SAC_FINAL_REPORT

Iron Residual Market Study
Branden S Diehl Page 1 9/4/2015
Executive Summary:
The Southern Alleghenies Conservancy (SAC), in partnership with Davis Technologies
International Corporation (DTIC), completed a market study and analysis of industrial
uses for Resource Recovered iron. The purpose of this study was to provide beneficial
information and recommendations for the development of iron products derived from the
Resource Recovery Initiative. The initial goal of the study was to cast a large net and
determine the potential uses for abandoned mine discharge (AMD) recovered iron. Prior
to the development of this study, the prevailing thought was that the pigment industry
could not handle additional iron residuals. This paradigm was debunked through our
research. The study intended to outline uses other than that of the pigment industry. As
an outgrowth of the study, a new model was created for evaluating the practicality of
implementing a given AMD treatment systems. The model that developed from this
study will incorporate the following variables: iron pricing, flow, concentration, and
purity in a means to determine the legitimacy of building a given AMD treatment facility.
This will afford funding agencies an opportunity to evaluate the projected success of the
treatment facility based on self-sufficiency. As supplies of cheap material wane in the
coming years, Resource Recovery will become increasingly attractive for iron and will be
necessary for the US to meet its iron needs.

Goal: To develop an understanding of potential uses for iron in business and industry and
how the Resource Recovery Initiative potentially applies.
Hypothesis: New sectors will need to be found to support Resource Recovery and to
offset treatment costs. Current iron usage is fairly limited in use. The pigment industry
is inundated with product and doesn’t have the capacity to absorb more product from
Resource Recovery. Market inundation is the lead reason that Resource Recovery has
not developed.
Objectives:
1. Work with consultant Davis Technologies International Corporation (DTIC) to
develop a Gant Chart for market exploration.
2. Develop a list of potential uses and sectors for iron residuals and explore the
potential development of new markets.
3. Identify potential obstacles and present recommendations to address problems and
concerns.
4. Contact business and industry personnel to determine their specific needs and
demands (develop standards).
5. Develop a report presenting research findings.
Methodologies: The SAC used a multifaceted approach to identify potential uses for Fe
residual material. As the SAC did not want to limit the scope of the report or those
contacted, it contacted a multitude of professionals and professional sectors. The SAC
utilized personal contacts, Internet research, assistance from regulator agencies, and
industry references to compile the information outlined in this report. Although every
effort was made to contact professionals that would be beneficial to the report, not all
attempts were successful.
The SAC utilized the following general procedure: general letters of inquiry were sent via
email to potentially beneficial partners. Emails were followed-up with subsequent emails
or phone calls. Parties that appeared most likely to benefit the study were contacted via
telephone. Phone calls were directed to three departments within the target list:
metallurgical, research and development, and marketing. As a general rule once three
calls were placed without success, the contact was documented and no additional follow-
up occurred.
Several professional databases were searched to obtain industry listings for companies
utilizing Fe materials.
www.thomasregisterdirectory.com
http://www.powersourcing.com/
www.grey-iron-casting.com
www.die-castings.net

