Nickel Rim South Mine - SAIMM€¦ · · 2009-11-19Nickel Rim South Mine ... formula based on...

The Southern African Institute of Mining and Metallurgy

HARD ROCK SAFE Safety Conference 2009

R Collins

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Nickel Rim South Mine

Project Overview

September 2009

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“Raising the Bar for a Canadian Mining Project”

Xstrata Nickel’s - Nickel Rim South Project

By: Rick Collins - Project Manager (HATCH).

1. Nickel Rim South – the project2. Project delivery method3. Safety expectations – Zero Harm goal4. Setting & maintaining the safe work culture5. Safety tools6. Shaft sinking challenges7. Sustainable development8. Lessons learned for future projects



R Collins

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Nickel Rim SouthProject Location

Hwy 144

Hwy 17 E

Hwy 69 S

Hwy 69 NNickelRim

South 20 miles

45 miles

SUDBURY BASIN

Toronto 400km

Strathcona

Mill

Smelter

North Bay 120km

Sault Ste-Marie 300km

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Nickel Rim SouthProject Timeline/Overview

2001 Nickel Rim discovery 1100m – 1700m.

2002 Exploration drilling program expanded.

2003 FEL 2 and FEL 3 studies. Shaft pilot hole drilled. Road, power, pipelines to site.

2004 Project Go-Ahead March. Site prep and surface const. Vent Adit and pilot raises.

2005 Sinking plant +5 hoists, 2 head-frames.Full shaft-sinking commenced.

2006 Shaft sinking, Main Shaft and Vent Shaft

Phase Zero diamond drilling commenced

2007 Underground lateral development, vent raising & phase 1 drilling commenced.

2008 Surface and Underground construction, 10km development, 95 km drill core.

2009 12km development, 40km drilling, Backfill plant, permanent Dry/Admin bldg, Production 546kT Ore.



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Nickel Rim SouthSafety First

• Project 92% complete. Work hours 6.4M to current

• Peak full time jobs 930 (XNi 380, contractors 550)

• Best run: no LTIs 4.95 Yrs (5.7M hrs)

• Incident frequencies 3x lower than Ontario mining norms

• Project On Track – Safety & Production tied together

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Nickel Rim SouthProgress and Performance

Project Highlights

1. Two deep shafts (3420m) zero lost time incidents

2. March ‘09 – surpassed 5M hrs Zero LTIs

3. Zero Reportable Environmental Incidents

4. SPI = 1.00, running precisely to

baseline schedule

5. CPI =1.03, despite period of escalation in mining costs

6. First production 8 months ahead of FEL 2 study

7. Quality - NCR rate 0.90 vs. target KPI 1.00

VENTILATION

SHAFT

MAIN

SHAFT

CONTACT

ZONE

FOOTWALL

ZONE

1480 FW DRIFT

1660 FW DRIFT

1280 L

1480 L

1660 L

1700 L

DIAMOND DRILLING

1320 L

1520 L

1475 L

1625 L

Main shaft 1735 m depth

7.6 dia

Completion within 33 mth

Sinking rate 3.6 m/d

Vent shaft 1685 m depth

6.1 dia

Completion within 28 mth

Sinking rate 4.0 m/d



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Nickel Rim SouthEPCM Delivery

• Small Owner team with specific deliverables

• EPCM by HATCH-McIntosh Eng’g (HMA 2003-09)

• Eng’g peak 120: HMA Surface Infrastructure, u/ground engin’g, ventilation, C&A. Shaft sink’g + H/frames by Cementation

• EPCM site team peaked at 65

• EPCM cost 12% of capital (Eng’g 6%, PCM 6%).

• EPCM Contract inc ‘Gain-share Pain-share’ formula based on annual safety & ev KPIs

• Partner contractors engaged early- site prep, hoist supply, shaft sinking, long-leads, constructability. Footwall Zone

Contact Zone

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EPCM model benefits:

• Single group accountability for delivery

• Contract linked to project success; safety, cost, schedule

• Co-ordinate ‘best’ engineering

• Cross-project control systems

• Pre-procurement of long-lead items (materials/equip’t)

• Improved likelihood of Project Success!

