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The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 135
Nickel Rim South Mine
Project Overview
September 2009
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“Raising the Bar for a Canadian Mining Project”
Xstrata Nickel’s - Nickel Rim South Project
By: Rick Collins - Project Manager (HATCH).
1. Nickel Rim South – the project2. Project delivery method3. Safety expectations – Zero Harm goal4. Setting & maintaining the safe work culture5. Safety tools6. Shaft sinking challenges7. Sustainable development8. Lessons learned for future projects
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 136
3
Nickel Rim SouthProject Location
Hwy 144
Hwy 17 E
Hwy 69 S
Hwy 69 NNickelRim
South 20 miles
45 miles
SUDBURY BASIN
Toronto 400km
Strathcona
Mill
Smelter
North Bay 120km
Sault Ste-Marie 300km
4
Nickel Rim SouthProject Timeline/Overview
2001 Nickel Rim discovery 1100m – 1700m.
2002 Exploration drilling program expanded.
2003 FEL 2 and FEL 3 studies. Shaft pilot hole drilled. Road, power, pipelines to site.
2004 Project Go-Ahead March. Site prep and surface const. Vent Adit and pilot raises.
2005 Sinking plant +5 hoists, 2 head-frames.Full shaft-sinking commenced.
2006 Shaft sinking, Main Shaft and Vent Shaft
Phase Zero diamond drilling commenced
2007 Underground lateral development, vent raising & phase 1 drilling commenced.
2008 Surface and Underground construction, 10km development, 95 km drill core.
2009 12km development, 40km drilling, Backfill plant, permanent Dry/Admin bldg, Production 546kT Ore.
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 137
5
Nickel Rim SouthSafety First
• Project 92% complete. Work hours 6.4M to current
• Peak full time jobs 930 (XNi 380, contractors 550)
• Best run: no LTIs 4.95 Yrs (5.7M hrs)
• Incident frequencies 3x lower than Ontario mining norms
• Project On Track – Safety & Production tied together
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Nickel Rim SouthProgress and Performance
Project Highlights
1. Two deep shafts (3420m) zero lost time incidents
2. March ‘09 – surpassed 5M hrs Zero LTIs
3. Zero Reportable Environmental Incidents
4. SPI = 1.00, running precisely to
baseline schedule
5. CPI =1.03, despite period of escalation in mining costs
6. First production 8 months ahead of FEL 2 study
7. Quality - NCR rate 0.90 vs. target KPI 1.00
VENTILATION
SHAFT
MAIN
SHAFT
CONTACT
ZONE
FOOTWALL
ZONE
1480 FW DRIFT
1660 FW DRIFT
1280 L
1480 L
1660 L
1700 L
DIAMOND DRILLING
1320 L
1520 L
1475 L
1625 L
Main shaft 1735 m depth
7.6 dia
Completion within 33 mth
Sinking rate 3.6 m/d
Vent shaft 1685 m depth
6.1 dia
Completion within 28 mth
Sinking rate 4.0 m/d
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 138
7
Nickel Rim SouthEPCM Delivery
• Small Owner team with specific deliverables
• EPCM by HATCH-McIntosh Eng’g (HMA 2003-09)
• Eng’g peak 120: HMA Surface Infrastructure, u/ground engin’g, ventilation, C&A. Shaft sink’g + H/frames by Cementation
• EPCM site team peaked at 65
• EPCM cost 12% of capital (Eng’g 6%, PCM 6%).
• EPCM Contract inc ‘Gain-share Pain-share’ formula based on annual safety & ev KPIs
• Partner contractors engaged early- site prep, hoist supply, shaft sinking, long-leads, constructability. Footwall Zone
Contact Zone
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EPCM model benefits:
• Single group accountability for delivery
• Contract linked to project success; safety, cost, schedule
• Co-ordinate ‘best’ engineering
• Cross-project control systems
• Pre-procurement of long-lead items (materials/equip’t)
• Improved likelihood of Project Success!
Nickel Rim SouthEPCM Delivery
Project Orientation
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 139
9
Nickel Rim SouthSafety Expectations
• Xstrata’s mandate comes from the Top: The goal is “Zero Harm”
• Tone & expectations reflect from CEO to project team to contractors to individuals at face
• ‘Vision and Values’ clear, unequivocal, well communicated and translated
• ‘Zero Harm’ means zero incidents; LTI – FAs – Near Misses
• Not there yet; working toward zero MAs. Low FA & NM is a leading indicator
• Annual targets set to measure progress for LT, MA, RWI, TRIF, RWD
• Targets tightened 20% pa for Continuous Improvement
• Bottom-line approach... Safety can never be “good enough”.