Methodologies (continued)
In addition to searching databases online, the SAC explored Material Safety Data Sheets
(MSDS) to determine possible uses for iron materials. MSDS are filed by manufacturers
utilizing specific materials and provide composition, use, environmental, health, and
safety information.
http://msds.pdc.cornell.edu/msdssrch.asp
Market Problems
1. unknown buyers
After some exploration, a myriad of buyers exist from pharmaceuticals to electronics to
fertilizers to the pigment industry.
2. unknown product
The Fraunhofer Center for Energy and the Environment, funded by Resource Recovery
III funding, is working to determine the chemical constituents and composition of
materials produced.
3. unknown consistency
See #2.
4. unknown amount
Calculations derived from the Excel database created by the USGS in its preliminary
report of the 101 Discharges will provide this information.
5. unknown need
The exact amount needed or the desire of the material demands has yet to be determined.
6. unknown standardization and quality control
Recovery technologies will need to adhere to strict quality control standards. Buyers will
not purchase materials without consistency and quality control assurances.
7. unknown markets
The SAC and DTIC study has better define potential markets.
8. unknown packaging
Packaging and shipping was beyond the SAC’s scope of the work, but should be
addressed.
9. unknown storage need
Numerous locations have been identified in the Bedford, Blair, and Cambria Counties to
address future storage needs and production development facilities. The former JLG
facilities in Bedford, the former Hollidaysburg Car Shops in Blair County, and the former
Bethlehem Steel buildings in Cambria County could serve as potential development sites.
Other sites may be available. The SAC is willing to work with the redevelopment
authorities and other local officials to use Brown Field sites for this specific development
activity. Numerous funding opportunities exist for this development.
10. unknown transportation
The SAC’s study did not thoroughly explore transportation costs or needs. Rail transport
may be a viable solution for material transport out of Cambria County. Transportation
needs should not be a major concern as the service area of the SAC is served by SR 30,
Interstate 99, Interstate 70, the PA Turnpike US 70-76, and US 219.

Market Problems (continued)
11. viability of chemistry and flow
Chemical variability as related to changes in flow remains an unknown. There is no
known viable method for predicting this unknown.
12. unknown production costs
Purchasing bulk materials for treatment will lower costs. Development of a storage
facility for bulk distribution of treatment chemicals would lower costs and create jobs.
13. unknown packaging/shipping costs
See #8.
14. replication at other sites
Varying flow and chemistry means that treatment technologies will need to be adaptive.
15. niche markets
Markets such as analytical chemistry, bioremediation, soft ferrites, and waste water
coagulation/phosphorus binding represent high-end markets that all represent increased
revenue potential to offset treatment costs.
16. creating markets
Material samples will need to be developed to address the creation of new markets. The
SAC possesses the ability to assist in the development of new businesses to support the
Initiative.
17. market demands
The success of this project and its replicability in other mining regions could impact the
markets for the residual material. Care needs to be taken to ‘safe guard’ the process and
avoid inundating the market.
18. variability of market
Trading on the ‘Spot Commodities Market’ could provide big dividends for the Initiative,
but relies on market variability. The true success of this Initiative lies in the hands of
elected officials and regulatory officials. Fundamental changes in marketing the material,
classification of the material, and procurement documents for purchasing the material are
vital components of success.
19. skilled workforce
Technologies available should provide opportunities for job creation related to production
facilities, system operation, and system repair. Technology providers are confident that
local employment agencies will be able to meet their specific needs for skilled personnel.
20. ignorance
A concerted effort needs to take place to inform the public of the benefit of Resource
Recovery and to promote Green Certification of recovered materials.
21. start-up supply
As seen in the recovery of aluminum, purchasers are not interested in receiving small
amounts of material. Most vendors or purchasers are looking for 100,000+ lbs of
material per shipment. Initially there will be a need to store and keep clean large
amounts of material until a satisfactory amount has been produced for business and
industry.

Market Opportunities
1. numerous sources
Market and buyer research provided insight into the market. Iron is used in a wide array
of application from paints to pharmaceutical grade drugs to heavy metal absorption
materials. There is a large market for sales, but this market is currently receiving cheap
material from China. It is likely that Chinese imports will decline as their demand for
ferrous resources to fuel their expanding industrial growth increases.
2. potentially large amount
As denoted in the FY2002 Non-point Source Pollution Report by the PA DEP 15 tons of
pollution is generated daily from the Topper Run discharge in St Michael, Cambria
County. The overall objective is still to generate enough revenues to offset the treatment
of the discharges via the sale of recovered metals and to develop technologies that are
cheaper to operate and maintain.
3. potentially continuous source
As outlined in the above. The idea of a continuous supply of material is appealing to
buyers. It is not likely that the source of the product will vanish or significantly change
over time. This is likely one of the best selling points for the initiative.
4. PA Economic Development/Enviro Initiatives
The development potential and Brown Field reuse potential in PA is at its highest priority
and funding in years. There are numerous opportunities for a nonprofit to assist with
business start-up and development strategies. The SAC is willing to work with any
prospective business to assist them with the development of start-up business strategies.
5. assist in environmental restoration efforts
There is no doubt that treatment of AMD will lead to environmental improvements. It is
imperative if PA wants to meet the Clean Water Act standards that we will have to do
more to address the impacts of AMD. This is continual problem for the Commonwealth
and one that needs to be addressed. As previously referenced the FY2002 NPS Pollution
report indicates a need for development of technologies for the treatment of discharges
over 200 gallons per minute.
6. assist in aesthetics improvement
Reduction of metal loadings in Commonwealth waters will increase their value, not only
in terms of aesthetics, but also increase their economic contribution to recreation and
ecotourism. The Commonwealth is currently losing millions of dollars annually due to
impacted Commonwealth waters.

