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Transcript of PLANO DE EXECUÇÃO
Paracatu 3rd Ball Mill Project
Project Execution Plan
PARACATU334572-0000-30AG-0002
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PROJECT EXECUTION PLAN
FOR THE
PARACATU 3rd BALL MILL PROJECT
BRAZIL
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1.0 EXECUTIVE SUMMARY ...
2.0 PROJECT OUTLINE ...
2.1 Installation scope ...
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TABLE OF CONTENTS
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2.2 Project Structure Overview .......................................................................................................2-10
2.2.1 Kinross Gold Corporation & Rio Paracatu Mineração (RPM) .................................2-10
2.2.2 SNC-Lavalin ..........................................................................................................2-11
2.2.3 Contracts...............................................................................................................2-11
2.3 Key Issues ................................................................................................................................2-12
3.0 PROJECT EXECUTION PLAN OBJECTIVES .........................................................................3-13
3.1 Objective of the Project Execution Plan ....................................................................................3-13
3.2 Project Execution Plan Ownership, Maintenance, Distribution and Control ..............................3-13
3.3 Reference Documents ..............................................................................................................3-14
3.4 Confidentiality ...........................................................................................................................3-14
4.0 DETAILED SCOPE OF WORK ...............................................................................................4-15
4.1 Physical Facilities Scope ..........................................................................................................4-15
4.2 Battery Limits of Facilities Scope ..............................................................................................4-15
4.3 Overall Services Scope ............................................................................................................4-16
4.3.1 Engineering ...........................................................................................................4-16
4.3.2 Procurement .........................................................................................................4-16
4.3.3 Construction Management ....................................................................................4-17
4.3.4 Safety....................................................................................................................4-17
4.4 Detailed Services Scope and Deliverables ...............................................................................4-18
4.4.1 Project Management .............................................................................................4-18
4.4.2 Engineering ...........................................................................................................4-18
4.4.3 Procurement .........................................................................................................4-21
4.4.4 Construction Management ....................................................................................4-22
4.5 Services Scope Exclusions .......................................................................................................4-22
4.6 Division of Responsibilities .......................................................................................................4-23
4.7 Third Party Input List.................................................................................................................4-25
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5.0 EXECUTION STRATEGY ...
5.1 Project Objectives...
5.2 Execution Strategy ...
5.2.1 Engineering ...
5.2.2 Procurement ...
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5.2.3 Construction Management ....................................................................................5-30
5.2.4 Overall Project Management .................................................................................5-30
6.0 SCHEDULE..............................................................................................................................6-31
6.1 Critical Success Factors ...........................................................................................................6-31
6.2 Critical Schedule Activities ........................................................................................................6-31
6.3 Project Schedule ......................................................................................................................6-31
6.3.1 Critical dates/milestones and Critical Path items. ..................................................6-31
6.3.2 Significant Constraints...........................................................................................6-32
6.3.3 Long lead items that are critical to the schedule ....................................................6-32
6.3.4 Milestone Schedule ...............................................................................................6-33
6.3.5 Client Kick-Off Meeting..........................................................................................6-33
6.3.6 90 Day Early Work Plan ........................................................................................6-33
6.3.7 Key Reviews .........................................................................................................6-33
7.0 PROJECT ORGANIZATION ....................................................................................................7-34
7.1 Organization Chart ...................................................................................................................7-34
7.2 Roles and Responsibilities - SNC Lavalin Team .......................................................................7-36
7.2.1 Common Responsibilities ......................................................................................7-36
7.2.2 Specific Project Team Member Responsibilities ....................................................7-37
8.0 ADMINISTRATION AND COMMUNICATIONS ........................................................................8-46
8.1 Project Instruction Manual ........................................................................................................8-46
8.2 Communications Plan ...............................................................................................................8-46
8.2.1 Kinross’s Skire Unifier System ..............................................................................8-46
8.2.2 Formal Lines of Communication ............................................................................8-47
8.2.3 Email Communication ...........................................................................................8-48
9.0 HEALTH, SAFETY AND ENVIRONMENT ...............................................................................9-49
9.1 Ownership ................................................................................................................................9-49
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9.2 Kinross Standards ...
9.3 SNC-Lavalin Standards ...
9.4 Contractor Requirements...
9.5 Details ...
10.0 RISK MANAGEMENT PLAN ...
10.1 Risk Review Schedule ...
10.2 Risk Database ...
10.3 Roles ...
10.3.1 Risk Managers ...
10.3.2 Safety Managers ...
10.4 Responsibilities...
10.4.1 Project Manager ...
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10.4.2 Project Health, Safety and Environmental Manager ............................................10-53
10.4.3 Risk Manager ......................................................................................................10-53
10.4.4 Risk Owner .........................................................................................................10-54
10.4.5 Other Stakeholders .............................................................................................10-54
11.0 QUALITY................................................................................................................................11-55
11.1 Quality Management Plan ......................................................................................................11-55
12.0 PROJECT CONTROLS..........................................................................................................12-56
12.1 Alignment with Kinross ...........................................................................................................12-56
12.2 Controls Systems ...................................................................................................................12-56
12.3 Roles & Responsibilities .........................................................................................................12-57
12.3.1 Toronto Project Controls .....................................................................................12-57
12.3.2 Belo Horizonte Project Controls ..........................................................................12-57
13.0 ENGINEERING PLAN ...........................................................................................................13-59
13.1 Engineering Plan ....................................................................................................................13-59
13.2 Objectives of this Plan ............................................................................................................13-59
13.3 Objectives, Strategy and key Activities / Deliverables .............................................................13-59
13.3.1 Engineering Objectives .......................................................................................13-59
13.3.2 Engineering Strategy ...........................................................................................13-60
13.3.3 Key Engineering Activities/Deliverables...............................................................13-61
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13.4 Engineering Scope of Work ...
13.5 Engineering Deliverables ...
13.5.1 General ...
13.5.2 Deliverable Progress ...
13.5.3 General ...
13.5.4 Change Control ...
13.5.5 Calculations ...
13.5.6 Design Software ...
13.6 Checking and Review ...
13.6.1 General ...
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13.6.2 Discipline Internal Review ...................................................................................13-64
13.6.3 Multi-Discipline Checking ....................................................................................13-64
13.6.4 Project Design Reviews ......................................................................................13-65
13.6.5 Procurement and Construction packages ...........................................................13-65
13.7 Reference Information ............................................................................................................13-65
13.7.1 Historical Project Documents ..............................................................................13-65
13.7.2 Procedural Documents ........................................................................................13-66
14.0 PROCUREMENT ...................................................................................................................14-67
15.0 CONSTRUCTION...................................................................................................................15-68
16.0 COMMISSIONING AND OPERATIONS ................................................................................16-69
16.1 Facilities Commissioning Plan ................................................................................................16-69
16.1.1 Objectives of this Plan .........................................................................................16-69
16.1.2 Key Principles .....................................................................................................16-69
16.1.3 Commissioning Methodology ..............................................................................16-70
16.1.4 Commissioning Scope of Work ..........................................................................16-73
16.1.5 Approvals ............................................................................................................16-73
16.1.6 Operations and Maintenance Manuals ................................................................16-74
16.1.7 Critical Function Test Procedures........................................................................16-74
16.1.8 Training ...............................................................................................................16-74
16.1.9 Commissioning Spares and Equipment...............................................................16-74
16.1.10 Risk Management and Hazard Identification .......................................................16-74
16.1.11 COMMISSIONING DOCUMENTS........................................................................16-74
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16.1.12 Start-up Deliverables ...
16.2 Start-Up Plan ...
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16.3 Operations Support & Training Plan .......................................................................................16-75
17.0 DOCUMENT AND DATA MANAGEMENT.............................................................................17-76
18.0 FINANCE ...............................................................................................................................18-77
18.1 Invoice Management Plan ......................................................................................................18-77
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LIST OF APPENDICES
Appendix A - Preliminary Schedule
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1.0 EXECUTIVE SUMMARY
Paracatu 3rd Ball Mill Project
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Kinross is adding a third Ball Mill to the existing Paracatu Plant 2 grinding circuit. The purpose of the
Ball Mill addition to the grinding circuit is to maintain current gold production as the mining operation
moves into progressively harder ore.
The project is being executed with a “Fast Track” methodology and Kinross has placed an order for
the new Ball Mill prior to the commencement of this EPCM project.
The SNC-Lavalin services will be provided from three locations: Toronto, Belo Horizonte and
Paracatu site.
The existing plant (Plant 2) has recently finished an expansion project “Expansao III”. The
design of the existing plant had made allowances for the future addition of a third ball mill. The
scope for this project is somewhat different to that anticipated in the Expansao III design, but the
overall layout is similar.
The key Kinross requirement is that the third Mill be ready for commissioning during December
2010 and that the total installed cost is not to exceed the capital budget approved by Kinross
board.
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2.0 PROJECT OUTLINE
2.1 Installation scope
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SNC-Lavalin is providing trade-off and scoping level Study Services for the overall Paracatu
processing plant. The broader aspects of the scoping study that extend beyond the grinding
area (area 26) are not complete, however during the execution of the study it became clear that more
grinding power is required to maintain Mill throughput as progressively harder ore will be
processed.
A Ball Mill of the size used at this plant is a long lead procurement item. Based on the Paracatu
mine plan, it was decided by Kinross management that quick action was required to maintain
plant throughput. Therefore to expedite the project completion a third Ball Mill was procured early to
shorten the overall project duration. A +/-15% Cost Estimate for the third Ball Mill addition was
completed in January 2010 on the basis that the fundamental design parameters and general
layout used for the preceding Expansao III project had not changed and that a mill had already
been purchased by Kinross.
The installation of the 3rd Ball Mill is being “fast tracked” as Kinross expects that regardless of the
future recommendations resulting from the scoping study, an extra Ball Mill will be required to
process the harder ore. The current mine plan has harder ore affecting the existing Mill
production rates at the end of 2010, therefore there is a need to expedite the installation of this
Ball Mill.
This mill addition project will follow on from the “Expansao III” project which started construction
activities at this site in 2007 and is currently in the final stages of winding down.
The Expansao III project that resulted in the current configuration of Plant 2 anticipated the
provision of a third Ball Mill as part of the milling circuit. The current Plant 2 design has
allowances for mill building extension and upgraded power supply for the third Ball Mill.
At the time of design it was thought that the new mill would be a 13MW Ball Mill, identical to the
existing Ball Mills, however the Ball Mill currently being procured by Kinross is a 15MW Ball Mill. It is
slightly larger in diameter and somewhat longer in size. Preliminary investigations suggest it will fit
into the allotted space provided by Expansao III.
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The new Ball Mill circuit design is similar to the existing Ball Mill circuits with the new mill in closed
circuit with cyclones. The new design also incorporates the use of gravity for the
recovery of sulphides and gold via jigs. A new gravity circuit is not being added at this time;
however the existing gravity circuit will be modified to allow for the cyclone feed from the new Ball
Mill circuit to be fed to the existing jigs.
The new 3rd Ball Mill circuit will feature cyclone feed and jig feed pumps, hydrocyclone bank and other
ancillary equipment.
