s . 2. Tool 3. Machine w i l l can 4. l a p and p o l i s h 5 m be a d j u s t e d result a t $8.40 p e r m according i n a tool cost 2 an e i g h t 2 with head, vertical a 6 metre a n d p o l i s h t h i n (3mm) s l a b s D e t a i l s on t h i s machine T o t a l power i s 120 h . p . (90 k w ) . estimated using 306 G/8, c o m p l e t e grind 1. costs step t o t h e whole 2 ) . 2 (52 f t / h r . ) , line without include: ($ .80 p e r f t p e r hour long production but the feed rate rate which should step i f tiles are reduction. Machine, i n c l u d i n g conveyor i s p r i c e d a t $133,000. STEP 4 A motorized conveyor w i l l desired rather cutting circular into tiles. than convey t h e p o l i s h e d slabs. diamond The machine saw, M o d e l T h i s machine w i l l meters o f r o l l e r conveyor hold strips at this 452, used four and an e x t r a to this step i s a multiblade f o r cutting the polished crossstrips d i s c b l a d e s a n d comes c o m p l e t e w i t h transferable blade (disc) shaft. 2 This machine: 1. Will ft 2 c u t 80 r u n n i n g metres p e r hour which translates t o approximately 40 p e r hour o f 4"x4" t i l e s . 2. Has an i n s t a l l e d 30 h . p . (22 k w ) . 3. W i l l have t o o l c o s t s 4. C o s t i s $30,000. estimated a t $1.00 p e r f t 2 2 ($10.50 p e r m ) . STEP 5 After the t i l e s Meyer's Model are dimensioned 390 g r o o v e s i n Step 4 a f i n i s h i n g and c a l i b r a t e s t h e t i l e , edges and then washes, d r i e s and b u f f s complete with machine s i m i l a r t o C a r l bevels the f i n i s h e d t i l e s . and p o l i s h e s t h e T h i s m a c h i n e comes a t u r n t a b l e so t h a t a l l f o u r edges a r e chamfered and p o l i s h e d . - 27 - D e t a i l s f o r t h i s machine a r e as f o l l o w s : 1. T o t a l i n s t a l l e d power 2. Tool per 3. costs inch). Ninety are estimated n Fora 4 x4 linear production i s 27 h . p . (20 k w ) . n a t $0.21 p e r r u n n i n g tile t h e c o s t i s $0.08 p e r t i l e feet of t i l e r a t e o f 7.5 f t 2 metre o f t i l e edge p e r hour o r $0.78 p e r f t c a n be p r o c e s s e d . p e r h r . f o r 4"x4" t i l e s e d g e (0.5C This o r a b o u t 1300 f t 2 . i sa 2 per month. 4. Equipment c o s t q u o t e d a t $82,000. Carl Meyer cranes, estimated equipment costs e t c . w o u l d be a n a d d i t i o n a l comparable t o the other manufacturers Detailed power cost estimates C a r l Meyer f o r a 1000 f t 2 between $65,000 machines bringing f o ra similar were p o s s i b l e from 83 h r s . p e r month x 16 kw = 1328 kwh STEP 2: 63 h r s . p e r month X 4.4 kw = 277 kwh STEP 3: 20 h r s . p e r month X 90 kw = 1800 kwh STEP 4: 25 h r s . p e r month X 22 kw = 550 kwh STEP 5: 133 h r s . p e r month X 20 kw = 2660 kwh MISC: 133 h r s . p e r month X 10 kw = 1330 kwh TOTAL/MO. 457 HRS on Table I - Carl Meyer the total 4x4 i n c h Thickness 2. Yield had s u p e r i o r performance o f t i l e / s l a b s p r o d u c e d i s 3 t o 5mm. from t h e raw b o u l d e r s e s t i m a t e d capital cost tiles: 7945 KWH p o s s i b l e 15 c a t e g o r i e s : 1. conveyors, t h e i n f o r m a t i o n p r o v i d e d by STEP 1: As o u t l i n e d as p l a n t t o $742,000. p e r month p l a n t m a n u f a c t u r i n g 162.4KW such a t 50 p e r c e n t . i n 11 o u t o f a - 28 - 3. Production costs for labour, tools and jade estimated t o be $22.55 p e r f 2. t 4. A p p r a i s a l of factory/parts support considered 5. P l a n t area requirements 6. Water r e q u i r e m e n t s - 1.5 m i l l i o n 7. Power r e q u i r e m e n t s t o t a l a b o u t 200 8. Number o f e m p l o y e e s r e q u i r e d i s a t l e a s t 4 t o 5. 9. Training 10. T e s t work 11. B a c k i n g on t i l e s o r s l a b s n o t r e q u i r e d f o r p r o d u c t i o n . In the higher 2 . l i t r e s p e r month. kw. provided. success. remaining capital attributable - 4,800 f t superior. to four cost the $742,000 i n c a p i t a l . of categories Carl Meyer's t h e equipment and bandsaw which this accounts only negative higher capital f o r more than aspect cost i s the i s mainly one-half of the - 29 - 5.5 LOFFLER - Maschinenbau oHG This West polishing Germany company equipment. manufactures However, machine t o chamfer, support i s not considered Breton's engineering support Loffler's Breton. and sales Loffler's other the blade as primary i s fixed line good as of n o t manufacture stone a cutting tile The e n g i n e e r i n g a n d d e s i g n the other t w o German and p a r t s a v a i l a b i l i t y technology type forblocking diamond companies on a b r i d g e i s probably An better interesting T h e saw b l a d e and although t h e jade and c u t t i n g saws. i s t h e b l o c k i n g saw. and finishing i s also considered superior t o L o f f l e r , (disc) manufacturers do full and c l e a n t h e t i l e s . support slabs are circular from for after groove they a than tiles difference and power and t h e bed h o l d i n g t h e b l o c k head t o be c u t moves b a c k a n d f o r t h . STEP 1 The recommended already mentioned machine. slabs b l o c k i n g saw i s a c i r c u l a r This saw b l a d e more t h a n 1/3 o f o r i g i n a l diameter takes the width o f the t i l e slightly The t h e 3000mm bridge diamond disc a 12mm w i d e k e r f . t o be p r o d u c e d 4 inches thick) . (ie: saw, M o d e l blade Loffler i s fixed on recommends f o r 4x4 i n c h Jade l o s s e s a t t h i s TS 3000 G. tiles As this cutting cut slabs step are estimated at weight. M o d e l TS 3000G: 1. Has a t o t a l 2. Has f u l l 3. Costs installed electronic 78 h . p . control $169,500. STEP 2 A circular blade twice cuts (disc) cutting the t i l e the final width saw h o l d i n g a 1000mm d i a m e t e r slabs jade ( i e : 4 inch thickness b y 8mm s l a b s f o r 4x4 t i l e s ) (2x3mm) plus the thick diamond into blocks kerf loss LOFFLER SYSTEM F I G U R E STEP 5 6 - 30 - in Step in 3 (6mm). thickness The r e s u l t a n t to the finished bonded t o t h e two o p p o s i n g finished this tile. stage. fixed tile loss The recommended f o r the slab obtained f o r this saw. slab thickness s i d e s which An e s t i m a t e d carriage 12mm t h i c k will then less the f i n a l sheet jade equal thickness e v e n t u a l l y be o n t h e b o t t o m o f t h e o f 40 p e r c e n t saw i s a M o d e l and a moving has a c r y l i c t o saw k e r f i s suffered at TB 1000 B r i d g e s a w bridge. An a u t o m a t i c which has a o p t i o n c a n be Saw d e t a i l s a r e a s f o l l o w s : 1. 20 h . p . m o t o r 2. Saw h o l d s a 1000 mm d i a m e t e r 3. Price blade ( d i s c ) a p p r o x i m a t e l y 8mm thick. $99,300. STEP 3 A circular saw, (disc) holding diamond c u t t i n g a 800mm longitudinally. width a r e then The ready saw s a w , M o d e l TB 8 0 0 , f u l l y blade, resultant two a c r y l i c for polishing s m a l l e r v e r s i o n o f t h e saw u s e d slices backed ( S t e p 4) . i n S t e p 2. the automatic, acrylic strips bridge backed slabs the desired tile T h e TB 800 saw i s e s s e n t i a l l y a D e t a i l s are as follows: 1. Saw b l a d e 800mm d i a m e t e r , w i d t h a p p r o x i m a t e l y 2. Motor 3. Price, 6mm. i s 25 h . p . , 1 8 . 5 kw. including automatic bridge c o n t r o l $80,000. STEP 4 The a c r y l i c backed This polisher which would will strips polish probably a r e p o l i s h e d b y a n 8 s p i n d l e , M o d e l FS 3 0 , p o l i s h e r . up t o 300mm w i d e break unbacked, thin polisher: 1. Has a t o t a l 2. Costs installed $125,600. 64 h . p . (44 k w ) . slabs, jade relying slabs. on high pressures The M o d e l FS 30 - 31 - STEP 5 The polished 30/600, strips are cross-cutting This saw w i l l 1. Has an i n s t a l l e d 2. Costs Loffler cut slabs the t i l e s . between additional $165,000. tiles. (strips) 4 h.p. with the desired length a 600mm d i a m e t e r up t o 60mm t h i c k . by diamond The M o d e l KS a Model disc KS blade. 