Plano de Execução

Paracatu 3 rd Ball Mill Project Project Execution Plan PARACATU 334572-0000-30AG-0002 No.
00 Revision Date 2010-Mar-14 Page i
PROJECT EXECUTION PLAN FOR THE PARACATU 3 rd BALL MILL PROJECT BRAZIL
J:\334572\30-PMC\30-PMC\AG-Project Instructions\PEP\Rev. 00\334572-0000-30AG-0002 Project Execution Plan Rev.00.doc
Paracatu 3 rd Ball Mill Project Project Execution Plan PARACATU 334572-0000-30AG-0002 No. 0
Revision Date 2010-Mar-14 Page ii
TABLE OF CONTENTS
1.0 2.0 2.1 2.2 EXECUTIVE SUMMARY ... PROJECT OUTLINE ... Installation scope ... 2.2.1 2.2.2 2.2.3 2.3 3.0 3.1 3.2 3.3 3.4 4.0 4.1 4.2 4.3 ...1-8 ...2-9 ...2-9
Project Structure Overview .......................................................................................................2-10 Kinross Gold Corporation & Rio Paracatu Minerao (RPM) .................................2-10 SNC-Lavalin ..........................................................................................................2-11 Contracts...............................................................................................................2-11
Key Issues ................................................................................................................................2-12 PROJECT EXECUTION PLAN OBJECTIVES .........................................................................3-13 Objective of the Project Execution Plan ....................................................................................3-13 Project Execution Plan Ownership, Maintenance, Distribution and Control ..............................3-13 Reference Documents ..............................................................................................................3-14 Confidentiality ...........................................................................................................................3-14 DETAILED SCOPE OF WORK ...............................................................................................4-15 Physical Facilities Scope ..........................................................................................................4-15 Battery Limits of Facilities Scope ..............................................................................................4-15 Overall Services Scope ............................................................................................................4-16 4.3.1 4.3.2 4.3.3 4.3.4 Engineering ...........................................................................................................4-16 Procurement .........................................................................................................4-16 Construction Management ....................................................................................4-17 Safety....................................................................................................................4-17 Project Management .............................................................................................4-18 Engineering ...........................................................................................................4-18 Procurement .........................................................................................................4-21 Construction Management ....................................................................................4-22
4.4
Detailed Services Scope and Deliverables ...............................................................................4-18 4.4.1 4.4.2 4.4.3 4.4.4
4.5 4.6 4.7
Services Scope Exclusions .......................................................................................................4-22 Division of Responsibilities .......................................................................................................4-23 Third Party Input List.................................................................................................................4-25
Revision Date 2010-Mar-14 Page iii
5.0 5.1 5.2
EXECUTION STRATEGY ... Project Objectives... Execution Strategy ... 5.2.1 5.2.2 5.2.3 5.2.4 Engineering ... Procurement ...
..5-26 ...5-26 .5-26 ...5-26 .5-27
Construction Management ....................................................................................5-30 Overall Project Management .................................................................................5-30
6.0 6.1 6.2 6.3
SCHEDULE..............................................................................................................................6-31 Critical Success Factors ...........................................................................................................6-31 Critical Schedule Activities ........................................................................................................6-31 Project Schedule ......................................................................................................................6-31 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6 6.3.7 Critical dates/milestones and Critical Path items. ..................................................6-31 Significant Constraints...........................................................................................6-32 Long lead items that are critical to the schedule ....................................................6-32 Milestone Schedule ...............................................................................................6-33 Client Kick-Off Meeting..........................................................................................6-33 90 Day Early Work Plan ........................................................................................6-33 Key Reviews .........................................................................................................6-33
7.0 7.1 7.2
PROJECT ORGANIZATION ....................................................................................................7-34 Organization Chart ...................................................................................................................7-34 Roles and Responsibilities - SNC Lavalin Team .......................................................................7-36 7.2.1 7.2.2 Common Responsibilities ......................................................................................7-36 Specific Project Team Member Responsibilities ....................................................7-37
8.0 8.1 8.2
ADMINISTRATION AND COMMUNICATIONS ........................................................................8-46 Project Instruction Manual ........................................................................................................8-46 Communications Plan ...............................................................................................................8-46 8.2.1 8.2.2 8.2.3 Kinrosss Skire Unifier System ..............................................................................8-46 Formal Lines of Communication ............................................................................8-47 Email Communication ...........................................................................................8-48
9.0 9.1
HEALTH, SAFETY AND ENVIRONMENT ...............................................................................9-49 Ownership ................................................................................................................................9-49
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9.2 9.3 9.4 9.5 10.0 10.1 10.2 10.3
Kinross Standards ... SNC-Lavalin Standards ... Contractor Requirements... Details ... RISK MANAGEMENT PLAN ... Risk Review Schedule ... Risk Database ... Roles ... 10.3.1 10.3.2 Risk Managers ... Safety Managers ... Project Manager ...
..9-49 ...9-49 .9-50 ..9-50 .10-51 ...10-51 ...10-51 ..10-52 ..10-52 ..10-52 ..10-52 ...10-52
10.4
Responsibilities... 10.4.1 10.4.2 10.4.3 10.4.4 10.4.5
Project Health, Safety and Environmental Manager ............................................10-53 Risk Manager ......................................................................................................10-53 Risk Owner .........................................................................................................10-54 Other Stakeholders .............................................................................................10-54