The existing mill building will be extended in accordance with the proposed design of Expansao III to
include column lines A&B, however the north and south portals will not be fully extended as they are
not required.
The bridge crane that spans the main building will be extended.
The existing allocated spaces will be left in the building should it be decided to add new jigs or a new
Vertimill in the future.
2.2 Project Structure Overview
The Project will be known as the “Paracatu 3rd Ball Mill Project”.
The project has been sanctioned by the Kinross Board and SNC-Lavalin has been awarded the
EPCM contract for the detailed design and construction of the facilities.
SNC-Lavalin’ scope is for full EPCM services up to commissioning of the process plant.
Commissioning of the plant will be a joint effort between SNC-Lavalin and Rio Paracatu
Mineração Operations.
2.2.1 Kinross Gold Corporation & Rio Paracatu Mineração (RPM)
The Customer is Kinross Gold Corporation, a publicly listed company on the Toronto Stock
Exchange that operates in the mining sector predominantly in Gold mining.
Kinross operates the wholly owned subsidiary Rio Paracatu Mineração in Brazil.
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The address for Rio Paracatu Mineração is:
Rio Paracatu Mineracão S.A.Estrada do Machado s/n - ParacatuMinas Gerais StateBrazilZip Code 38600-000Phone at Site: +55 38 36791000Fax at Site: +55 38 36791311Website: www.kinross.com
2.2.2 SNC-Lavalin
• SNC-Lavalin Inc. (short name as SLI) - Toronto Office
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• SNC-Lavalin Miner Consult (short name as SLM) - Belo Horizonte Office
2.2.3 Contracts
The EPCM contracts for this project will be with Rio Paracatu Mineracão. Two contracts will be
executed for this project. One between SNC-Lavalin Inc. and Rio Paracatu Mineração, and the other
between SNC-Lavalin MinerConsult and Rio Paracatu Mineração. It is important that these
relationships are recognised during the execution of the project as taxes levied on project
expenditures will vary depending on the location of the service provider.
SNC-Lavalin will enter into two contracts with Kinross, one with SLI M&M Toronto, the other with SLM
(Minerconsult):
1. Services provided by non-Brazilian locations will be covered by the “offshore contract”.
2. Services provided by Brazilian locations will be covered by the “onshore contract”.
Both contracts are structured the same way and are covered by the same terms and conditions and
the distinction arises mainly to simplify the administration of taxes and exchange rate
differences between Brazilian and non-Brazilian sourced services.
The contracts are reimbursable with a fixed profit component. The profit portion can only be
changed if there is a variation in scope accepted by the client through the course of execution.
It is essential that all lead engineers and department leaders are fully conversant with the
contracted scope, and raise project change notices as soon as there is any proposed change to
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that contracted scope. No work is to be done on a scope change without approval from the
Project Manager.
There is no schedule incentivisation or liabilities for the EPCM services contract. Liability for
rectification is limited to re-performance of services.
2.3 Key Issues
Key Issues:
• This project is schedule driven and uses a “fast track” execution strategy;
• The SNC-Lavalin scope will be delivered by a joint team from the Toronto and Belo Horizonte
Offices. Proper understanding of roles, responsibilities and deliverables for each location is
critical to successful execution;
• The project is Brownfield. Information will be obtained from Kinross to ensure:
Use and integration into the project of existing design standards;
Lessons learned from the previous phase are passed on to the new project team;
The project takes into account Plant Operations and Health and Safety
procedures;
Tie-ins are properly co-ordinated with planned plant shut-downs;
Non-disruption of the operating facility.
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3.0 PROJECT EXECUTION PLAN OBJECTIVES
3.1 Objective of the Project Execution Plan
This Project Execution Plan:
• Details the project scope, structure, and approach;
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• Provides the mechanism for defining to the Project Team the project scope, execution
methodology, schedule and budget prior to work commencing;
• Facilitate the briefing of project personnel and provide them with a guideline for their role in the
execution of the project.
3.2 Project Execution Plan Ownership, Maintenance, Distribution and Control
This Project Execution Plan is a “living document” and should be revised through the project if
necessary. The Project Execution Plan is the responsibility of the Project Manager. The project
management team from Discipline Lead level and above are required to be familiar with this plan and
ensure their project subordinates understand and comply with project procedures that are
relevant to their role.
For the purposes of review and improvement the project Plan is to be distributed to the following
project personnel for comment:
• Kinross Project Manager
• Toronto Engineering Manager
• Belo Horizonte Engineering Manager
• Project Coordinator
• Procurement Manager
• Construction Manager
• Toronto Project Controls Manager
• Belo Horizonte Project Controls Manager
The above listed are responsible for soliciting comment from their project subordinates.
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3.3 Reference Documents
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The following hierarchy applies to key Project procedural requirements:
1. Kinross Gold Corporation - SNC-Lavalin Contract;
2. Project Execution Plan;
3. Project Instructions Manual;
4. SNC-Lavalin Corporate Best Practice Procedures.
There are also a number of “free standing” plans that are to be read in addition to this document that
provide more detail in key areas of the project execution. These are listed below:
Document No.334572-0000-68AG-0001334572-0000-30AG-0001334572-0000-50AG-0001334572-0000-60AG-0001334572-0000-32AG-0001
TitleHealth & Safety Plan Project Instruction Manual Procurement Execution Plan Construction Execution Plan Project Controls Plan
Note: Items that are underscored in different coloured text are hyperlinked to other parts of the
project or this document. The primary hyperlinked location is the project PDM website.
Hyperlinks may not work if you do not have appropriate access rights to the location being
linked.
3.4 Confidentiality
A confidentiality agreement has been entered into between Kinross Gold Corporation and
SNCLavalin Inc.
All Project team members are required to respect the confidentiality of the technical and
commercial information related to the Project. Specifically there will be no discussions or
communication of any Project issues with personnel/organisation outside of the Project team
unless authorised by Kinross Gold Corporation.
Further details of the confidentiality requirements of the Project, including distribution of
confidential information, are detailed in the Contract and individuals are required to consult their
supervisor if they are unsure of the confidentiality requirements.
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4.0 DETAILED SCOPE OF WORK
4.1 Physical Facilities Scope
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The additional Ball Mill will require upgrades of the following physical plant:
• Power supply;
• Mill building;
• Cooling water (if required);
• Control systems and instrumentation;
• Grinding Circuit Process equipment such as the Ball Mill, Cyclones, Cyclone Feed Pump, and Jig
Feed Pump.
4.2 Battery Limits of Facilities Scope
• Process - Limited to the Process Flowsheet connections specified on the Mill circuit flow sheets
for Plant 2.
• Mechanical - Limited to equipment required to satisfy the upgrade of the new Ball Mill Circuit;
• Electrical - Connection of supply at Paracatu Site Boundary (note the new Ball Mill is15MW);
• Instrument - Limited to instruments directly associated with the new circuit and their connection
to the existing control system, and their configuration in the control software. If upgrades to the
control system I/O capacity or power supply are required due to the added instrumentation these
will also be in the project scope;
• Civil - Limited to the Plant 2 Mill building;
• Structural - Limited to the Plant 2 Mill building.
Facilities Excluded:
• Plant 1 works;
• Flotation;
• Mine Operations & Mine infrastructure;
• Run of Mine (ROM) ore supply and stockpile management;
• Tailings containment dam;
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• Existing equipment not related to the grinding circuit;
• Offsite infrastructure including roads and power supply.
4.3 Overall Services Scope
4.3.1 Engineering
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Engineering Services are required starting at the delivery of Basic Engineering, through to
Detailed Engineering packages up to and including negotiation with equipment vendors and
construction contractors. Once construction has commenced, engineering support will be
required throughout the construction phase of the project. The engineering support will resolve site
changes or other issues relating to the implementation of the design.
Wherever practical the services will draw on existing knowledge and documentation from the
previous Expansao III project. It is understood that as-built drawings for the existing plant are up to
date and available.
The engineering team will confirm with a client nominated technical representative the adequacy of
existing machinery used in Plant 2. If there are no significant issues discovered then existing design
specifications will be used “as is” for procurement of new similar equipment of the same type. Where
inadequacies are discovered the existing specifications will be revised accordingly.
4.3.2 Procurement
Procurement Services will be provided. This will start at soliciting of bids based on packages
supplied by engineering through to expediting materials to their delivery at the site storage area at
Paracatu, with SLI acting as agents of RPM.
Placement of purchase orders will be by RPM. This is to ensure that there is no doubt from a
governance or tax perspective that it is the RPM business entity at Paracatu that is undertaking the
project.
For the purposes of the allowance made in this proposal, it is expected that the procurement
processes will operate in a similar fashion as experienced by SLI on previous projects, and a
similar level of effort is required. The detail of operation needs to be agreed early in execution.
Any unusual aspects arising from this project or location will require review or negotiation of
EPCM scope.
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Negotiations with selected vendors after technical and commercial bid evaluation and
recommendation will be done jointly by the SLI Team that prepared the Bid Package and RPM
Team. SLI shall then provide a Purchase Order and submit to RPM for actual placing of POs.
4.3.3 Construction Management
Construction Management Services will commence with Construction Scheduling and Planning
activities early in the EPCM phase and continue through to Commissioning assistance to
Paracatu operations.
The Construction Management team will be required to interface with the Kinross RPM
Construction “owner’s team” located at Paracatu.
Construction Management will be responsible for the supervision of construction contractors and
materials management on site. This supervision will commence at mobilization of construction
contractors and continue to mechanical completion which includes pre-operational testing of
equipment and systems..
Senior process supervision will be provided on site during the commissioning phase. The
commissioning will be led by the nominated Process Leader for the project. He will be assisted by
the senior process consultant.
Construction services by SLI/SLM at site will include providing CM team office accommodation and
communications infrastructure (up to the point of connection to broadband connection
provided by RPM) and support for the duration of the project.
4.3.4 Safety
See section: 9.0 Health, Safety and Environment
SLI has corporate minimum standards for safety. The RPM Safety Program for the project will be
developed jointly and in consultation with SLI.
RPM will provide overall Safety management at the site and will specify safety procedures to be
followed. However, the Construction Manager shall ensure compliance of Construction
personnel in accordance with, and subordinate to, site safety leadership provided by RPM.
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4.4 Detailed Services Scope and Deliverables
4.4.1 Project Management
• Prepare project execution plan;
• Prepare baseline schedule and updates;
• Prepare weekly and monthly project progress and forecast reports;
• Implement & maintain project cost control system;
• Estimating & trending;
• Implement & maintain project document control system;
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• Develop document control interface & transfer process between SLI PM+ and RPM/Kinross
“Skire” system. Initially this process will be manual, but project scope may be added to make this
a semi-automated process;
• Support RPM safety manager in creating safety plan and achieving project safety objectives;
• Overall supervision & responsibility for EPCM project staffing & resourcing;
• Participation in project steering committee.
• Project Close-Out report.
