EX-15.1 17 d541425dex151.htm EX-15.1 EX-15.1

Exhibit 15.1

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

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

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

The information in the table below reflects citations and orders MSHA issued to the Company during the year ended December 31, 2017. The data was compiled primarily from the data maintained on MSHA’s public website, the Mine Data Retrieval System (“MDRS”), as of March 9, 2018. In evaluating this information, consideration should also be given to factors such as: (i) the number of citations and orders may vary depending on the size and operation of the mine, (ii) the number of citations issued may vary from inspector to inspector and mine to mine, and (iii) citations and orders may be contested and appealed, and in that process, may be reduced in severity and amount, and may be dismissed or vacated.

 

Mine ID

number(1)

   

Mine or Operating Name

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

801000

   

474 Sand Mine

      1        0        0        0        0        204        0      no    no

0800078

   

Alico Road Quarry

      1        0        0        0        0        375        0      no    no

4102885

   

Balcones Plant

      7        0        0        0        0        145771        0      no    no

4100994

   

Balcones Quarry

      4        0        0        0        0        21506        0      no    no

0405701

   

Black Mountain Quarry

      7        0        0        0        0        59631        0      no    no

0801287

   

Brooksville South Cement Plant

      11        0        0        0        0        77824        0      no    no

0800024

   

Brooksville Quarry

      2        0        0        0        0        1830        0      no    no

0402763

   

Cache Creek Quarry

      1        0        0        0        0        985        0      no    no

3503508

   

Canby Pit^

      1        0        0        0        0        712        0      no    no

0200988

   

CEMEX - 19th Ave

      0        0        0        0        0        346        0      no    no

0202585

   

CEMEX - APEX

      2        0        0        0        0        1444        0      no    no

0202606

   

CEMEX - Camp Verde

      2        0        0        0        0        446        0      no    no

0200717

   

CEMEX - Casa Grande

      0        0        0        0        0        696        0      no    no

0201249

   

CEMEX - Globe / Bixby

      0        0        0        0        0        358        0      no    no

0202851

   

CEMEX - Gray Mountain

      0        0        0        0        0        16979        0      no    no

0200722

   

CEMEX - Hwy 95

      0        0        0        0        0        232        0      no    no

0202571

   

CEMEX - McCormick

      1        0        0        0        0        809        0      no    no

Mine ID

number(1)

   

Mine or Operating Name

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

2600789

   

CEMEX - Paiute Pit

      0        0        0        0        0        496        0      no    no

0202670

   

CEMEX - Pima

      1        0        0        0        0        677        0      no    no

0202849

   

CEMEX - Prescott / Fain

      0        0        0        0        0        348        0      no    no

2602082

   

CEMEX - Sierra Stone Quarry

      0        0        0        0        0        386        0      no    no

0202062

   

CEMEX - Sierra Vista

      4        0        0        0        0        2532        0      no    no

0400173

   

Clayton Plant

      3        0        0        0        0        1766        0      no    no

0900053

   

Clinchfield Plant

      1        0        0        0        0        2098        0      no    no

3500965

   

Coyote Springs Sand and Gravel^

      0        0        0        0        0        116        0      no    no

0801271

   

Davenport Sand Mine

      0        0        0        0        0        116        0      no    no

3800127

   

Deerfield Sand

      0        0        0        0        0        116        0      no    no

0100016

   

Demopolis Plant Cemex Inc

      8        0        0        0        0        4143        0      no    no

0401891

   

Eliot Plant

      12        0        2        0        0        41681        0      no    no

4503089

   

English Pit^

      0        0        0        0        0        305        0      no    no

4500577

   

Everett Pit & Plant^

      0        0        0        0        0        204        0      no    no

0800519

   

FEC Quarry

      1        0        0        0        0        2088        0      no    no

4503039

   

Fisher Quarry^

      0        0        0        0        1        2083        0      no    no

0801308

   

Gator Sand Mine

      0        0        0        0        0        116        0      no    no

0801035

   

Inglis Quarry

      0        0        0        0        0        232        0      no    no

4503424

   

Granite Falls Quarry^

      2        0        0        0        0        944        0      no    no

4000840

   

Knoxville Cement Plant

      15        0        0        0        0        82169        0      no    no

1504469

   

KOSMOS Cement Co.