Market Opportunities (continued)
7. Green Seal accredited program opportunity
The SAC has explored the potential of developing such a standard for Green Seal
accreditation in the past. After doing more research and talking with industry
professionals, there seems to be a great value in having recovered resources accredited.
This would allow for increased marketing to Green Building and Energy Efficiency
products as well as set a standard for the implementation into procurement standards for
state and federal projects.
8. incorporating intellectual capital of higher ed, professional societies,
business, and incorporate the past information from RR Initiatives
There is a need to start looking at Resource Recovery in a new light. The DEP and
partners need to engage business and industry in finding acceptable uses for recovered
residual material. To date business has not been challenged to develop uses for the
residual material, now is the time to make such a challenge and provide the necessary
incentives to make it work.
9. iron as a catalyst in biogas production
Although some information exists on the Internet regarding the use of Fe in increasing
biogas production, none of the experts that we contacted were familiar with the web-
based results. There does seem to be potential uses of the material in controlling
ammonia byproducts of chicken litter. A growing concern as urban/suburban
development interfaces with agriculture.
10. ammonia neutralization
See #9.
11. specialized job creation
Potential exists for the development of jobs, as they relate to production and support of
potential technologies and the resultant jobs created as a spin-off of cleaner water
resources.
12. iron based bricks
The SAC’s research found no indications that iron based bricks were feasible.
Consideration and further exploration should be conducted to see if this is a possible use
for resource recovered iron. Staining characteristics and weight may be limiting factors
in this specific application.
13. coating for seeds
Fe is used in the turfgrass industry for promoting desirable coloration of grasses, while
thwarting growth. Potential exists for AMD applications in the turf industry.
14. large agriculture industry
There is little doubt that Fe in AMD can bond phosphorus and provide a beneficial tool to
the agriculture community as nutrient management regulations change. Fe can also be
used to suppress odors in manure storage tanks and in feedlots.
15. large amount of golf courses in NE
See #13.
16. offset treatment costs
See #2

General Contacts
See appendix for contacts made and specific project notes.
Possible Sector for Sales (research indicates all sectors have potential except for
retail)
1. transportation (manhole covers, culverts, storm gates, etc)
2. metals (cast iron products are of primary interest)
3. Department of Defense (high quality pigments, electronics, and electroplating)
4. pigments (large market that is largely subsidized by Chinese imports)
5. food/drug (FDA list confirms a large use of iron in pharmaceuticals)
6. electronics (soft ferrites and circuitry)
7. waste water (phosphorus removal and flocculation)
8. chemical industry (development, existing products)
9. mitigation (bioremediation of heavy metals such as arsenic
10. retail goods
11. outdoor (fertilizers, turf, etc)
12. energy (may increase biogas production in methane digesters)
13. agriculture (bind phosphorus and reduce ammonia concerns)
Possible Markets and Uses
Horticulture
1. turf grass
2. lawns
3. gardening
4. forestry (limited applications)
Pollution Control
1. US Filter
2. contaminate absorbent
a. arsenic
b. heavy metals
Food
1. iron fortification (additive)
Pets
1. cat and dog food
2. bird supplements

