USG open house highlights company's plan to break ground on Avery Quarry

Dec 10, 2023

EAST TAWAS – "With this Avery Quarry, we are securing our future here in Iosco County and we want to make sure that we continue our investments not only in the community, but also in the state, as well," said USG Alabaster Plant Manager Jon Blazic, during a recent open house at the East Tawas Community Center.

Following a presentation before the Iosco County Board of Commissioners earlier that same day – as reported in last week's edition of this publication – USG representatives also hosted the open house on April 19, to share updates associated with the new quarry project.

Nearing the end of its production life, it is anticipated that the gypsum supplies at USG's existing Northwest Quarry in Alabaster Township will be depleted within the next couple months. Therefore, with a goal of continuing its 120-year tenure as a producer and employer in the area, USG will develop a new quarry on the roughly 600 acres of land it purchased from the state of Michigan in 2018, which is situated southwest of the current operation.

Opening in stages, with the ground-breaking planned for later in 2023, the Avery Quarry has an overall expected life span of 25 years. "And right now, we’re estimating our production is going to be around 500,000 tons per year, coming out of the quarry," Blazic said.

Among the 50-60 attendees who passed through during the two-hour open house, were members of the public and a handful of officials from local municipalities, including East Tawas and Alabaster Township.

In addition to the gypsum rock samples, historical photos and current images/maps which were on display; the frequently asked questions printouts that were provided; and the tables which were manned by the USG reps to answer questions from the public, Blazic presented a series of slides describing the history of USG, its current status and what lies in store for the future.

Blazic, who has served in different capacities over the years and has been with USG for more than two decades now, detailed the company's long-running local presence in Iosco County.

He shared that the USG Corporation, which was founded in 1902, transitioned from a public to a private company in 2019, upon being acquired by the Germany-based company Knauf.

USG's corporate headquarters are in Chicago and, with 48 plants across North America, it employs 7,500 individuals.

"We are the world's largest gypsum manufacturer," Blazic told the crowd, adding that they have leading global positions in gypsum and ceilings. Since the Knauf acquisition, they are number one or number two in all of their North American businesses, which includes:

Blazic pointed out that for more than a century, USG has been the leading manufacturer of the highest-performing building materials within the industry. In that time, their Sheetrock®, Securock®, Durock® and Fiberock® brands have become the standard for highest-quality and best-performing walls and ceilings.

As reported, the essential raw material obtained by USG is featured in a wide range of applications and this gypsum is utilized for such building materials as plasters and fire-resistant products; it goes into preservatives in food; is used for such agricultural purposes as soil conditioner, fertilizer and animal feed; and caters to the industrial market by way of glass production and in the creation of Portland Cement.

Blazic said that USG has been a huge part of the history in the region. Gypsum quarry operations actually began in 1862, and the Alabaster facility was among the roughly 30 other companies which originally teamed to form USG more than 120 years ago.

"And currently, we have over 5,000 acres in Iosco County," he said, noting that about 800 of these have been included in the Hunting Access Program, which opens up land for public use.

"We don't just work here; we live here," he continued. "We want to support the community and we want to support the organizations that are making our community a better place."

For example, he said that through the USG Foundation Give Local Grant, the company has supported such organizations as Iosco Coats for Kids, the Tawas City Fire Department and its Water Rescue/Dive Rescue-Recovery Team, the Iosco County Historical Museum and the Friends of Tawas Point Lighthouse and State Park.

Blazic said that all of these entities are making the community better, and USG is proud to support that, as well.

In addition to the overall communities, he described the good relationship that USG has with Alabaster. This includes their involvement in the township's Lake Huron Coastal Preserve, as well as the easement that the company provided to accommodate a portion of the Alabaster Bike Path Arboretum which runs through USG property.

Blazic also mentioned the annual, public Free Fishing Weekend that USG hosts at its Alabaster site, saying there are plans to hold the event again this June.

