### Direct Costs **Holcim MDNR** 

Purchased Equipment Costs

New Coal Mill ID Fan and associated equipment $2,000,000 $1,000,000 Holcim Estimate; Historical Fan Cost Instrumentation (10% of EC) $200,000 $100,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Sales Tax (5% of EC) $100,000 $50,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Freight (5% of EC) $100,000 $50,000 0.05 A Subtotal, Purchased Equipment Cost (PEC) $2,400,000 $1,200,000 B

Direct Installation Costs

Foundation (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Supports (6% of PEC) $144,000 $72,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Handling and Erection (40% of PEC) $960,000 $480,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Electrical (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Piping (30% of PEC) $720,000 $360,000 0.30 B CCM Insulation for Ductwork (1% of PEC) $24,000 $12,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Painting (1% of PEC) $24,000 $12,000 0.01 B CCM

Subtotal, Direct Installation Cost $2,040,000 $1,020,000 Site Preparation N/A N/A Buildings N/A N/A

**Total Direct Cost $4,440,000**  **$2,220,000**


### Indirect Costs Engineering (10% of PEC) $240,000 $120,000 CCM

Construction and Field Expense (10% of PEC) $240,000 $120,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Contractor Fees (10% of PEC) $240,000 $120,000 CCM Start-up (1% of PEC) $24,000 $12,000 CCM Performance Test (1% of PEC) $24,000 $12,000 CCM Contingencies (3% of PEC) $72,000 $36,000 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 **Total Indirect Cost $840,000**  **$420,000**

**Total Capital Investm ent (TCI)**  **$5,280,000 $2,640,000** 

### Direct Annual Costs Scaled up from 2007 annual average clinker production to 3-yr average clinker production **Increased Fuel Cost (calculated by scaling 2007 annual average fuel usage by the ratio of 3-year average clinker** 2007 (1,035,283 tons clinker) Scaled to (3 yr average tons clinker) **production (1,169,667 tons) to 2007 actual clinker production (1,035,283 tons)**

####### Reduction in coke usage (metric ton/yr) 181,802 Holcim Engineering Estimate 160,915 181,802

Heat Value (Gj / Mt) 32.510 Holcim Plant Data Heat (Gj / yr) 5,910,397 Holcim Engineering Estimate Cost ($/Gj) $1.74 Holcim Plant Data

Subtotal, reduction in coke cost -$10,284,091 -$10,284,091

####### Reduction in coal usage (metric ton/yr) 10,656 Holcim Engineering Estimate 9,432 10,656

Heat Value (Gj / Mt) 22.177 Holcim Plant Data Heat (Gj / yr) 236,325 Holcim Engineering Estimate Cost ($/Gj) $2.41 Holcim Plant Data

Subtotal, reduction in coal cost -$569,543 -$569,543

####### Increase in low sulfur coal usage - Amount Required (metric ton/yr) 198,736 Holcim Engineering Estimate 208,546 235,616 Heat Value (Gj / Mt) 25.818 Holcim Engineering Estimate Heat (Gj / yr) 5,131,033 Holcim Engineering Estimate Cost ($/Mt) or Cost ($/Gj) $72.76 $2.82 Holcim Marketing and Engineering Estimate Subtotal, increase in Low Sulfur Coal cost $14,459,211 $14,460,031

**Total Direct Annual Cost (increase) $3,605,577**  **$3,606,397**

### Indirect Annual Costs

Administrative (2% TCI) $105,600 $52,800 0.02 TCI Property Tax (1% TCI) $52,800 $26,400 0.01 TCI Insurance (1% TCI) $52,800 $26,400 0.01 TCI Capital Recovery

(15 year life, 7 percent interest) $579,716 $289,858 **Total Indirect Annual Cost $790,916**  **$395,458**


### Conclusion

**Total Annualized Cost $4,396,493**  **$4,001,855**

**Pollutant Emission**  **Rate Prior to**  **Scrubber (tons**  **SO 2**  **/yr) 11,675**  **11,675** 11675.1667 Average SO2 Emissions of 3 latest full production years **Pollutant Rem oved (tons SO**  **2 /yr) - 23%**  **3,152 3,152**  27% Removal **Cost Per Ton of Pollutant Rem oved**  **$1,395 $1,270** 