4.4.2 Engineering
4.4.2.1 Process Engineering and Layout
• Process flow sheet for Mill Circuit “Issued for Design”. Note that this will be a revision of flow-
sheets produced by the current study phase;
• Mass Balance for the Mill Circuit “Issued for Design”;
• Plant layout drawings;
• Piping and Instrumentation drawings review;
• Process equipment list;
• Process equipment specifications;
• Process equipment sizing calculations;
• Process equipment data sheets;
• Equipment procurement packages/ vendor document & data lists;
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• Technical bid evaluation;
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• Commissioning plan and checklists;
• Assistance with commissioning plan & operations hand-over.
4.4.2.2 Mechanical and Piping Engineering
• Mechanical and Piping drawings (2D);
• Mechanical equipment;
• P&IDs;
• Valve List;
• Line list;
• Mechanical equipment sizing calculations;
• Mechanical equipment specifications;
• Mechanical equipment data sheets;
• Equipment procurement package scopes of work and information required for requests for inquiry
such as vendor document and data lists;
• Update Piping specification where required;
• Piping MTOs;
• Pipe supports and Hangers;
• Request For Inquiry packages;
• Technical bid evaluation;
• Technical support for installation & commissioning.
4.4.2.3 Civil, Concrete and Structural Engineering
• Civil and Structural plans & elevations;
• Civil and Structural typical details drawings;
• Excavation, Earthworks and drainage drawings;
• Structural, civil and earth works materials quantities;
• Structural, civil and earth works calculations;
• Civil and Construction contractor enquiry package;
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• Assist general contractor with location and services design for temporary construction facilities.
4.4.2.4 Geotechnical Work
• Review of current geotechnical work and extension of hole coverage;
• Review of geotechnical reports;
• Foundation design recommendations for the new Ball Mill and Building extension.
4.4.2.5 Building Services
• Heating, Ventilation and Air Conditioning calculations (primarily for switch room modifications);
• Equipment Specifications;
• Equipment data sheets.
4.4.2.6 Electrical
• Electrical Line Diagrams;
• Hookup diagrams;
• Electrical equipment list;
• Load and short circuit studies / calculations;
• Electrical equipment sizing calculations;
• Switch room layouts / upgrades drawings;
• Cable lists and material quantities;
• Electrical equipment data sheets;
• Electrical Equipment procurement packages/scopes of work/vendor document and data lists;
• Electrical scope for the MPEI Contractor enquiry package;
• Technical bid evaluation;
• Assist RPM with price negotiation;
• Technical assistance with commissioning plan and construction support.
4.4.2.7 Instrumentation & Control
• Piping and Instrumentation drawings;
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• Loop diagrams;
• I/O lists;
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• DCS/Control system configuration;
• Instrument list;
• Cable lists and material quantities;
• Instrument data sheets;
• Instrument specifications and Enquiry Packages;
• Technical bid evaluation.
4.4.3 Procurement
• Procurement Plan;
• Logistics and materials management plan;
• Enquiry templates;
• Construction contracts preparation and management;
• Creation and maintenance of the procurement packages in the project schedule;
• Issue procurement enquiries (physical equipment, services & construction contracts) and receipt
of bids;
• Commercial bid evaluation;
• Provision of purchase order documentation to enable Purchase Orders to be placed by RPM;
• Expediting of contracts;
• Price negotiation support for Kinross RPM price negotiation team;
• Materials shipping logistics;
• Warehousing and stores control at site.
Note: A project warehouse facility will be provided by RPM at site; however the project team will be
responsible for management of the facility.
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The contracting strategy for this project will be based on major contracts awarded to construction
contractors who have direct experience and proven competence in similar Brownfield
construction contracts in Brazil.
The following general strategy will be further detailed and refined by the Construction
Management Plan:
• Construction Management Plan and Construction Scheduling;
• Development of the Contracting Strategy;
• Day-to-day planning, supervision and co-ordination of construction contractors;
• Implementation of site Safety policy and directives. Note - a SLI Safety Manager will be provided,
and two SLI Safety Superintendents assigned to site, however overall safety management is to
be led by RPM;
• Leadership of tool-box talks and construction co-ordination meetings;
• Measurement and reporting of construction progress;
• Area/discipline engineering support/feedback from site;
• Construction site control;
• Site personnel mobilization, induction, and support;
• Prepare enquiry package for the provision of Construction Management offices and site facilities;
• Liaison with RPM Construction Manager for operations interaction;
• Supervision for pre-commissioning and commissioning;
• Support for “As-Built” design documentation services. Note: the construction contractor will mark-
up the drawings. SLI can provide back-drafting and re-issue but this has not been allowed for in
the proposal. This is expected to be negotiated once the scope for “as-built” is better understood.
4.5 Services Scope Exclusions
• Procurement of the 3rd Ball Mill, this is currently being managed by Kinross;
• Placement of purchase orders;
• Environmental investigations, licensing/permits;
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• Investigation or engineering works beyond the scope required to install and operate the Ball Mill
Circuit (note: this is currently being addressed in the separate scoping study);
• Upgrades or modifications to public transport corridors, roads, and utilities such as power, water
and communications outside the Plant 2 Mill Area boundaries;
• Services related to the mine, mine plan or mining;
• Geotechnical or survey works beyond that required for the new Ball Mill or Building extension.
Geotechnical drilling itself is not included, and will be contracted out to an appropriate service
provider.
• Any services relating to, or derived from separate environmental impact assessment studies or
environmental management.
4.6 Division of Responsibilities
X - Primary, O - Support
Facility, Service or Work ActivitySNC-Lavalin Toronto (SLI)
Responsibility
SNC-LavalinBelo Horizonte Owner
(SLM)
Basic Engineering
Layout X O
Layout Review X O O
Plant Capacity O O X
Site Conditions O O X
Process Design Criteria X
Discipline Design Criteria X O
Finalize Process Flow Sheet and Mass Balance X O O
Process Control Description X O O
Equipment List and Sizing X O O
Integrated Project Plan X O O
Project Schedule Levels 1 - 3 O O
Block Flow Diagrams (BFDs) X
Process Flow Diagrams (PFDs) X O
Utility Flow Diagrams (UFDs) X O
Piping and Instrument Diagrams (P&IDs) X O
Electrical Single-line Diagrams (SLD’s) X O
Specifications and Datasheets X X
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Facility, Service or Work ActivitySNC-LavalinToronto (SLI)
Geotechnical Survey X
Geotechnical / Foundation Specifications X
General Arrangement Drawings X
Set up Management System (PM+) X
Detail Engineering
Instruments Specifications and Location O
Finalize P&IDs - Instrument List Development O
HazOp X
Mechanical Drawings IFC O
Electrical Drawings IFC O
Civil/Structural Drawings IFC O
Architectural Drawings IFC O
Instrumentation/Control Drawings O
Control System Configuration/Programming
Requisitions and Bid Analyses X
Recommendation to Purchase Stage O
Vendor Drawing Approvals X
Control Methodology and Functional Description X
Slurry Hydraulic Calculations X
Piping Design X
Design Reviews X
Procurement
Procurement Plan O
Logistics and Materials Management Plan
Enquiry Templates
Creation and Maintenance of the ProcurementSchedule
Issue and Receipt of Procurement Enquiries
Technical Bid Evaluation O
Commercial Bid Evaluation and Recommendation
Final Price Negotiation O
Placement of Purchase Orders
Vendor Data Review O
Expediting
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Responsibility
SNC-LavalinBelo Horizonte Owner
(SLM)
O X
O
O
X
X
X X
X
X
X
X
X
X
X
X
X
O
X
X
X X
X
X
X O
X
X
X
X O
O X
O X
X O
X
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Facility, Service or Work ActivitySNC-LavalinToronto (SLI)
Shipping Logistics & Warehousing (note:Warehouse Facility provided by RPM)
Implement PM+ Procurement Module
Construction Management
Construction Management Plan
Construction Contracting Strategy
Quality Control and Quality Assurance
Cost Reporting
Construction Scheduling
Day-to-day Planning, Supervision andCo-ordination of Construction Contractors
Implementation of Site Safety Policy and
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Responsibility
SNC-LavalinBelo Horizonte Owner
(SLM)
X O
X
X
X O
X
X
X
X O
Directives
Leadership of Tool-box Talks and Construction Co-ordination Meetings
Measurement and Reporting of Construction Progress
Discipline Site Engineering
Construction Site Controls
Site Personnel Mobilization, Induction, and Support
Liaison with RPM Construction Manager for Operations Interaction
Commissioning Plan and Checklists
Support for “As-Built” Design Documentation Services
Commissioning/Start-up
O X O
X O
X
O X
X O
X O
X O
O O X
X
O O X
Reports and Manuals
Operating Manuals and Vendor Warranties O X
Final Report X X
4.7 Third Party Input List
• None Identified.
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5.0 EXECUTION STRATEGY
5.1 Project Objectives
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The Kinross Gold Corporation business objectives are:
• Maintain Plant Production Capacity as the Mine moves into harder ore bodies;
• Maintain or improves the opportunities for this plant to be expanded / upgraded in the near term
future;
• Learn from the previous Expansao III project and ensure the current design is an improvement in
the areas of efficiency, operability and maintainability.
The key objectives of the Project are:
• To deliver a safe facility with no HSE incidents during the course of the Project;
• To integrate the new plant activities into the existing site operations in order to minimise operating
and fixed costs;
• 3rd Ball Mill ready for operation December 2010.
5.2 Execution Strategy
This project is primarily schedule driven and being executed using a “Fast Track” approach.
5.2.1 Engineering
This project will have overlapping Basic Engineering and Detailed Engineering design phases as well
as overlap with Construction. The overlap is required due to the “Fast Track” execution
strategy for the project. This is required to achieve early mobilization for critical path works.
This overlap may create some execution inefficiency from the engineering perspective; however the
benefits expected from meeting the Mill operating date are expected to outweigh engineering costs.
In particular some civil and structural construction will be required to be undertaken prior to the
finalization of basic and detailed engineering for the entire plant.
“Fast Track” creates some risk of re-work, and forces early completion of some aspects of the
design that may have better technical solutions that could be discovered through the more
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conventional phased approach of engineering. Where this occurs the engineering for early
works will be conservative and accommodate most reasonable options that could be required that
may be unknown at the time of the early works.
5.2.1.1 Basic Engineering
Basic Engineering will be executed from SLI’s Toronto office. During this time the Belo
Horizonte (SLM) Engineering Manager and Lead Civil/Structural Engineer will be based in the
Toronto office. The goal is to ensure design concepts from Basic Engineering are well
understood across the discipline team, and ensure a smooth the transition of design hand-over
between the two locations. The Process, Layout, Piping, and Mechanical Leads will be Toronto (SLI)
based personnel.
5.2.1.2 Detailed Engineering
Detailed Engineering will be executed from the Belo Horizonte (SLM) office.
SLI’s Process, Layout and Mechanical Leads will work with SLM when the Basic Engineering
package is transitioned to the Detailed Engineering team in SLM-Belo Horizonte. They will
remain in Belo Horizonte until they have ensured that SLM’s assigned Process, Layout, Piping,
Electrical and Mechanical Leads, understand the concepts and any critical areas of the design. They
will establish relationships and lines of communication to ensure that future issues can be readily
resolved as Detailed Engineering progresses.