11.0 11.1 12.0 12.1 12.2 12.3
QUALITY................................................................................................................................11-55 Quality Management Plan ......................................................................................................11-55 PROJECT CONTROLS..........................................................................................................12-56 Alignment with Kinross ...........................................................................................................12-56 Controls Systems ...................................................................................................................12-56 Roles & Responsibilities .........................................................................................................12-57 12.3.1 12.3.2 Toronto Project Controls .....................................................................................12-57 Belo Horizonte Project Controls ..........................................................................12-57
13.0 13.1 13.2 13.3
ENGINEERING PLAN ...........................................................................................................13-59 Engineering Plan ....................................................................................................................13-59 Objectives of this Plan ............................................................................................................13-59 Objectives, Strategy and key Activities / Deliverables .............................................................13-59 13.3.1 13.3.2 13.3.3 Engineering Objectives .......................................................................................13-59 Engineering Strategy ...........................................................................................13-60 Key Engineering Activities/Deliverables...............................................................13-61
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13.4 13.5
Engineering Scope of Work ... Engineering Deliverables ... 13.5.1 13.5.2 13.5.3 13.5.4 13.5.5 13.5.6 General ... Deliverable Progress ... General ... Change Control ... Calculations ... Design Software ... General ...
.13-61 ..13-62 .13-62 ..13-62 .13-62 .13-63 ...13-63 ...13-63 .13-63 .13-63
13.6
Checking and Review ... 13.6.1 13.6.2 13.6.3 13.6.4 13.6.5
Discipline Internal Review ...................................................................................13-64 Multi-Discipline Checking ....................................................................................13-64 Project Design Reviews ......................................................................................13-65 Procurement and Construction packages ...........................................................13-65 Historical Project Documents ..............................................................................13-65 Procedural Documents ........................................................................................13-66
13.7
Reference Information ............................................................................................................13-65 13.7.1 13.7.2
14.0 15.0 16.0 16.1
PROCUREMENT ...................................................................................................................14-67 CONSTRUCTION...................................................................................................................15-68 COMMISSIONING AND OPERATIONS ................................................................................16-69 Facilities Commissioning Plan ................................................................................................16-69 16.1.1 16.1.2 16.1.3 16.1.4 16.1.5 16.1.6 16.1.7 16.1.8 16.1.9 Objectives of this Plan .........................................................................................16-69 Key Principles .....................................................................................................16-69 Commissioning Methodology ..............................................................................16-70 Commissioning Scope of Work ..........................................................................16-73 Approvals ............................................................................................................16-73 Operations and Maintenance Manuals ................................................................16-74 Critical Function Test Procedures........................................................................16-74 Training ...............................................................................................................16-74 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 16.3 17.0 18.0 18.1 Start-Up Plan ...
..16-75 ..16-75
Operations Support & Training Plan .......................................................................................16-75 DOCUMENT AND DATA MANAGEMENT.............................................................................17-76 FINANCE ...............................................................................................................................18-77 Invoice Management Plan ......................................................................................................18-77
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LIST OF APPENDICES
Appendix A - Preliminary Schedule
Revision Date 2010-Mar-14 Page 1-8
1.0
EXECUTIVE SUMMARY 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.
2.0 2.1
PROJECT OUTLINE Installation scope 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.
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 Minerao Operations. 2.2.1 Kinross Gold Corporation & Rio Paracatu Minerao (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 Minerao in Brazil.
The address for Rio Paracatu Minerao is: Rio Paracatu Mineraco S.A. Estrada do Machado s/n - Paracatu Minas Gerais State Brazil Zip Code 38600-000 Phone at Site: +55 38 36791000 Fax at Site: +55 38 36791311 Website: www.kinross.com 2.2.2 SNC-Lavalin
SNC-Lavalin Inc. (short name as SLI) - Toronto Office 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 Mineraco. Two contracts will be executed for this project. One between SNC-Lavalin Inc. and Rio Paracatu Minerao, and the other between SNC-Lavalin MinerConsult and Rio Paracatu Minerao. 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. 2. Services provided by non-Brazilian locations will be covered by the offshore contract. 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
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.
3.0 3.1
PROJECT EXECUTION PLAN OBJECTIVES Objective of the Project Execution Plan This Project Execution Plan:
Details the project scope, structure, and approach; 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.
3.3
Reference Documents 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. Title 334572-0000-68AG-0001 Health & Safety Plan 334572-0000-30AG-0001 Project Instruction Manual Procurement Execution Plan 334572-0000-50AG-0001 334572-0000-60AG-0001 Construction Execution Plan 334572-0000-32AG-0001 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.
4.0 4.1
DETAILED SCOPE OF WORK Physical Facilities Scope 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;
Existing equipment not related to the grinding circuit; Offsite infrastructure including roads and power supply.
4.3
Overall Services Scope 4.3.1 Engineering 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.
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 owners 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.
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; 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 flowsheets 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;
Technical bid evaluation; 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;
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;
Loop diagrams; I/O lists; 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.
4.4.4 Construction Management 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 markup 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;
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