Pollutant Emitted after Control 8,523 8,523 tons/year

Maximum Actual Historical Clinker Production (tons) 1,169,667 1,169,667 Incremental Cost/ton clinker 4 $ $3.42

2007 baseline - Holcim Provided in BART Writeup 65% Sulfur I

nput from Fuel 35% Sulfur I

nput from Raw Materials 30-35% Sulfur Emitted from Stack
From permit 1169667 Average Production of 3 latest full production years 1611840 Maximum Clinker Production @ 184 TPH 13298 TPY SO2 @ 16.5 lb/ton 6,432,296 Gj/yr Heat I

nput from Fuel at Maximum Clinker Production **Maximum Annual Clink er Scaled from** 

**2007 Fuel Use (TPY)**  **(TPY) Raw Material** **Cost per Gj S%**  **BTU/lb GJ/Mton**  **$/Mton fuel $/ton fuel**  **Ex/Repl Use GJ/yr**  **Fuel S Baseline**  **Fuel SO2 Unc Fuel SO2**  **SO2 Overall SO2**  **(MT) Input (TPY)**  **(TPY) Cont**  **(TPY) (TPY)**  Existing Coal $2.41 3.45% 9534.49 22.177 $53.45 $48.49 10,656.31 236,325 9,706.55 19,394.93 7,757.97 11,682.67 Pet Coke $1.74 5.72% 13976.93 32.51 $56.57 $51.32 181,802 5,910,397 10,978.11 21,935.67 8,774.27 12,698.97 3%S Coal $2.81815 3.00% 11100 25.81833508 $72.76 $66.01 198,736 5,131,033 7,250.06 14,486.55 5,794.62 9,719.32 0.7309 Tires 1.83% 13432.5 31.24367441 24,705.02 771,875.48 498.35 995.77 597.46 PRB Coal $5.67 0.70% 11300.00 26.28353031 $149.03 $135.20 244,727 6,432,296 1,661.74 3,320.37 1,328.15 5,252.85 0.3950 Other 529,387.51 0.9478171 MMBTU/Gj 12,475.12 24,926.90 9,970.76 3,327.24 429.927 BTU/lb per Gj/MetricTon 5,660,420.15 [Max Heat I nput] - 12% TDF 2.2046 lb/kg Baseline is All Fuel as Pet Coke 1000 kg/Metric Ton 60% Fuel SO2 Control (Coal/Coke) 40% Fuel SO2 Control (Tires) **Tires** 26.865 MMBTU/short ton 13432.5 BTU/lb 1.83 %S TDF

Modeled 4889.375 lb SO2/hour 117345 lb SO2/day 12/2/2004 4069.382956 TPD Clinker 28.83606711 lb/ton clinker

3049.375 lb NOx/hour 73185 lb NOx/day 11/24/2007 3762.70105 TPD Clinker 19.45012347 lb/ton clinker 30-day Clinker MAX 30-day average 80529.88431 lb SO2/day 12/10/05 1/8/06 20.95549232 lb/ton clinker 104587.71 Metric Tons 52858.73258 lb NOx/day 10/29/07- 11/27/07 13.78776969 lb/ton clinker 104338.4 Metric Tons
2007 Ann Avg lb/ton SO2 17.31083175 2007 Ann Avg lb/ton Nox 10.05306488 **Percentile SO2**  **UNC (lb/day) CON(lb/day)**  **lb/30days Limits**  Max 2415897 80529.9 58786.827 **1763604.8** 27% Control for SO2 from 30-day Maximum 2006 Ann Avg lb/ton SO2 13.64712331 0.95 2239006 74633.53333 54482.47933 2006 Ann Avg lb/ton Nox 8.583653198 0.9 2043221 68107.36667 49718.37767 0.8 1824675 60822.5 44400.425 2005 Ann Avg lb/ton SO2 11.16488906 0.7 1666853 55561.76667 40560.08967 2005 Ann Avg lb/ton Nox 5.768385811 0.6 1509100 50303.33333 36721.43333 0.5 1344408 44813.6 32713.928