Nickel Rim SouthEPCM Delivery

Project Orientation



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Nickel Rim SouthSafety Expectations

• Xstrata’s mandate comes from the Top: The goal is “Zero Harm”

• Tone & expectations reflect from CEO to project team to contractors to individuals at face

• ‘Vision and Values’ clear, unequivocal, well communicated and translated

• ‘Zero Harm’ means zero incidents; LTI – FAs – Near Misses

• Not there yet; working toward zero MAs. Low FA & NM is a leading indicator

• Annual targets set to measure progress for LT, MA, RWI, TRIF, RWD

• Targets tightened 20% pa for Continuous Improvement

• Bottom-line approach... Safety can never be “good enough”.

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Nickel Rim SouthSetting a Safety Culture

• Contractor pre-selection includes safety performance analysis

• Team input to management selection

• ‘One-team’ must be created, co-location is critical

• Orientation - the vital first contact (made personal – because it is!)

• Training and Safety discussion never stops (huddles)

• Contractor corporate structures engaged

• Positive recognition forced; celebrate milestones safely achieved

• Accident prevention is behavioral based Safe behaviors can’t change at the gate

• Guard against complacency –a silent killer on long projects!



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Nickel Rim SouthSafety Tools

• Internal Responsibility system

• Stop and Correct

• Five-point safety and Pre-Op check system

• Regular alignment (now-state to future-state)

• PASS system

• Best Practices - most stringent contractor or project procedures

• Root-cause analysis

• Leading-indicator vs. lagging indicator reviews

• Positive recognition rewards vs. incentives.

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Nickel Rim SouthShaft Sinking Challenges

• Over & Under work inherent challenges

• Tie-off points & harness use

• Shaft equipping decks

• Modification protocol compliance

• Bucket (kibble) travel & bucket wells

• Brutus mucking jaws – bail changes

• Rigging & Slinging

• Heat, ammonia & water challenges

• Hoist automation & speed-clamps.



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Nickel Rim SouthShaft Sinking Challenges

• Lack of trained & experienced people

• Training facilities

• Off-site behavioral issues

• Extreme winter temperature differentials

• Station construction – rhythm break

• Changeover conversions

• Contractual arrangements

• Design responsibility for temporary facilities in head frames, dumps, hoisting etc.

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Nickel Rim SouthSustainable Development

• Occupational health programs - Owner and major contractor partners

• On-site OHN and free services (flu-shots, ergonomics, EAP advice etc.)

• Reportable environmental spills – zero accidences

• All permits in place prior to start

• Agreement with local First Nation band (WFN)

• Agreement with adjacent airport (NavCan)

• Local community engagement – open houses etc.

• Energy reduction designs eg. LEED certification

• Regular SD audits vs. 17 common Xstrata stds.



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Nickel Rim SouthSome Lessons Learned

• Safety is a LINE responsibility. Safety dept does guidance & training

• Multi-contractor communications - increased team ‘supervisor’ presence

• Contractor management critical (excellent shaft miner vs. lateral miner)

• Specialty team checklists for major set-ups (sinking, devel’t comm’g) reduces preparedness risks

• Design risk reviews and construction Hazops - deep into project

• Estimate new-worker training requirements carefully – market driven

• Complacency from repetitive tasks/good results - creates environment where failure goes unrecognized

• In transition, apply same diligence to Operations workforce as to contractors; anticipate delayed culture change

• Modification protocol needs high level attention/compliance.

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Nickel Rim SouthSome Lessons Learned

• When the Owner is committed project team job is easier

• Good results from attention to leading, not lagging, indicators

• Continuous Improvement - need to challenge our existing standards/procedures

• In-depth orientation with one-on-one assessment is vital!

• “One team” culture needs early establishment

• Think-it-through planning is critical for non-routine tasks

• Stop and Correct is an excellent field tool. No-one walks past an unsafe act/condition

• Above all “working in an unsafe manner must become socially unacceptable”.



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Nickel Rim - 2003

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Nickel Rim South - 2004



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Question and Answers

Thank You.

Nickel Rim South



R Collins

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The Author

J Richard (Rick) Collins, Associate, Project Manager, Hatch

Rick Collins has 27 years experience in engineering, construction and project management of

medium and large-scale projects. Experience includes planning and execution for underground

projects in hard rock, mixed and soft-ground conditions; for mining, road, rail, hydro and transit

projects. Career to date includes 17 years EPCM for project owners, 5 years with contractors, 3

years with design-constructor (Channel-Tunnel Project), and 2 years engineering business

management.



R Collins

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