30/600: (3 kw) not manufacture a installed plant. equipped to $23,500 does cleaning saw dimensioned Total The cost machines finishing of this for An e s t i m a t e d tool costs machine for bevelling, buffing t y p e o f machine and a d d i t i o n a l equipment moving the material is estimated s i x p e o p l e w o u l d be r e q u i r e d are estimated and at $8.50/ft 2 at an to operate the f o r production o f 4x4 inch - 32 - 5.6 HENSEL Eisenwerk and Hensel Bayreuth, g r i n d i n g equipment. hard minerals production "billet" plan, such system finished, suggested granite Hensel and and jade. to the current or the i n i t i a l 7, product. equipment automatic (disc) i n Figure packaged intermediate They employ c i r c u l a r similar g r i n d i n g stage illustrated very as a W e s t German c o m p a n y , m a n u f a c t u r e s takes Their such would Mohawk slabbing the jade price diamond has recommended Hensel s eight t h e raw b o u l d e r quotation d i d not include as r o l l e r conveyors probably require or cranes. more a than tile but without the 1 stage. cutting saws f o r c u t t i n g procedure, from stone to the necessary The p l a n t the step i s not four operators o f the appropriate dimension, a s minimum b y t h e m a n u f a c t u r e r . STEP 1 The rough depending Model jade upon boulders the size 55W, a n g u l a r diameter and one approximately are cut into of tile c u t saw. t o be p r o d u c e d . 800mm Water c o n s u m p t i o n a p p r o x i m a t e l y 2. Total installed 3. blade power diamond diamond d i s c disc. This with a 1000mm i n saw costs 30 1. p e r m i n . approximately 94 kw b u t v a r i a b l e f o r h o r i z o n a l and motors. C a n be d e s i g n e d this diameter i s accomplished T e c h n i c a l d a t a o n t h e M o d e l 550W: 1. vertical This T h i s saw h a s o n e v e r t i c a l horizontal $206,100. billets forfully automatic o p e r a t i o n , b u t n o t quoted as such f o r study. STEP 2 An overhead billets of crane, costing t o an i n t e r i m plaster, an e s t i m a t e d storage several billets on a c o n c r e t e t a b l e w h i c h area $5,500 o r a f o r k where t h e b i l l e t s beside each o t h e r . would lift be f i x e d These b i l l e t s would go under t h e c i r c u l a r w o u l d move t h e i n a bed w o u l d be m o u n t e d saw, M o d e l 5 1 1 / I I I . HENSEL SYSTEM F I G U R E 7 - 33 - STEP 3 A diamond d i s c 5mm) from cutting set-up the b i l l e t s mitre controls saw, M o d e l 5 1 1 / I I I w o u l d c u t t i l e s cemented as w e l l and would t o have as v e r t i c a l This gantry cuts. I t would t h e work f e d through follows: 1. Price 2. Saw b l a d e 400 t o 800 mm 3. Maximum o u t p u t on r o l l e r s . type saw i s c a p a b l e o f be e q u i p p e d require i n s t a l l a t i o n o f a concrete as per together. the desired thickness ( 3 to with table. automatic T h i s saw c a n b e Technical specifications are $76,600 1.2 m 2 diameter 2 p e r hour (12.5 f t / h r . ) or approximately 2000 f t 2 month. STEP 4 Individual cemented tiles a r e removed to plexiglass tiles would (Step 6) or acrylic be p l a c e d would from t h e saw sheet i n a template produce tiles of t o reach t o ensure the exact recommended t h a t t h e g a p b e t w e e n s i n g l e tiles thickness 6. o f t h e sawblade at position 2 m e a s u r e a p p r o x i m a t e l y 10 t o 40 f t a t Step 3, their that (Model final thickness. the last dimension 511/III) sawing required. s h o u l d be a l i t t l e and The step, It i s l e s s than the The s l a b s o f b a c k e d tiles would crane and a . STEP 5 The sheets o f backed vacuum suction single head g r i n d i n g tiles device would required. This that 2 and p o l i s h i n g an e i g h t would the desired polish. a b o u t $8.40 p e r m t r a n s p o r t e d by travelling step. A and p o l i s h i n g machine would l a p and p o l i s h I t i s expected achieve be to the grinding sheets. be would mean The t o o l 2 ($0.80 p e r f t ) . stage changing costs Model the m u l t i - t i l e l a p p i n g and g r i n d i n g t h e head at this 8 stage 503 e , times operation by hand to are estimated a t The machine c o s t i s $84,000. - 34 - STEP 6 The polished tile-slabs would be t r a n s p o r t e d by c r a n e and vacuum s u c t i o n d e v i c e t o t h e f i n a l Model the 541, would necessary exactly 90 b r i d g e saw Hensel and and c u t s on automatically the last prices or T h e y e s t i m a t e d 120 finishing and total last cuts the and then or overhead s t a g e where a c i r c u l a r tiles. performed. equipment kw This the saw would turntable This single disc saw perform would 50 1. etc. per i s expected of five Their hr. of to require people would for chamfering, cleaning of t o t a l a d d i t i o n a l power r e q u i r e d tile washing a degrees cuts d i d not quote any water first the sawing conveyor turn diamond c o s t s $70,000. the t i l e s . plus perform roller installed for cranes, conveyors, equipment compressed 130 be c h a m f e r i n g , g r o o v i n g and c l e a n i n g prower would air. 1. p e r m i n . required stage. to require The for their the f i n a l 150 1. chamfering of water. operate or grooving machines chamfering per min. grooving I t i s expected the plant of and that including a - 35 - 5.7 MOHAWK The Mohawk S y s t e m o f t i l e manufacturing the lapidary chip and s i l i c o n research and development tiles. The t i l e s marketing data collected. and showroom c o s t way reflected industries. project produced was d e v e l o p e d from The p l a n t f o r t h e manufacture were then An i n i t i a l t o be technology was c o n s t r u c t e d o f 4x4 i n c h introduced designer net sale price production costs considered t o b e much h i g h e r commercial production at a pilot was e s t a b l i s h e d , i n no they CURRENT PLANT CONFIGURATION Mohawk's tile manufacturing techniques, the lapidary sequence were located. ground our employs f o r grooving, chamfering sequence industry performed The b i l l e t s having and t h e s i l i c o n o f the circular type lappers or buffing the c u t i n Vernon from known chip industry. jade cutting The s t e p s i n locations. rough and t h e t i l e s i n San J o s e , C a l i f o r n i a . the manufacturing from The rough i n V e r n o n where t h e main M i n i n g D i v i s i o n on a custom b a s i s i n Vancouver own p l a n t l o c a t e d was d e v e l o p e d i n various geographic b o u l d e r s were c u t i n t o b i l l e t s was be once and a n a l y s i s system were i nthe process. 5.7.1 the costs would type diamond saws, machine shop type g r i n d e r s and l a p i d a r y i snot provision manufacturing These (disc) tiles tile and These p r i c e s research There The b a s i c collection jade (U.S.) market and p o l i s h e r s . data. after then square o f $14.50 f o r the t i l e s . plant scale as a t o t h e market ( w h o l e s a l e ) o f $10.80 w e r e e s t a b l i s h e d . the actual used i n steps i n such boulders c u t from were these jade office precision billets i n T h e r e were s e v e r a l r e a s o n s f o r diverse locations, including duty considerations. The high production costs d e c i s i o n t o study The market if the f e a s i b i l i t y information manufacturing indicated that month. between No other had been gathered sales c o u l d be r e d u c e d . 200 a n d 250 f t tile sizes this pilot o f manufacturing that significant theprice o f the t i l e s producing associated with 2 equipment i s p r o b a b l y capable o f a l s o been tiles since increases plant l e dto a t a much l o w e r inception the cost. o f the t i l e c o u l d be a n t i c i p a t e d The p l a n t a s s e t - u p i s c a p a b l e o f o f 4x4 i n c h have scale 1/8 i n c h produced manufacturing thick jade b y Mohawk, t i l e s per although the 4x8 and 6x6 i n c h tiles. MOHAWK SYSTEM M O U R E 8 - 36 - STEP 1 The rough boulders a circular own are cut into 48 i n c h d i a m e t e r design. The b l a d e driven hydraulically. slabs s l i g h t l y more t h a n 4 inches the bridge using a gear The b r i d g e c a n be a d v a n c e d m a n u a l l y However, limited t o a c u t t i n g depth using d i a m o n d s e g m e n t e d h y d r a u l i c b r i d g e saw o f Mohawk's moves a l o n g slab. thick the jade boulder often must be moved advance f o r each because mechanism successive t h e saw i s o f a b o u t 21 i n c h e s . STEP 2 The 48 i n c h d i a m e t e r slabs into billets approximately sufficient and 70 slightly linear t o produce consumables saw u s e d per f t 2 greater feet about f o r Step than c r a t e d and s h i p p e d i n Step of 225 f t 1 i s used than billets 2 4 again inches 2 t o c u t the square. a r e produced o f 4x4 t i l e s . 