After the initial visit SLI’s team will review the design on an ongoing basis and lead formal design
reviews at 30% and 80% completion of engineering.
5.2.2 Procurement
Procurement will be lead from the Belo Horizonte office, with SLI acting as agent for RPM.
RPM has a procurement department in Belo Horizonte. The Procurement Plan and Materials
Management plan will be developed with review and input from RPM. There is likely to be a
requirement to account for Brazilian taxation impacts when developing the plans. A site based
Procurement team (Person) will be mobilized at an appropriate time as materials begin to arrive
on site.
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Contracting Administrator will be mobilized at the beginning of the project in order to work on the
contracts’ formation. This professional will be first located at Belo Horizonte office and after that he
will be transferred to the site to follow with the contracts’ administration.
A construction kick-off meeting is conducted with each successful Contractor to review the
Project HSE policies, performance objectives and program standards and safe work processes.
Each Contractor is required to conduct a hazard assessment of the construction site prior to set
up and starting work activities on the site. Each Contractor’s compliance with the Project HSE
Plan is regularly audited by the HSE Manager and is also monitored by the Construction
Coordinator. Audits include an evaluation of program documents and records, observation of
compliance with safe work processes and interviews with line management and workers. The
Construction Manager is advised of any non-compliance(s) and requests the designated
contractor to review and initiate corrective action. Non-compliance is documented in each
Contractor’s project file.
On a weekly basis, each Contractor submits a Contractor Weekly HSE Performance Report
detailing site statistics and the HSE program activities completed. Documentation records
include; orientation sessions, safety meetings, hazard assessments and inspections which are
attached to the weekly report. A Contractor Monthly HSE Performance Report is also prepared and
issued by each Contractor.
On a weekly basis each Contractor submits a Contractor Weekly Status and Performance report
detailing the previous week quantity installation, job hours earned versus job hours expended, percent
progress, issues and actions, as well as written account of accomplishments for the
week and forecasted accomplishments for the next week. The format of this report is defined by
Kinross in the contract appendix.
On a monthly basis the contractor’s will provide the following at a minimum:
• Construction progress curves (by account and area if required);
• Manpower Histograms (by account and area if required);
• Equipment Utilization plan;
• Update of Construction schedule;
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• Installed quantity curves;
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• Analysis of contractor performance and report variance against baseline;
• Analysis and reporting of contractor’s productivity performance index (CPI) and schedule
performance index (SPI);
• Monthly report;
• Track, process and analyze changes and deviations to scope;
• Track, process and analyze rework;
• Track and report system turnover completion status.
Each Contractor maintains a complete set of work practices and safe work procedures for the
required scope of work. The completeness of these documents is verified during the pre-award
meeting with each Contractor.
5.2.2.2 QA/QC
Field engineering is directly responsible for quality assurance and the construction field
engineers are directly responsible for quality assurance / quality control of the work to ensure
conformance with applicable standards and the design requirements.
For overall QA/QC co-ordination and compliance an on-site Construction Coordinator reports to the
Construction Manager with a functional responsibility to the Quality Assurance Manager.
5.2.2.3 Expediting
Expediting will be undertaken by SLM. One expeditor located at Belo Horizonte office will work full
time in order to guarantee that materials and equipment arrive on site as scheduled.
Logistics and Inspection will be conducted an appropriate time as soon as the suppliers are
defined.
The Expeditor is responsible for monitoring the fabrication schedule, verifying inspection and test
‘hold-point’ dates and for the co-ordination of the required inspection visits with the Inspector assigned
to the package.
The Expeditor is also responsible for the timely submission of all vendor provided deliverables as
defined in the purchase order. These deliverables include contractual documentation such as
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the return of signed purchase order acknowledgements, valid bank guarantees and performance
bonds, etc., engineering drawings and technical documents, material test certificates, final
certified drawings and the appropriate installation, maintenance and operating manuals.
5.2.3 Construction Management
The Construction Manager will be identified early in the EPCM execution and commence
construction planning from the Belo Horizonte Office.
Just prior to mobilization of the site construction team the Construction Manager will relocate to the
Paracatu site.
The Discipline Supervisors for the Construction Management team will be selected from the
Detailed Design team early in the Detailed Design phase. They will be relocated to the Paracatu site
as part of the Construction Management team mobilization.
Other Construction Management team personnel will be mobilized directly to site.
5.2.4 Overall Project Management
The overall Project Management will be led from the Toronto office.
The Project Manager will initially be based at in Toronto but relocate to Belo Horizonte at the time
of transition to Detailed Engineering.
The initial set-up of Project Controls and Administration will be led by the Toronto based
personnel.
When the Detailed Design commences, the day-to-day administration and control will be
transferred to the Belo Horizonte office.
It should be noted that there is a requirement to run two separate invoicing systems for the life of the
project, one for off-shore (Toronto) services and the other for on-shore (Belo Horizonte/
Paracatu based) services. The Project, however, will be controlled and reported as a single
SNC-Lavalin entity to RPM.
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6.0 SCHEDULE
6.1 Critical Success Factors
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• Early freezing of the design and commitment to procure long lead items;
• Rapid and clear communications lines between stake-holders;
• Clearly defined roles and responsibilities for project team members both within SLI and between
SLI and Client;
• Definition and implementation of HSE plan prior to construction mobilization;
• The quality and continuity of the project team through the project phases;
• Minimisation of change.
6.2 Critical Schedule Activities
The following activities are deemed critical to achieving Project schedule:
• All stakeholders should be involved and aligned early (i.e. integrated team approach). This will be
achieved through a Kinross led formal planning session in February 2010;
• Identifying what documentation can be replicated from existing designs and what new
documentation is required;
• Long lead items should be ordered early;
• Contracting strategy should be chosen to avoid tendering delays;
• Driving design by constructability and operability requirements to avoid delays and modifications.
6.3 Project Schedule
The preliminary schedule is attached at Appendix A - Baseline Schedule
6.3.1 Critical dates/milestones and Critical Path items.
MS0020 Award of Overflow Launder Contract 15-Jan-09
MS0010 Start Basic and Detailed Engineering 01-Feb-10
MS0015 Finalize Preliminary Layout 26-Feb-10
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MS0018 Report of Boreholes - Preliminary Geotechnical Report 28-Feb-10
MS0019 Ball Mill Vendor Certified Drawing 28-Feb-10
MS0075 Deliver Ball Mill Sole Plates 30-Mar-10
MS0040 Award of Civil (Earthworks & Concrete) Contract (Pkg. CEC-01) 23-Apr-10
MS0080 Start Delivery of Ball Mill Components 30-Apr-10
MS0050 Award of MEPI Contract by Owner (Pkg. MEC-02) 14-Jun-10
MS0070 Critical Engineering - Substantially Complete 14-Jun-10
MS0090 Complete Concrete Works 30-Aug-10
MS0100 Complete Delivery of Equipment/Materials 06-Nov-10
MS0110 Project Mechanical Completion 31-Dec-10
6.3.2 Significant Constraints
The plant will have a number of shutdowns through 2010. Construction activities will need to be
coordinated with plant operations for access during shut windows.
The wet season broadly occurs through the summer (southern hemisphere) months however this is
not anticipated to significantly affect the construction activity as foundation preparation is
largely scheduled for the dry season.
6.3.3 Long lead items that are critical to the schedule
• Slurry pumps
• Hydroclyclones
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• VFDs
• Switchgear
• Transformer
6.3.4 Milestone Schedule
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See: Appendix A - Baseline Schedule
6.3.5 Client Kick-Off Meeting
Client kick-off meeting minutes are located at: https://pm-
gp.snclavalin.com/sites/Paracatu/admin/Documents/30/30PMC/MC
6.3.6 90 Day Early Work Plan
See document: ..\SA-Schedules\Paracatu EPCM 90-Day Plan.pdf located at the PDM site
(linked above)
6.3.7 Key Reviews
• HAZOP
• Basic Engineering Handover Review
• 80% Review
• Constructability Review
• Risk Identification and Assessments
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7.0 PROJECT ORGANIZATION
7.1 Organization Chart
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7.2 Roles and Responsibilities - SNC Lavalin Team
7.2.1 Common Responsibilities
Each manager/supervisor is directly responsible for:
• Quality of the output of their organisation;
• Implementation of the Project Execution Plan;
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• Ensuring project procedures detailed in the Project Instruction Manual are accurate and
properly applied;
• Ensuring that personnel under their direction are qualified to perform the tasks assigned;
• Training personnel under their direction in the applicable project policies and procedures
as written in this Project Execution Plan and the Project Instruction manual;
• Monitoring the performance and progress of their organisation’s activities and
implementing corrective actions, as required, to meet project objectives;
• Ensuring a safe work environment utilising training and safety awareness.
7.2.2 Specific Project Team Member Responsibilities
7.2.2.1 Project Sponsor
The Project Sponsor represents company management. The Sponsor provides guidance to the
project team to ensure that the project meets Kinross Gold Corporation’s objectives. The Project
Sponsor maintains frequent contact with the Kinross Gold Corporation and assists the Project
Manager in resolving contractual issues. The Project Sponsor also works closely with the
Project Manager to ensure that key technology and bidding strategy are properly transferred to
the Project Team.
The Sponsor also has responsibility to ensure the Project Manager is implementing Peer Review
Action Items on a timely basis.
7.2.2.2 Project Manager
The Project Manager has the overall authority and responsibility for execution of the project in
order to produce all work safely, with quality and within budget and schedule in compliance with
contractual terms and conditions, as well as company policies. The Project Manager is the
primary contact with the Kinross Gold Corporation on matters relating to the project. He reports
to the Project Sponsor on progress of the project, safety performance, quality, budget,
schedules, changes that necessitate contractual modifications, procedures, and status of
customer relations.
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Specific responsibilities of the Project Manager include:
• Leading the HSE program for the project;
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• Directing and managing the Project Team for the execution of the Project scope of work;
• Managing the handover from proposals, project initiation and team mobilisation of the
Project;
• Management of the workscope and the Change Management Process;
• Monitoring, reporting and controlling project costs and schedule through all phases of the
Project;
• Reporting of the Project, both to the stakeholders and SNC-Lavalin management;
• Administering the project in accordance with the requirements of the Contract and the
Project Administration procedures;
• Managing the interfaces with the stakeholders and within the project team;
• Managing the project turnover, lessons learned and Project closeout.
7.2.2.3 Engineering Manager(s)
The Engineering Manager is the principal member of the Project Manager’s engineering staff
and, as such, assist the Project Manager in the management functions of the project delegated to
them. The primary responsibility for the Engineering Manager is for the development,
execution, supervision, and coordination of all technical aspects of the work safely, with quality and
within schedule and budget objectives. The Engineering Manager also ensures that the customer
criteria and scope of work are being met by all engineering disciplines. The
Engineering Manager is functionally responsible to the Project Manager.
