modularization technical overview - dsd 20151209

BW-OPS-DEL-FRM V20130412

DSD - Modularization Presentation

Modularization Technical &Commercial Overview

Department of State Development Advanced Modular Solutions

By Alan Millett9th December 2015



This document is incomplete without reference to the briefing provided to Barker Wentworth. Neither this document nor its contents may

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Page 2

Disclaimer



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Modularization Overview

• Modularization Project Management

• Engineering

• Procurement

• Fabrication & Pre-Assembly

• Sea Transport

• Land Transport

• Module Placement & Tie In


DSD: Modularization

Modularization Project Management

Pre-Feasibility is the critical phase for the assessmentof modularization and the associated economic andrisk profile. This is fundamental to the Client’smanagement decision making process. The keys studyareas required are:

The exact detail of the Feasibility Study work will onlybe apparent after completion of the PFS. It should benoted that many aspects of strategy and deliverymethod influence the focus of the Feasibility Study. Ingeneral key feasibility studies areas required are:

The Implementation Phase deliverable will mirror theexecution and planning identified in the FeasibilityStudy. In general key implementation phase areasrequired are:

ENGINEERING

Develop design criteria including engineeringphilosophy and consideration to modularizationand pre-assembly;

Define engineering philosophies for specification,design standards, procurement strategies,engineering development and progressionthrough conceptual to shop detail;

Develop conceptual engineering where PFD’s andGeneral Layouts are frozen;

Identify facility battery limits either geographic orprocess dependent on execution methodology;

High level module identification and module indexdevelopment;

Identify commissioning requirements and generalsequence including governing. ie. power, feedstock etc.

Scope fully defined and frozen; P&ID frozen and process design finalised; All equipment and materials specifications

complete and ready for procurement process; Basic engineering completed to a percentage for

execution of a stick build (50%-60%) or pre-assembly (80%-90%)

Detailed engineering completed for initial 3months of Implementation Phase constructionsequence;

Detailed module identification and module indexdevelopment;

Fully define commissioning sequence andschedule including resource requirements andvendor support.

Manage the development and interface of alldetailed engineering and shop drawingdevelopment;

Support the development and integration of allvendor data package engineering into the detailedengineering effort:

Fully define planning and implement theresourcing required to support the commissioningschedule

Address quality and technical queries fromconstruction and fabrication resources;

Manage commissioning resourcing and execution; Develop handover packages.

PRE-FEASIBILITY PHASE FEASIBILITY PHASE IMPLEMENTATION PHASE


DSD: Modularization



Identification of limiting logistics parameters,bathymetric, berth and access corridors;

Identification od shipping and oversizetransportation options and associated economics;

Identification of offshore fabrication facilities andassociated economics;

Development of high level site constructionsequence and significant equipment forinstallation on site.

Construction sequence fully defined and all keyequipment identified;

Shipping and land transport delivery methodologyfinalised and scope of services fully defined andservice providers selected;

Fabrication facilities selected and scope of workdefined and facilities selected;

Site construction scope of work fully defined andresources identified for implementation phase

Manage offshore fabrication and assembly; Manage oversize logistics and transportation; Manage multi-discipline site construction

requirements; Support commissioning.

COMMERCIAL

Identify procurement requirements for bulks andcritical tagged equipment procurement planning;

Develop contracting strategy and commercialrequirements for offshore fabrication, logisticsand onshore installation;

Identification of resources for site installation anddevelopment of high level execution commercialexecution strategy and contract developmentrequirements.

All purchase orders for major bulks and taggedequipment completed and ready for issue;

Contract strategies fully defined and all pre-qualifications and commercial documentscomplete for each implementation phase workpackage complete and ready for issue.

Manage all contracts and process accounts toowners requirements;

Manage all procurement expediting and bulklogistics;

Coordinate vendor data and information packagesfor commissioning and handover requirements.