1 and 2 i s about i n Step A total of This is monthly. The c o s t o f t o o l s , $12.70 p e r f t 2 . labour The b i l l e t s a r e t o the custom g r i n d i n g p l a n t a t a t o t a l c o s t o f $0.90 . STEP 3 The rough vertical machine billets are precision spindle grinder i s used ground to exactly for this 4x4 i n c h e s process. Mohawk i n 1 9 8 5 a t a c o s t o f $60,000 b u t i t h a s n e v e r grind b i l l e t s . h . p . (55 kw) , r e q u i r e s 100 l i t r e s / m i n . of g r i n d i n g enough b i l l e t s t o supply square. purchased been s e t - u p T h i s u s e d g r i n d e r i s a , MAS M o d e l BRV 7 0 . 40 and 1000 f t month. The c o s t o f c u s t o m g r i n d i n g t h e b i l l e t s tiles. F r e i g h t and duty on t h e b i l l e t s 2 I t h a s an i n s t a l l e d o f 4x4 i n c h i s $18.27 p e r f t t o San Jose a o r used t o o f c o o l a n t and i s p r o b a b l y at least such A 2 capable t i l e s per o f 4x4 i n c h t o t a l s $7.56 p e r f t 2 # - 37 - STEP 4 The slicing diamond to machine, d i s c blade 18" diameter a cuts DO tiles blades high billet kerf losses 1/D M i c r o from t h e b i l l e t s . Slicer, This of cutting equipped machine w i l l with a h a n d l e 14" a maximum o f 225 f t 2 per T h i s machine does n o t c u t a s a c c u r a t e l y a s d e s i r e d , (approximately and r e q u i r e s an o p e r a t o r the C a l i f o r n i a p l a n t . 70 and i s c a p a b l e month o f 4x4 i n c h t i l e s . has ALL, Model 4mm per cut) w i l l almost f u l l The b i l l e t s time. This c u t a maximum 4 machine a r e g l u e d on p l a t e s p r i o r inch was s e t - u p i n to cutting. STEP 5 The tiles are placed on lapper which i scapable minutes. This an o p e r a t o r , one h a l f time. table, a Speedfam o f l a p p i n g 48 - 4 x 4 i n c h t i l e s i s 2,750 requires the lapping when f t 2 p e r month operating actual a t 2,000 Model a t one time production. tiles SNF 48 p e r month, BTAW, i n a b o u t 10 This machine approximately STEP 6 The lapped tiles are carried to the polishing SNG 32 SPAW, p o l i s h e r s p o l i s h the t i l e s will and i s capable ft 2 hold 12 - 4x4 i n c h p e r month, person operates a tiles combined 2,000 two p o l i s h e r s p l u s f t 2 s e c t i o n where to a mirror finish. of polishing p e r month inspects t i l e s 2, S p e e d f a m Each p o l i s h e r approximately of actual Model 1,000 production. a t 2,000 t i l e s One 2 (225 f t ) p e r month p r o d u c t i o n . STEP 7 The polished tiles a r e removed from the p o l i s h e r , sorted and p a c k a g e d f o r s t o r a g e o r s h i p m e n t . cleaned, inspected - 38 - The t o t a l 4 c o s t breakdown i s i l l u s t r a t e d t h r o u g h 7, increment 2 ft , i s $33.00 which compared i s $47.75 per operating, f o r l a b o u r , maintenance f t 2 i s the comparable i n the report, not . Labour, figure tools and The total and t o o l s p e r f t and to the other i n c l u d i n g t h e Table i n c l u d i n g overhead The Mohawk p l a n t e m p l o y s i n Table I I . I jade comparison. total 2 . of The total manufactures administration a t o t a l of f i v e people. costs cost Steps labour 97.68 per described and Actual $115.71 costs per f t of 2 . TABLE I I MOHAWK PLANT COSTS IMPROVED COST PER F T ($) ($) 2 ITEM 1. CURRENT COST PER F T Labour f o r b l o c k i n g (cutting billets) 7.90 2 7.90 ( S t e p s 1 t o 2) 2. Labour f o r c u t t i n g and p o l i s h i n g 33.00 17.50 3.85 ( S t e p s 4 t o 7) 3. T o o l s and consumables ( S t e p s 1 t o 2) 4.80 4. T o o l s and consumables ( S t e p s 4 t o 7) 14.25 11.40 5. Grinding billets 18.27 6.05 6. F r e i g h t and duty 8.46 2.75 7. Cost o f Jade @ $1.50/lb. 11.00 8.50 SUB-TOTAL 8. (labour, - Vancouver t o o l s , jade) Miscellaneous Costs 97.68 18.03 57.95 7.85 (rent, depreciation, u t i l i t i e s ) TOTAL OPERATING COSTS (exclusive of administration $115.71 & overhead) $65.80 - 5.7.2 MOHAWK PLANT IMPROVEMENTS Mohawk's current manufacture overhead and 1. 4x4 and inch be plant jade about charge $140.00 of per the 2 percent, . labour in take advantage of order to costs rate or from rent, II) . the Several maintaining of (Table be m o d i f i e d production approximately exclusive 20 f t - total charges i d e n t i f i e d which could Increase costs tiles administrative administrative probably can pilot 39 per depreciation, Assuming actual areas $98.00 a modest overhead costs manufacturing to reduce the manufacturing the allowing current 225 incrementally economy o f scale and f t 2 small per to utilities manufacturing i n the 2 f t process costs: month labour maintaining are while increases fixed cost levels. 2. R e d u c e f r e i g h t and 3. Improve r e c o v e r y 4. Reduce or Some o f 1. the (yield) of eliminate grinding costs five would would additional involve increase month. saws at for billets. The Improved total cost sawing jade y i e l d t o an involve: machines estimated large cost at a three the be cost of about additional $105,000. employees, p r o c e s s t o a b o u t 1,125 automated would billets. boulders. at Step 4 of one, saw would similar but probably only f t be one but 2 per more additional required. production a an production e m p l o y e e w o u l d be Increased slicing hiring Purchasing appropriate. 2. jade from economies o u t l i n e d above would Purchase This duty charges for t r a n s p o r t i n g of would about also require $100,000 and purchasing require techniques would reduce b i l l e t estimated 35%. three three grinding more more costs blocking employees. and improve - 40 3. One a d d i t i o n a l large p o l i s h e r capable production than 4x4 at Step 6 to a t t a i n inch. The e m p l o y e e s w o u l d be 4. - The vertical to dimension. ground to cost r e q u i r e d a t S t e p s 5, 6 and would linear of foot surface required 280 1,000 cost grinder f t an billet). of One would month o f tiles two allow larger additional 7. grind feet of the billets billets finished estimated per tiles i s $40,000; could linear 2 2 f t capital produce consumables p o l i s h i n g 8x8 a b o u t 1,250 estimated spindle A of would tile. $1.50 per employee would f t be square have Tools, 2 of tile required and to be power and ($5.36 per to operate this machine. 5. Buying consumables t o o l s and 6. Duty into value in bulk i s expected to result in a 20% reduction in consumables c o s t s . the United (manufacturing States should costs). This be not more than d u t y r e d u c t i o n may 5% of the declared require Federal and P r o v i n c i a l Government a s s i s t a n c e . A detailed illustrated be a 40 percent plant the of comparison i n Table II. percent in However, l e s s than would target have the i n labour, costs these i f current i n the criteria. f t t o o l s and rent, reduced $100.00 p e r t o be pricing of and improved I f a l l improvements c o u l d reduction reduction included. price cost costs 2 . The $35.00 t o be jade do labour, $40.00 p e r implemented production depreciation still Mohawk and not meet t o o l s and f t 2 System there would c o s t s and utility the jade range or a costs target costs is 43 are retail for a l e s s t o meet - 6. PREFERRED MANUFACTURING SYSTEM In order tool per f o r a system t o q u a l i f y as a candidate and jade f t this 2 costs basis, criteria. equipment primarily as being A l l most on Table including categories. manufacturer other Meyer costs and comparing that rated very well there 1. by t h e lower o p e r a t i n g costs forecast for a r e s e v e r a l u n i q u e b e n e f i t s t o be d e r i v e d The bandsaw large slabs Model 463K will cut thin slabs (3-5mm well i n another This best or the capital i n four thick) cost years or Moreover plant: and produce (2200mmxl600mm). 