Specific responsibilities of the Engineering Manager includes:
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• Performing project or task management functions as delegated by the Project Manager,
including customer liaison, coordination of technical meetings, and general project
supervision and coordination;
• Assisting the Project Manager in the project initiation activities and in preparation of the
Project Execution Plan;
• Leading the development of the schedule and budget establishment for engineering and
to control, monitor and report engineering performance against budget and schedule;
• Managing engineering activities to ensure compliance with the Scope of Work and quality
objectives of the project;
• Leading and coordinating all technical reviews both with stakeholders and internally
within the project;
• Coordinating between engineering and procurement and between engineering and
construction;
• Enforcing the management of project change process within the technical team.
7.2.2.4 Project Coordinator
• Develop and maintain the Project Instructions Manual;
• Ensure proper liaison, communication and coordination between the disciplines and
locations;
• Identify and rectify gaps between project procedures;
• Develop project specific procedures where Global Procedures cannot be applied or do
not exist - note Project Manager and QA Manager approval is required for any changes
to company standards and procedures;
• Manage the Technical Query process;
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• Ensure the PDM site is properly used and maintained by the project team;
• Focal point for project administration;
• Create and coach the team through the 90-day plan;
• Accountable for ad-hoc and non-controls reports;
• Identifying and planning for training requirements of personnel and project specific
inductions;
• Responsible for the “administrative quality” of the project.
7.2.2.5 Project Controls Manager
The Project Controls Manager (PCM) oversees the work of the Project Cost Engineer, Project
Planner/Scheduler, and Project Estimator. The PCM is responsible to the Project Manager for the
quality, timeliness, and content of the effort carried out by these project support personnel, together
with:
• Development of the Project Controls Plan;
• Preparation of Kinross Gold Corporation and internal project reports;
• Preparation of the Project Internal Monthly Review report and input to the MFL database;
• Establishment of the project staff-hour control system and maintenance of the staff-hour
control system;
• Establishment of the project cost control system;
• Take the role of the Project Risk manager (Toronto);
• Establishment of the project work breakdown structure (WBS) and commodity codes with
input from Kinross and project team.
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7.2.2.6 Project Cost Engineer
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The Project Cost Engineer is responsible to the Project Controls Manager. Specific
responsibilities of the Project Cost Engineer include:
• Reporting to the Project Manager all sources of contract expenditures against the
appropriate budget allocations for the specific project;
• Forecasting the anticipated final project costs for the approval of the Project Manager
using reports and analyses of the staff-hour reports, financial commitments and field
progress evaluations;
• Preparing all necessary cost reports for the customer and the Project Manager;
• Reviewing all Kinross Gold Corporation billings prior to submission to the Project
Manager and Kinross Gold Corporation;
• Analysing contract documents to ensure complete knowledge of SNC-Lavalin’ obligations
so that contract scope changes can be recognised, isolated, and reported to the Project
Manager for appropriate action. This responsibility extends to both home office and field
change orders;
• Maintaining the Change Request Register utilising the project Change Management
process;
• Managing the project trend register and to report on trends to the Project Manager.
7.2.2.7 Project Planner
The Project Planner is responsible to the Project Controls Manager. Specific responsibilities of the
Project Planner include:
• Developing and maintaining the project schedules including the Level 1 Milestone
Summary Schedule, Level 2 rollup schedule, Level 3 Integrated Project Schedule and 90 day
detailed Project Execution schedule;
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• Monitoring project progress, status of the schedule and reporting on progress. This
applies to both home office and field activities;
• Identifying trends or potential slippages and report on these to the Project Manager and
the Project Controls Manager;
• Producing regular reports on progress against schedule.
7.2.2.8 Project Procurement Manager
The Project Procurement Manager reports to the Project Manager and is responsible for the
management of all material management and contracting activities. The Project Procurement
Manager has the overall responsibility for the delivery of purchases and contracted works within the
budget and schedule requirements of the project and compliance with the specified quality. Specific
responsibilities of the Project Procurement Manager include:
• Establish and issue of the Project Procurement Plan, the standard Terms and Conditions,
the approved vendor and subcontractor list;
• Issue and maintenance of the Project Procurement Status Report and Project Contract
Plan;
• Implementation and operation of the Project Materials Control System (MCS);
• Enquiry, commercial evaluation, recommendation for award, management and closeout
of all purchase orders and offsite fabrication contracts;
• Enquiry, commercial evaluation, recommendation for award and handover to construction
of all on site contracts;
• Expediting of all purchase orders and off site fabrication contracts;
• Inspection of all purchase orders and off site fabrication contracts;
• Management of the release, freight, customs clearance and goods reception of
purchased items to site.
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7.2.2.9 Lead Engineers
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A Lead Engineer is the leader on the project for the specific discipline he represents. He reports
functionally to the assigned Project Engineering Manager and has technical quality, coordination, and
production responsibility for all work in his discipline on the project. He is administratively
responsible to his Departmental Engineering Manager in the Engineering Department to ensure the
technical adequacy and quality of all work produced by his staff. He is responsible for
performing engineering on the project as required for his discipline; and for the supervision of
personnel assigned to him and engaged in engineering, design, and other work pertinent to his
assigned duties. These duties include proper coordination with other disciplines and on-
schedule in-budget completion of all assigned work.
7.2.2.10 Construction Manager
The Construction Manager is responsible for the complete administration and organisation of
construction and field personnel and directs the field effort through the activities of his staff. He
reports directly to the Project Manager. Specific responsibilities of the Construction Manager
include:
• Leading the management of HSE in the field;
• Assisting in developing the Construction portion of the schedule for the project;
• Supporting the design process phase through constructability reviews, risk and
opportunity reviews;
• Participating in the development of the contracting plan and participating in contract
enquiry package development and bid reviews;
• Developing of the site resourcing plan and selecting/mobilising the Construction
Management Team;
• Establishment of the project site facilities;
• Managing and administering of the site contracts to achieve safety, quality, budget and
schedule objectives;
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• Commercial administration of the contracts;
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• Managing interfaces on site including between contractors, and between Construction
and Operations;
• Testing and Completion of construction;
• Handover to Commissioning and/or Operations;
• Commercial closeout of contracts.
7.2.2.11 Project Quality Manager
The Project Manager is responsible for implementing the Quality Program and Quality Plan on the
project.
The Project Quality Manager is responsible for development of the Quality Program and for the
independent surveillance and audit of the project for compliance with procedures and
requirements, as well as the documentation of compliance and corrective actions. The Project
Quality Manager performs these activities independent of the design group responsible for the work.
The Project Quality Manager works closely with the Project Manager and advises him of the status
of quality-related activities.
7.2.2.12 Special Project Interface Requirements
The SNC-Lavalin engineering team for this project will be split between Toronto, Belo Horizonte and
Site. This will require that proactive planning is required to deal with inter-team
communications. Apart from the physical separation of the offices there are also time-zone
language and organizational differences between the locations.
Other design organisations undertaking activities which feed into our work scope definitions.
• Metso
• RME
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Both Metso (Mill supplier) and RME (Liner handler supplier) also have location and timezone
issues to overcome.
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8.0 ADMINISTRATION AND COMMUNICATIONS
8.1 Project Instruction Manual
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Administration for this project is detailed in the Project Instructions Manual 334572-0000-30AG-
0001
The Project Instruction Manual is the comprehensive reference for all administrative processes that
apply to this project, and is the main source of administrative guidance for project
employees.
The Project Coordinator is responsible for identifying administrative requirements for the project and
developing solutions for issues that are not completely addressed by Global Quality
Procedures. The Project Coordinator is also responsible for tailoring SLI Quality Procedures to the
specific requirements for the project.
8.2 Communications Plan
Information needs to be administered efficiently and communicated to team members,
customers and other project stakeholders in a timely manner. Project communications
management provides the framework and critical links among people, ideas, and information that are
necessary for project success. The requirements for project communications must be clearly
established at the start of any project. It needs to address information content, format and
timing. The compilation and communication of all information, including engineering documents, must
be effectively managed throughout the implementation of any project to ensure a seamless and
problem free transition to subsequent phases with minimum effort and delay.
8.2.1 Kinross’s Skire Unifier System
Kinross is in the process of implementing a client-side web-based software to enable them to
better manage their roster of projects.
The Skire system has a platform for document control and project controls, and is intended to be
Kinrosss storage and transfer location for most official project documentation. The system is still being
developed and this will be the first external project where Kinross will be using this system. As
procedures are developed that affect the SNC-Lavalin project procedures they will be
included in the Project Instruction Manual.
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Most inter-company formal document and communications exchanges are expected to involve
Skire as the system is implemented.
8.2.2 Formal Lines of Communication
The following formal lines of communication will be used for the Project:
Subject Corresponding PartiesSNC-Lavalin Kinross
Formal Contractual Issues
SNC-Lavalin Project Kinross Project Sponsor
SponsorMark Isto
John Lindsay
Key Technical Issues andDecisions SNC-Lavalin Kinross Engineering
Engineering Manager Manager
Gilberto Antonini (Basic Wayne Phillips
Engineering
Alberto Dantas (Detail
Engineering)Procurement Issues
SNC-Lavalin Kinross Procurement
Procurement Manager Manager
Eder Castro Fausto Casar
Operations Issues
SNC-Lavalin Kinross Operations
Engineering Manager Manager
Site Issues
SNC-Lavalin Kinross Construction
Construction Manager Manager
Antonio Bernardes Jose Mauro
Copies
SNC-Lavalin Project Manager
John Robinson
Kinross Project Manager
Tim Dake
SNC-Lavalin Project Manager
Kinross Project Manager
SNC-Lavalin Discipline Leads Kinross Discipline Leads
SNC-Lavalin Project Manager Kinross Project Manager
SNC-Lavalin Discipline Leads Kinross Discipline Leads
SNC-Lavalin Project Manager Kinross Project Manager
SNC-Lavalin Discipline Leads Kinross Discipline Leads
SNC-Lavalin Project Manager Kinross Project Manager
SNC-Lavalin Discipline Leads Kinross Discipline Leads
Any instructions issued by the Project team to a third party offering advice/clarification/ decisions or
recommendations which may have a cost or schedule impact on the Project will only be
issued by the Project Manager.
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8.2.3 Email Communication
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Email will also be used as a communication method for the project. However, it shall not be for
formally agreeing key project scope or contractual actions. These will be done via formal project
controls procedures covered, or via a formal technical query process. Once enabled Kinross’s
Skire system will be used to capture, distribute and revert these types of communications and
agreements.
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9.0 HEALTH, SAFETY AND ENVIRONMENT
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The SNC-Lavalin corporate policy for Health, Safety and Environment stand to encompass the WE
CARE philosophy of management.
The SNC-Lavalin project manager shall ensure that the SNC-Lavalin Policy objectives are
outlined at time of induction for all employees and contract personnel, and displayed at all safety
notice boards and Site Office areas.
In Brazil Health Safety and Environment is covered and the terminology of “Safety and Security”.
The Plan than addresses health Safety and Environment is called the “Safety, Environmental, and
Health Management System”.
The successful implementation of the Safety, Environmental, and Health Management System is a
key element in the safe execution of Paracatu 3rd Ball Mill Project.
