Quarterly Training Summit Springfield, Illinois April 12, October 2016 U.S. Department of Labor U.S. Illinois Association of Aggregate Producers

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Illinois Association of Aggregate Producers Quarterly Training Summit Springfield, Illinois April 12, 2018 October 2016 U.S. Department of Labor U.S. Ed Elliott Senior Advisor Office of the Assistant Secretary U.S. Department of Labor Mine Safety and Health Administration 1

MSHA Leadership David Zatezalo Assistant Secretary of Labor, MSHA Former CEO Rhino Resources Confirmed in November Wayne Palmer Deputy Assistant Secretary for Policy Appointed August 2017 Served as Senior White House Advisor for the Department of Labor and Chief of Staff to Secretary R. Alexander Acosta. 2

The MSHA Mission to prevent death, illness, and injury from mining and promote safe and healthful workplaces for U.S. miners 3

MSHA s Tools Fair and consistent enforcement mandated inspections (2s and 4s) are core responsibility Education and Training Compliance and Technical Assistance Technological Innovation working with operators and manufacturers 4

ALL INJURY RATES & FATALITIES (CY 2008 2017) 120 3.26 MNM Fatalities Coal Fatalities 3.50 100 80 3.02 2.83 72 2.75 2.59 2.50 2.47 2.31 2.20 2.16 3.00 2.50 2.00 Fatalities 60 40 20 0 53 24 46 42 23 35 36 36 29 28 22 30 25 17 16 16 48 17 13 30 17 18 20 20 20 16 12 15 8 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Calendar Year 1.50 1.00 0.50 0.00 Data run on 1/24/2018 5

4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 3,679 ALL MINING FATALITIES 1912 2017 28 fatalities in 2017 6 1912 1916 1920 1924 1928 1932 1936 1940 1944 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

MSHA Data for 2017 # of Mines Reporting Employment 13,051 Coal Mines Only 1,210 Metal/Nonmetal Mines Only 11,846 Total Employment 319,691 MSHA Inspections Completed 39,800 Citations & Orders Issued 105,176 Dollars Assessed (Millions) $53.3 7

MNM HIGHLIGHTS FOR 2017 ILLINOIS NATION No. of Mines Reporting Employment 235 11,846 Operator Employment # 3,276 168,106 MSHA Inspections Completed* 561 26,298 Citations & Orders Issued 1,493 58,158 $ Assessed (Millions)^ 0.72 27.4 #State employment data reflects operator employment only (contractors do not report employment by state). Therefore, data presented here is does not include contractor employment. *Excludes compliance assistance activities. ^Proposed penalty amount, In millions, of non vacated violations assessed in 2017. 8

MNM US Mines Fatality and All Injury Rates 2008 2017 All Inj. Rate Fatal Inj. Rate 6.00 0.0147 0.0160 5.00 0.0134 0.0140 All Inj. Rate 4.00 3.00 2.00 0.0107 0.0098 0.0083 0.0079 0.0108 0.0084 0.0088 0.0067 0.0120 0.0100 0.0080 0.0060 Fatal Inj. Rate 2.88 2.54 2.38 2.28 2.20 2.14 2.11 2.03 1.94 1.77 0.0040 1.00 0.0020 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.0000 9

MNM Fatalities in 2017 13 Fatalities Occurring in 12 States 10

MNM FATALITIES IN 2017 BY CATEGORY 1 1 Electrical 3 Falling Materials Fall of Roof or Back 7 1 Powered Haulage Machinery 11

MNM FATALITIES IN 2017 BY CATEGORY 1 POWERED HAULAGE Truck/Vehicle/Tractor Conveyer Belt 6 12

Powered Haulage In 2017 43% or 12 of the 28 total mining fatalities involved powered haulage. The first fatality this year was powered haulage. 13

Seat Belts From 2007 thru 2017 there were 36 fatalities involving mobile equipment where miners were not wearing their seat belt. 19 in MNM and 17 in Coal. On average 3 4 miners die each year in mobile equipment accidents as a result of not wearing a seat belt. This should be an easy fix? 14

