Macleod's Resources & Canada's Marble
2005 Stone Industry Facts & Statistics
2004 Stone Industry Facts & Statistics
2002 Stone Industry Facts & Statistics
Marble and Stone Basics
Colour Psychology and Symbolism
Understanding the Colour Wheel
Marble Quotes
MacLeod's Resources & Canada's Marble
Why fabricate blocks in Carrara, when it can be done locally?
Can you comment on the quality of the marble you are now extracting?
How does Macleod generate sales?
Why does a quarry need so much working capital to support operating costs?
Can you tell us about your Quarry Master?
Does MacLeod Resources have the expertise to handle value-added work?
Why fabricate blocks in Carrara, Italy, when it can be done locally?
Although significant time is spent and many expenses are incurred, there are two main reasons for shipping marble blocks to Carrara, Italy for fabrication: operational expertise and market exposure.
First, Italians are the pioneers, champions, and experts of the international marble industry. Centuries of quarrying knowledge, evolving techniques, experimentation and innovation are centred in Carrara. Therefore, and since every marble deposit is different, the best way to develop a quarry and learn about the deposit's composition and texture is to expose it to the world's best technologies and processes.
Second, the Italians are largely responsible for the trends in colour, style, and design with respect to the fashion and home dÈcor industries. So, attracting the attention of a well-respected Italian distributor typically evolves into a long-term relationship, often accounting for a quarry's full production capacity. Much like the diamond industry, it is virtually impossible to gain access to the European market without gaining aesthetic approval from the Italians. Regardless of the development of new centres for marble in Turkey and Spain, and regardless of the emergence of Asia as both a massive consumer and fabricator of stone in general, the Italians are still the gatekeepers to true market penetration and international product placement.
Can you comment on the quality of the marble you are now extracting?
We are progressing deeper into our deposit and are gathering export grade material at higher rates of recovery. The material we have found, so far, is of the expected quality and quantity. The quality of our marble has also been verified by the Italians, namely by Giani Trading, an expert fabricator and distributor of marble from the epicentre of the stone world.
Currently, we are quarrying with a workforce that we recruited and trained with the assistance of HRDC funding. We have made great progress in an industry that is ordinarily capital intensive in the start-up phase. It takes time and patience to get to the better stone and to establish a presence in the marketplace.
We began quarrying in June '02. We have encountered the worst winter in Cape Breton since 1872. Nevertheless, our company continues to operate year-round, with production offsetting the days that are too cold for quarrying. We have established roads, ponds, water systems, secured all our permits, established the initial faces and benches of the quarry, trained staff, built a 4200 square foot plant, and installed our saws.
How does MacLeod generate sales?
First, we are very fortunate to quarry a completely unique and extremely ancient marble, of both red and blue-grey varieties. Canada is an extremely old part of the earth, and yields numerous granites that have received international acclaim. Therefore, generating interest in our material requires little effort after its initial presentation.
Generating sales, on the other hand, is a more complex task. Given the nature of the construction and design industry, we are subject to economic forces, trends in colours and textures, general industry bureaucracy, logistical delays, and the lag between customer acceptance and adoption. With customers ranging from distributors, to block buyers, to architects and designers, to the everyday consumer, there are many channels through which we can choose to market our brand of Canada's Marble. So, generating sales involves much travelling, research, education, relationship-building, and, of course, luck.
So far, our block fabrication and distribution agreement with Giani Trading in Carrara and Celtic Marble in Halifax best position MacLeod for high volume, high quality sales to large customers around the world. Nevertheless, we are constantly working to expand our distribution network, build new and existing partnerships, and increase the visibility of Canada's Marble.
How can I invest in MacLeod Resources Ltd?
MacLeod Resources is currently a private company with a closely-held group of shareholders. From time to time, the company accepts new investors when seeking to raise investment capital. Investment inquiries can be directed to Kirk Purdy via e-mail at akpurdy@basek.ca or directly at (403) 232-0222.
Why does a quarry need so much working capital to support operating costs?
A quarry operation needs the flexibility to develop an inventory, to ensure quality control, to expand its management team, and to develop its marketing strategy. We have a unique and valuable material that requires careful market placement and initial handling to insure we capitalize on the optimal, long-term value of the resource. We need the confidence of timed resources to be in control of the initial processing and fabricating to ensure MacLeod's reputation is protected, and to establish key working relationships in the industry. We are investing in our future at the quarry and in the marketplace.