9.1 Ownership
RPM site management is the owner of all HSE issues at site, and bears ultimate responsibility
for procedure and control. However for this project SNC-Lavalin is obliged to develop the project
Safety, Environmental, and Health Management System. The system will align with RPM
procedure, but also include any extra requirements that arise from the implementation of brown field,
fast track works that are specific to the Project itself.
9.2 Kinross Standards
HSE standards included in the Safety, Environmental, and Health Management System are
predicated upon Kinross Gold Corporation HSE policy and management standards, HSE values and
management system, and legislative requirements.
9.3 SNC-Lavalin Standards
In addition to Kinross standards all work performed during the construction of the Paracatu 3rd Ball
Mill project shall satisfy the minimum requirements and intent of SNCL approved HSE
procedures.
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9.4 Contractor Requirements
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The Safety, Environmental, and Health Management System will form the basis of the special
conditions of contract for all contracts. Contractors will not be permitted to mobilise until
SNCLavalin has approved each contractor's HSE Management Plan.
9.5 Details
See the Safety, Environmental and Occupational Health System Manual 334572-0000-68AG-
0001 for an in-depth coverage of project Health, Safety and Environment policy and procedures.
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10.0 RISK MANAGEMENT PLAN
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Kinross has indicated that they already have a risk management system they wish to use for the
project.
Kinross has a formal risk review and identification process implemented through the “Resolver”
Website.
Kinross has provided log-in rights for SNC-Lavalin to enable review of the risks and risk
management plan provided by Kinross.
https://kinross.resolverrisk.com/ResolverRisk/Login/Login2.aspx?ReturnUrl=%2fResolverRisk%2
fDefault.aspx
The SNC-Lavalin Risk Management Procedure 3114 applies to this project, however the
implementation will take into account the Kinross leadership and work in this area. The Kinross
“Resolver” system will be the primary tool for managing risk.
10.1 Risk Review Schedule
A project risk review schedule will be established between the Kinross and SNC-Lavalin Project
Managers.
It is expected that risk review meetings will be held at the following key project events:
Site establishment
Key Contract mobilization at Site for each construction contractor
Shutdown / tie-in
Commissioning.
10.2 Risk Database
Kinross’s Resolver database will be used for this project.
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Resolver is a Web based tool that allows continuous addition, assignment of actions, status
reporting and broad communication of identified project risks.
Since this is a Kinross tool, Kinross will be responsible for maintenance, support, training of
project personnel, generation of project reports, management and access to the database.
10.3 Roles
10.3.1 Risk Managers
SNC-Lavalin Risk Manager for the project (Part Time) - Nikhil Vyas.
Risk Manager for Kinross - Andrew Rodrigues
10.3.2 Safety Managers
SNC-Lavalin Safety Manager for the Project - Luiz Castro.
Kinross Safety Manager - To be advised
10.4 Responsibilities
10.4.1 Project Manager
The Project Managers for both Kinross and SNC-Lavalin teams shall be responsible for creating
an environment where project stakeholders are encouraged to actively search out risks of all
types, so that they can be dealt with as early as possible with the minimum impact and cost to
the project.
The Project Managers have ultimate responsibility to Senior Management for all project risks, their
Identification, Analysis, Evaluation and Prioritization, Mitigation, and Communication.
Project Managers shall foster an environment where any member of the project team may
identify potential risks or opportunities and raise them to their direct supervisor, the Project
Manager, the Project Health, Safety and Environmental Manager or the Risk Manager.
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In any and all circumstances, the Project Manager is always responsible for all risks and their
management.
10.4.2 Project Health, Safety and Environmental Manager
The Project HSE Manager implements and administers the project’s HSE Program in the office and
at the project site. He/she provides the Project Manager with guidance and advice to
achieve the project's Health, Safety and Environmental objectives. The specific functions of the
Project HSE Manager shall be as follows:
Ownership of the HSE Risk Management process
Ownership of the HSE Risk Registers
To ensure that the HSE Risk Register is maintained and is current.
10.4.3 Risk Manager
A Risk Manager is assigned to the project on a part time basis. The Risk Manager shall support the
Project Manager for all aspects of Risk Management. The specific functions of the Risk
Manager shall be as follows:
Ownership of the project Risk Management process.
Ownership of the Risk Database.
To ensure that the project Risk Database is maintained and is current.
To organize, facilitate and document Risk Identification sessions as well as any following-up of
actions.
To organize Risk Management Reviews.
To generate Lessons Learned reports.
To maintain the continuous improvement process.
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To close-out the risk management process at the end of the project.
10.4.3.1 SNC-Lavalin & Kinross Risk Managers
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For this project overall administration of risk management is owned by the Kinross Risk
Manager. However the SNC-Lavalin risk manager is accountable for:
Ensuring SNC-Lavalin minimum internal standards for risk management are met.
The Kinross Risk manager is properly supported, particularly in areas where it is expected
SNCLavalin has greater detailed knowledge of the project, and issues related to EPCM execution.
Management and closure of the risk register actions assigned to SNC-Lavalin personnel.
Ensuring Resolver risk actions are properly tracked and captured for project records.
10.4.4 Risk Owner
Assigned by the Project manager, this should be the person most knowledgeable about the risk and
the person best positioned to actively mitigate the risk.
10.4.5 Other Stakeholders
It is the responsibility of all project stakeholders to take a proactive approach to the identification,
mitigation and minimization of risk. Other stakeholders in the Risk Management process are:
Project Quality Manager
Senior Management
Corporate service organizations, e.g.: finance, project services and HR
Project vendors, subcontractors, and suppliers
All project personnel.
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11.0 QUALITY
11.1 Quality Management Plan
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The project Quality Management Plan is at Appendix L of the Project Instruction Manual 3345720000-
30AG-0001.
For this project Quality Management will apply to Engineering, Procurement and Construction.
Quality managers have been assigned from both the Belo Horizonte locations and the Toronto
locations.
The Toronto location will be responsible for the initial publication of the quality plan. Quality
supervision for the balance of the project will be provided by the Belo Horizonte location.
If you are reading this documentation electronically from inside the SNC-Lavalin network further
information on Quality Procedures can be found at this link: Toronto Quality Procedures
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12.0 PROJECT CONTROLS
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Project controls procedures for this project are described in detail in the Project Controls Plan
334572-0000-32AG-0001.
The Project Controls Manager has been assigned in Toronto, however once the basic
engineering phase is complete, the controls manager assigned Belo Horizonte will be primarily
accountable for controls management and reporting. Since the project is led from Toronto,
management overview and support will continue to be provided from Toronto.
Project controls set-up and PM+ initialisation and configuration is the responsibility of the Toronto
location. Ongoing formal project reporting and maintenance of the PM+ databases will be the
responsibility of the Belo Horizonte location.
12.1 Alignment with Kinross
The project Work Breakdown Structure and cost reporting is to be aligned with the Kinross
standard Work Breakdown Structure and Kinross’s Skire cost control system
Initially controls reporting into Skire will be via semi-manual export-import spreadsheets provided by
Kinross. Kinross would like the project to progress to an automated data transfer system form SNC-
Lavalin into Skire. Due to the fast track nature of the project this work will be lower priority than the
execution required for physical scope. The automated transfer will be scoped and
treated as a sub-project. It will require Kinross to approve a variation for systems experts and IT
specialists to undertake the work.
12.2 Controls Systems
The project will be controlled within SNC-Lavalin as one project set-up under PM+,
SNCLavalin’s proprietary software for managing major engineering and industrial projects.
The project has two contracts that will managed from each business entity. The primary reason for the
two contracts is to clearly separate Brazil local charges from non-Brazil charges. Invoices from non-
Brazilian sources will attract a high level of withholding tax.
PM+ will be set-up to accept accounting and tracking information from Belo Horizonte and
Toronto.
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The financial systems and hours tracking (eg charge codes) between the two offices will be
aligned so that there is single accounts code for the project.
12.3 Roles & Responsibilities
12.3.1 Toronto Project Controls
The Project Controls Manager - Toronto has the following accountabilities:
• Initial set-up up of the project in PM+ and ensuring proper set-up in SLI accounting
systems.
• Creation of the Project Controls Plan
• Creation of project specific Plans, Policies and Procedures where required.
• Leadership and guidance for Belo Horizonte assigned Project Controls Manager.
• Ensuring adequate systems are in place to control the project.
• Initial reporting until there the project reporting process is defined and routine and can be
handed over to Belo Horizonte with minimal disruption to the project.
12.3.2 Belo Horizonte Project Controls
The Project Controls Manager - Belo Horizonte has the following accountabilities:
• Lead project controls for the project in Belo Horizonte and Paracatu site office.
• Ensure the project controls structure as defined by Toronto is implemented in the Belo
Horizonte and Paracatu site office.
• Identify and rectify gaps in project controls processes between the Toronto and Belo
Horizonte.
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• Ensure staff are adequately trained to comply with the project controls procedures used
on the project
• Produce project controls reports once the methodology and format is established.
• Manage the project controls in compliance with SNC-Lavalin corporate procedures as
defined in the Project Quality Plan, including reporting, management of change,
trending/cost estimating and other standard responsibilities of an SNC-Lavalin Project
Controls Manager.
The project controls function is further defined in the Project Controls Plan.
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13.0 ENGINEERING PLAN
13.1 Engineering Plan
13.2 Objectives of this Plan
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The objective of this section is to describe the methods, systems and strategies to be
implemented for successful execution of the engineering for the project.
The plan is to be implemented by the Engineering Manager with execution responsibility with the Lead
Discipline Engineers.
13.3 Objectives, Strategy and key Activities / Deliverables
13.3.1 Engineering Objectives
The key engineering objectives of this phase are as follows:
Ensure integrity of the design in accordance with all relevant applicable International and
Brazilian standards, procedures and industry norms.
Ensure the design is safe, operable, fit for purpose, and cost effective.
Prepare and complete engineering deliverables that are suitable for procurement, construction and
operation of the facility.
Define the key engineering issues and develop a risk management strategy that is to be
implemented through subsequent phases for each of these key issues.
Complete critical reviews to assure the correctness, safety and application of the engineering
scope. Such reviews include HazOp and design reviews.
Interface with construction representatives to verify constructability.
Interfacing with RPM’s personnel to implement operation and maintenance requirements.
Preparation of pre-commissioning manuals.
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Incorporate vendor data into the design.
Provide Construction and pre-commissioning support.
13.3.2 Engineering Strategy
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The strategy for the execution of the engineering for this phase of the project is:
Accept the current conceptual design and progress it through Basic and Detailed Engineering
using the compression “Fast Track” technique.
There will be two SNC offices involved on this project: SNC Lavalin Inc. in Toronto, Canada and
SLM (Minerconsult) in Belo Horizonte, Brazil. The Basic Engineering will primarily be executed
by SLI by SLI personnel. During Basic Engineering, the SLM’s Engineering Manager and SLM’s
Lead Civil/Structural, and Electrical/Instrument Engineers will be based in SLI’s office to ensure
design concepts from Basic Engineering are well understood across the discipline team. This
strategy will allow a smooth transition from Basic Engineering to Detailed Engineering. The Basic
Engineering phase Engineering Manager, Process, Layout, Piping, and Mechanical Leads will be
SLI’s personnel.
