Voisey`s Bay Mine Expansion Project

Voisey’s Bay Mine Expansion Project
Supplier Information Sessions
Agenda
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Introductions
Safety Share
Purpose Of This Session
Vale Newfoundland and Labrador
Voisey’s Bay Mine and Concentrator
Long Harbour Processing Plant
Mine Expansion Project
Doing Business With VNL
Supply Opportunities
Questions
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Introductions
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Safety Share
Safety Share
• Plan your outdoor trips with safety in mind.
• Every year we sadly hear stories of people who have gone missing
traveling between two destinations – and tragically are often eventually
found when it is too late.
• Let someone know your specific plans before you leave – your planned
itinerary and where you expect to be by when.
• Make sure your cell phone is charged before you leave and call when
you arrive at each part of your journey.
• It will give you – and those who care about you – peace of mind if they
know you have arrived safely and especially if the weather is bad.
• For those of you frequently out of cell range
devices are available on the market which use
satellite GPS technology.
• A device like this SPOT messenger can locate you
and send a message to emergency services so
you can be found quickly
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Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Purpose Of This Session
We are here today to provide an overview of
the Voisey’s Bay Mine Expansion Project and
to meet with businesses to discuss the future
business opportunities which are required to
support the construction and operation of the
underground mine.
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Vale Newfoundland and Labrador
Vale Newfoundland Labrador
• Currently operating an open pit mine, a concentrator and a processing
plant
• The mine and concentrator site is located at Voisey’s Bay on the North
Coast of Labrador, 35 km south of Nain
• The processing plant is located at Long Harbour
• Operations at Voisey’s Bay began in 2005 and at Long Harbour in
2014
• The underground mine expansion at Voisey’s Bay will begin in 2016
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Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Voisey’s Bay Mine and Concentrator
Voisey’s Bay Mine Site
Camp Pond
Headwater Pond
Tailings Basin
Airstrip
Eastern Deeps
Deposit
Plant Site
Reid Brook Deposit
Ovoid Pit
Port Layout At Voisey’s Bay
Concentrate
Storage
Building
Umiak I
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Ship Loader
Container
Laydown Area
Operational Overview
•6,000 tonne-per-day mine and concentrator
•Annual production
• ~ 50,000 tonnes nickel-in-concentrate, containing 2,300 tonnes
cobalt and up to 6,800 tonnes copper
• ~ 32,000 tonnes copper-in-concentrate
• Fly-in/Fly-out operation
• 2 week rotations
• Workforce – 475
• Vale and contractors
• 55% of workforce are aboriginal
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Operational challenges come from geography….
Fly in – fly out site, continuity issues due to rotations, ice breaking, extra personnel to
support site needs, air services, extreme weather, wildlife encounters, environmental
sensitivity, retention, supply line costs, additional inventory, isolation.
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Vale’s Commitment To Local Communities
55%
Of total workforce is
Aboriginal
80% of operations
contracts are awarded to
Aboriginal businesses
>90%
Aboriginal employment
from adjacent communities
Vale was mentioned in the recent Federal budget referring to best practices
by private companies: “The Vale mine and concentrator project in Labrador
has provided training geared to employment for Aboriginal groups.”
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Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Long Harbour Processing Plant
Our Journey
• Successful completion of research and development led to decision to
proceed with hydromet technology
• Construction of processing plant began in 2009
• First production July 2014
Long Harbour Processing Plant Site
Main process area
Long Harbour Processing Plant Site
Port site
Operations Overview
First nickel production
Production to date ~ 5000 tonnes
Expanding capacity to accept all
Voisey’s Bay production
Employment
Vale Operations - 450
Support Contractors - 250
Women’s employment: 20% of
workforce;
• 82% of these in non-traditional
roles
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MV Umiak at port and unloading concentrate
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Mine Expansion Project
Surface Site Plan for the Underground Mine
Existing Camp Complex Expansion
Reid Brook Fans
Access Road
Temporary Camp
Temporary
Shops
Eastern Deeps
Portal Openings
Reid Brook Portal
Opening
Backfill Plant
Existing
Ovoid Pit
Concrete / Shotcrete Plant
Main Ventilation
Fans Complex
Main Ventilation
Fans Complex
Conceptual Mine Design: Reid Brook
MAXIMUM DEPTH
REACHED IN PROJECT
PHASE
VENTILATION
RAISES
SCRAP
REMOVAL
CONVEYOR
DECLINE FROM
SURFACE
INTERNAL
DECLINE SYSTEM
INFERRED RESOURCE
ZONE
Conceptual Mine Design: Eastern Deeps
DECLINES FROM
SURFACE
MAXIMUM DEPTH
REACHED IN
PROJECT PHASE
VENTILATION
RAISES
CONVEYOR
INCLINE
OREBODY ACCESS
DECLINE SYSTEM
ORE / WASTE
HANDLING SYSTEM
Project Elements
• Underground mine development:
• Ramps
• Lateral development
• Supporting infrastructure (garage, refuge stations, material handling
systems, pumping systems, etc.)
• Underground mine ventilation system:
• Fresh and Return Air fans
• Surface infrastructure expansion including:
• Increased power generation
• Additional permanent accommodations
• Expansion to offices, warehousing, and maintenance shops
• Upgrades to water and sewage treatment facilities
• Paste backfill plant
• Construction facilities (temporary camp, maintenance facilities, etc.)
