Beyond Board:

How Nova Scotia can Add Value

to its Gypsum Resources

Kent Ward – Gypsum Consulting Services Inc.

In cooperation with Innogyps Inc.
About GCSI and Myself
Based in Halifax

Honors BSc in Applied Chemistry from Guelph

13 years in the gypsum Industry

North America, Europe, Middle East & Asia

Support for – business start-ups, operational improvement,

product and process development, people development
About Innogyps & Bob Bruce
Based in Hamilton, ON

PhD in Sulphur Chemistry

35 years in the gypsum industry world wide

Global Leader in gypsum technology and business

development
The problem!
12000000

NS GYPSUM PRODUCTION
10000000
1910-2010
8000000

6000000

4000000

2000000

0
The Effect!
Gypsum production drop at an alarming
rate
Operations reduce/suspend production
Impact:
Directand indirect employment dropping
Royalty / tax revenue dropping
Future business development is being stifled
 But….Gypsum is growing globally

Why? • Demographics • Credit availability

• Growing middle class • Global standards
– Affordability • Renovation
– Standard of housing
The opportunity!
The gypsum industry is growing globally at a rate faster
than population or GDP

Growth is driven by market demand

Growth is constrained by access to expertise, low cost

energy and usable gypsum

Nova Scotia is in a good position to lead this business

development globally
The Action
MRB initiates strategy session (Feb 2012)

Re-examine the future of gypsum industry in NS

Participants are MRB, ERDT, NS Ag, Producers/Users, GCSI

and Innogyps
The Outcome
Conviction to develop a long-term, sustainable gypsum
industry over 5 – 10 years

Develop value-added gypsum businesses in NS capable to

export products to the rest of the world

Move from selling rocks to selling products/expertise

Potential Businesses
Agricultural Soil Additives

Gypsum Based Absorbents (oil absorbents and pet litter)

Architectural Products (floor screeds, plasters, decorative

products)

Ground Control Applications (slope stability, erosion

control, subsidence prevention)
 Applications of Gypsum in Agriculture
Research has demonstrated that gypsum has the potential to significantly improve
crop yields and quality by addressing several issues that face the agriculture industry.

Soil Acidity
The high content of Ca2+ in gypsum buffers the pH of the soil

Alkali Soil
The high content of Ca2+ in gypsum can increase the cation exchange
capacity, reducing high salt levels in the soil

Exchangeable Aluminum & Magnesium Toxicity

Gypsum provides SO42- to neutralize Al3+ and Mg2+ (along with other toxic
substances)
 Applications of Gypsum in Agriculture
Soil Structure
Reduced run-off and erosion by clay flocculation

Infiltration & Saturation

Facilitates active transport pathways

Nutrient Availability

Ca2+ and S are fundamental for

positive crop growth
Effect on Soil Structure
Without Gypsum

With Gypsum

Reference - Norton, 2008

Remediation of Sodic Soils

Gypsum 26t/ac

No Treatment

Reference - Xu, 2006

Improved Yield (Tomato)
Gypsum Treatment Yield Skin Ca
T/acre lb/10 ft row %
July 2005
0 40 0.46
2 48 0.67
August 2005
0 28 0.56
2 34 0.71

Reference - Summer & Larrimore, 2006

 Improved Shelf Life
Cantaloupe stored for 4 weeks @ 40 ⁰F

No Gypsum Gypsum 1100 lbs./ac

Reference - Summer & Larrimore, 2006

 Potential Market

Ag Gyp Producers
Competition
Closest competing locations are:
West of Mississippi in USA
Southern Ontario in Canada
Spain, Morocco

FGD Gypsum – Hazardous ??? – EPA

Phosphogypsum – radioactive

Nova Scotia is lowest cost natural product!

 Gypsum Calcining
The price of conventional gypsum can range from $5-10/ton

Gypsum calcining can significantly raise the value of gypsum products.

Absorbents
High value-added products
Natural
Calcined gypsum is naturally absorbent and clumps
Can engineer to maximize absorbency
Can control density (light weight products)
Can modify surface for specific applications (carriers)
Use alone or blend with existing products
Absorbents
Employees - 856
Architectural Applications
Gypsum plasters, gypsum cements, decorative stone
High value-added products
Natural Fire resistant
Breathable and regulate humidity in interior applications
Can formulate to impart desirable properties
Moldable (can produce intricate designs)
Floor Screed (Gypsum Cement)
25% to 40% lighter than concrete based products
Better fire resistance
Nuetral pH
Quick cure (can build the next day)
Can incorporate NS aggregate
Decorative Applications
Decorative Stone Plaster Castings
Ground Control Applications
Erosion control/slope stabilty
Ease of application
Sets to form crust/stays where you put it/steep slopes
Can blend in seed/nutrients/absorbents
Improves drainage of soil

Subsidence prevention (fill underground voids)

Pumpable
Control set time to ensure even distribution in void
Ground Control Applications
Hydroseeding Subsidence
The Nova Scotia Advantage
Extensive High Quality Gypsum Reserves
Low Cost Energy
Educated, Talented Workforce
Transportation
Government & Industry Partners
 Benefits to Nova Scotia
Potential Agricultural Absorbents Architectural Ground
Opportunity Gypsum Applications Control
Markets Local/US East Global Local/US East Global
Volume (t/yr.) 1,000,000 200,000 500,000 700,000
Gypsum Value 20 20 50 35
(Million $/yr.)
GDP Value 80 80 75 95
(Million $/yr.)
Jobs 500 500 500 630

Note: 75K/yr. Jobs based on 50% labour content of GDP value

 Jobs are:
Mining
Mineral processing, manufacturing, Quality, Development
Trucking
Packaging, Design
Marketing, Advertising, Selling, Field Support
Export, Dock workers, Marine shipping
Maintenance, Personnel, Finance, Legal

Multiplier effect jobs in NS economy

 Path Forward
Develop Agricultural Gypsum and Absorbents
Businesses

3 Stage proposal to government to take these

forward.
 Stage I – Market Study
$100K to develop detailed 5 year business plans

Stakeholder participation
Existing producers
Existing businesses
Industry associations
Research institutions
 Stage II - Demonstration
Business Financed (express interest)

Demonstration and test market development

Set up operating businesses

Stage III - Gypsum Centre of Excellence
Support & promote gypsum use worldwide.

Develop new applications.

Develop intellectual and human capacity in NS

to support and expand the gypsum industry.

Make NS the leader in gypsum technology

and expertise.
 Future (6 Months)
Market studies and business plans complete

Clear picture of investment required to move forward

Interested business partners

Initial steps to establish The Gypsum Centre of

Excellence
Nova Scotia

Why Not Here!