The Detail Design will be executed by SLM and reviewed by SLI, however early detail design will be
required for the Cyclone Overflow launder and associated plant modifications that will be
executed between the two offices.
An engineering responsibility and battery limit matrix is shown in Section 3.7 in order to clearly
define the scope of work associated with each office for the Basic and Detailed Engineering
phases.
Weekly Engineering coordination meeting will take place between SLI and SLM.
Deliverables will be issue revision PA for internal and client review to expedite the review and
approval stage for all technical documents.
Construction Support from SLM will be required for construction prior to the completion of Detail
Engineering. Once construction has commenced, engineering support will be required
throughout the construction phase of the project. The engineering support will resolve site
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changes or other issues relating to the implementation of the design. Engineering Change
Notices will be issued.
Wherever practical the services will draw on existing knowledge and documentation from the
previous Expansao III project. It is understood that as-built drawings for the existing plant are up to
date and available.
The engineering team will confirm with a client nominated technical representative the adequacy of
existing machinery used in Plant 2. If there are no significant issues discovered then existing design
specifications will be used “as is” for procurement of new similar equipment of the same type. Where
inadequacies are discovered the existing specifications will be revised accordingly.
For each part of the design being developed it is important to recognise the overall schedule end date
for completion of the Mill is December 2010. The schedule for dependent and independent
engineering tasks must be well developed and communicated to the engineering team so they
understand the impact of their deliverable timing on the critical path.
13.3.3 Key Engineering Activities/Deliverables
The key engineering activities/deliverables of this phase are presented in Section 4.3.1 of this
document.
13.4 Engineering Scope of Work
The following section lists the core engineering activities that are to be conducted during the
execution of the 3rd Ball Mill project.
Review Geotechnical report and recommendations;
Complete Layouts;
Complete 3rd Ball Mill foundation;
Complete Building extension - Structural Steel;
Complete Internal Structural Steel;
Building extension foundations;
Equipment foundations;
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Complete Process flowsheets and Mass balance;
Complete P&IDs;
Issue Procurement packages;
Issue Construction packages which include all IFC drawings.
13.5 Engineering Deliverables
13.5.1 General
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All engineering deliverables will be produced in accordance with the procedures presented in
SNC-Lavalin Global Mining & Metallurgy Quality Procedure. Training in the use of Global Mining &
Metallurgy Quality Procedure will be given to those people working on the project that have not had
sufficient exposure to the systems through working on past SNC-Lavalin Projects.
Deliverables will be coded according to the Appendix H of the Project Instruction Manual
Document No. 334572-0000-30AG-0001 and prepared in a manner so that they can be
packaged by discipline and in accordance with the predefined WBS and Procurement packages.
Deliverables shall be prepared and managed in accordance with the Project Level 2 Schedule and
Technical Document List established in PM+.
13.5.2 Deliverable Progress
13.5.3 General
Progress on deliverables will be closely monitored by the Discipline Leads. As part of
deliverable progress, Discipline Leads have an obligation to assist with the review and update of the
project schedule and to provide progress updates towards the achievement of milestones. A gate
system for deliverable progress will be adopted according to the Project Control Plan per
type of deliverable.
Progress will be updated weekly for all deliverables. Details of the project controls tool for the
project are included in the Project Controls Plan 334572-0000-32AG-0001.
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13.5.4 Change Control
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Engineering changes shall be addressed in accordance with procedure 4032-MMG.
Key documents that provide substantial design input to other disciplines will undergo a strict
engineering change control process for any changes that occur once the document is ‘frozen’ or
reaches approved for design status. The key documents for this project include the following:
PFDs, P&IDs, Equipment Layouts, Plot Plans, Hazardous Area Diagrams, Single Line Diagrams, Data
Sheets, General Specifications, Procedures and Design Bases.
13.5.5 Calculations
All calculations will be prepared according to procedure 4013-SLI Design Brief. Calculations are to be
presented using the standard format as per Section 5.3.1 of that procedure. Each specific set of
calculations will include a clear scope and purpose, applicable design criteria,
assumptions, references, conclusions and recommendations and will be independently checked in
accordance with procedure 4016-SLI.
13.5.6 Design Software
The design software being used on this project is original proprietary packages which are
registered to SNC-Lavalin Inc and registered under a Validated Software Listing as per
procedure 3878-SLI. The software is commercially available and proven to be typical of industry
standard. As such, the software will not undergo any verification apart from confirmation as to
originality.
All inputs and output from design software will be subject to checking processes in accordance with
procedure 4016-SLI.
13.6 Checking and Review
13.6.1 General
Global Mining & Metallurgy Quality Procedure defines the standard checking, review and
approval processes that will be used for the project for all engineering deliverables and their
associated supporting documents and analyses. All checking is to be documented, recorded and
filed for future reference. Standard checking colours and stamps, as defined in Global Mining &
Metallurgy Quality Procedure, shall be used during the checking process.
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The requirements of Global Mining & Metallurgy Quality Procedure act to assure technical quality
of deliverables. Details of the specific processes for this project are presented in the following
sections.
13.6.2 Discipline Internal Review
Following self-checking by the originator, the deliverable is reviewed by a suitably qualified and
experienced independent checker within the discipline. The checker verifies the assumptions, inputs,
calculation methods, arithmetic, format, content, grammar and overall correctness. The formal check
comments are then incorporated and back checked before deliverables are issued for internal and
client review.
13.6.3 Multi-Discipline Checking
Deliverables are further subjected to a multi-discipline check. Multi-discipline checks ensure that all
relevant disciplines are able to review the design being produced by other disciplines and to check
interfaces.
Typical key documents that will undergo multi-discipline checking include:
• Process Flow Diagrams (PFDs);
• Process and Instrumentation Diagrams (P&IDs);
• Equipment specifications;
• Single Line Diagrams (SLDs);
• Layout drawings;
• Civil and structural general arrangement drawings;
• HazOp action register and other key risk and safety documents.
Documents will be multi-discipline reviewed be means of the “Virtual Pink Room” page on the
project PDM site. This site is linked here: https://pm-
gp.snclavalin.com/sites/Paracatu/vpr/Documents/40D1
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13.6.4 Project Design Reviews
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Formalised design review meetings shall be conducted as part of the review process. Kinross
Gold Corporation will be invited to this meeting to offer comments. Design reviews will be
conducted at the 30% and 80% design stage. Design reviews will be initiated by the Engineering
Manager in accordance with the timing presented in the Project Schedule. The objective is to
conduct a series of checks and reviews at 30% and 80% design stage in the development of the
project with the participation of representatives of all functions concerned with the design stage
being reviewed. It is a measure taken to ensure the adequacy of the design. The review involves
the examination of the technical specifications along with the other design documents, i.e. design
calculations, design reports, engineering drawings and the design manual. The Design reviews will be
executed following procedure 4031-MMG.
13.6.5 Procurement and Construction packages
The packages for this project are listed in the Procurement Execution Plan 334572-0000-32AG-
0001.
Equipment Packages are managed through the Procurement Page on the PDM website at this link:
https://pm-gp.snclavalin.com/sites/Paracatu/rfi_rfp/Documents/40-A2
Contract & Construction Packages are managed through the Procurement Page on the PDM
website at this link: https://pm-gp.snclavalin.com/sites/Paracatu/rfi_rfp/Documents/40-A1
13.7 Reference Information
The following is a list of the key reference information that is relevant for engineering associated with this project. These documents are stored under the PDM site link: https://pm-gp.snclavalin.com/sites/Paracatu/tech_ref/Documents/40-REF
13.7.1 Historical Project Documents
These documents are stored under the PDM site link: https://pm-gp.snclavalin.com/sites/Paracatu/tech_ref/Documents/40-REF/SLM
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13.7.2 Procedural Documents
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The list of applicable project procedures are listed on the Appendix J of the Project Instruction Manual, refer to document 334572-0000-30AG-0001.
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14.0 PROCUREMENT
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The Procurement Plan for this project is described in document 334572-0000-50AG-0001.
Procurement will be led from the Belo Horizonte office.
Procurement will cover all activities required to place an order and to expedite the procured item or
contract to site. The only exception to this is the RPM will place the purchase order on the vendors.
Placement of the Purchase Order is a key step to ensure there is no confusion about the project
owner and site in respect of Brazilian taxation requirements.
Liaison with RPM procurement (also located in Belo Horizonte) is required. This is to ensure that the
correct procurement documentation is provided to ensure RPM can place the order when required,
and also to allow RPM to be involved in price negotiation.
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15.0 CONSTRUCTION
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The Construction Management Plan for this project is described in document 334572-
000060AG-0001.
Some key elements of the construction phase follow:
• Construction will be led from Belo Horizonte but will transfer to Paracatu site when construction
contractors are mobilized. This is likely to occur in March 2010 to ensure that critical path
construction activities such as relocation of the cyclone overflow pipe can occur on time;
• Safety during the construction period is a critical success factor for the project. The safe
management of the workforce at the site is a key responsibility for the Construction Manager;
• Since this is a fast track project many construction activities will commence prior to the final
completion of detail design. There will be a site engineer tasked with ensuring quality and timely
feedback from site to the engineering team;
• The construction manager will provide feedback and practical guidance during the development
of project schedule as well as basic engineering.
• Commissioning is also a key activity that will occur at the end of construction. In addition to a
Commissioning Lead the key process team members will be located at site to supervise through
the commissioning period.
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16.0 COMMISSIONING AND OPERATIONS
16.1 Facilities Commissioning Plan
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The Facilities Commissioning Plan is presented in this section and details the commissioning
activities, methods and processes to be utilised by the project.
This plan below is preliminary and general and will be further refined once the construction
team is mobilised. At that time this section will be superseded by the free-standing plan.
16.1.1 Objectives of this Plan
This plan is used to define and document in detail the processes for conducting pre start testing of
the new and modified plant, and verify the readiness for handover to operations personnel for start-up
testing using normal feedstock and or through put. The commissioning scope will
include all, equipment checks and function tests necessary to ensure individual equipment and
combined systems where appropriate, are ready to for start-up testing by Operations Personnel
The plan is to be implemented by the Construction Manager with execution responsibility with the
Commissioning Engineer and or the designated focal point for Commissioning.
16.1.2 Key Principles
Commissioning involves pre-start function testing of the new and modified plant as individual
components or as combined systems where appropriate. This testing is generally carried out
using alternates to normal feedstock and or throughput and will focus on verifying the
functionality of the new and modified plant.
The key principles followed by SNC-Lavalin when developing the Commissioning Plan are
outlined below:
• The commissioning work as defined in this plan will not be commenced until all pre-
commissioning checks have been completed satisfactorily and mechanical completion is
achieved.
• Power supply and support facilities are available to facilitate the pre-start-up Commissioning
tests.
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• Commissioning activities will not commence without the full knowledge and permission of Plant
Operations Personnel.