3. The bandsaw i s q u i e t , requires comparable systems, uses about about one-half 5. performance t h e C a r l Meyer Bandsaw k e r f l o s s i s a p p r o x i m a t e l y 1/2 a n y c o m p a r a b l e any comparable T h e bandsaw i s a l s o cut were the various t h e C a r l Meyer p l a n t . from cost costs and second However, 2. 4. the was H e n s e l . category categories. this i n six of the fifteen d i f f e r e n t i a l between C a r l Meyer and H e n s e l w o u l d be e q u a l i z e d less meet production and performed i n t h e equipment c o s t other with and t h e manufacturers' manufacturer i n five associated best t o $40.00 do n o t q u a l i f y on manufacturers performed o f production best Systems including criteria the labour, m u s t be $35.00 Mohawk i n assessing C a r l Meyer The o t h e r tiles equipment important I. for consideration, labour criteria These cost was r a t e d to Carl or modified separate manufacturers. categories o f 4x4 i n c h due t o t h e h i g h process. summarized equal The c u r r e n t Fifteen identified five o f production or less. manufacturing are 41 - 30 p e r c e n t 10 p e r c e n t l e s s water, t h e power o f some and has t o o l jade for sale as bulk since i t can down t o a b o u t 4mm. d o e s n o t d e f l e c t when s t a r t i n g a c u t , diamond segments m i s s i n g costs system. ideal for blocking s l a b s o f any t h i c k n e s s The bandsaw b l a d e approximately system. and does n o t r e q u i r e c o n t i n u a l can operate tensioning. with - 42 6. Acrylic tiles or or similar slabs, type of although - backing for is not required some applications the p l a n t i s low for production of probably be i t would appropriate. 7. The total This which 8. Total will power requirement reflect i s a f i x e d charge water (Hensel) . This will Carl Meyer's s u p e r i o r and be the are cost of about reflected r e c l a m a t i o n and engineering after on energy (an e s t i m a t e d and the 200 demand kw) . charge, d e p e n d e n t upon i n s t a l l e d , o p e r a t i n g h o r s e p o w e r . requirements i n e x p e n s i v e water 9. directly for i n lower filtration design s a l e s support one-half and water the closest charges and competitor the most system. factory i s a l s o expected support t o be is considered excellent. - 43 - 6.1 As D E T A I L E D COST A N A L Y S I S - CARL MEYER outlined $742,000. of the i n Table I However, t h e r e equipment considered the basic are other manufacturer i n the cost plant cost i s estimated but w i l l Therefore, be r e a l these costs cost incurred were C A P I T A L COSTS Equipment f o r t i l e Installation, Freight, airfare, taxes Miscellaneous Building manufacture training $ - C a r l Meyer other 88,000 equipment 100,000 renovation 50,000 Contingencies 150,000 TOTAL 2. $ 1,151,000 OPERATING COSTS (4x4 i n c h t i l e p r o d u c t i o n 8 1000 ft z per mo.) Tools Jade 6.08 (@ $1.50 / l b . ) 5.95 Labour 10.52 E l e c t r i c power Water r e c l a m a t i o n Rent 1.70 & consumption .50 2 ($5/ft /yr) 2.00 Miscellaneous Amortization TOTAL 742,000 21,000 etc. 2.50 and d e p r e c i a t i o n @ 10%/yr. 9.59 $ not never-the- less. 1. at c o s t s w h i c h w o u l d be i n c u r r e d i r r e s p e c t i v e chosen. comparison equipment 38.84 - 44 - The 1. e c o n o m i c s o f t h e p r o j e c t a r e e n h a n c e d when o n e c o n s i d e r s 4x4 inch associated tiles have the tool costs. lowest Other production size tiles rates should be that: and less the highest expensive to produce. 2. The p l a n t i s capable of producing This production rate w i l l 3. Revenues will manufacturing 4. Other jade be result realized from 1,720 i n lower bulk jade f t 2 o f 4x4 i n c h t i l e s monthly. unit costs. liberated as p a r t o f the tile process. products are equipment r e q u i r e d f o r t i l e likely to manufacture. be manufactured using the same - 7. 45 - PLANT S I T E S E L E C T I O N Selection of a the of several basis 1. site the proposed o p e r a t i n g and Marketing considerations access domestic plant 2. for to and and tile manufacturing plant economic f a c t o r s for tiles, p r o d u c t s to customers are Transportation costs p r o d u c t s to the of raw and bulk markets. considered materials made on including: slabs international i s t o be jade including Convenience of the important. from the minesite and finished customers. 3. Suitable land and 4. Utility availabilities garbage d i s p o s a l , building costs and and availabilities. costs including effluent disposal, 5. Government a s s i s t a n c e 6. Taxation rates 7. Operating considerations water, sewer, etc. programs a v a i l a b l e in alternative power, in alternative locations. locations. including weather conditions in alternative locations. 8. Based the Availability upon plant minesite Terrace the above location; having stood a out s k i l l e d or criteria a as Langley or interior cities such conditions. two northern relatively Surrey, weather of the as are Prince labour force. areas of the Province location on the transportation moderate best Delta technical climate candidate for probable George and the Lower n o r t h and southern were a were B.C. eliminated considered for route the Mainland the to location. municipality locations. due from severe of Central winter - 46 - 7.1 TERRACE Communities i n North Development C o u n c i l Central British Columbia have organized the Northern o p e r a t e d by P a c i f i c C o n g r e s s P r o j e c t s C o r p . l o c a t e d a t : 638-999 Canada Place VANCOUVER, B.C. V6C 3E1 ATTENTION: Information J i m Davidson PHONE: (604) 6 8 3 - 0 4 0 1 TELEX: 04-54244 was received T e r r a c e and K i t i m a t . from the Northern For information Development C o u n c i l , on K i t i m a t the contact i s : B r i a n Mayhew Director o f Planning, District 270 C i t y C e n t r e K I T I M A T , B.C. V8C 2H7 PHONE: (604) 6 3 2 - 2 1 6 1 TELEX: 047-84515 Terrace contact i s : Robert Greno, C i t y D i r e c t o r The C i t y o f T e r r a c e 3215 E b y S t r e e t , TERRACE, B.C. PHONE: V8G 2X8 (605) 635-6311 1-800-772-9886 of Kitimat the C i t y of - 47 - Information on T e r r a c e , Kitimat sources. Information on acquired from Expansion and information incentive these Federal, sources the M i n i s t r y was Federal unemployment. will of available and and S m a l l a l l t h e above Municipal grants Provincial i s currently grants No employment and under review are available Engineering estimates up-to-date training by t h e P r o v i n c i a l f o r areas of a t the Municipal a n d some were Industrial Business. programs a l s o a r e a v a i l a b l e Civil from t h e Department o f R e g i o n a l Industry employment Assistance provide plus area was g a t h e r e d Provincial regarding programs as t h i s Government. Terrace same and v i c i n i t y capital high level. works f o r the p l a n t i f i t i s l o c a t e d i n Terrace. Pertinent details regarding l o c a t i o n o f Terrace 1. 2. - Partnership 3. commercial type below. property n e t f o r $3.00 t o $6.00 p e r f t Industrial tax are l i s t e d Figure 1 shows the and i n f o r m a t i o n on c l i m a t i c c o n d i t i o n s . Warehouse absolute Terrace taxes i s i n surplus 2 and l e a s e s per year. a r e a b o u t $46 p e r $1,000 o f n e t t a x a b l e v a l u e . i n E n t e r p r i s e Program w i l l at privde a 52 p e r c e n t The property reduction. Industrial/Commercial property sells f o r $15,000 to $30,000 per acre. 4. W a t e r r a t e s a r e $.171 p e r c u b i c m e t r e p e r m o n t h . 