This article aims to give a brief step-by-step insight into the process that must be undertaken in order to develop a new cement or lime plant project. From a timeline point of view, the planning phase can last from 12 to 16 months until the decision is made to go forward with the project. Construction can start once firm engineering and equipment orders have been placed and end with the startup and commissioning of the project, generally, 33 to 48 months later.
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Original Title
Developing a Minerals Processing Project - Thomas W. Hedrick P.E.
This article aims to give a brief step-by-step insight into the process that must be undertaken in order to develop a new cement or lime plant project. From a timeline point of view, the planning phase can last from 12 to 16 months until the decision is made to go forward with the project. Construction can start once firm engineering and equipment orders have been placed and end with the startup and commissioning of the project, generally, 33 to 48 months later.
This article aims to give a brief step-by-step insight into the process that must be undertaken in order to develop a new cement or lime plant project. From a timeline point of view, the planning phase can last from 12 to 16 months until the decision is made to go forward with the project. Construction can start once firm engineering and equipment orders have been placed and end with the startup and commissioning of the project, generally, 33 to 48 months later.
This article aims to give a brief step-by-step insight into the process that must be undertaken in order to develop a new cement or lime plant project. A project can only be as successful as its planning. From a timeline point of view, the planning phase can last from 12 to 16 months until the decision is made to go forward with the project. Construction can start once firm engineering and equipment orders have been placed and end with the startup and commissioning of the project, generally, 33 to 48 months later.
The following tables 1a and 1b illustrate the process and list the activities: 1. Management; generally by the Owner or developer 2. Government Interaction; by a firm that processes government permits and social integration 3. Engineering Activities; by a Consultant --from conceptualization to commissioning 4. Construction Activities; plant and infrastructure are erected and production starts.
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Phase 1 - Conceptual Study
During this phase, the idea is created based on the needs of the Owner. The important determinations for the concept are as follows: 1. The Owner must appoint a single source of contact for the project with appropriate authority. 2. The Engineering/Management Team must choose a qualified and experienced Consulting Engineering Company. 3. Raw Materials: measured reserves of an ample supply of good quality raw materials must be proven. 4. Market Analysis must be undertaken to determine the size of production plant desired. 5. Permits must be considered along with any limitations that are likely. This will form the basis of a preliminary impact statement. 6. The most appropriate plant site must be determined based on cost and logistics. 7. A Conceptual Analysis must be performed taking the following into consideration: a. Plot Plan: plant layout at its physical location. b. Logistics; access to and from the facility c. Infrastructure; utilities, natural gas, coal, process water, access d. Block Flow Diagram; a graphical representation of the plant process e. CapEx; from references, the plants cost must be projected f. OpEx; from an analysis of the location, the plant operating costs must be projected g. Risk Analysis; an outline of major risks and strategy h. Definition of Environmental Standards and all permitting requirements i. Conceptual Schedule
The Conceptual Report will provide a first insight to the economic feasibility of the project.
Figure 1: Site selection, with an eye for ore geology, mining, logistics, technical feasibility, mining, plan etc.
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Phase 2 - Pre-Feasibility Study
At this point, there is definite Owner interest based on the results of the Phase 1 Study. This phase refines the project as follows:
1. Raw Materials; probable reserves of raw materials are determined following extensive drilling and laboratory testing 2. Market Analysis; more definition is given to projected sales for the eventual production. 3. Permits; the studies required for filing permits are started. 4. Plant Site; the site location and layouts are finalized. 5. Engineering analysis: a. Plot Plan; define the materials handling and process flow b. Logistics; access to and from the facility is further refined c. Equipment list specific to quarry and plant is developed d. Block Flow Diagram; the graphical plant process is refined e. CapEx; plants costs are developed from budgetary vendor information f. OpEx; operating costs are developed from refined location and equipment g. Economic Analysis h. Risk Analysis; major risks are outlined i. Strategy; the overall plant strategy is developed with a view to moving the project forward j. The Project Schedule is refined based on the changes and developments of the pre- feasibility study.