Responsibility Facility, Service or Work Activity SNC-Lavalin Toronto (SLI) SNC-Lavalin Belo Horizonte (SLM) Owner
Basic Engineering Layout Layout Review Plant Capacity Site Conditions X X O O X X X X X X Levels 1 - 3 X X X X X X O O O O X O O O O O O O O O O O O O O O O X X
Process Design Criteria Discipline Design Criteria Finalize Process Flow Sheet and Mass Balance Process Control Description Equipment List and Sizing Integrated Project Plan Project Schedule Block Flow Diagrams (BFDs) Process Flow Diagrams (PFDs) Utility Flow Diagrams (UFDs) Piping and Instrument Diagrams (P&IDs) Electrical Single-line Diagrams (SLDs) Specifications and Datasheets
Responsibility Facility, Service or Work Activity SNC-Lavalin Toronto (SLI) X X X X O O X O O O O O X O X X X X X O O X X X X X X X X X X X X O X X X X X X X X X X O O O O X X O X X O O X X SNC-Lavalin Belo Horizonte (SLM) O O Owner X
Geotechnical Survey Geotechnical / Foundation Specifications General Arrangement Drawings Set up Management System (PM+) Detail Engineering Instruments Specifications and Location Finalize P&IDs - Instrument List Development HazOp Mechanical Drawings IFC Electrical Drawings IFC Civil/Structural Drawings IFC Architectural Drawings IFC Instrumentation/Control Drawings Control System Configuration/Programming Requisitions and Bid Analyses Recommendation to Purchase Stage Vendor Drawing Approvals Control Methodology and Functional Description Slurry Hydraulic Calculations Piping Design Design Reviews Procurement Procurement Plan Logistics and Materials Management Plan Enquiry Templates Creation and Maintenance of the Procurement Schedule Issue and Receipt of Procurement Enquiries Technical Bid Evaluation Commercial Bid Evaluation and Recommendation Final Price Negotiation Placement of Purchase Orders Vendor Data Review Expediting
Responsibility Facility, Service or Work Activity SNC-Lavalin Toronto (SLI) SNC-Lavalin Belo Horizonte (SLM) X X X X X X X X O X X X O X X X X O O X O Reports and Manuals Operating Manuals and Vendor Warranties Final Report O X X X O X O O O X O O O O Owner O
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 and Co-ordination of Construction Contractors Implementation of Site Safety Policy and 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
4.7
Third Party Input List