5. Sewer r a t e s a r e $.142 p e r c u b i c m e t r e p e r m o n t h . 6. G a r b a g e r a t e s a r e $28.60 p e r 3 y a r d c o n t a i n e r p e r m o n t h . 7. Transportation Edmonton Rupert links to Prince and P r i n c e include; Rupert George C.N.R. T e r r a c e mainline; and Highway Highway 37 K i t i m a t b r a n c h l i n e and 16 connecting Prince to Kitimat, a distance of - 48 - 57 kilometers; flight and airport d a i l y connecting Prince Electricity Province with two C P . t o Vancouver; flights daily and one P.W. access to the Ports o f Kitimat Rupert. rates are and a r e d e t a i l e d the same i n the i n Appendix IV. north and south of the - 49 7.2 SURREY Surrey and offer other similar participant those - municipalities in business in Partnership 2. Industrial 3. Land 4. per 2 are per 5. Sewer r a t e s a r e 6. Commercial the 7. $25 Terrace, more Langley Surrey offers similar tax also a incentives to industrial land than any per f t $1,000 o f n e t taxable B.C. property value. ranges between depending consumption upon increases. quantity The used, basic rate with the i s $20.83 quarter. essentially per rates the vary same a s Terrace. to extent some month r a n g e f o r a 3 y a r d but are generally Within k i l o m e t e r s of Vancouver I n t e r n a t i o n a l A i r p o r t . (b) S e r v e d by H i g h w a y s - 1, (c) Railway include: (d) Port l i n e s o f B.C. the in container. (a) adjacent per sizes. links on 2 other Transportation 29 Delta acre. graduated, garbage t o $30 is f o r $4.00 t o $6.00 p e r industrial/commercial as and a r e as f o l l o w s : leases a v e r a g e a b o u t $31 for decreasing f t has $160,000 p e r rates 100 property as i n c l u d i n g 8 i n d u s t r i a l parks of various prices Water rate also taxes $ 6 0 , 0 0 0 and Like D e t a i l s on S u r r e y Surrey municipality such i n E n t e r p r i s e and Commercial/industrial year. vicinity opportunities. o f f e r e d by T e r r a c e . 1. the Fraser 1A, 10, 15, 99, 99A, 91. H y d r o , B.N.R., C.N.R. and River serving t o t h e P o r t o f V a n c o u v e r and deep New C.P.R. water shipping, Westminster. and - 50 - 8. Electricity Province rates are and a r e d e t a i l e d the same i n the i n Appendix IV. north and south of the - 51 - 7.3 CONCLUSIONS AND RECOMMENDATIONS Until such purchase land time as an a c t u a l and b u i l d plant site o r l e a s e and renovate and b u i l d i n g s are illustrated lower i n Surrey. i n Table IV. lower l e a s e c o s t s m a r g i n a l l y lower i nTerrace. value, but land values in Surrey. sales, jade location location, jade office for a i nTerrace and jade site products will Mainland. will Plant, marketing be c o m b i n e d f o r a L o w e r M a i n l a n d construction i nSurrey i n an o v e r a l l be l e s s higher require a Therefore, expensive t h e economy o f a n o r t h e r n p l a n t l o c a t i o n w i l l two b u s i n e s s p l a c e s . to may b e m a r g i n a l l y Taxes a r e 25% lower i n t h e Lower plant building t h a n o n t h e Lower M a i n l a n d , arehigher, resulting bulk administrative Terrace for tiles, Estimated Construction costs Land c o s t s a r e s u b s t a n t i a l l y on and t h e d e c i s i o n i s made, t h e a c t u a l c o s t s r e l a t e d t o c a n n o t be f i n a l i z e d . costs Marketing i s selected, and a d m i n i s t r a t i v e based tax cost showroom, although than be reduced with a a Surrey by t h e need facilities would location. Other c o s t s f o r c o n s i d e r a t i o n i n c l u d e : o 38 p e r c e n t l o w e r w a t e r r a t e s i n S u r r e y . o Lower marketing Mainland o costs related t o showing clients bulk jade a t a Lower location. Increased costs related to separating the manufacturing and marketing such a s a d m i n i s t r a t i o n , o P r o x i m i t y t o t h e U.S.A. m a r k e t . A Surrey location actually borders on t h e U.S.A. o The c o s t cheaper finished Terrace. of transportation t o Terrace products than i s only o f raw jade t o Surrey i sapproximately and t h e s a v i n g s marginally cheaper from $.15 p e r p o u n d on Surrey transporting than from TABLE IV BUILDING CONSTRUCTION COST ESTIMATE PROPOSED JADE T I L E PLANT/WAREHOUSE/OFFICE Vancouver, B.C. (Area) ($) Warehouse s t r u c t u r e (metal s u p e r s t r u c t u r e , t i n r o o f ) A p p r o x . 40 x 120 w i t h 16-0 c e i l i n g , s l a b f l o o r , & i n d u s t r i a l overhead doors 86,400.00 Service 15,000.00 to structure (allowance) Mechanical (plumbing, h e a t i n g , water, sewer, gas, e t c . ) 30,000.00 Electrical (service entrance, power, l i g h t i n g , e t c . ) 25,000.00 & Paving/Gravelling 40,000.00 Earthworks, S i t e preparation, O f f i c e S t r u c t u r e & p a r t i t i o n i n g i n c l u d i n g washrooms a n d l u n c h r o o m . A p p r o x . 40 x 60 f r a m e p r e f a b r i c a t e d w i t h 8-0 c e i l i n g and r e q u i r e d d o o r s & windows 86,400.00 Mechanical 20,000.00 Electrical 15,000.00 L o a d i n g Dock a n d Ramp f o r V e h i c l e s 15,000.00 Chain Link Fencing ( a p p r o x . 800 l i n . ft.) 8,500.00 Access/Egress driveways and curb c u t s 5,000.00 Development Charges (Municipal) 5,000.00 Consultants, specifications, etc. 8,000.00 Contract TOTAL plans, Management, supervision, etc. 12,000.00 $ 371,300.00 - 52 - In conclusion: Capital costs Operating including land costs TERRACE i n c l u d i n g water and weather c o n s i d e r a t i o n s Marketing LOWER MAINLAND considerations convenience f o r viewing including t h e process and p r o d u c t s and p r o v i d i n g customer s e r v i c e s . IT IS SURREY, RECOMMENDED WOULD BE BUSINESS VENTURE. THAT A LOWER MAINLAND MOST ADVANTAGEOUS FOR LOWER MAINLAND PLANT THE LOCATION, ONGOING SUCCESS SUCH OF AS THE - 52 - 8. BIBLIOGRAPHY B e l y k , 3.E., W a t t o , B., H u t c h i n s o n , B., L i m , B.C. 1 9 7 3 , The m e c h a n i c a l p r o p e r t i e s o f B.C. J a d e ; u n p u b l . r e p . , D e p t . E n g . , U.B.C. of Geol. B.C. C e n t r a l C r e d i t U n i o n 1 9 8 5 , K i t i m a t - S t i k i n e R e g i o n a l P r o f i l e , R e p o r t p r e p a r e d b y E c o n o m i c s D e p t . , B.C. C e n t r a l C r e d i t U n i o n , V a n c o u v e r , B.C. CTI - C o n s t r u c t i o n T e s t i n g 1984, R e p o r t on T e s t i n g o f J a d e T i l e Samples, U n p u b l i s h e d r e p o r t , p r e p a r e d f o r Mohawk O i l C o . L t d . b y C T I C o n s t r u c t i o n T e s t i n g a n d I n s p e c t i o n , P o r t C o q u i t l a m , B.C. E r t i n g s h a u s e n , W., 1 9 8 6 , Wear P r o c e s s e s i n S a w i n g H a r d S t o n e ; D i m e n s i o n a l S t o n e , J a n / F e b 1986 G o v e r n m e n t o f C a n a d a 1 9 8 6 , DRIE I n B r i t i s h C o l u m b i a , Report p r e p a r e d by Dept. o f R e g i o n a l I n d u s t r i a l E x p a n s i o n Government o f Canada, 1985, I n d u s t r i a l and R e g i o n a l Development Program, M i n i s t e r o f S u p p l y a n d S e r v i c e s C a n a d a , C a t . No. C 2 - 8 3 / 1 9 8 5 ISBN 0-662-54128-6 G r e n o , R.S., 1 9 8 6 , T e r r a c e . . . . A s A M a t t e r o f F a c t , p u b l i s h e d by t h e T e r r a c e P l a n n i n g and Economic Development Homenuke, A.M., 1 9 7 6 - 1 9 7 9 , unpublished reports Exploration Ltd. Department C r y Lake Jade Mines O p e r a t i o n s Annual R e p o r t s , prepared f o r Mohawk O i l Co. L t d . by Tricon Learning, S.F., 1 9 7 8 , J a d e I n Canada, G e o l o g i c a l S u r v e y o f Canada Paper 78-19 Mohawk O i l C o . L t d . , 1 9 7 6 - 1 9 8 5 , V a r i o u s u n p u b l i s h e d memos r e g a r d i n g Jade T i l e M a n u f a c t u r i n g and M a r k e t i n g P r o v i n c e o f B.C., 1 9 8 4 , D o i n g B u s i n e s s i n B r i t i s h C o l u m b i a , Queens P r i n t e r f o r B.C. 2 5 0 0 / 5 / 8 4 , Ministry of Industry Business and Small R e g i o n a l D i s t r i c t o f K i t i m a t - S t i k i n e , 1984, Economic Development O p p o r t u n i t i e s for S m a l l