The pre-feasibility report indicates to the Owner that the project looks promising and has an attractive payback. The quarry and plant sites are now known, chosen in an area conveniently located in relation to the raw materials source and with good access for logistics.
Figure 1 shows a site where the ore geology is promising, as well as a good location for transportation and reasonable mining costs.
Phase 3 - Feasibility Study
The project continues to be attractive and it is time to firm things up. The Owner will choose a project team leader. The feasibility steps are as follows:
1. Raw Materials; drill cores are examined for proven raw materials reserves. 2. Emissions Standards; process design is tailored to meet the emissions standards necessary for the plant location and fuel sources. 3. Preferred Equipment list; Owners have a preference for particular equipment that can be listed for the upcoming firm equipment quotations. 4. Market Analysis; a professional market study report is finalized. 5. Construction Strategy; the extent of the Owners participation is discussed. This raises further questions, such as: will the savings of an EPCM project prevail, or will the project pay for passing the risk to a design build contractor? Should the equipment supply be Owner purchased, and the construction design build? 6. Permits; applications for all permits are filed. 7. Public Relations; the Public Relations consultant finalizes the assessment of social issues and a program to be implemented. 8. Plant Site; the site location is refined.
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9. Engineering analysis: a. Plot Plan; materials handling is developed and the plot plan revised accordingly. b. Logistics; all aspects of transportation and materials handling are valued. c. Equipment list; the equipment list is refined. d. Preliminary civil, structural, mechanical and electrical design is established. e. Detailed Geotechnical Study f. Final Block Flow Diagram g. Equipment Bid Package(s) are issued, comprising: i. Design Criteria ii. Equipment Specs iii. Process Flow diagrams iv. Electrical and Automation specifications v. Terms and Conditions h. Short list of construction companies. A Bill of Quantities is issued to obtain budgetary offers i. CapEx; update based on firm pricing j. OpEx; update based on equipment election k. Economic Analysis l. Risk Analysis; risk strategy is implemented in conjunction with each item in the CapEx m. Strategy; the strategy is executed to move the project forward n. The Project Schedule is established based on chosen strategies.
Figure 2: Full geological evaluation means detailed geological mapping based on core samples, and ultimately developing an economical mining plan
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Phase 4 - Project Authorization
The Owners board of directors agrees to proceed with the project. Financing for the project is secured based on the Feasibility Study. The Owner firms up the land ownership, property leases and materials contracts. Energy contracts for both fuel and power should be secured.
Permits generally go through public hearings and the work is cleared to start construction.
Figure 3: Plot Plan for new kiln line on existing site Figure 3 is a new plant kiln line on an existing site. Logistics for construction (laydown areas) and future truck traffic flow must be coordinated with the local community for project success
The Owner provides materials samples for the process equipment bidders. The equipment bidder will have done the laboratory testing and provide a confident performance guarantee that the process equipment will meet all the necessary emissions standards. Sample general conditions of purchase and period of warranty will be provided by the Owner.
During the Feasibility stage, equipment bidders should have been able to respond to an RFQ in 12 weeks. The engineers technical bid evaluation period will depend on the number of bidders. Typically there is a period of clarification, checking and validation necessary before the vendors are short-listed.
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Figure 4: Block Flow diagram to visualize the new and existing Figure 4, the Block Flow diagram helps to explain the new portions and how they interface with the existing portions of this second production line facility.
Once the short-list of equipment vendors is received by the Owner, compliance with the bid, general conditions, terms and guarantees can take quite a period to obtain agreement. To speed up the process, many vendors will provide a price to develop engineering, thus shortening the elapsed time. Proceeding with engineering is a time saving and cost saving move. These projects typically range between 1/3 and 2/3rds of a billion dollars. Delaying the plant is most costly to the Owner.
Phase 5 Design Engineering
The general plant arrangement is agreed to by the preferred vendor and the plot plan is generally locked from changes. (important for permit applications) The project manager will interview and select the individuals for construction positions.
The OEM (original equipment manufacturer) proceeds with engineering (even if the purchase contract is not completely finalized). Assume here, that the strategy for construction is that the OEM will develop the equipment arrangement drawings. These drawings will need to be sufficiently advanced before the major structures can be engineered.