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Nickel Rim SouthSetting a Safety Culture
• Contractor pre-selection includes safety performance analysis
• Team input to management selection
• ‘One-team’ must be created, co-location is critical
• Orientation - the vital first contact (made personal – because it is!)
• Training and Safety discussion never stops (huddles)
• Contractor corporate structures engaged
• Positive recognition forced; celebrate milestones safely achieved
• Accident prevention is behavioral based Safe behaviors can’t change at the gate
• Guard against complacency –a silent killer on long projects!
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 140
11
Nickel Rim SouthSafety Tools
• Internal Responsibility system
• Stop and Correct
• Five-point safety and Pre-Op check system
• Regular alignment (now-state to future-state)
• PASS system
• Best Practices - most stringent contractor or project procedures
• Root-cause analysis
• Leading-indicator vs. lagging indicator reviews
• Positive recognition rewards vs. incentives.
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Nickel Rim SouthShaft Sinking Challenges
• Over & Under work inherent challenges
• Tie-off points & harness use
• Shaft equipping decks
• Modification protocol compliance
• Bucket (kibble) travel & bucket wells
• Brutus mucking jaws – bail changes
• Rigging & Slinging
• Heat, ammonia & water challenges
• Hoist automation & speed-clamps.
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 141
13
Nickel Rim SouthShaft Sinking Challenges
• Lack of trained & experienced people
• Training facilities
• Off-site behavioral issues
• Extreme winter temperature differentials
• Station construction – rhythm break
• Changeover conversions
• Contractual arrangements
• Design responsibility for temporary facilities in head frames, dumps, hoisting etc.
14
Nickel Rim SouthSustainable Development
• Occupational health programs - Owner and major contractor partners
• On-site OHN and free services (flu-shots, ergonomics, EAP advice etc.)
• Reportable environmental spills – zero accidences
• All permits in place prior to start
• Agreement with local First Nation band (WFN)
• Agreement with adjacent airport (NavCan)
• Local community engagement – open houses etc.
• Energy reduction designs eg. LEED certification
• Regular SD audits vs. 17 common Xstrata stds.
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 142
15
Nickel Rim SouthSome Lessons Learned
• Safety is a LINE responsibility. Safety dept does guidance & training
• Multi-contractor communications - increased team ‘supervisor’ presence
• Contractor management critical (excellent shaft miner vs. lateral miner)
• Specialty team checklists for major set-ups (sinking, devel’t comm’g) reduces preparedness risks
• Design risk reviews and construction Hazops - deep into project
• Estimate new-worker training requirements carefully – market driven
• Complacency from repetitive tasks/good results - creates environment where failure goes unrecognized
• In transition, apply same diligence to Operations workforce as to contractors; anticipate delayed culture change
• Modification protocol needs high level attention/compliance.
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Nickel Rim SouthSome Lessons Learned
• When the Owner is committed project team job is easier
• Good results from attention to leading, not lagging, indicators
• Continuous Improvement - need to challenge our existing standards/procedures
• In-depth orientation with one-on-one assessment is vital!
• “One team” culture needs early establishment
• Think-it-through planning is critical for non-routine tasks
• Stop and Correct is an excellent field tool. No-one walks past an unsafe act/condition
• Above all “working in an unsafe manner must become socially unacceptable”.
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 143
17
Nickel Rim - 2003
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Nickel Rim South - 2004
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 144
19
Nickel Rim South - 2005
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Nickel Rim South - 2006
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 145
21
Nickel Rim South - 2007
22
Nickel Rim South - 2008
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 146
23
Nickel Rim South - 2009
Question and Answers
Thank You.
Nickel Rim South
The Southern African Institute of Mining and Metallurgy
HARD ROCK SAFE Safety Conference 2009
R Collins
_____________________________________________________________________________________
Page 147
The Author
J Richard (Rick) Collins, Associate, Project Manager, Hatch
Rick Collins has 27 years experience in engineering, construction and project management of
medium and large-scale projects. Experience includes planning and execution for underground
projects in hard rock, mixed and soft-ground conditions; for mining, road, rail, hydro and transit
projects. Career to date includes 17 years EPCM for project owners, 5 years with contractors, 3
years with design-constructor (Channel-Tunnel Project), and 2 years engineering business
management.