Possible Markets and Uses (continued)
Pharmaceuticals (specific manufacturers and list pending from Congressman
Murtha’s Office via the FDA)
1. colorant
2. supplement
3. vitamins
4. sunscreens
5. used in certain depression and anxiety drugs
6. Hematinic meds
a. Vitron-C
b. Venofer
c. Iron Dextran
d. NiFerax
e. Infed
f. Dexferrum
Cosmetics
1. sunscreens
2. pigments (ferric)
a. yellow iron
b. colcother
Pigments
1. paints
2. cosmetics
3. soaps
4. food
5. pet supplies
6. ag supplements
7. fabric deyes
Powder Metals
Waste Water Treatment
1. iron salts
Misc (market did not seem to exist)
1. abrasives
Dry Lubricants (market did not seem to exist)

Recommendations: After conducting data collection and product/market research it was
clear that there are definite impediments to developing Resource Recovery Markets.
Initially, it was hypothesized that the obstacle would be finding alternative markets for
iron. Our research indicates this is not true. The SAC proposes the following
recommendations:
1. Increase education
2. Explore transportation costs and handling logistics
3. Further explore business development opportunities and industrial site
redevelopment
4. Evaluate local workforce
5. Enhance market development
6. Procure funding for material generation
7. Green Seal development
8. Procurement Policy reform
9. Develop long-term trends and projections
10. Develop new opportunities for businesses
11. Ownership of liability
Recommendation Details
1. Increase Education
A general ignorance seems to exist related to the causes of AMD and it impacts on the
local economies within the Commonwealth. Most people that we spoke to outside of the
environmental profession were unaware that metal resources were in the water
discharged from mines. Additionally, if people were educated to buy products that were
Green Sealed we could further the Resource Recovery Initiative. A need for an
educational component preceding the Green Seal accreditation is vital to the success of
the Green Seal process.
2. Explore Transportation Costs and Handling Logistics
It is vitally important to determine the current capacity of existing infrastructure to
transport and serve the needs of Resource Recovery. Discharges throughout the
Commonwealth are not always located along easily accessible roads; conversely, often
times they are located on rural township roads. These roads may not be constructed with
bearing capacities of heavy machinery and high volume traffic in mind. Due to their
rural nature, some discharges will be hard for others to locate and will create increased
costs for transporting the raw material to market and related to getting treatment
chemicals to the site.

Recommendation Details (continued)
3. Further Explore Business Development Opportunities and Industrial Site
Redevelopment
The SAC is interested in working with technology providers and business and industry to
revitalize vacant manufacturing facilities. In order to do that, the SAC is in need of
facility specifications from Resource Recovery firms to determine the best locations for
the development of Initiative support facilities. There is the potential to work with
technology purveyors to develop regional distribution centers for treatment chemicals.
Bulk chemical purchasing and storage facilities would substantially reduce treatment
costs. The DEP and DCED could assist the SAC in this implementation
recommendation.
4. Evaluate Local Workforce
The SAC and technology purveyors should work to generate a point of contact for local
PA Career Link Centers. PA Career Link would be able to assist in retraining
unemployed residents with the skills needed to support the Initiative. It is imperative that
people resources are professional and skilled, as these facilities will be expensive and
operate around the clock. Job creation will exist not only in the support and AMD
treatment facilities, but also tied to recreation, ecotourism and manufacturing jobs
resulting from cleaner water.
5. Enhance Market Development
The SAC was unable to contact pertinent personnel from several companies that would
provide beneficial information to the report. Working with the DEP, the SAC is
confident that we could develop partnerships with private businesses such as American
Iron Oxide (AMROX) for the sale of residual ironl. Additionally, there should be
publicity and training provided for the development of financial assistance through
DCED and DEP. Currently, there is no easily accessible place to find information on the
development of businesses related to innovative uses of AMD residuals. Likewise, the
SAC is unaware of any program or initiative that has challenged business and industry to
find new and innovative uses for AMD residuals. A concerted effort should be made to
encourage business and industry to assist in being part of the integrative solution in AMD
treatment.
6. Procure Funding for Material Generation
Through personal contacts with business and industry it is evident that future funding will
be necessary to explore the potential for the development of new markets. Industry
contacts that we spoke with are interested in receiving samples for their own analytical
evaluation. Although SAC will receive analytical results from Fraunhofer Institute for
Energy and the Environment, industry personnel are interested in exploring properties
that are specific to their products and proprietary. In order to further the initiative,
material will need to be generated in a large quantity and sent to prospective buyers.