and Medium-Sized Resource Development i n Northwest British Columbia W a l d n e r , M.W., 1 9 8 5 , K u t c h o C r e e k - K i n g M o u n t a i n O p e r a t i o n s 1 9 8 1 - 1 9 8 4 , u n p u b l i s h e d r e p o r t p r e p a r e d f o r Mohawk O i l C o . L t d . Y o r k e - H a r d y , R.W., W e y g a n d t , T., 1 9 8 4 , C r y L a k e J a d e M i n e s O p e r a t i o n s , 1 9 8 0 , u n p u b l i s h e d r e p o r t p r e p a r e d f o r Mohawk O i l C o . L t d . APPENDIX I EQUIPMENT MANUFACTURERS - CUTTING & GRINDING TECHNOLOGY PEDRINI s.p.a. V i a F u s i n e , 1 - 24060 C a r o b b i o d e g l i A n g e l i ITALY PHONE: TELEX: 035/951043 302182 PEDRIN 1 S a l e s Manager: Sergio Berti * ** GREGORI s.p.a. 6015 S c h i o ( V I ) - I t a l i a P.O. B o x N. 129 PHONE: TELEX: (0445) 2 3 2 3 1 4 8 0 4 7 3 GREG-1 S a l e s Manager: Nico Cazzola * ** ADMAC 21246 - 6 8 t h A v e n u e S o u t h KENT, W a s h i n g t o n 9 8 0 3 2 , USA. PHONE: (206) 8 7 2 - 7 1 5 3 Rod D r a u g h t o n Jim White * ** CUT-A-DIE CANADA LTD. 7447 V i c t o r i a P a r k A v e n u e MARKHAM, O n t a r i o L3R 2Y7 CANADA PHONE: Manager: ( 4 1 6 ) 475-0324 (416) 499-7333 J i m McMicking (Bergamo) BRETON s.p.a. 31030 C a s t e l l o D i G o d e g o (TV) ITALY PHONE: TELEX: (0423) 4 6 8 1 4 1 410539 - 431445 BRETON 1 BRETON OF THE AMERICAS, INC. 3221 N.W. 1 0 t h T e r r a c e S u i t e 506 FT. LAUDERDALE, F l o r i d a 33309 USA PHONE: TELEX: (305) 564-2708 821915 Secretary: President: Joseph Wetzel R o g e r N. B a k e r * ** LOFFLER Maschinenbau oHG 8831 L a n g e n a l t h e i m 1 B a y WEST GERMANY PHONE: TELEX: (09145) 4 6 1 624606 Owner: Mr. L o f f l e r GRANQOARTZ TRADING INC. - U.S.A. R e p r e s e n t a t i v e f o r L o f f l e r 788 S c o t t d a l e Road P.O. B o x 33569 DECATUR, G e o r g i a 30033-0569 PHONE: (404) 2 9 2 - 0 1 3 5 P e t e r Edwards * ** EISENWERK HENSEL BAYRETJTH/Dipl-Ing. B u r k h a r d t GmbH P o s t f a c h 5020 D-8580, Bayreuth 13, WEST GERMANY PHONE: TELEX: (0921) 508-0 642823 ebubt Marketing D i r e c t o r : Wolfgang Behr/Franz Kostner - Dipl-ING S a l e s Manager: N o r b e r t Sieder * ** CARL MEYER P o s t f a c h 380 D-8590 M a r k t r e d w i t z WEST GERMANY PHONE: TELEX: (09231) 4133 641274 G. K e i c h e l A.K. Backraund * ** ARVAN 1995 Boundary Road VANCOUVER, B.C. PHONE: (604) 299-6100 P l a n t Manager: Bob Armstrong APPENDIX I I JADE T I L E FEASIBILITY STUDY PLAN JADE T I L E FEASIBILITY STUDY PLAN MARCH 1986 PREPARED BY: M. WALDNER J . SMITH TABLE OF CONTENTS PAGE 1. 2. INTRODUCTION 1.1 History 1.2 Philosophy 1-2 and Purpose o f Study PROPOSED FEASIBILITY STUDY - INVESTIGATION OF T I L E 2-3 3-4 MANUFACTURING 2.1 Current Plant Configuration 4 2.2 Current Plant Modification 4 2.3 Alternate Processes 5 2.4 Report Preparation 6 3. FEASIBILITY STUDY SCHEDULE AND PERSONNEL 7-8 4. BUDGET 8-9 APPENDIXES APPENDIX I F E A S I B I L I T Y STUDY SCHEDULE APPENDIX I I SCHEDULED PERSONNEL & A C T I V I T I E S & BUDGET INTRODUCTION 1.1 HISTORY C r y L a k e J a d e M i n e s L t d . , a w h o l l y owned s u b s i d i a r y o f Mohawk O i l Co. L t d . , f i r s t as a primary began t h e i n - s i t u product mining i n 1976 n e a r of Nephrite Dease Lake (B.C.) i nNorthern Jade British Columbia. During t h e 10 y e a r shipped from p e r i o d a p p r o x i m a t e l y 830 t o n s o f j a d e h a s b e e n the minesite v i a"cat-train" Lake and thence b y t r u c k t o S o u t h e r n B.C. In began 1 9 8 2 Mohawk method o f u s i n g 60% t h e lower quality jade tile jade which manufacturing accounted o f p r o d u c t i o n o r 75% t o 95% o f r e s e r v e s . assist i nliberating Beginning involved rough by investigating and by a i r t o Dease would and r e c o v e r i n g t h e higher q u a l i t y jade. transporting billets tiles jade were c u t . manufactured. t h e mine These b i l l e t s site The process t o Vernon were t h e n p r e c i s i o n These p r e c i s i o n also billets where ground were then l a p p e d a n d p o l i s h e d i n Mohawk's p l a n t i n C a l i f o r n i a . A marketing tile were from a c o n t r a c t o r i n Vancouver. cut, f o r about This i n 1983 j a d e as a c a m p a i g n was o r g a n i z e d manufacturing was i n i t i a t e d . a t about t h e same time that - 2 - Expenditures related to tile manufacturing t o t a l e d a p p r o x i m a t e l y $1,449,700 s i n c e 1983. This has includes: (i) M a n u f a c t u r i n g E q u i p m e n t i n t h e U.S. $ 74,500.00 (ii) M a n u f a c t u r i n g Equipment i n Canada $ 93,500.00 ( i i i ) M a r k e t i n g expenses (Advertising primarily) (iv) Manufacturing (v) M a n u f a c t u r i n g expenses and r e l a t e d Revenues s i n c e such as quality legs jade a n d book $370,900.00 tile sales ends costs approximately $10.00 p e r t i l e retail although f o r 1/8" t h i c k and other which j a d e t o t a l a p p r o x i m a t e l y $170,000 Manufacturing tiles $379,100.00 i n Canada 1983 f r o m table $531,700.00 e x p e n s e s i n t h e U.S. Administration jade a r e made (Canadian 4"x4" square products from normal mark-ups tiles o r $90.00 p e r s q u a r e should have these tiles lower Funds). have foot. been These f o r a b o u t $ 1 7 . 5 0 , o r a b o u t $150.00 p e r s q u a r e more t h a n $ 1 7 5 . 0 0 p e r s q u a r e 1.2 and marketing foot, retailing at foot. PHILOSOPHY AND PURPOSE OF STUDY The general the viability contingent which focus of the entire lower jade quality mining upon d e v e l o p i n g a m a r k e t f o r t h i s constitutes reserves. i s on marketing a major portion of the jade. operation lower raining grade In fact may be material p r o d u c t i o n and - 3 - Tile manufacturing Marketing and b u s i n e s s "fall-out" from the and as the focus o f the study. arrangements the study, butw i l l will certainly come as n o t be c o n s i d e r e d a s p a r t o f study. Progression to Facility Marketing Design, Studies w i l l the manufacturing 2. h a s been i d e n t i f e d preparation o f a Business Plan, a l l be c o n t i n g e n t upon t h e outcome o f study. FEASIBILITY STUDY - INVESTIGATION OF TILE MANUFACTURING As a r e s u l t jade t i l e s be o f our past marketing must r e t a i l competitive reasonable with comparable approximately This products equates and t o a manufacturing n that the t i l e manufacturing $45.00 p e r s q u a r e n cost (ii) What i s t h e y i e l d (iii) What a r e t h e o p t i m u m t i l e (iv) Where m i g h t t h e p l a n t be l o c a t e d ? (v) What a l t e r n a t i v e m a n u f a c t u r i n g o f about i s s u e s must be j a d e be c u t a n d p o l i s h e d e c o n o m i c a l l y ? from reach tile). addressed. Can l o w q u a l i t y to must be a c c o m p l i s h e d foot the following (i) that foot or less to f o r sales f o o t ( a p p r o x i m a t e l y $5.00 f o r a A x4 Based on t h e premise for i t h a s been determined f o r $70.00 t o $90.00 p e r s q u a r e volumes. $45.00 p e r s q u a r e efforts the b o u l d e r s mined? dimensions? processes are there? - The study will focus possible current 2.1 on our current plant modification plant and a l t e r n a t e configuration, processes. CURRENT PLANT CONFIGURATION Conduct an techniques, entire engineering production existing equipment and analyzing levels of equipment, individual including segments individual of the pieces o f the t i l e manufacturing "bottle-necks", inappropriate equipment, total of process inefficient design. manufacturing cost including cost c o s t s o f e a c h segment o f t h e m a n u f a c t u r i n g Investigate operating segment and/or i n e f f e c t i v e p l a n t Identify study operation, i n each identifying 2.2 4 - alternative locations for o f raw m a t e r i a l process. plant. CURRENT PLANT MODIFICATION Identify alternate production e q u i p m e n t t h a t c a n be added t o t h e e x i s t i n g equipment o r r e p l a c e e x i s t i n g equipment. Investigate to modifications equipment t o improve p r o d u c t i o n (Decision point Investigate existing and recovery