• At the end of commissioning, the facilities have been function tested, and are ready for start-up
using normal plant feedstock under operations control.
16.1.3 Commissioning Methodology
16.1.3.1 Prerequisites
The commissioning work as defined in this plan will not be commenced until all pre
commissioning checks have been completed satisfactorily and mechanical completion has been
achieved. Commissioning will be undertaken in liaison with Plant Operations, who will be
advised of the commissioning scope, required outcomes, identified hazards and mitigating
actions. Commissioning activities will not commence without the full knowledge and permission of
Plant Operations.
16.1.3.2 Sequence and Description of Commissioning Activities
16.1.3.3 Commissioning coordination meeting
Prior to commencement of commissioning activities a meeting will be held involving the
SNC-Lavalin Commissioning Team and the Plant Operations Representatives. The purpose of this
meeting is to advise the commissioning scope, proposed schedule and methodology, and to highlight
any safety, operational or other issues regarding the pending commissioning activities
e.g. Operator involvement, hazards, special requirements.
16.1.3.4 Identification of commissioning hazards
Hazard identification, risk assessment and the development of appropriate risk reduction
measures is a mandatory activity, to be undertaken by the project prior to issue of the
commissioning plan, and on-site prior to commencement of commissioning activities.
The hazard assessment will cover all commissioning activities as per the commissioning plan,
and will include final tie-in and cut-over activities, and function testing and start-up activities. The
hazard assessment will also consider equipment and process-related hazards, isolations
integrity, and critical control and shutdown issues.
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The hazard assessment will primarily consider risk to people, and risk to the environment. The
hazard assessment may also consider the potential for equipment damage and risk to
production.
An initial hazard assessment will be undertaken by the Project and included in the Hazard
Assessment section in the review issue of this document. Hazards identified by the Project will be
reviewed on-site and communicated to all personnel involved in the commissioning activities, and
further hazard assessment will be undertaken on site. This site assessment will consider site, task
and equipment hazards, and may be implemented using the SNC-Lavalin Job Safety and
Environmental Assessment (JSEA) procedures (or any applicable customer JSEA
processes). The on-site hazard assessment may include Operations input. Identified hazards shall
be listed and required risk reduction measures recorded and implemented prior to
commencement of commissioning. If a JSEA is undertaken, a copy must be attached to the hazard
assessment form in lieu of listing site identified hazards on the hazard assessment form.
In the event that identified hazards are assessed as requiring mitigating actions beyond the
capability of the commissioning team, the Commissioning Coordinator will advise the
SNC-Lavalin Project Engineer, and commissioning work will be deferred until all hazards are
resolved.
16.1.3.5 Final tie-in / cut-over
Where applicable, final tie-in and or cut-over work will be undertaken. Final tie-in works are
defined as work that cannot be undertaken prior to actual commissioning because of
repercussions to existing, operating equipment or process. Cut-over works are defined as
existing equipment or functions which are being modified or replaced by new equipment. Whilst still a
construction responsibility, final tie-in and cut-over activities will be coordinated by the
commissioning group, and included in the commissioning Hazard Assessment and Key Activities
sections of the commissioning plan which forms part of this document.
16.1.3.6 Loop checks
After completing the pre commissioning visual checks, loop checks will be undertaken. Loop
checks will prove connection and calibration of field devices to correct I/O allocation, and check
range and trip settings.
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16.1.3.7 Function checks
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Function checks to confirm operation of the new equipment shall be performed after completion
of loop checks. Appropriate function check sheets have been included in this plan. After
successful completion of each functional check, the function check sheets shall be signed by the
Commissioning Technician and the Commissioning Team Leader or Coordinator. Function
checks will be implemented as per the key activities section of the commissioning plan included
in this document.
16.1.3.8 Pre Start-up testing
Where function testing cannot be performed without operating the equipment or plant being
commissioned, the tests must be undertaken in liaison with the Plant Operations. While pre start-
up testing is part of the commissioning scope, and is undertaken prior to Start-up
Acceptance, equipment may not be started without Operations approval. Where pre start-up
testing is required, Operations are responsible for ensuring that process and plant conditions
allow safe starting and operating of the equipment under test, and that all outstanding or
required, scheduled periodic maintenance has been performed.
No pre start-up testing of equipment may be performed without prior commissioning of the
relevant equipment shutdown or ESD functions.
Pre start-up testing activities must be included in the Key Activities section in the Commissioning Plan
included in this document, and clearly identified on the appropriate Function Test sheets included in
the attachments.
16.1.3.9 Fault logging
Fault logging may be conducted at any stage of commissioning. All faults should be recorded to
ensure corrective actions are implemented. A fault log is provided to record instances of faulty
equipment, design, installation or functionality. Faults detected with associated equipment or plant,
which is not part of the project scope, must also be documented. Every effort should be made to
rectify identified faults during commissioning. If significant faults are identified which cannot be
rectified by the commissioning team, a Non Conformance Report (NCR) should be raised and the
fault dealt with using the NCR follow-up procedures. All outstanding faults
associated with project scope are to be listed on the Punch List included in the attachment
section of this document. All outstanding faults that are not part of the project scope are to be
listed on the Observations List, and forwarded to the responsible group.
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16.1.3.10 Outstanding Commissioning Items
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All outstanding commissioning items or faults must be detailed on the Punch List, which forms
part of the Start-up Acceptance form included in this document. This list identifies; each
outstanding item of work, the responsible group for completing the work, and the expected due
date for completion. Note: Any outstanding faults which are not project scope are to be listed on
the Observations List also included in the Project Start-up Acceptance section included in this
procedure. Items listed must be categorised as start-up critical (“A” items) or start-up non-critical
(“B” items).
• “A” items are safety, environmental, equipment or process critical. Start-up may not proceed with
outstanding Punch List items categorised as “A” items;
• “B” items are not safety, environmental, equipment or process critical. Start-up may proceed with
outstanding Punch List items categorised as “B” items. Project acceptance will only proceed
when all Punch List items (“A” & “B” items) are complete.
16.1.3.11 Project Start-up Acceptance
On completion of commissioning, as per all sections of this plan, the Project Start-up Acceptance form
shall be signed off by the on-site Commissioning Coordinator and the Plant Operations
Representative. The signatories will satisfy themselves that all requirements of the Start-up
Acceptance form are met, including the completion of all safety, environmental, equipment or
process critical items (“A” items) listed on the Punch List. The Commissioning Plan, details the
status of some of the start-up acceptance requirements. These include; training requirements,
changes to Operating Manuals and Critical Function Test procedures, implementation of risk
management measures, and the availability of vendor data and as-built drawings. The Project
Start-up Acceptance Form shall then be distributed, along with the Punch List and Observations List,
with copies to the Plant Operations Supervisor and the SNC-Lavalin Project Engineer. The original
shall be retained with the Project File.
16.1.4 Commissioning Scope of Work
To be completed as commissioning plan is developed.
16.1.5 Approvals
The following approvals need to be obtained prior to start-up acceptance or handover.
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To be completed as commissioning plan is developed.
16.1.6 Operations and Maintenance Manuals
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The following Manuals need to be revised and updated prior to start-up acceptance or handover.
To be completed as commissioning plan is developed.
16.1.7 Critical Function Test Procedures
The following Critical Function Test Procedures need to be developed and or revised and
updated prior to start-up acceptance or handover:
To be completed as commissioning plan is developed.
16.1.8 Training
All people undertaking work at the site are required to attend 40 hours of Induction Training. This
training will be provided by RPM.
16.1.9 Commissioning Spares and Equipment
The following commissioning spares and equipment will be required for the commissioning
scope of work:
To be completed as commissioning plan is developed.
16.1.10 Risk Management and Hazard Identification
The following is a list of Risk Management measures undertaken for this project:
To be completed as commissioning plan is developed.
16.1.11 COMMISSIONING DOCUMENTS
This section covers all of commissioning records required for the documentation of the required pre-
start-up loop tests, function tests, identified faults, outstanding items, and Start-up or
Handover acceptance sign-off.
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To be completed as commissioning plan is developed.
16.1.12 Start-up Deliverables
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A series of documents needs to be prepared in readiness for start-up. On the Paracatu 3rd Ball Mill
project the following documents need to be prepared to facilitate handover and start-up
acceptance:
To be completed as commissioning plan is developed.
16.2 Start-Up Plan
To be completed as commissioning plan is developed.
16.3 Operations Support & Training Plan
To be completed as commissioning plan is developed.
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17.0 DOCUMENT AND DATA MANAGEMENT
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SNC-Lavalin’s PDM system will be used for document and data management for the
SNCLavalin project team.
PDM is web-based and can be accessed by Kinross and project personnel depending with levels of
access and access control administered by the Document Control team.
Since this project requires open access to documents across a number of locations all
controlled documents will be saved to and issued from PDM.
“Controlled” documents are further defined in appendix G of the Project Instructions Manual.
Important Note: Controlled Documents can be classed as Administrative, Technical, Vendor and
Reference. These classes are defined generally in procedure 3702 Document Coding Structure.
For project specific definitions for classes and numbering, further detail is included in appendix G of
the Project Instructions Manual. Eg for this project the project “plans” are coded as per the technical
document coding structure rather than the administrative document structure and
issued through document control.
Additionally there is a “Project Team Sharing” sub-site where team members can work
collaboratively on documents that have not reached “Controlled Document” status. Controlled
documents are not to be formally published at this page.
The challenge for this project is the implementation of effective document and data management for
multiple locations, as well as interfacing to Kinrosss “Skire” system.
Planning meetings will be held with Kinross to develop the external document and data
management processes, and equivalent internal planning meetings will be conducted to ensure
effective management at Toronto, Belo Horizonte and Paracatu construction offices.
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18.0 FINANCE
18.1 Invoice Management Plan
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Invoicing will be prepared in accordance with the SNC-Lavalin Invoicing Project Procedure.
Invoicing will be prepared on a monthly basis. The Accounts Departments from Belo Horizonte and
Toronto will issue an invoice for checking by the Project Controller prior to finalisation of the invoice.
All invoices will be signed as approved by the Project Manager.
The project will be executed with two contracts therefore invoices will be generated from Toronto and
Belo Horizonte and both will be received by RPM in Brazil for payment.
It is important to be aware that Brazil will apply a high withholding tax (that Kinross is
accountable to pay) to invoices issued from Toronto. It is therefore desirable that for expenses
where there is a choice about location for the billing (e.g. booking and payment of airfares) should
be planned so they originate from Brazil.
Invoices will be authorised for issue by the SLI Project Manager.
Invoices shall be addressed to Kinross site at Paracatu. This is a critical step to ensure the
project has the appropriate tax treatment in Brazil. Copies of the invoices will be sent to the
Kinross Project Manager who will authorise payment.
The Project Accountants in Toronto and Belo Horizonte will be responsible for tracking timely
payment of invoices and providing the Project Controls and Project management a copy of all
invoices for the Project file and combined project reporting.
The Purchase Order numbers for the SNC-Lavalin services to RPM for the Paracatu 3 rd Ball Mill
project are XXXXXX& YYYYYY. This will be quoted on all invoices.
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