None Identified.
5.0 5.1
EXECUTION STRATEGY Project Objectives 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
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 SLIs 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. SLIs 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 SLMs 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 SLIs 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.
5.2.2.1 Contracts Management 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 Contractors 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 Contractors 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 contractors 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;
Installed quantity curves; Analysis of contractor performance and report variance against baseline; Analysis and reporting of contractors productivity performance index 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. (CPI) and schedule
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
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.
6.0 6.1
SCHEDULE Critical Success Factors

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
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
VFDs Switchgear Transformer 6.3.4 Milestone Schedule See: Appendix A - Baseline Schedule 6.3.5 Client Kick-Off Meeting Client kick-off meeting minutes are located at: https://pmgp.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
7.0 7.1
PROJECT ORGANIZATION Organization Chart
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;
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 organisations 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 Corporations 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.
Specific responsibilities of the Project Manager include: Leading the HSE program for the project; 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 Managers 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:
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;
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.
7.2.2.6 Project Cost Engineer 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;
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.
7.2.2.9 Lead Engineers 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 onschedule 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;
Commercial administration of the contracts; 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
Both Metso (Mill supplier) and RME (Liner handler supplier) also have location and timezone issues to overcome.
8.0 8.1
ADMINISTRATION AND COMMUNICATIONS Project Instruction Manual Administration for this project is detailed in the Project Instructions Manual 334572-0000-30AG0001 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 Kinrosss 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.
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 Formal Contractual Issues SNC-Lavalin Project Sponsor John Lindsay Kinross Project Sponsor Mark Isto SNC-Lavalin Project Manager John Robinson Kinross Project Manager Tim Dake Key Technical Issues and Decisions SNC-Lavalin Engineering Manager Gilberto Antonini (Basic Engineering Alberto Dantas (Detail Engineering) Procurement Issues SNC-Lavalin Procurement Manager Eder Castro Operations Issues SNC-Lavalin Engineering Manager Kinross Operations Manager SNC-Lavalin Project Manager Kinross Project Manager SNC-Lavalin Discipline Leads Kinross Discipline Leads Site Issues SNC-Lavalin Construction Manager Antonio Bernardes Kinross Construction Manager Jose Mauro SNC-Lavalin Project Manager Kinross Project Manager SNC-Lavalin Discipline Leads Kinross Discipline Leads Kinross Procurement Manager Fausto Casar SNC-Lavalin Project Manager Kinross Project Manager SNC-Lavalin Discipline Leads Kinross Discipline Leads Kinross Engineering Manager Wayne Phillips SNC-Lavalin Project Manager Kinross Project Manager SNC-Lavalin Discipline Leads Kinross Discipline Leads Corresponding Parties SNC-Lavalin Kinross Copies
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.
8.2.3 Email Communication 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 Kinrosss Skire system will be used to capture, distribute and revert these types of communications and agreements.
9.0
HEALTH, SAFETY AND ENVIRONMENT 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.
9.4
Contractor Requirements 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 334572-0000-68AG0001 for an in-depth coverage of project Health, Safety and Environment policy and procedures.
Revision Date Page
2010-Mar-14 10-51
10.0 RISK MANAGEMENT PLAN 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 Kinrosss Resolver database will be used for this project.
Revision Date Page
2010-Mar-14 10-52
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.
Revision Date Page
2010-Mar-14 10-53
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 projects 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.
Revision Date Page
2010-Mar-14 10-54