tile manufacturing o f raw m a t e r i a l . #1, s e e A p p e n d i c e s I a n d I I ) . a l t e r n a t i v e locations for a modified plant. - 5 - 2.3 ALTERNATE PROCESSES Identify companies which products t o jade Identify manufacture equipment working slabs o r comparable tiles. that may be s u i t a b l e f o r c u t t i n g , g r i n d i n g , l a p p i n g and p o l i s h i n g jade. stone tiles, business This e q u i p m e n t may be i n u s e i n t h e or technology from unrelated industries w h i c h may b e a d a p t e d t o j a d e . Identify appropriate (i) assist (ii) regulate (iii) g o v e r n m e n t a g e n c i e s w h i c h may: i n e s t a b l i s h i n g the business sectors o f the business assist i n identifying appropriate to complete equipment, manufacturing for be able initially. jade to see A p p e n d i c e s Feedback identified supply input from t e s t i n g where research into pilot meetings tests tests provide manufacturing t h e study will be f o l l o w e d appropriate. will scheduled or should a n d i n d i v i d u a l s who be done by shipment o f (Decision point #1, I and I I ) . organizational design. and marketing organizations The c o r r e s p o n d e n c e would f o rpilot further to contact the study. Correspondence w i t h may companies to discuss individual processes, be d i s c u s s e d topics expertise, necessary materials and relevant t o the i f warranted. These information flow and a n a l y z e d on equipment, and e v e n t u a l l y plant ( D e c i s i o n p o i n t s #2 a n d #3, s e e A p p e n d i c e s I a n d I I ) . - 6 - 2.4 REPORT PREPARATION The report all data preparation would include compilation c o l l e c t e d i nSections Included will be and analyses o f 2.1 t o 2.4. detailed economics of possible facility configuration including: (i) Capital cost estimates (ii) Operating (iii) P r o f i t margin (iv) Return on investment (v) Estimates cost estimates estimates estimates o f r e l a t e d mining, e x p l o r a t i o n and t r a n s p o r t a t i o n costs. The risks supply, associated with transportation, identified and risk manufacturing analyses i n c l u d e , b u t n o t be l i m i t e d (i) Jade (ii) Mining (iii) Transportation exploration and mining and completed. and/or marketing These jade would risks be would to: reserves/inventory/supply costs costs and losses of raw and finished products (iv) Operating c o s t s and overhead (v) Capital costs (vi) Domestic and f o r e i g n p o l i t i c s (vii) Marketing risks such as ( i f applicable) cost of sales, distribution (viii) Business (if arrangements applicable) (e.g. partnership) advertising, - 7 - 3. FEASIBILITY STUDY SCHEDULE AND PERSONNEL The study h a s been d i v i d e d i n t o f o u r segments: 2.1 Current Plant Configuration 2.2 Current Plant Modification 2.3 A l t e r n a t e Processes 2.4 Report P r e p a r a t i o n The study The primary functions include: (i) i s expected Identification t o extend of from equipment and provide input into manufacturing (ii) Test work, including mid-March cutting, Data reduction manufacturers grinding, and a p p r a i s a l m i d - J u l y , 1986. who may processes. leading t o production o f a finished (iii) tile until lapping and p o l i s h i n g product. o f known technology leading to c o n c l u s i o n s and recommendations. A schedule o f planned i n Appendices activities and i n v o l v e d p e r s o n n e l are detailed I and I I . Personnel involved i n thestudy include: (i) B e v e r l y B l a n d - J a d e I n t a r s i a - Mohawk O i l C o . L t d . (ii) Joseph (iii) M a t t W a l d n e r - M a n a g e r , M i n e r a l s D i v i s i o n - Mohawk O i l C o . L t d . (iv) Eugene P l a n k - C o n s u l t a n t - C a n b i s Additionally of the study. S m i t h - M a n a g e r , J a d e D i v i s i o n - Mohawk O i l C o . L t d . t h e r e may b e s p e c i a l t y - Toronto, c o n s u l t a n t s r e q u i r e d f o r segments D e t a i l s on p e r s o n n e l and t h e i r week i n A p p e n d i x I I . Ontario activities a r e l i s t e d by - 8 - Three must go/no-go be plan. decision overcome Costs points before of each occur i n the plan. These proceeding t o the subsequent segment are outlined "hurdles" segment i n the i n the f o l l o w i n g budget section. 4. BUDGET Clear go/no-go Feasibility decision Study. points There have been defined in the a r e f o u r p l a n n e d segments and t h r e e planned decision points: #1 about the third week of A p r i l after a budgeted $6,050 has been s p e n t . #2 about t h e end o f May after a budgeted additional amount of $33,650 h a s been s p e n t . #3 about has raid-June been spent. approves a f u r t h e r Asia a n d t h e U.S. $30,000 If research after A a budgeted third additional decision $17,900 e x p e n d i t u r e . may be j u s t i f i a b l e to amount proceed o f $36,200 essentially Travel-meeting costs i n resulting i n an additional expenditure. into European Technology identifies a feasible m a n u f a c t u r i n g p r o c e s s t h e n t h i s w o u l d p r e c l u d e A s i a n a n d U.S. to cost results. A m e r i c a n m e e t i n g s a l o n e w o u l d c o s t a p p r o x i m a t e l y $10,500 require given positive justification. Asian meetings estimated would a l s o $30,000 e v e n tile and A m e r i c a n test and - 9 - The If budgeted Asian $133,800. and cost of the F e a s i b i l i t y American I f American meetings meetings cost i s e s t i m a t e d a t $114,300. The cost details Appendix I I . of each are Study i s estimated at necessary are j u s t i f i a b l e segment in the plan the then are budget $103,800. rises the t o t a l to study illustrated in APPENDIX I FEASIBILITY STUDY SCHBDOLB DATS APRIL MARCH 10 20 30 20 10 JULY MAT 30 10 20 30 10 20 30 PROPOSED FEASIBILITY STODT 2.1 2.2 CURRENT PLANT O0MFIGORATIQM Appraisal of technology, plant design, costs ctnuonrr PLANT MODIFICATION Identify modifications ft/or equipment changes to current plant to achieve targets costs ft production s Ship jade to positive respondents for tests P i l o t tests (Europe) 2.3 Identify alternate processes/plants/ equipment to achieve target costs ft production Ship jade to positive respondents for tests P i l o t tests (Europe ft Asia) 2.4 Data reductionftanalyses, options generation, 0.8.ftAsian meetings i f warranted Preparation of written report with conclusions ft recommendations. * Decision points to proceed with study or suspend i f responses negative. 1. Decision to ship jade for tests only i f appropriate positive responses received. 2. Decision to proceed with study i f any positive tests results obtained from European tests. 3. Decision to meet with U.S.ftAsian manufacturers i f warranted from U.S.ftAsian test results ft European test results. 10 20 30 APPENDIX II SCHEDULED PERSONNEL AND ACTIVITIES March 10 to A p r i l 20 A p r i l 21 to May 30 Prepare l i s t of contacts for t i l e manufacturing. Initiate inquiries ft await Salaries for Smith, Naldner, responses regarding manufacturing tests with equipment manufacturers ft t i l e Consultant producers. Expenses (Research ends i f no positive responses.) *1 Ship jade to positive respondents for test cutting, lapping, polishing. results of test manufacturing. June 1 to June 30 ft 00BT8 ACTIVITIES TIME INTERVAL Await Freight ft test costs (Research ends i f no positive respondents.) *2 Research and organise information on Mohawk's t i l e manufacturing process, Salaries for Smith, Naldner processing equipment, costs and plant design. Bland Meet with European manufacturers who have demonstrated that they are able to Salaries for Smith, Naldner produce tiles/slabs of acceptable quality. Consultant Travel ft Expenses Reduction and appraisal of test data. negative.) (Research and appraisals end i f Salaries for Smith, Naldner Consultant *3 Expenses Additional meetings (Asia and/or U.S.A.) i f warranted. (Travel ft Expenses) July 1 to July 15 Prepare report including a l l data related to t i l e manufacturing and information Salaries for Smith, Naldner