CONSTRUCTION & OVERSIZE LOGISTICS


DSD: Modularization



Develop execution delivery report consistent witha Pre-Feasibility Study;

Develop a Work Breakdown Structured Schedulebased on engineering, commercial, constructionand commissioning consideration and anypermitting or specific legislation or municipalrequirement specific to the project location

Complete economic assessment of stick built vspre-assembly delivery models;

Develop the Work Breakdown Structured CostEstimate model for the project delivery;

Development of Feasibility Study requirementsand associated planning for delivery of theFeasibility Study to a Level 3 cost estimate,schedule and execution strategy document.

Execution Strategy Document complete andissued for Implementation Phase use;

Finalise Level 3 Schedule with fully detailedconstruction, fabrication and logistics scheduleddeveloped for the first 3 months of initialimplementation schedule;

Cost Estimate model for project implementationphase completed with prevailing risk profilecontingencies sums identified and applied;

Development of detailed implementation phaseplanning and early works programs that need tostraddle internal Client’s approval periods;

Develop implementation phase safety andenvironmental management planning;

Develop implementation phase qualitymanagement strategy and planning.

Manage all implementation phase project andconstruction management, and project controls;

Manage site safety and environmental execution Manage quality systems Manage documentation and handover process

post commissioning Complete project close out for commercial and

accounting

PRINCIPLE DELIVERABLES

The principle deliverable for the PFS is a Level 1 CostEstimate and Schedule with an accompanyingExecution Strategy Document in accordance with theClient’s requirements.

The principle deliverable for the FS is a Level 3 CostEstimate and Schedule with an accompanyingExecution Strategy Document in accordance with theClient’s requirements.

The principle deliverable of implementation isexecution of project scope, schedule, budget, qualityand safety in accordance with the Client’srequirements.

PROJECT ENGINEERING & CONTROLS



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Modularization FEED Study Economics

Degree of modularization for a project requires a project specific business case including riskmanagement, contracting strategy, technical considerations, logistics and location challenges, and costand schedule economic revaluation.

PRE-ASSEMBLY COST STICK BUILT COSTS

Offshore Fabrication & Assembly

Oversize Ocean Transport

Oversize Land Transport

Bulk Freight Transport

Landing Facility

Site Placement & Installation

Highway Improvements

Supporting Infrastructure

Contractor Distributable

EPCM / EPC Costs

Financing Costs

Fabrication Offsite

Site Installation Construction

Site Installation Equipment

Bulk Freight Transport

Supporting Infrastructure

Contractor Distributable

EPCM / EPC Costs

Financing Costs



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Total

Module

Cost

Benefits On-Site

Stick Build

Cost

Reduced

O/Head

Schedule

Costs

Reduced

Financing

Costs

Additional

Transport

Costs

Risk

Mitigation

Reduced

Site

Infrastruct

ure Costs

Additional

Engineerin

g Costs

Module

Yard Costs

Additional

QA/QC

Costs

Additional

Bracing

Costs

Taxes &

Duties

MODULARIZATION PRESENTATION

Benefits of Modularisation



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Basic Engineering

Modularization FEED Study

Plant Engineering

Structural Engineering

Transport Engineering

Detailed Engineering

Engineering



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The structures are designed based on the most economical size to transport and placement on site,based on assessment completed during the module feasibility study.

Engineering Design & Management

The design requires the input from a multi-disciplined team: Planning and scheduling are critical and influenced by:

Modularization Project Managers

General Plant Designers

Modularization Designers

OEMs

Fabricator Shop Detailers

Heavy Lift & Land Transport Specialists

Naval Architects & Marine Engineers

Project Surveyors

Insurance & Risk Specialists

Turnover & Commissioning Schedule

Construction Area Sequence

Module Installation Sequence

Roll Ship Dates for Equipment & Materials

Engineering Deliverables

Project controls are significant:

Document Control

PAM Master LOG

Inspection Test Procedures



11

Types of Pre-assembled Modules



12MODULARIZATION PRESENTATION

A number of organisations are currentlysupplying modularised mineralprocessing plants for beneficiation andrecovery of a wide range ofcommodities.