Typically, these plants are located for logistics purposes along a river, lake or RR, but present great challenges to the structural engineer for deep foundations. Piling can be both a substantial cost and a substantial time. We recommend that the geotechnical investigation be started no later than the feasibility stage. This way we know the type and capacity of piling typically available in the area. We recommend that a piling bid (with conceptual sizes and locations) be let, contractor chosen and ready to mobilize as soon as the OEM can establish major structures loads and locations.
The CapEx preliminary quantities can be used to approach contractors for the civil and mechanical/structural work budgetary pricing and general interest.
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The structural design will proceed on silos and storage bins. As OEM information is exchanged, structural design can proceed on major buildings (mill, preheater, cooler, etc).
Project utilities (phone, power, water, internet) are established.
Permit application is well along or complete. The public relations firm has established good community relations for the site.
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Phase 6 - Early Site work
The Owner will start the site activities by establishing the construction trailer, site fence and begin to prepare the site. Grading, parking, laydown, security is all established.
Figure 5: Site work must integrate construction roads, trailers and allow existing production to continue The Owners project team will develop the project strategy for: 1. Site Security 2. Site Safety procedures and training 3. Document controls 4. Project schedule 5. Monitoring the construction logistics. 6. Establish the Owners quality control team.
Hundreds of workers are involved with the construction of a typical plant. A construction gate, with security is mandatory. Construction traffic should not be mixed with customer traffic in a brownfield project. (Figure 5) Parking, construction restroom areas, lighting and timekeeping issues should all be part of the strategy. Separate strategy applies to vehicles allowed in the plant area.
Safety training is mandatory for all visitors, construction workers and employees. Initial site safety training, continuous safety programs and safety practice monitoring strategy is a must.
The equipment vendors will provide experts for assembly and operation of their craft. These technical services generally need room (and utilities) for a job-site trailer.
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The emphasis on document control cannot be overemphasized. There will be thousands of documents issued and revised during the project. At the end, the Owner will want the latest, accurate, as-built drawings to work with over the useful life of the plant. This document organization belongs in-house and generally is performed with competent computer software.
Hand-in-hand with the documents and overview of the work is the project schedule. Two considerations are key drivers of the project schedule. First, the cost of the interest on the capital expenditure and, secondly, the thought of the payback (per day) of an operating plant. The Owner should always ask what is the cost of each day the plant could have been working, but instead was construction delayed. An Owner should employ a competent scheduler and monitor all aspects of the work.
The construction logistics is a strategy all to itself. Sourcing of the equipment will be world-wide (figure 6) and it all comes together at the plant. There will be thousands of truckloads of equipment, many requiring covered storage during the process. The strategy may include storage area by process area (all raw mill equipment in one area, preheater in a second, etc). The strategy should include a lay-down area where smaller assemblies are pre-assembled before moving to the congested plant area. (Figure 7) This strategy probably includes software (much like a warehouse) so that all parts locations are known.
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Figure 7: Staging and pre-assembly area of pre-heater tower cyclones
Two areas of quality are of concern to the Owner. First is the fabrication of the equipment. One strategy may include subcontracting to a competent group the fabrication oversight of major equipment. Driving this strategy may be the choices of OEM and brands of components. You are expecting a plant with 90 to 95% availability. Is the equipment properly sourced and fabricated? No warranty will cover the lost production time while a casting is swapped out.
The second area of quality is the final assembly. Much of the plant is process in nature and the chutes, ducts, shells and components will be field aligned and welded. No contract type (design build or EPCM) escapes proper oversight from a professional team.
Many sites require deep foundations. During the feasibility stage, most Owners will obtain a preliminary geotechnical report that recommends piling (or other solutions) that are typical for the area. Once the plant-site is firm, a more in-depth geotechnical report should be commissioned. With report in hand, the structural engineers can create a piling bid package, with typical lengths and diameters. As early as practical (after the major structures are located by the OEM) the selected piling contractor can begin installation. This should occur as early in the schedule as possible. Drilled piling will have spoils to relocate, and piling installation needs to be complete to start the foundations.