Further, this is a direct reflection of the reclamation work performed by USG as part of its gypsum mining operations. As reported about one year ago – when this publication highlighted some of the initial discussions surrounding the Avery Quarry – any land utilized by USG undergoes a reclamation process wherein the property is returned to a natural state. If five acres of wetland are utilized, for instance, the company must then restore five acres in the same watershed. The reclamation work is ultimately determined by the Michigan Department of Environment, Great Lakes and Energy (EGLE) and the Environmental Protection Agency.

Once removal of the deposits is complete, the areas are restored to create wetlands, lakes, forests and prairies, which is done according to township ordinances and environmental permits. USG notes that its long track record in Alabaster is visible proof of their commitment to restoring the landscape when the work is done.

For example, USG has hosted its Free Fishing Weekends at the property for the last several years, welcoming the community to fish the ponds on the reclaimed land of its current quarry. Featuring a variety of species, these are native fish which have migrated in naturally over the past 50-plus years. Given the popularity of the annual event, USG is working to keep the fishery healthy to continue providing great opportunities to anglers.

In fact, all of the water bodies on USG property were once quarries. This includes a former mining pit that was depleted in 1999 and then restored. It is now known as Pilot Lake, and has an average depth of 30 feet.

Additionally, because there are no chemicals used in procuring the gypsum, the water bodies can naturalize on their own.

This touches on the actual mining process, as well, which is a common question among members of the public.

As previously explained, USG basically removes dirt, takes out the gypsum and puts the dirt back, with the only discharge being water. Due to the reserves in Iosco County being close enough to the surface, crews can collect gypsum through a quarry process – which is much easier to access and the most economical route to take – rather than an underground mine.

As reported, surface soils and clays are cleared until the gypsum layer is exposed. Machines similar to road resurfacing equipment essentially mow rows of gypsum approximately 12 inches thick. The materials are crushed and sorted by size on-site, and transported by truck to manufacturing operations and other businesses across Michigan and North America.

USG officials have stated that this process does not harm the environment. Gypsum is a very safe mineral, quarrying it is sustainable and its removal entails a mechanical process which does not use chemicals or create pollution.

When USG closes a quarry, they backfill the earth, create a natural landscape, plant native trees and welcome in wildlife. The company has already reclaimed large sections of its existing quarry with wetland creation and enhancement, timber management and control of invasive species.

Circling back to the community engagement, Blazic said that USG also hosts other open houses, similar to the one on April 19, as well as quarry tours. The company wants to ensure that they’re keeping the public apprised of what's taking place, be available to answer questions and so on.

Proceeding with his presentation, he said that in the 1980s, companies such as USG began using Flue Gas Gypsum (FGG) from coal-fired power plants. This synthetic gypsum is made from emission stack material of the plants and, by the 2010s, more than 50% of the gypsum used was FGG.

However, these synthetic sources are dwindling as coal-fired plants are being shut down or shifted to natural gas for energy.

"There's a rapid decline in synthetic gypsum used, and there's a rapid increase in need for natural gypsum," Blazic said. And this puts Alabaster in a very good spot to be able to provide lifelong gypsum to not only the internal customers, but those beyond the borders of Michigan, as well.

As USG representatives have also noted in the past, it's critical to have a local, reliable source of natural gypsum rock for the dozens of industries and hundreds of companies USG serves in Michigan. Moreover, the shift from FGG being created as a by-product of power plants has put increased pressure on natural gypsum, and available supplies around the U.S. are short. This includes the reserves at USG's existing quarry in Alabaster Township.

Iosco County has an abundance of this calcium-based mineral, though, and the gypsum here is particularly sought after due to its very high purity level. It also has a brightness which appeals to the customers specifically seeking white gypsum, and USG says that the reserves on its property are some of the finest in the country.

As reported, in order to transition out of the nearly-depleted Northwest Quarry, USG finalized its agreement with the Department of Natural Resources in 2018 to purchase a 580-acre parcel of state forest land for $3.45 million. This was acquired with the expressed intention of continuing to quarry gypsum in the township. The new operation will sit immediately adjacent to the west boundary of the existing quarry.

