Exhibit 15.1
Disclosure of Mine Safety and Health Administration (“MSHA”) Safety Data
Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934 that operate mines regulated under the Mine Act. CEMEX’s U.S. quarry and mining operations are subject to MSHA regulation under the U.S. Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed or vacated.
In January 2012, the SEC issued final rules and regulations implementing the mine safety disclosure requirements of Section 1503(a) of the Dodd-Frank Act. Pursuant to those rules and regulations, we have provided the information below for mining operations in the United States only. The Dodd-Frank Act and the implementing rules and regulations thereunder do not apply to mining and quarry operations outside the U.S.
The information in the table below reflects citations and orders MSHA issued to various U.S. subsidiaries of the Company during the year ended December 31, 2019. The data was compiled primarily from the data maintained on MSHA’s public website, the Mine Data Retrieval System (“MDRS”), as of March 5, 2020. 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 |
| 0801000 | 474 Sand Mine | 0 | 0 | 0 | 0 | 0 | 242 | 0 | no | no |
| 0800078 | Alico Road Quarry | 0 | 0 | 0 | 0 | 0 | 1329 | 0 | no | no |
| 4102885 | Balcones Plant | 13 | 0 | 0 | 0 | 0 | 33020 | 0 | no | no |
| 4100994 | Balcones Quarry | 7 | 0 | 2 | 0 | 0 | 105461 | 1 | no | no |
| 0405701 | Black Mountain Quarry | 20 | 0 | 3 | 0 | 0 | 63231 | 0 | no | no |
| 0800800 | Brooksville Cement Plant | 0 | 0 | 0 | 0 | 0 | 484 | 0 | no | no |
| 0801287 | Brooksville South Cement Plant | 8 | 0 | 0 | 0 | 0 | 16355 | 0 | no | no |
| 0800024 | Brooksville Quarry | 7 | 0 | 0 | 0 | 0 | 6493 | 0 | no | no |
| 0402763 | Cache Creek Quarry | 0 | 0 | 0 | 0 | 0 | 1009 | 0 | no | no |
| 0200988 | CEMEX - 19th Ave | 0 | 0 | 0 | 0 | 0 | 121 | 0 | no | no |
| 0202585 | CEMEX - APEX | 0 | 0 | 0 | 0 | 0 | 242 | 0 | no | no |
| 0200758 | CEMEX - Bullhead | 0 | 0 | 0 | 0 | 0 | 363 | 0 | no | no |
| 0202606 | CEMEX - Camp Verde | 1 | 0 | 0 | 0 | 0 | 714 | 0 | no | no |
| 0200717 | CEMEX – Casa Grande | 3 | 0 | 0 | 0 | 0 | 1689 | 0 | no | no |
| 0201249 | CEMEX - Globe / Bixby | 0 | 0 | 0 | 0 | 0 | 385 | 0 | no | no |
| 0202851 | CEMEX - Gray Mountain | 1 | 0 | 0 | 0 | 0 | 3497 | 0 | no | no |
| 0200722 | CEMEX - Hwy 95 | 6 | 0 | 0 | 0 | 0 | 20525 | 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 | 1 | 0 | 0 | 0 | 0 | 829 | 0 | no | no |
| 0202670 | CEMEX - Pima | 3 | 0 | 0 | 0 | 0 | 1841 | 0 | no | no |
| 0202849 | CEMEX - Prescott / Fain | 0 | 0 | 0 | 0 | 0 | 242 | 0 | no | no |
| 2602082 | CEMEX – Sierra Stone Quarry | 0 | 0 | 0 | 0 | 0 | 2907 | 0 | no | no |
| 0202062 | CEMEX - Sierra Vista | 1 | 0 | 0 | 0 | 0 | 319 | 0 | no | no |
| 0400173 | Clayton Plant | 0 | 0 | 0 | 0 | 0 | 242 | 0 | no | no |
| 0900053 | Clinchfield Plant | 7 | 0 | 0 | 0 | 0 | 15643 | 0 | no | no |
| 0801271 | Davenport Sand Mine | 0 | 0 | 0 | 0 | 0 | 363 | 0 | no | no |
| 3800127 | Deerfield Sand | 1 | 0 | 0 | 0 | 0 | 416 | 0 | no | no |
| 0100016 | Demopolis Plant Cemex Inc | 45 | 0 | 1 | 0 | 0 | 144907 | 0 | no | no |
| 0401891 | Eliot Plant | 2 | 0 | 0 | 0 | 0 | 9315 | 0 | no | no |
| 0800519 | FEC Quarry | 5 | 0 | 0 | 0 | 0 | 4535 | 0 | no | no |
| 0801308 | Gator Sand Mine | 0 | 0 | 0 | 0 | 0 | 484 | 0 | no | no |
| 0801035 | Inglis Quarry | 1 | 0 | 0 | 0 | 0 | 181 | 0 | no | no |
| 4000840 | Knoxville Cement Plant | 13 | 1 | 0 | 0 | 0 | 78877 | 0 | no | no |
| 1504469 | KOSMOS Cement Co. | 18 | 1 | 0 | 0 | 0 | 29875 | 0 | no | no |
| 0801015 | Krome Quarry | 0 | 0 | 0 | 0 | 0 | 242 | 0 | no | no |
| 0801269 | Lake Wales Sand Mine | 0 | 0 | 0 | 0 | 0 | 363 | 0 | no | no |
| 0402843 | Lapis Plant | 0 | 0 | 0 | 0 | 0 | 484 | 0 | no | no |
| 0401896 | Lemon Cove Plant | 0 | 0 | 0 | 0 | 0 | 121 | 0 | no | no |
| 0500344 | Lyons Cement Plant Cemex Inc | 6 | 0 | 0 | 0 | 0 | 39119 | 0 | no | no |
| 0405216 | Lytle Creek Pit | 0 | 0 | 0 | 0 | 0 | 605 | 0 | no | no |
| 0800046 | Miami Cement Plant | 7 | 0 | 0 | 0 | 0 | 10889 | 0 | no | no |
| 0404140 | Moorpark Quarry | 1 | 0 | 0 | 0 | 0 | 214 | 0 | no | no |
| 0801216 | Palmdale Sand Mine | 1 | 0 | 0 | 0 | 0 | 230 | 0 | no | no |