Early site work planning sets the stage for successful construction work.
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Phase 7 - Heavy Construction
The Owner is thinking of the cost of money (interest payments) and the missed opportunity of sales from the plant. Owners want short schedules. Successful Construction time is a balance of complete engineering, and starting non-process related items early. (Figure 8)
Figure 8: Construction planning, coordination with structural steel and OEM logistics must be planned The tightest schedule will depend on coordination of OEM certified arrangement drawings coordinated with the structural engineer. We have mentioned the major structures location (mills, kilns, coolers, preheater) for establishing any deep foundations. We would like to install the homo silo and clinker silo, just to get out of the way of the pyro-process. Material handling, finished cement storage and coal handling are all required parts that should be started as soon as practical.
The project schedule will likely be defined by the preheater building. It is the tallest structure and the most complicated. To accelerate it, structural work is generally done in 3 parts; the foundation, superstructure and floor system. Some countries will favor slip-forming the outside structure, others a total steel structure. Because of the erection constraints, a hybrid partial concrete with the upper floors in steel is also popular. An old rule of thumb is that once the pre-heater tower is constructed, and all the
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process ductwork is in place, there is 8 months of work to finish. This work is mechanical, electrical and refractory installation. (See figure 9)
Figure 9: Preheater tower with major pyro-process cyclones and the kiln in place With the pre-heater tower defining the schedule, the raw mill, finish mill, kiln and clinker cooler circuits are all important, but generally not the critical path. Remember, the purpose of this article is to present an overview so we are really just brushing over the construction schedule.
With our brush, we assume that the hundreds of workers install the thousands of truckloads of all the equipment constructed all the structure to support the process. We bring in the actual employees that will run the plant to parallel the last months of construction. We wave our pen and the hundreds of instruments are wired and communicate with the control center that commands the scores of electrical motors. All these things are cold aligned, rotational direction confirmed and hot run without product. The thousands of connections seem to work (good thing we started some of these systems early). Finally, it is time to turn on the process burners.
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Phase 8 Start-up and Commissioning
One of the first things we do is fill the material storages with the initial raw materials charge. The quarry truck delivers the first of several loads of crusher run into the wear-lined feed hopper. We test our grizzly feeder and send large stone to the primary crusher. The secondary screens scalp out anything we missed, as we go about the business of making our first raw materials.
After secondary screening and homogenizing storage, we check the chemical materials properties through the cross-belt gamma ray nuclear analyzer. We know exactly what we stored and send into the pyro-processing line. And so it goes, ramping up the materials flow and testing the various parts of the new plant. We have several weeks set aside to verify the capacities of each of the new pieces of equipment. The factory representative has a duel role to train our plant operators, as well to verify that the equipment meets or exceeds the guaranteed performance.
Figure 10: Master Project Schedule (shown in summary format)
The process of starting up a plant (Figure 10) and certifying that it complies with the written guarantee (commissioning) takes 2 to 4 months and often depends on how consistent the raw materials actually are compared to what was predicted in the bid tender offer and materials testing performed by the suppliers back at the beginning of the project bid stage.
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Figure 11: World's tallest pre-heater tower. Note the cyclones must be elevated over the top then lowered into place
In a few paragraphs, this article has described 2 to 4 years in the lives of the plant engineers, Owners and their operators. If the consultancys work was done correctly, the plant that has been created will have a good raw materials supply and, with technology updates, it will remain competitive producing cement or lime for the next 50 to 100 years.
Thomas W. Hedrick, P.E. Senior Project Consultant PEC Consulting Group LLC thedrick@penta.net Tel. +1 (314) 824-3971 PEC Consulting Group LLC 10123 Corporate Square Dr. St. Louis, Missouri 63132 www.peccg.com Tel. +1 (314) 824-3900
Mr. Hedrick has over 35 years experience in minerals processing. Besides structural engineering, he specializes in materials handling. Currently, he holds many patents and writes for several publications.
An edited version of this article has been submitted to World Cement Magazine for publication in the April 2013 issue.