7. Green Seal Development
There is a growing demand for Green Buildings and energy efficient technologies. There
are currently no standards for Resource Recovery. The SAC had previously explored the
potential for this accreditation process. The original cost was estimated at $5,000 per
recovered material. Bob Hedin of EnvironOxide endorses this recommendation and has
pledged assistance and cooperation developing this concept. Bob noted that powdered
pressed metal gears made from AMD residuals could be put into energy efficient
appliances; creating a certified Green and Energy Efficient product. Such a seal would
set the basis for changes in procurement policy for state and federal projects.
8. Procurement Policy Reform
As outlined above Green Seal certification could form the basis of a new standard for
state and federal procurement policy. Future construction projects utilizing steel,
culverts, paints, or other products derived from iron should be mandated by procurement
policy to use Resource Recovered Certified materials. The Green Seal would serve as the
certification process and provide a means for Resource Recovery to compete with cheap
foreign imports that are currently being used for pigments and other applications. By
rewriting procurement policies based on this parameter, tariffs and other forms of
inflating imports could be avoided.
9. Develop Long-term Trends and Projections
The research of SAC provided no results related to long-term trends in the use of natural
iron. Although Chinese imports are currently flooding the US market, China’s industrial
development will likely result in supply declines to the US. A complete report on the use
of and trends in iron and iron oxide powders is available for $3,350.00. The study
entitled GB-209 Iron and Iron Oxide Powders: Trends and Markets is available at:
http://www.buscom.com/advmat/GB209.html. This study does not explore markets for
naturally occurring iron oxides or those that are mined. That report was developed by
Mindy N. Rittner and Thomas Abraham and was published in December 1997.
10. Develop New Opportunities for Businesses
Resource Recovery holds an immeasurable potential for business development. There is
no easily accessible and readily available source of information regarding business
opportunities (i.e. grants available) for developing a business to support the Initiative.
DCED should develop a grant funding category to support said business development and
conduct workshops to make the general public aware of the opportunity for funding
through DCED and other funding agencies.

11. Ownership of Liability
The DEP needs to provide a statement on the record regarding the ownership of the rights
to AMD recovered materials. In order for Resource Recovery to move forward,
watershed organizations and others need to be ensured that the resource created from a
liability will not be claimed by the owners of the discharge(s). Coal companies and
property owners that have avoided treatment should not be able to capitalize on the work
being done to create a resource out of their past liability.
Conclusion:
A 1994 EPA report indicated iron extraction generates waste to use ratios of 24:1.
Resource Recovery would shift the iron extraction paradigm from waste to conservation.
There is reason to be optimistic about the Resource Recovery Initiative and its ability to
offset the costs of AMD treatment. Although limited markets were hypothesized, there
are a myriad of current uses for iron. It is the opinion of the SAC that future markets
could be developed if business and industry were challenged to find new uses for AMD
residuals. There exists in the Commonwealth numerous resources to support the
development of new businesses and for the redevelopment of old manufacturing sites.
The SAC is confident that if the preceding recommendations are implemented that the
model developed by this study will prove beneficial in determining what AMD sites
contain economically viable resources and which discharges should be targeted for
immediate treatment. This model will assist Growing Greener and other grant funding
entities opportunities to gauge the applicability and sustainability of treating specific
discharges. The model will provide a basis for calculating treatment cost, resource
revenues, and long term operation and maintenance costs. Developing synergistic
relationships with business and industry, changing procurement policies, and facilitating
project cooperation via the Clean Streams Law all have the potential to influence the
success of Resource Recovery.

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