Working capital allows us to add staff at critical points to increase production, or to add processing equipment, as required, and as available to derive additional cash flow through value-added products such as cut-to-size products. It further allows us to contract-crush stone, and access the aggregate markets with a supply of ready material.
Can you tell us about your quarry plan?
Our plan was developed by an expert quarry master, Åge Sandland, who has over 15 years of quarry experience in both granite and marble. He is considered an expert in diamond wire-sawing and operated a diamond wire sawing company in Norway that cut various dimension stones and specialty concrete. Most recently, Mr. Sandland was responsible for the start-up of the very successful labradorite quarry in Nain, Labrador where he trained quarry workers. Further, he has directed wire-sawing operations in quarries in Sweden, Norway and Finland.
Our quarry plan involves an eventual evolution onto numerous quarry faces, spanning our enormous deposit of cohesive marble. Currently, we are quarrying Canada's Marble in an area yielding a variety of colours, in predictable ranges and bands. The deeper the quarry floor goes, and the more benches that are established, the more productive and efficient we become. Therefore, we are proud of our investment in an expert quarry plan, and the contributions of Mr. Sandland to our operations.
Does MacLeod Resources have the expertise to handle value-added work?
MacLeod Resources, through its direct partnerships and fabrication agreements, can arrange to produce any cut-to-size project based on standard block and slab sizes. However, such projects always require careful planning, constant dialogue, and sufficient time so that the task can be completed with a high degree of workmanship, and ultimate, customer satisfaction.
2005 Stone Industry Facts & Statistics
Summary of the Annual Report produced by Gruppo Editoriale Faenza Editrice S.p.a.
Since the early 1990s, production, trade and consumption of natural stone has nearly doubled
Natural products can count on increasing preferences from the design world and more informed purchasers
The expansion in the stone industry in 2004 was significant both for its absolute numbers as well as for occurring during a global economic slowdown
China’s appetite for raw stone processing, as well as for internal consumption, has led to the development of smaller market products, even from countries suffering political tension
The United States has continued to confirm its role as the world’s leading importer of processed stone, with an average price much higher than elsewhere in the world
The greatest problem, or otherwise seen as the largest opportunity, for the stone industry is the lack of sophisticated promotion of its products and technological advancements
The development of successful quarries in Brazil, Eastern Europe, and Central Asia prove that capital is not the key success factor of quarries, although it does exponentially impact production and development over time
The volume of stone quarried in the world grew by approximately 8% in 2004
71% of the stone quarried in the world is classified as ‘waste’ which points to a significant increase on the 85-90% waste rates currently known to MacLeod Resources
48 million tonnes of finished product was produced around the world in 2004
Since China, India, and Brazil are mainly granite-producing countries, marble and other calcareous stones have been fighting, and winning, an uphill battle over the past five years
Of all the stone quarried in the world, calcareous stone (marbles) accounts for 53.9%, with granite and slate accounting for the rest
Total international stone production has quadrupled over the past 20 years on account of the advances in saw and material handling technology
Countries that quarry over a million tonnes per year, in the EU, include Italy, Spain, Portugal, Greece, France, and Belgium
Non-European production is led by China, India, Iran, Brazil, Egypt, and the United States, all of which accounts for 52% of the world’s production of natural stone
The trade of processed stone increased 12.8% in 2004, which represents the largest proportion of stone traded in the world
The volume of stone traded around the world reached 32.8 million tonnes, which is another all-time high and confirms the ten-year trend of natural stone being preferred to synthetic building products around the world
The largest exporters of raw calcareous stone (marbles) are Turkey, Spain, and Egypt; the largest exporters of raw siliceous stone (granites) are India, China, and Brazil
The United States is the largest importer of processed natural stone in the world
The top eight importers, in absolute terms, are China , the United States, Italy, Germany, South Korea, Taiwan, Japan, and Spain, who absorb 57.1% of the stone in the world
Belgium, Holland, and the United Kingdom have made the most significant contributions to imports from their support positions in the industry
The marble industry is benefiting from an increasing appreciation for the quality of natural products, which preserves a relatively wide margin earned for its integrity and sustainability
The largest percentage increases in exports were registered by China, India, Turkey, and Brazil, while the largest percentage increases in imports were registered by the United States, Taiwan, and China, with notable increases also by the United Kingdom and Italy
The United States, South Korea, and Japan absorbed 45% of total world stone imports, with the US accounting for 20% alone
Greater price competitiveness has promoted increased global consumption, but technological increases continue to widen margins and offset the competitive end of the value chain
China almost exclusively purchases raw stone material for internal processing and export as finished goods, mainly to South Korea, Japan, Taiwan, and the United States
The average international price of exported material was $216.3 per tonne, which represents a 13.6% increase over 2003;
The average international price of imported material was $177.4 per tonne, which represents a 3.6% increase over 2003; this is most significantly affected by China’s supreme dominance of raw stone imports
The average price paid in the United States was $33 per square metre, which is approximately 1.5 times greater than paid by China
Although the average value of imported materials has dropped by approximately 70% since 1994, the overall volume has increased 10x
Although Canada’s market share overall declined in 2004, it still earns the highest prices for stone in the world, that being from the United States, not surprisingly
After Canada, Brazil earns the highest price from the United States, for processed granite
“It is possible for all countries to take an active part in world stone development, to access the increasing and essentially regular expansion, with the only constraint being the need for a production, promotion, and professional investment policy.”