Package Mineral Processing Plants



13

Development of correct contractingstrategy is critical factor affecting thesuccess of a project.

It is important to place the project riskwith the organisations which have thecapability to control and/or manage therisk

Procurement & Contracts



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Stick Built Project Modularized Project

Equipment Delivery

Port

Ship Port

Truck

Site InstallEquipment

Delivery

Port

Ship Port

Truck

Site Install

Equipment Delivery

Port

Ship

Port Truck

Pre-Assembly Yard

Load Out Modules

Ship Port

Module Transport

Site Install

Modularization increases the procurement complexity – the number of delivery locations impact ordering and material

tracking

Bulk Materials

Major Equipment

Modules

Procurement Complexity



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Fabrication & Pre-Assembly

Sea Transport

Land TransportSite Installation

Pre-assembly & Modularization



16

Selection of Pre-Assembly Yard is based on “Fit ForPurpose” requirements for a particular project:

Contracting Strategy

Technical Capability

Location

Capacity

Facilities

Port and Logistics Requirements

QA/QC

Taxes and Duties

Australian Quarantine

Fabrication & Pre-Assembly Yard



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Sea transport significant cost of modularizationvessel selection based on:

Port arrangement at Pre-Assembly Yard andReceiving Location

Vessel Type – RORO, LOLO, Barge

Transit Route – Speed, Length, Weather Climate

Cargo Mix – Weather & Tween Deck

Chartering Lead Time & Availability

Cargo Specification – Size, Weight, Cong

Voyages per Vessel

Sea Transport



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Traffic Study/Route Assessment

Quantify construction and operationaltraffic loads

Confirm haulage vehicle & loaddimensions

Route traffic capacity assessment – modelcapacity and delay

Route physical clearances assessment

Route traffic safety assessment

Detailed route inspections

Review workshop to agree outcomes,scope of mitigation or strengthening works

Identify upgrading works required

Land Transport



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SMPTs used for:

Large heavy PAMs and SuperPAMs

Loading & Unloading RORO Vessels

Low bearing capacity of roads & wharf structures.

Accurate placement of modules

Normally limited to:

Short travel distances < 20 kms

Travel speed < 3 km/h loaded

Land Transport - SPMT



Normally used for:

Long distance travel

Travel speed 40 – 60 km/h

Ground pressure limited ~ 4t/m²

Limited to:

Module mass > 800 tonnes

Module size > 45m L x 12m W

Road geometry – grade, sag, crest, curve

Towed and pushed by number of trucks depending on load dimensions, truck brand and weight

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Land Transport – K24 Flat Trailer



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Installation method dependent on module size and number of modules.

SPMT placement

Crane placement

Jacking – Stand jacks & gantry tower lifting systems

Skidding

3M105/6/7-Module LxWxH: 28x30x40M

2,200MT

Smelter Building

& Tower

Modularization

(train n°1)

3M104-Module LxWxH: 28x30x25M

2,500MT

3M103-Module LxWxH: 21x35x15M

2,300MT

3M101- ModuleLxWxH: 20x35x31M2,450MT

Furnace –Stick building in Site

Module Installation



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Economics of crane installation dependent onmobilisation costs vs number of lifts.

Crane requires:

Pad to be engineered and compacted

Adequate space, and reach vs liftconsideration

Rigging system applies only vertical forcesto structural members

Spreader bar lattice & square lift riggingconcept used to ensure no transverselifting forces are introduced to structure

Module Installation - Crane



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SPMT are used to install PAMs:

Directly onto foundations

PAM mass in excess of site crane capacity

PAM positioning accuracy +/- 2mm

PAM dimensions excessive (LxWxH)

Module Installation - SPMT



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Tower Jacking

Module Installation - Jacking



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Skidding method utilised where location, arrangement, size or mass requires an innovatedsolution.

Module Installation - Skidding

modularization technical overview - dsd 20151209

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