**Percentile NOX**  **UNC (lb/day) CON(lb/day)**  **lb/30days** Max 1585762 52858.73333 42286.98667 **1268609.6** 20% Control for NOX from 30-day maximum

0.95 1251125 41704.16667 33363.33333 0.9 1089332 36311.06667 29048.85333 0.8 921089 30702.96667 24562.37333 0.7 855838 28527.93333 22822.34667 0.6 730787 24359.56667 19487.65333 0.5 629996 20999.86667 16799.89333

### Direct Costs MDNR Alt

Purchased Equipment Costs

Wet Scrubber Unit including Limestone Prep System $10,524,352 $7,670,653 Based on Ash Grove Cement Company - Moapa Plant Cost Estimate from Enviro-chem quote (65% of installed price plus 25% possible increase). Scaled using ratio of airflows to the 0.6 power Instrumentation (15% of EC) $1,578,653 $1,150,598 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Sales Tax (5% of EC) $526,218 $383,533 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Freight (5% of EC) $526,218 $383,533 CCM Subtotal, Purchased Equipment Cost (PEC) $13,155,441 $9,588,317 Moapa Airflow 311,360 acfm 0.41 Bypass Fraction
Clarksville Airflow - Permit Limit 828,969 acfm 489,092 acfm (scaled for bypass) Direct Installation Costs Foundation (10% of PEC) $1,315,544 $958,832 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Supports (10% of PEC) $1,315,544 $958,832 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Handling and Erection (50% of PEC) $6,577,720 $4,794,158 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Electrical (10% of PEC) $1,315,544 $958,832 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Piping (30% of PEC) $3,946,632 $2,876,495 CCM Extending gas line 1/2 mile to plant $500,000 $500,000 Engineering Estimate Insulation for Ductwork (5% of PEC) $657,772 $479,416 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Painting (1% of PEC) $131,554 $95,883 CCM Subtotal, Direct Installation Cost $15,760,311 $11,622,447

Buildings N/A N/A

**Total Direct Cost $28,915,752**  **$21,210,764**

### Indirect Costs Engineering (10% of PEC) $1,315,544 $958,832 CCM Construction and Field Expense (15% of PEC) $1,973,316 $1,438,248 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 Contractor Fees (10% of PEC) $1,315,544 $958,832 CCM Start-up (1% of PEC) $131,554 $95,883 CCM Performance Test (1% of PEC) $131,554 $95,883 CCM Contingencies (5% of PEC) $657,772 $479,416 Holcim Regional Capital Expense Manager - Engineering Estimate for 2012 **Total Indirect Cost $5,525,285**  **$4,027,093 Total Capital Investm**  **ent (TCI) $34,441,037**  **$25,237,857**


### Direct Annual Costs Hours per Year (365 days per year, 24 hours per day), 90% Uptime 7,884 7,884 Operating Labor Operator (8 men/yr, 2,080 hrs/yr, $64.50/hr) 4 men/yr $1,073,280 $1,073,280 Estimate - 8 man years, 2,080 hrs/yr *64.50. Holcim Durkee Supervisor (15% of operator) $160,992 $160,992 CCM Subtotal, Operating Labor $1,234,272 $1,234,272

Maintenance Labor (6 men/yr, 2,080 hrs/yr, $64.50/hr) 3 men/yr $804,960 $804,960 Estimate - 6 man years, 2,080 hrs/yr *64.50. Holcim Durkee Material (5% of Total Direct Cost) 1,445,788 $ $1,060,538 Holcim Lee Island PSD Subtotal, Maintenance $2,250,748 $1,865,498

Utilities Electricity Pump (kW) 2,342 1,707 Scaled using Moapa data and ratio of airflows to the 0.6 power Cost ($/kW-hr) $0.0410 $0.041 Clarksville Budget - 2011 Subtotal, Electricity $757,054 $551,617 Limestone for slurryAmount Required (ton/yr) 15,972 9,423 (1.6 tons CaCO3/ ton SO2 Removed. From NLA evaluation = 1.03/1.0 molar ratio. Cost ($/ton) $3.00 $3 Subtotal, Lime $47,915 $28,270

