Aggregates are crushed stone, sand and gravel, utilized in the construction of the majority of this nation's infrastructure. Aggregates are used in nearly every residential, commercial and industrial building construction and in most public works projects, such as: roads, highways, bridges; railroad beds, dams, airports, water and sewage treatment plants and systems and tunnels.
Aggregates, like coal, are natural resources and therefore are considered to generate qualifying income for Master Limited Partnerships. While NRP got its start based upon the ownership of coal reserves across the United States, the partnership has always said that ownership of aggregates would be a natural progression of its business model; the ownership and management of mineral properties, leased to operators for royalty payments on tons produced and sold.
In 2006, NRP bought its first aggregate property located on the Puget Sound in Washington. Since that time it has made several other aggregate purchases across the United States, and is actively looking at additional opportunities across the nation. To enhance this effort, in 2008, NRP hired a Vice President of Aggregates that is working with aggregate owners and producers to increase NRP's exposure to the industry and develop further expansion opportunities. We feel confident that this will be a significant growth opportunity for NRP over the next several years.
Reserves (in millions tons) at 12/31/12 *
* Aggregate revenues include aggregate royalties, processing fees, minimums recognized as revenues and overrides.