Global stone consumption has increased at an average rate of 10.3 percent over the past 10 years, accounting for 886 square metres consumed in 2004
The highest countries of natural stone consumption per capita are Switzerland, Greece, Spain, Portugal, Belgium, Italy, and Taiwan.
“There is still the need to pay greater attention to promotion, which has an important propulsive role in such a fragmented sector as that of marble and stone”
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“To date, the sector has counted heavily on the principle of behaviour repetition...through the designers, builders and end users. ...It is thus necessary to change a behaviour-type which can only be described as superficial, and replace it with a strategy which aims to achieve quantified aims.”
“Less use of labour and machine versatility has led to quarrying in areas which would otherwise have been excluded, totally or partially.”
Reducing waste, but also increasing its promotion for industrial use, is of the utmost importance...especially given the infrequency of large job orders.
The application of resin, to fortify processed stone, increased by 21.2% which speaks to the investments being made to widen margins, increase recovery rates, and make more stone available for consumption
The United States increased its purchases of processing equipment by 38% and by 40% for polishing equipment, in 2004
China increased its purchases of raw material processing equipment by 29.5%, which are mainly saws and cutting tools
The worldwide consumption of ceramics is seven times greater than natural stone, but ceramics have not benefited from the annual growth that natural stone has
Ceramics do benefit from an extremely strong emphasis on marketing and promotions, especially by countries like Turkey, Spain, and Italy
“The undisputable prescriptive value of the natural character of the matter, and the obvious impossibility of producing it in factories” are stone’s cosmetic competitive advantages
The impact of globalization has increased the range of transportation alternatives and competition between ports which are not necessarily adjacent.
The international size of the market acts as a shock absorber, reducing effects of external events, regional economic shocks, and changes in design trends
The weaknesses of the stone industry include its high level of fragmentation, shortage of promotional understanding, and limited inclination towards development by mature countries
2004 was an extremely positive year for the sector, having built on years of increases in consumption, technological advancements, and improved logistics around the world; however, the widespread lack of promotion is leaving far too many opportunities untapped
2004 Stone Industry Facts & Statistics
The stone industry experienced 11% growth in 2003; in the past ten years, world consumption of stone has gone from 436 to 818 million square metres, with an annual growth rate of 8.8 per cent.
These past years have seen an expansion in the generally accepted uses of natural stone, such as for interior uses in bathrooms and kitchens, and for specialty products such as mantles and furniture.
Natural stone products are becoming more appreciated in a world that has become saturated with synthetic and imitation goods; natural stone embodies sophistication.
Particular interest was paid in 2003 to increasing and improving the colours of material that are available and applying newer technologies to older deposits where previous low recovery rates prevented the economic viability of such deposits.
World stone production by colours: grey - 45%, beige - 15%, white - 10%, pink - 7.5%, yellow - 5%, red - 4%, black - 2.5%, blue - 1.5%, green - 1.5%, multicolour - 4%.
Main uses of material for the global stone industry for the building sector:
Flooring and paving 35% (from 38% in 1995)
Special works (cut-to-size) 15% (from 10% in 1995)
Internal wall cladding 8.5% (from 6% in 1995)
External wall cladding 7.5% (from 12% in 1995)
Steps 3.5% (from 4% in 1995)
Total accounts for 69.5% of international use of processed materials
From 1989-2003, trade in raw calcareous materials (marbles) has gone from 10.2% of total trade to 17.6%, while trade in raw siliceous materials (granites) has gone from 42.6% to 28.2%.
In the period from 1989-2003, trade in special processed materials more than quadrupled.
