Loup teams with firm to process excess sand

COLUMBUS - “It's about sand, said Steven Herron of Harwest Industrial Minerals Corp. “It's an exciting story about good, old-fashioned, boring sand.”

Herron told what he could tell of his venture, without revealing any proprietary information, to members of the Columbus Noon Rotary Club last week.

Sifting through the details reveals sand has piled up along side the Loup Power District's Headworks settling basin at an estimated rate of 1.8 million tons per year since 1939. At that time, just two years after the canal system was completed, the pipes designed to carry the sand out of the 2.5 mile basin became choked with sand and failed. Since then, dredging has been used for three months in the spring and fall, resulting in an estimated total of 120 million tons of sand in the north and south piles at the headworks.

“Occasionally, through the years Loup has been approached by individuals who want sand,” said President/CEO Neal Suess, of Loup Power District. “Sometime ago we were approached by a gentleman who said he needed 300,000 tons of it, but we never heard back from him, and it wouldn't have even put a dent in the problem. The sand pile has taken on a very definitive size and life of its own out there.

“Then late last year we met with Steven Herron who said in time he could potentially process and market about the same amount of sand that is currently being piled up every year. Over time the project might actually be able to reduce the pile. This prospect was real exciting for us,” Suess said.

Soon after the initial meetings with Loup, public hearings were completed and Harwest Industrial Mineral Corp. and Loup Power District made the partnership official.

Harwest paid Loup an initial payment of $50,000 to set up the lease contract and cover the completion of the permit process and fees.

“In addition to that initial payment, once the plant is fully functioning Loup will receive a 25 cent ‘per ton shipped' royalty with regular increases of that based on inflation,” Suess said. “This royalty income will help our financial outlook, help to keep rates low for our consumer owners and will enhance the overall value of Loup's hydro system.”

Harwest's equipment sits on the north side sand pile where it collects the sand and moves it by a water-flow system to the property owned by Harwest, which is north of the short line rail track. From there it's moved into the processing system in the new facility.

Herron said, “This company is made up of a group of geologists and scientists who have a big interest in the most boring product on earth - sand. Basically, we pick up the sand directly from the pile, harvest the materials we use and return the remainder to the pile. The materials we collect are then moved through a series of pipes into our processing plant where they are separated into the various products we manufacture. Once it's separated, it's dried to precise specifications, packaged and shipped from our truck or rail load out zones to markets around the United States.”

The proprietary production processes, finished products and potential markets for Herron's end product are closely guarded secrets in a highly competitive industry dominated by five large corporations that process industrial grade minerals.

Herron would not reveal details about the processes used or exact descriptions of the finished products.

As the plant reaches full capacity, he anticipates processing as much as 90 percent of the estimated 1.7 million tons of sand he hopes to collect annually into marketable materials.

“This partnership with Harwest Industrial Minerals really helps to solve a long-term problem for Loup,” Suess said.

Herron emphasized that the amount of sand that can be collected and processed is market driven. Some of his end markets need the products in seasonal cycles and others have a year-round need.

He said the products produced are not for the end consumer but that many consumer products contain the materials manufactured at the Genoa plant.

“The clear drinking glass you're using today is made up of 80 percent silica sand,” he said. “Sand is used in cosmetics, bricks and fortified ice cream just to name a few.”

Harwest Industrial Minerals is part of the Harrison Western Group headquartered in Lakewood, Colo.

“This is a long-term project. We don't take on projects with anything less than a projected 50-year lifespan,” he said. “With about 120 million tons of sand out there to work with and the amount we're permitted to process each year - well, you can do the math, we expect to operate here for a very long time.”

Herron said his company is committed to the community and the proof is in the numbers.

“Our commitment to the community and our investment in Nebraska is shown by our commitment to use resources within a 50-mile radius of our operations whenever possible. This commitment prompted us to hire 100 percent of our work force, with the exception of one manager position, from the local area and to offer 100 percent company-sponsored health care to our 35 locally hired employees.”

Suess stressed the benefit of the partnership to Loup and its consumer owners.

“Loup is about economic and industrial development in the four-county area we serve,” he said. “This partnership with Harwest reinforces our commitment to economic development and provides solutions to issues that affect Loup and others in the four-county area.”