      11        0        0        0        1        19490        0      no    no

0801015

   

Krome Quarry

      0        0        0        0        0        232        0      no    no

0801269

   

Lake Wales Sand Mine

      0        0        0        0        0        116        0      no    no

0402843

   

Lapis Plant

      1        0        0        0        0        860        0      no    no

4503293

   

Lewisville Pit^

      0        0        0        0        0        116        0      no    no

0500344

   

Lyons Cement Plant Cemex Inc

      8        0        0        0        0        14249        0      no    no

0405216

   

Lytle Creek Pit

      4        0        0        0        0        2160        0      no    no

0800046

   

Miami Cement Plant

      9        0        0        0        0        17017        0      no    no

0404140

   

Moorpark Quarry

      0        0        0        0        0        232        0      no    no

0801216

   

Palmdale Sand Mine

      0        0        0        0        0        232        0      no    no

0401906

   

Patterson Plant

      8        0        0        0        0        19523        0      no    no

4503692

   

Portable #2^

      0        0        0        0        0        116        0      no    no

0200758

   

Rinker Materials Bullhead

      1        0        0        0        0        628        0      no    no

0401897

   

Rockfield Plant

      0        0        0        0        0        740        0      no    no

800075

   

St. Catherine Mine

      0        0        0        0        0        116        0      no    no

0401895

   

Tracy Kerlinger Plant

      1        0        0        0        0        6778        0      no    no

0900912

   

Union Sand Mine

      0        0        0        0        0        116        0      no    no

Mine ID

number(1)

   

Mine or Operating Name

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

0400281

   

Victorville Cement Plant

      9        0        0        0        0        21185        0      no    no

 

^ The Company sold this site, effective June 30, 2017. This data represents activity through December 31, 2017 pertaining to citations issued on or before June 30, 2017.
(1) MSHA assigns an identification number to each mine or operation and may or may not assign a separate identification number to related facilities. The information provided in this table is presented by mine identification number.
(2) Represents the total number of citations issued by MSHA for violation of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
(3) Represents the total number of orders issued, which represents a failure to abate a citation under section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated.
(4) Represents the total number of citation and orders issued by MSHA for unwarrantable failure to comply with mandatory health or safety standards.
(5) Represents the total number of flagrant violations identified.
(6) Represents the total number of imminent danger orders issued under section 107(a) of the Mine Act.
(7) Amounts represent the total dollar value of proposed assessments received from MSHA and do not necessarily relate to the citations or orders issued by MSHA during the period or to the pending legal actions reported below.

The table below sets forth the total number of reportable legal actions for the twelve months ended December 31, 2017.

 

Mine ID

Number

   

Mine or

Operating Name

    Legal Actions Pending as of Last Day of Period (December 31, 2017)
(#)(8)		      Legal
Actions
Initiated
During
Period
(#)		      Legal
Actions
Resolved
During
Period (#)		  
      Contests
of
Citations
/ Orders (9)		      Contests
of
Proposed
Penalties (9)		      Complaints
for
Compensation		      Complaints of
Discharge /
Discrimination
/ Interference		      Application
for
Temporary
Relief		      Appeals to
FMSHRC		        
4102885    Balcones Plant      7        7        0        0        0        0        15        8  
4100994    Balcones Quarry      2        2        0        0        0        0        3        1  
0405701    Black Mountain Quarry      1        1        0        0        0        0        1        90  
0801287    Brooksville South Cement Plant      0        0        0        0        0        0        0        9  
2602082    CEMEX – Sierra Stone Quarry      0        0        0        0        0        0        0        1  
0900053    Clinchfield Plant      1        1        0        0        0        0        0        0  
0100016    Demopolis Plant Cemex Inc      0        0        0        0        0        0        0        1  
0401891    Eliot Plant      12        12        0        0        0        0        15        13  
4503424    Granite Falls Quarry^^      0        0        0        0        0        0        0        2  
4000840    Knoxville Cement Plant      0        0        0        0        0        0        25        32  
1504469    KOSMOS Cement Co.      49        49        0        1        0        0        1        1  
0800046    Miami Cement Plant      0        0        0        0        0        0        7        13  
0404140    Moorpark Quarry      0        0        0        0        0        0        0        1  
0401895    Tracy Kerlinger Plant      0        0        0        0        0        0        2        2  
0400281    Victorville Cement Plant      0        0        0        0        0        0        0        1  

 

^^ The Company sold this site, effective June 30, 2017. This data represents activity through December 31, 2017 pertaining to citations issued on or before June 30, 2017.

 

(8) Pending legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) as required to be reported by Section 1503(a)(3) of the Act.

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

 

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

 

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

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

 

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

 

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

 

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

 

  F Appeals of judges’ decisions or orders to the FMSHRC.

 

(9) Contests pending as of year-end on the MDRS, but which are subsequently vacated, are not included in any reports on the MDRS. As a result, discrepancies may appear between the prior reporting year’s “Legal Actions Pending as of Last Day of Period (December 31, 2017)” and “Legal Actions Resolved During Year” for current reporting period.