Nevertheless, the world stone sector has reached a level of price containment, with worldwide increases in demand offset by growth in productivity, international trade, and competition.
Processed goods are purchased mainly by the United States, Germany, Japan, and while raw goods are purchased by China, South Korea, Taiwan, Italy and Spain.
Per capita consumption of natural stone is lead by Switzerland, the Netherlands, Greece, Spain, Portugal, Belgium, and Italy, then South Korea and Taiwan.
The United States spent $1.732 billion on stone products in 2003 - 3.5x the level of 1992, with heavy increases in purchases from Brazil, Turkey, India, and China, while still importing $85-million USD worth of stone from Canada in 2003 (- 13% change).
In 2001, 2002, 2003, the United States paid approximately $24.89, $35.42, and $30.06 per square metre of processed marble and other calcareous stones (Stone Code 68.02.92).
The greatest increases in imports of natural stone products between 1994-2003 occurred in the United Kingdom, Germany, France, Belgium, Spain, Austria, and The Netherlands.
The market is becoming less elastic due to an increasing awareness of the technological role of marble and stone, as well as the global diversification of markets and economies.
As the global marketplace evolves and natural stone products become more of a commodity, promotions and marketing will become more important for the industry over the next decade.
To succeed, marble cutters need to become more aware of their specific professional role and the exclusive qualities of their products.
Company investments can be protected by marketing stones directly to the consumer (the end decision maker) and incorporating suitable incentives for the private sector.
The most innovative form of promotion is on-line; it enables the global market to collect detailed information about materials without being bound by the limits of distance and time.
The lack of planned, strategic marketing in the sector has not prevented it from expanding further; however, there is a huge volume of consumption that remains unsatisfied.
With all of the operational expansion occurring in new markets around the world, it is imperative that corporate goals, responsible management and efficient operations be emphasized, so that growth can be sustained through all economic cycles.
Source:
Montani, Carlo, Stone 2004 - World Marketing Handbook, Faenza: Gruppo Editoriale Faenza Editrice s.p.a., 2004.
2002 Stone Industry Facts & Statistics
Recent trends indicate an overall growth in the preference for carbonate materials and marbles rather than for granites, as was traditional in the past.
2001, in particular, was a year of heightened interest in new and unusual varieties of stone
This trend is continuing as distributors seek to expand their product offerings to include more unique products with exceptional combinations of colour and patterns.
In 2002, the gap between marble and granite production widened by more than 10%, with marble quarrying. responding to the steady increase in demand.
Due to the upward shift in demand for marble, prices have been increasing moderately, especially for unique and previously unavailable marbles.
International trading in raw marble materials increased its international stone market share in 2002 by 17.9%, in an industry that saw an overall 1% decline in trade.
International trading in finished stone products increased by 9.5% over 2001, with specialty and cut-to-size products increasing by 12.1%.
The USA had a 20.3% share of the world importing market, thus making it the leading importer of finished products; the number two importer was Japan (16.8%), which increased purchases by 12.1%.
USA is third in the world for internal rate of consumption with an annual rate of 7.7%
Source:
Bradley, Frederick, Marble-Stat 2002 - The Stone Industry Worldwide; Current State and Trends, Aulla: Promorama, 2002.
Marble & Stone Basics
What is the difference between marble and granite?
Is it necessary to seal marble?
What is the best way to clean marble and other stones?
What are the ten most common applications for marble?
What is the difference between marble and granite?
Marble and granite are completely natural stones that have both been quarried from the earth for centuries. Nevertheless, these stones are very different from each other:
Marble begins as sediment from animal skeletons, shells, plant matter, and silt found at the bottom of ancient bodies of water. After being subjected to great amounts of heat and pressure for hundreds of millions of years, this sediment solidifies into stone. True geological marble is limestone that has changed its structure to a crystalline texture. It is generally white or whitish in colour, sometimes translucent, with coloured veining provided by other minerals present during crystallization. Marble is best characterized by its unpredictable and dramatic patterns, often best exemplified on large wall panels.
Commercially, the term "marble" applies to any compact limestone that will yield a natural polish, including travertine and onyx. However, due to high contents of calcium, acidic liquids such as ciders, citrus juices, and vinegars can stain marble.
Granite is formed in the earth's mantle at extremely high temperatures, and is a very hard, resistant stone made of crystallized minerals. As this hot liquid material rises and cools, it forms a granular structure, thus giving rise to the term 'granite.' Granite and other granite-like
stones are formed of quartz, feldspar and mica, which are fused together to produce consistent visual patterns.