5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 AGGREGATES ALL INJURY RATES* 2008 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Nation IL *The all injury rate represents the number of reportable injuries per 200,000 exposure hours. NOTE: State employment data reflects operator employment only (contractors do not report employment by state). Therefore, data represented here excludes contractor injuries and hours. 15

LOST TIME (LT) INJURIES WITHIN THE AGGREGATES INDUSTRY 16

PERCENT OF LT INJURIES FOR AGGREGATES 2017 BY STATE & DAY OF WEEK 30% 25% 20% 15% 10% 5% 0% Sunday Monday Tuesday Wednesday Thursday Friday Saturday IL Nation 17

MSHA1 LT INJURY RATE FOR AGGREGATES 2017 BY STATE 3.00 All Aggregates Sand & Gravel Stone 2.50 2.00 1.50 1.00 1.34 1.41 1.47 1.35 1.18 0.82 0.50 0.00 Nation Illinois NOTE: State employment data reflects operator employment only (contractors do not report employment by state). Therefore, data represented here excludes contractor injuries and hours. 18

Slide 18 MSHA1 I can trend this out historically... MSHA, 3/12/2018

DISTRIBUTION OF LT INJURIES FOR AGGREGATES 2017 BY EXPERIENCE EXPERIENCE 5 years or less 5 to 10 years 10 to 20 years 20 to 30 years More than 30 years ILLINOIS 57% 9% 14% 6% 14% NATION 53% 11% 21% 9% 5% 19

IN 2017, APPROXIMATELY 50 PERCENT OF LT INJURIES OCCURRED WITHIN 3 OCCUPATIONS (AGGREGATES) Rank Nation IL 1 Maintenance/ Repairman (18.3%) Maintenance/ Repairman (20.0%) 2 Laborer (18.2%) Laborer (14.3%) 3 Heavy Equipment Operator (13.8%) Utility man (11.4%) % 50.3% 45.7% 20

Citations & Orders Issued 2008 2017 200,000 Coal MNM 175,000 173,514 173,055 170,057 156,337 150,000 125,000 100,000 66,727 71,153 73,710 63,280 138,921 60,073 118,135 121,112 54,953 58,629 107,734 97,076 105,176 75,000 58,395 56,534 58,275 50,000 25,000 106,787 101,902 96,347 93,057 78,848 63,182 62,483 49,339 40,542 46,901 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 21

Penalties on Issued ($) Citations and Orders 2008 2017 Dollars (in Millions) 180 160 140 120 100 80 60 40 20 0 162.3 161.1 129.4 142.1 136.7 41.2 52.1 123.2 31.7 30.5 40.4 33.6 94.6 97.1 29.5 33.8 65.4 98.9 119.9 52.1 53.3 110.3 110.2 96.3 28.1 89.6 26.1 27.4 65.1 63.3 37.3 25.9 25.9 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Coal MNM 22

Regulatory Update Examinations of Working Places in Metal and Nonmetal Mines Exposure of Underground Miners to Diesel Exhaust 23

Regulatory Reform January 30, 2017, Executive Order on Reducing Regulation and Controlling Regulatory Costs MSHA will conduct stakeholder outreach by: Holding stakeholder meetings 2 RFIs asking for information Reducing burdens Granted petitions for modifications 24

Agency Priorities Fulfill the requirements of the Mine Act Work with all stakeholders to improve safety and health in the mining industry Seek out and encourage adoption of new safety & health technology Prepare for the infrastructure push 25

Technology Enhance what you already have. Autonomous vehicles. Drones Remote operation of equipment. What if it doesn t work? 26

Budget Continuing Resolution FY 19 President s Budget Final Appropriations 27

Initiatives Blur the Lines Modernize the Inspection Process. Scofflaw Program Continue to work on consistency. 28

There is still more to the story 29