As part of the endeavor, USG submitted a wetlands permit application to EGLE, which is required any time human activity impacts such areas.

Blazic noted that as plans got underway for the Avery Quarry, USG began working with advisors, the community, a team of engineers, state regulators and others, to kick off the plans and put the permit process in motion. They have carried on this joint effort for the past three years, and he said that development of the new quarry marks the start of USG's next 120 years in Iosco County.

"I’m pleased to announce this evening, we have the permit in hand. We’re getting closer," he told the open house audience.

Blazic explained that, simply put, "Gypsum is where it is." Quarries must be developed where the rock is found and, in Iosco County, more of the landscape is wetland than not.

Accessing the Avery Quarry area requires disturbing wetlands, and USG representatives have stated that developing a quarry which would not impact wetlands in Alabaster Township is nearly impossible. So, the company worked with state regulators to minimize this disturbance and mitigate the impacts by creating wetlands elsewhere in the watershed.

As part of this plan, USG purchased 200 acres of land in nearby Sherman Township to create a new wetlands complex.

In reference to this choice, "We did a very extensive review of properties in this watershed, where the wetlands are being disturbed, and the 200 acres that we bought showed the best characteristics, it showed the best history of what it was in the past; but it also gave us the highest potential to have a successful wetland mitigation property," Blazic elaborated.

As reported, although USG bought 580 acres to create the Avery Quarry, this includes ample buffer acreage and the actual quarry footprint will be much less.

Blazic said that the new quarry is going to be opened in stages, the first of which will cover approximately 70 acres, and that the quarry will entail 360 acres in total.

With this site helping to sustain USG's presence in the community for at least the next quarter-century, he added that this venture will also provide new jobs.

More specifically, Blazic's goal is to make it clear that when people come to USG, they will have an opportunity to lead a long career and retire from the company, and that they will be able to provide for their families but also invest back into the community.

He reiterated the axiom which has been adopted by those at the Alabaster facility, in that, "We started here; we’re staying here."

Blazic shared how the company is looking forward to its next 120 years in the area, which includes maintaining USG's commitment to Alabaster Township, Iosco County and Michigan. "And we want to make sure that we have sustained growth."

He stressed that those at USG welcome any questions, ideas, opportunities or concerns the public may have. "That's why we have these events," he said, telling open house goers that the company wants to be visible to them and wants them to feel free to come to USG with their questions.

As for the new quarry's monicker, he shared that this is a nod to the company's long history in the local area, and honors one of the USG founders.

Blazic said that a Michigan native out of Saginaw, Sewell Avery, got his start at the Alabaster plant – where the quarry has been in existence since 1862 – and went on to be part of USG's initial formation. Along with many other life accomplishments outside of the job, Avery worked his way up through the ranks at the company and served as its president from 1905 to 1936.

As noted in last year's feature story, Avery's father was a timberman who purchased the Alabaster quarry site in about 1895. Avery and his brother were running the quarry when USG formed in 1902.

Avery held the title of USG president for more than 30 years and helped grow the company during that time, even throughout the Great Depression.

"Honoring Sewell Avery with this new company chapter in Iosco County reminds us all where we started as we look to the coming decades," Blazic said.

"There are still a lot of questions, particularly about how we will transport what we’re producing. Our current method is trucks, but our future plans could involve a rail line and possibly even going back to boats on the Great Lakes," he also recently stated.

He said that the focus right now, is on getting the first phase of the quarry running. "The community can trust that we’ll continue to be involved, engaged and sharing our news as we progress."

Among their other reasons for supporting the project, USG listed that it keeps a historic Michigan company invested and working in Michigan; maintains the state's supply of gypsum, which is a key building block for our economy; keeps a quarry operation where one already exists, meeting a state conservation goal; and supports the local, regional and state economy.

To learn more, visit www.USGAlabaster.com.

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