Project Timelines
Start of Project
Ongoing Construction
Start of Construction
• Control room
• Power plant complete
• Underground
development
• Start of permanent
camp expansions
• Temporary shops
2016
End Eastern Deeps
construction
Hand over to Operations
(End of project period)
2017
End surface
construction
2018
2019
2020
2021
2022+
Ongoing Construction
First on-site activity
• Vegetation stripping
• Site clearing for camp,
sewage treatment, water
• Creation of mine
openings
• Power plant
• Paste fill plant
• Office / warehouse /
permanent shop expansions
• Main ventilation fans
End Reid Brook construction
Hand over to Operations
Ramp up to full
production
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Doing Business with VNL
Newfoundland & Labrador
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Vale’s operations in the province are governed by the Development
Agreement with the Government of Newfoundland and Labrador.
• The Agreement includes specific Industrial and Employment Benefits
(the IEBA) commitments with respect to:
• Providing business opportunities for companies which operate
within the province
• Providing employment opportunities for provincial residents
• Vale has also made commitments to the Innu Nation and the
Nunatsiavut Government in separate Impacts and Benefits
Agreements (IBAs) which govern our activities in Labrador.
• The IBAs which have been in place since 2002 have become
ingrained in the way we do business at the mine site since that time. In
Labrador, the IBAs take precedence over those in the IEBA.
Guiding Procurement Principles
• For qualified provincial suppliers VNL will provide full and fair
opportunity and first consideration to participate in all phases of
the project
• Our activities in Labrador are subject to IBA commitments
requiring VNL to
• Promote use of Innu and Inuit Businesses
• Encourage and facilitate development of Innu and Inuit
business expertise, skills and capacity
• Adjacency Principle
• Applies only to project activities in Labrador
• First consideration given to other Labrador businesses once
IBA commitments have been met
• Follow Vale’s procurement norms
• Maintain integrity of the project budget and schedule
• Ensure the project is competitive
Procurement Procedure
EXPRESSION
OF INTEREST
• Brief summary of
the work
• Pre-notification
to aboriginal
business centres
• Posting on the
VNL website
PREQUALIFICATION
PROPOSAL
REQUEST
ISSUED
• Scope of work issued to prequalified businesses
• Bid clarification meetings
• Confidential Vale questionnaire
• Asks questions regarding
aboriginal affiliation, technical and
financial capability
• List of registered and interested
aboriginal businesses provided to
Vale
EVALUATION
OF PROPOSALS
AWARD
• Combined Technical
& Commercial
evaluations
• Award decision by
Vale Procurement
• Technical evaluations –
by Project team
• Commercial
evaluations – by Vale
Procurement
Bid Evaluation Criteria
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Knowledge, appreciation and understanding of scope of work
Experience, competence and ability to meet technical specification
Cost
Continuity of supply
Ability to manage, perform and complete on schedule
Safety, security, QA programs
Level, nature and location of provincial benefits
Ability to work with VNL
Commitments to Innu and Inuit content
Note: In the pre-qualification and bid evaluation processes a weighting
factor is also applied to aboriginal businesses
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Supply Opportunities
Construction Phase Opportunities: Services
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Civil works
Temporary camp facilities
New building construction
Marine transport
Underground development
Raiseboring
Engineering
Project Management
Air Transportation
Camp servicing & catering
Concentrate and bulk haulage
Security and safety
Logistics
Construction Phase Opportunities: Supplies
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Structural steel
Rebar
Concrete
Piping, pumps, motors, fans
Conveyors, idlers, bearings
Electrical & instrumentation
equipment
Safety supplies
Communication equipment
Light vehicles
Mobile equipment supplies
Skid mount modules
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Welding supplies
Cables
Tool and equipment rentals
Domestic supplies for camp
Ropes, slings, shackles, nuts, bolts,
etc.
• Fuel, oil, filters
• Ventilation fans and doors
• Underground mine consumables
Future Steady State Mine Opportunities
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Load and haul mobile equipment
Glycol, fluids
Wear parts – teeth, adapters, pads
Ropes, slings, shackles, etc
Fuel, oil, filters, etc
Tires, rims
General maintenance supplies
Drill steel, bits
Welding supplies
Haulage truck and tractor supplies
Mine screen mesh
Rock bolts and resin
Hoses and fittings
Expressions Of Interest Posted To Date
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Design Engineering
Project Management
Civil Works 2016
Temporary Construction Camp
Sewage Treatment Plant upgrade
Construction Dock upgrades
Underground Development (Phase 1)
Timber removal
Testing (Concrete and Soils)
Master Logistics Services
Network upgrade (WAN – Labrador)
Underground Mobile Equipment (3 packages)
Important Points
• Pre-Qualification forms must be completed in full
• Technical and financial information about your business which must
be provided
• We will treat the information you provide in strictest confidence. No
one outside of the Vale Procurement organization will see, or have
access, to any financial information.
• The information is required to help us understand if your business
has the capacity to deliver the supply items or services being
requested in the scope of work.
• Pre-qualification does give preference to registered aboriginal
businesses
• Only those pre-qualified will be invited to submit a proposal
• Feedback to those who did not qualify will be provided upon request.
Going Forward
• EOIs will be published on our website:
www.vale.com/canada/EN/suppliers/become-supplier/canada/vnlprocurement/Pages/Voisey's-Bay-Underground-Mine-Project.aspx
• Remember we have just finished basic engineering. Detailed
engineering will begin in the first half of 2016.
• If there are any questions during the pre-qualification period, please
call Vale Procurement directly (do not rely on e-mail for a timely
response).
Agenda
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Risk Management Share
Introductions
Recent Project Developments
The FEL 3 Project
What You Can Expect In The Next Year
Requests
Questions
Thank You
Any Questions?