Granite is ideal for kitchen counters because its polish is resistant to household acids like citrus juices and vinegar. Granite is hard enough
to resist scratching from knives, pots and pans.
Is it necessary to seal marble?
All marble is porous and can stain over time. Some marbles are more porous than others, so it is important to use a penetrating sealer to
prevent stains from oil, wine, vinegar, or other acidic liquids from soaking into the surface.
What is the best way to clean marble and other stones?
Most importantly, never use powdered cleansers or abrasive pads to clean marble or any other types of natural stone. Even "soft scrub"
cleaners contain pumice, which is powdered volcanic stone, and might damage marble countertops or floors. Never use any product which
is acidic; this includes substances like ammonia or many common liquid cleaners. Always use sealers and cleaning products designed
specifically for marble.
What are the ten best applications for marble?
The best applications for marble are wall panels, tabletops and countertops, floor tiles, vanities, backsplashes, windowsills, baseboards,
stairs, mantles, and monuments (statues, headstones, etc).
Colour Psychology & Symbolism
It is widely accepted that different colours affect our subconscious. By learning about colour psychology, we can effectively use colour to
our benefit, especially in the design of our homes, workplaces, and other essential environments:
Red marble:
Characteristics of luck, success, and courage
Personality traits associated with honesty, spontaneity, and will
Draws on the element of fire to give energy on all levels and propel life
Associated with the South Zone in Feng Shui
Blue-grey marble
Characteristics of knowledge, health, and decisiveness
Personality traits associated with care, innovation, and loyalty
Draws form the element of water to pacify and soothe the nervous system
Associated with the North Zone in Feng Shui
The five elements of fire, earth, metal, water and wood are represented by specific colours and shapes, and bring increased harmony and balance when correctly used in space design.
Understanding the Colour Wheel
The colour wheel is the most powerful tool available for decorating and interior design. Its twelve colours can be mixed and matched to generate complimentary, contrasting, cool, and warm colour combinations.
Red, blue, and yellow are the primary colours. Every other colour is made up of some combination of these three. Secondary colours lie between the primary colours on the wheel. These colours, orange, green, and violet, result from mixing two primary colours. Tertiary colours result from mixing one primary and one secondary colour. The six tertiary colours are: blue-violet; red-violet; red-orange; yellow-orange; yellow-green; and blue-green.
Colours that lie opposite each other on the wheel are complementary. Colours that lie beside each other are analogous. They can be mixed without clashing because they share a common hue. Each single colour has a variety of shades. Using various tones of a single colour creates a monochromatic design. A combination of three colours that are equally spaced is known as a triad. These combinations create a bold yet balanced palette.
Half of the colour wheel - from red to yellow-green - is considered warm. The other half - from green to red-violet - is considered cool.
Marble Quotes
"Write injuries in the sand, and kindness in marble." - Persian proverb
"Life is made up of marble and mud." - Nathaniel Hawthorne
"The more marble (ages), the more the statue grows" - Michelangelo
"What sculpture is to a block of marble, education is to the human soul." - Joseph Addison
"Where the statue stood of Newton, with his prism and silent face, the marble index of a mind forever voyaging through strange seas of thought, alone" - William Wordsworth
"My heart is wax molded, as she pleases, but enduring as marble to retain." - Miguel de Cervantes
"Poets that lasting marble seek, must carve in Latin or in Greek" - Edmund Waller
"Not marble, nor the gilded monuments of princes, shall outlive this powerful rime." - Shakespeare
"Stones will teach you that which you can never learn from masters." - Saint Bernard
"The hand that rounded Peter&'s dome, and groined the aisles of Christian Rome, wrought in a sad sincerity; Himself from God he could not free; he builded better than he knew" the conscious stone to beauty grew." - Ralph Waldo Emerson
"You know only a heap of broken images, where the sun beats, and the dead tree gives no shelter, the cricket no relief, and the dry stone no sound of water. Only there is shadow under this red rock, (come in under the shadow of this red rock), and I will show you something different from either your shadow at morning striding behind you or your shadow at evening rising to meet you; I will show you fear in a handful of dust." - T.S. Eliot
"Mountains are the earth's undecaying monuments." - Nathaniel Hawthorne
"Lend me the stone strength of the past and I will lend you the wings of the future." - Robinson Jeffers
"Human subtlety...will never devise an invention more beautiful, more simple or more direct than does nature, because in her inventions nothing is lacking, and nothing is superfluous." - Leonardo da Vinci
"Time is the image of eternity" - Diogenes Laertius