unearthed during the study pertinent to t i l e manufacturing, marketing, Bland, Consultant distribution and volume jade sales and/or consumption. Expenses Conclusions and recommendations w i l l be significant, mandatory sections of the report. * Decision Points to continue or discontinue study. for Note: Require positive feedback continuity. (1) Consultants's expenses include 2 to 3 trips from Toronto to Vancouver return. (2) Salaries reduced to per diem rates and applied only when working on study. APPENDIX I I I MINERALS DIVISION BUDGET DETAILS C o s t s From Study S t a r t - u p t o D e c i s i o n P o i n t #1 Personnel: Consultant 10 days @ 190/day « 1,900 M. Waldner 5 days @ 250/day « 1,250 10 days § 190/day = 1,900 J . Smith Bxpenses: ( C o n s u l t a n t & misc.) 1,000 $ 6,050 Costs From D e c i s i o n P o i n t #1 t o #2 Personnel: C o n s u l t a n t 15 days § 190/day = 2,850 M. Waldner 15 days @ 250/day = 3,750 J . Smith 20 days @ 190/day * 3,800 B. B l a n d 10 days @ 100/day = 1,000 15,000 T e s t Work: Freight: 5,000 Expenses: 2,250 33,650 C o s t s From D e c i s i o n P o i n t #2 t o #3 Personnel: Travel: C o n s u l t a n t 20 days @ 190/day = 3,800 M. Waldner 20 days G 250/day = 5,000 J . Smith 20 days @ 190/day « 3,800 B. B l a n d 10 days @ 100/day = 1,000 18,800 (Europe) 3,800 Expenses: 36,200 C o s t s From D e c i s i o n P o i n t #3 t o Study C o n c l u s i o n Personnel: C o n s u l t a n t 20 days @ 190/day = 3,800 M. Waldner 20 days § 250/day = 5,000 J . Smith 20 days § 190/day * 3,800 B. B l a n d 10 days e 100/day » 1,000 Expenses: 4,300 10,000 Contingencies Travel: TOTAL 17,900 (U.S.) (10,500) (Asia) (19,500) $ (133,800) $103,800 APPENDIX I I I B.C. HYDRO - POWER COST ESTIMATES B r i t i s h C o l u m b i a H y d r o a n d Power A u t h o r i t y p r o v i d e d e s t i m a t e s f o r e l e c t r i c a l e n e r g y c o s t s a n d p e a k demand c h a r g e s . These e s t i m a t e s were used t o d e t e r m i n e plant e l e c t r i c a l costs. 1. ENERGY COST KWH 0 t o 275 276 t o 6725 6725 t o 2 9 7 2 5 +29728 2. COST PER KWH 7.47<? 5.51<? 4.08$ 2.64C DEMAND CHARGE KW 1 s t t o 35 36 t o 1 1 5 +115 COST PER KW NO CHARGE $3.13 $6.01 Power f a c t o r p e n a l t i e s may a p p l y i f p l a n t d e s i g n inefficient. Minimum m o n t h l y c h a r g e o f $ 1 1 . 0 9 a n d a b a s i c c h a r g e o f $ 3 . 9 1 p e r m o n t h . Minimum c h a r g e e q u a l t o 50 p e r c e n t b e t w e e n November 1 s t a n d M a r c h 3 1 s t . o f maximum demand charge measured APPENDIX IV MOHAWK JADE T I L E PLANT EQUIPMENT 1. Do A l l M o d e l 70 1/D - Micro 2. S p e e d f a m M o d e l SNG 32 SPAW - P o l i s h e r s (2) 3. Speedfam Lapper 4. Dayton Speedair 5. Do A l l S u r f a c e 6. Bench 7. Lapper S o l u t i o n C o n d i t i o n e r 8. Lapper Reclaim 9. S m a l l T o o l s , Pumps & M o t o r s , S c a l e , Washer M o d e l SNF 48 BTAW - Slicer 5 h.p. A i r Compressor Grinder Grinder San J o s e Tank Tank P l a n t items 1 - 9 $103,490.00 10. Vertical S p i n d l e G r i n d e r - M A S M o d e l BRV70 11. Platform Scale 12. H y d r a u l i c 48 I n c h D i a m e t e r B l o c k i n g Saw C o m p l e t e W i t h One B l a d e 33,500.00 13. Overhead Crane I n c l u d e d T r o l l i e s 15,640.00 14. R a d i a l Arm Saw (B&D 16") 15. G a s o l i n e Motor Powered F o r k l i f t TOTAL 52,700.00 3,140.00 6,080.00 ( F.M.V.) 2,000.00 $216,550.00 APPENDIX V STONE-WORKING INDUSTRY COMPANIES Wes t g e r m a n y Firma Krupp-Polysius AG Baustofftechnik D~ 472o Beckum/W«Germ. Planning,consultancy and e r e c t i o n of complete plants f o r the manufacture of b u i l d i n g stone and s i m i l a r products. T e l e f a x : (o2525) 71-21 Telex: 8 9 431-0 Firma P o r s f e l d GmbH & Co B e t r i e b s KG Hauptstrasse 3 o H y d r a u l i c rock d r i l l i n g equipment, c l e a v i n g u n i t s and machines; p l a n n i n g o f complete q u a r r i e s * 0 - 8 3 9 9 R u h s t o r f ( R o t t ) W.Germ. Telex: 5 7 283 Firma F i c k e r t KG Mas c h i n e n f a b r i k Lohbachstrasse 3 D- 8 6 7 6 Schwarzenbach/W.Germ. Telex: 6 43 818 Firma Arbes KG Mas c h i n e n f a b r i k Bruchgarten 1-5 D-591o Kreuztal-Krombach/W.Germ. T e l . : (02732)8712 no t e l e x # Firma C a r l Meyer KG Steinbearbeitungs-Mas c h i n e n f a b r i k Kraussoldstrasse 1 9 D - 8 5 9 o Marktredwitz/ W.Germ. Stoneworking machines such aa s a w i n g , m i l l i n g and g r i n d i n g m a c h i n e s , s p e c i a l machines, complete production l i n e s , g r i n d i n g , p o l i s h i n g and c u t t i n g d i s c s f o r stoneworking. Stone-cutting, multiple-blade saws, frames, stone gang saws, c i r c u l a r stone-saws and stonem i l l i n g machines. b a s i c same f a b r i c a t i o n l i k e F i c k e r t KG rpoducts T e l e x : 6 41 274 meyer d Firma A* Volkenborn Maschinenfabrik B u i l d i n g s i t e c i r c u l a r saws Hauptstrasse 13 and masonry saws D- 5620 V e l b e r t l l ( L a n g e n b e r g ) W.Germ. T e l e x : 8 516 717 A u s t r i a Manufacturers of machinery f o r stoneindus t r y U n f o r t u n a t e l y the a u s t r i a n l i t e r a t u r e and l i b r a r y i n f o s are not s p e c i f i c to f i n d out, which p a r t i c u l a r machine they produce, Basic any type o f specialmade equipment f o r s toneind\Ary • # Firma Johann Leinweber Industriegelaende Nord A-27oo Wiener N e u s t a d t / A u s t r i a Firma Austrcplan O e s t e r r .Planungsges •m,b,H. Linke Wienzeile 234 A-1150 Wien/ A u s t r i a Firma Anderle K a r l Werkzeugmaschinenbau G l e i n k e r Hauptstr.3 A-44o7 S t e y r / A u s t r i a Firma Mannsberger Eduard Ing.Ges.n.b.H. Hauptstr. 44 A-2544 L e o b e r s d o r f / A u s t r i a Telex: 0I6-657 T e l e x : 1 32997 T e l e x : no T e l e f o n : 07252/ 632 Telex: 63 ol4-446 Wes t g e r m a n y Firma Otto Suhner GmbH Bauvereinstr,13 D - 7 8 8 0 Bad Saeckingen 1/Kest e r m . G T e l e x : 7 92 32o F l e x i b l e shaft-machine tools f o r stone-dressing t o o l s and attachments f o r the f o r m e r , d r i l l feed u n i t s , special-purpose machines. Firma KKD Humboldt Wedag AG Wiersbergs t r a s s e D-5ooo Koeln 91/W.Germ. T e l e f a x : (o221) 8 23-72 4o Group 3 T e l e f : (o221) 8 23-0 Telex: 8 812-0 This company i s s p e c i a l i s e d i n : Machines and plants f o r p r o c e s s i n g raw m a t e r i a l s and p l a n t s f o r the p r o d u c t i o n o f quarry products . minerals, Most of the companies on page -1- are a l s o i n v o l v e d i n s e t t i n g up of complete plants and p r o d u c t i o n s t r e e t s f o r the stone industry. I f you need more informations i n the m i n i n g i n d u s t r y , concerning the Jade-quarry by i t s e l f , p i s . l e t me know. These would be complete d i f f e r e n t types of manufacturers. Wes t g e r m a n y Firma M a r t i n Kolb Mas chinenbau Zeughausweg 26 D-79o5 Dietenheira i/W.Gernu S t o n e c u t t i n g machinery T e l e x : 7 12 295 k o l b d Firma Eisenwerk Hensel Bayreuth D i p l , I n g . B u r k h a r d t GmbH K a t h e n a u s t r a s s e 47 D-852o Bayreuth/ W.Gerra. ' complete l i n e o f stoneworking machinery and t o o l e s . T e l e x : 6 42 823 Firma Robert S c h l a t t e r GmbH k Co Mas c h i n e n f a b r i k D e t t i n g e r Str.82 D^7312 Kirchheim(Teck) Tel.: Machinery f o r working n a t u r a l and a n t i f i c i a l s t o n e . (o7o21) 5 47 3o Firma P e t z i n g k Hartmann Mas c h i n e n f a b r i k GesnbH & Co KG L e i p z i g e r S t r . 153-163 D-35oo Kassel-Bettenhausen Pehaka-bandsaws f o r a l l sawing problems, and sawing i n s t a l l a t i o n * T e l e x : 9 9 668 Firma Schindler Steinbearbeitungsmas chinen A n l a g e n t e c h n i k GmbH Donaus t a u f e r s t r , 15 o D-8400 Regensburg/W.Germ. Machinery and p l a n t f o r s l a b s and s t e p s . T e l e x : 6 5 639 Firma Helmut Darda Maschinenbau D-7712 Blumberg(Baden) l/W Germ, # T e l e x : 921 219 B u i l d i n g f.above-ground b u i l d g . and c i v i l underground working; rock-splitters
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