Water Amount Required (gpm) 122.0 89 Scaled using Moapa data and ratio of airflows to the 0.6 power Cost ($/1000 gallons) $1.00 $1 Plant Estimate Subtotal, Water $57,716 $42,054 Sludge Disposal

Amount Generated (tpy) 66,288 39,110 Scale to synthetic gypsum CaSO4-2H20 MW (170) / SO2 MW( 64) / 80 percent purity lime / 50 percent moisture Disposal Fee ($/ton) $36.00 $36 Bid from Area Disposal Services, Inc. Monthly Rent for Trailer @ $120/month $1,440 $1,440 Bid from Area Disposal Services, Inc. Cost for Box Transportation @ $220/load (assume 17 tons/trailer) $857,851 $506,132 Bid from Area Disposal Services, Inc. Subtotal, Sludge $3,245,677 $1,915,540
Subtotal, Utilities $4,108,361 $2,537,480 Natural Gas Reheat (assuming a 210 deg F temp drop and reheat) Gas Required (MMCF/yr) 1,074,722 634,135 See Calculations Below Cost ($/MMBTU) $10.06 $10.06 Missouri Energy Bulletin - April 10 2008 Subtotal, Natural Gas $10,811,708 $6,379,395

**Total Direct Annual Costs $18,405,089**  **$12,016,646**


### Indirect Annual Costs Overhead (60% of sum of operating, supervisor, maintenance labor & materials) $2,091,012 $1,859,862 Administrative (2% TCI) $688,821 $504,757 0.02 TCI Property Tax (1% TCI) $344,410 $252,379 0.01 TCI Insurance (1% TCI) $344,410 $252,379 0.01 TCI Capital Recovery (15 year life, 7 percent interest) $3,781,441 $2,770,981 **Total Indirect Annual Cost $7,250,094**  **$5,640,357**

### Conclusion

**Total Annualized Cost $25,655,183**  **$17,657,003**

**Pollutant Em ission Rate Prior to Scrubber (tons SO**  **2 /yr)**  **11,675 11,675**  11675.16667 Ave SO2 Emissions of 3 latest full prod yrs

**Pollutant Rem oved (tons SO**  **2 /yr) - 90% Rem** **oval, 95% Uptim e**  **9,982 5,890**  90% removal, 95% uptime MDNR bypass with reheat and 95% uptime (designed to get 50% SO2 Control from Base) **Pollutant Generated - NOx tons/yr 72**  **Net Pollutant Rem oved - tons/yr**  **9,982 5,890**  **Cost Per Ton of Pollutant Rem oved**  **$2,570 $2,998** 

Pollutant Emitted after Control 1,693 5,786 tons/year

Maximum Actual Historical Clinker Production (tons) 1,169,667 1,169,667 1169667 Average Production of 3 latest full production years Incremental Cost/ton clinker 22 $ $15.10Standard temperature 68 68 F Density of air 0.0026 0.0026 lb-mole/scf Specific heat of exhaust gas 7.542 7.542 Btu/lb-mole F Specific heat of steam 14.7 psia 220 - 600 deg F 8.46 8.46 Btu/lb-mole F Exhaust gas percent water 35% 0.35 Percent Specific heat of exhaust gas 7.86 7.8633 Btu/lb-mole F Exhaust gas temperature after WLS 170 256 Deg. F Based on Holcim Durkee Scrubber Design. NW Email Current ESP outlet gas temp 380 380 Deg F Heat input 3.60 1.868 Btu/acf Exhaust gas flow rate - 367 828969 828,969 acfm Exhaust gas flow rate - reduced temperature 631,404 717751.17 Unit natural gas cost $10.06 $10.06 Missouri Energy Bulletin - April 10 2008 Natural gas requirement - Based on 90% Plant Uptime, 95% Scrubber Uptime 1,074,722 634134.703 MMBTU/yr Natural Gas Cost $10,811,708 $6,379,395.11 /yr

Additional NOx Generated 140 140 lbs/MMscf. AP-42 Section 1.4-1. *** LNB Control Included Conversion 1050 1050 MMBTU / MMSCF. Approximate Value Natural gas requirement in MMscf/yr 1023.5 603.94 MMSCF/yr NOx generated - tons/yr 72 42.28 tons/year