| 0401906 | Patterson Plant | 1 | 0 | 0 | 0 | 0 | 3799 | 0 | no | no |
| 0401897 | Rockfield Plant | 0 | 0 | 0 | 0 | 0 | 396 | 0 | no | no |
| 0401895 | Tracy Kerlinger Plant | 0 | 0 | 0 | 0 | 0 | 121 | 0 | no | no |
| 0400281 | Victorville Cement Plant | 4 | 0 | 0 | 0 | 0 | 6636 | 0 | no | no |
| (1) | The definition of a mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, and tools. MSHA assigns an identification number to each mine or operation and may or may not assign a separate identification number to related facilities. The information provided in this table is presented by mine identification number. |
| (2) | Represents the total number of citations issued by MSHA for violation of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated. It should be noted that for purposes of this table, S&S citations that are included in another column, such as Section 104(b) citations, are not also included as Section 104 S&S citations in this column. (3) Represents the total number of orders issued, which represents a failure to abate a citation under section 104(a) within the period prescribed by MSHA. This results in an order of immediate withdrawal from the area of the mine affected by the condition until MSHA determines that the violation has been abated. |
| (4) | Represents the total number of citation and orders issued by MSHA for unwarrantable failure to comply with mandatory health or safety standards. |
| (5) | Represents the total number of flagrant violations identified. |
| (6) | Represents the total number of imminent danger orders issued under section 107(a) of the Mine Act. |
| (7) | Amounts represent the total dollar value of proposed assessments received from MSHA on the MDRS and do not necessarily relate to the citations or orders issued by MSHA during the period or to the pending or resolved legal actions reported below. Specific orders or citations may not have had proposed assessments on the MDRS as of the date identified above, and as a result, those citations or orders not yet assessed are not included in this column. |
The table below sets forth the total number of reportable legal actions for the twelve months ended December 31, 2019.
| Mine ID Number | Mine or Operating Name |
Legal Actions Pending as of Last Day of Period (December 31, 2018) (#)(8) |
Legal Actions Initiated During Period (#) |
Legal Actions Resolved During Period (#) | |||||
| Contests of Citations / Orders (9) |
Contests of Proposed Penalties (9) |
Complaints Compensation |
Complaints
of Discharge / Discrimination / Interference |
Application for Temporary Relief |
Appeals to FMSHRC | ||||
| 0800078 | Alico Road Quarry | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| 4102885 | Balcones Plant | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| 4100994 | Balcones Quarry | 10 | 10 | 0 | 0 | 0 | 0 | 10 | 1 |
| 0405701 | Black Mountain Quarry | 8 | 8 | 0 | 0 | 0 | 0 | 8 | 9 |
| 3800127 | Deerfield Sand | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| 0100016 | Demopolis Plant Cemex Inc | 53 | 53 | 0 | 0 | 0 | 0 | 53 | 0 |
| 4000840 | Knoxville Cement Plant | 3 | 3 | 0 | 0 | 0 | 0 | 29 | 65 |
| 0800046 | Miami Cement Plant | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10 |
| 0500344 | Lyons Cement Plant Cemex Inc | 27 | 27 | 0 | 0 | 0 | 0 | 27 | 0 |
| (8) | Pending legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) as required to be reported by Section 1503(a)(3) of the Dodd-Frank Act. This data represents legal action activity as derived from the MDRS on the date identified above
The following provides additional information regarding the types or categories of proceedings that may be brought before the Commission. |
| A | Contest Proceedings - a contest proceeding may be filed with the Commission by an operator to challenge the issuance of a citation or order issued by MSHA; |
| B | Civil Penalty Proceedings - a civil penalty proceeding may be filed with the Commission by an operator to challenge a civil penalty MSHA has proposed for a violation contained in a citation or order; | |
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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, 2019)” and “Legal Actions Resolved During Year” for current reporting period. |