To close-out the risk management process at the end of the project. 10.4.3.1 SNC-Lavalin & Kinross Risk Managers 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.
Revision Date Page
2010-Mar-14 11-55
11.0 QUALITY 11.1 Quality Management Plan The project Quality Management Plan is at Appendix L of the Project Instruction Manual 334572000030AG-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
Revision Date Page
2010-Mar-14 12-56
12.0 PROJECT CONTROLS 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 Kinrosss 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 SNCLavalin 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+, SNCLavalins 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.
Revision Date Page
2010-Mar-14 12-57
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.
Revision Date Page
2010-Mar-14 12-58
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.
Revision Date Page
2010-Mar-14 13-59
13.0 ENGINEERING PLAN 13.1 Engineering Plan 13.2 Objectives of this Plan 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 RPMs personnel to implement operation and maintenance requirements. Preparation of pre-commissioning manuals.
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2010-Mar-14 13-60
Incorporate vendor data into the design. Provide Construction and pre-commissioning support. 13.3.2 Engineering Strategy 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 SLMs Engineering Manager and SLMs Lead Civil/Structural, and Electrical/Instrument Engineers will be based in SLIs 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 SLIs 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 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 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://pmgp.snclavalin.com/sites/Paracatu/vpr/Documents/40D1
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13.6.4 Project Design Reviews 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 334572-0000-32AG0001. 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 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 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 The Construction Management Plan for this project is described in document 334572000060AG-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 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 precommissioning 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 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 startup 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 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 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 prestart-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
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 SNC-Lavalins 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 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 3rd Ball Mill project are XXXXXX& YYYYYY. This will be quoted on all invoices. END OF DOCUMENT
Appendix A - Baseline Schedule
(Link to Project Schedule)

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Paracatu 3 rd Ball Mill Project Project Execution Plan PARACATU 334572-0000-30AG-0002 No.

00 Revision Date 2010-Mar-14 Page i

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4.5 4.6 4.7

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5.0 5.1 5.2

..5-26 ...5-26 .5-26 ...5-26 .5-27

Construction Management ....................................................................................5-30 Overall Project Management .................................................................................5-30

6.0 6.1 6.2 6.3

7.0 7.1 7.2

8.0 8.1 8.2

HEALTH, SAFETY AND ENVIRONMENT ...............................................................................9-49 Ownership ................................................................................................................................9-49

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9.2 9.3 9.4 9.5 10.0 10.1 10.2 10.3

Responsibilities... 10.4.1 10.4.2 10.4.3 10.4.4 10.4.5

11.0 11.1 12.0 12.1 12.2 12.3

13.0 13.1 13.2 13.3

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Checking and Review ... 13.6.1 13.6.2 13.6.3 13.6.4 13.6.5

Reference Information ............................................................................................................13-65 13.7.1 13.7.2

14.0 15.0 16.0 16.1

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Appendix A - Preliminary Schedule

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Key Issues Key Issues:

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Battery Limits of Facilities Scope

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Detailed Services Scope and Deliverables 4.4.1 Project Management

4.4.2 Engineering 4.4.2.1 Process Engineering and Layout

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4.4.2.2 Mechanical and Piping Engineering

4.4.2.3 Civil , Concrete and Structural Engineering

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4.4.2.4 Geotechnical Work