COTE BLANCHE MINE

PROJECT MANAGEMENT

PRESENTATION FOR PMI

Ron Pickering

RON PICKERING: WORK HISTORY

• Surveyor/Mine Tech (Arclair Co. - Southern Illinois)

- Lead on survey crew

Survey underground and surface

- Drafting mining operation maps

- Long and short term mine planning

- Reserve identification and allocate money to owners

- Underground Examiner

- Underground Foreman

- *Project Manager

• Mine Engineer (Peabody Willow Lake Mine - Southern Illinois)

- *Project Manager

- IDNR Permit, design, build, implement, environmental, Construction Management of new mine

• Mine Engineer (White Oak Central Illinois)

- Project Manager

- IDNR Permitting, mine design, environmental, air permitting

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RON PICKERING: WORK HISTORY (CONT’D)

• Mine Engineer (Peabody Prairie State - Central Illinois)

- Project Manager

- IDNR Permitting, design surface & underground facility, MSHA Permitting, Environmental,

Construction Management, and “Project Manager”

- V.P. Engineering (Pitman Mine Services-Central Indiana) PM

Manager of Engineering, Design, Permitting, Bidding, Implementation, Construction, & maintain

Project Manager

• V.P. Engineering (Landree Mine/Pittman Mine Services-Central Indiana)

- Engineering manager, Superintendent, Safety Manager, Construction Manager

- Project Manager

Designed, permitted, MSHA/DNR/EPA, Build, & Maintain

• Engineering Manager (Compass Minerals Southern Louisiana)

- Direct Engineering, Manage Capital, Manage Projects, Project Coordinator, design, build, bid

packages, environmental, MSHA/LDNR/EPA/Coast Guard/Corp of engineers

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RON PICKERING: CERTIFICATIONS

• Auto Body Repair (1983-1984)

• Construction Management (1985-1986)

• MSHA certified Miner/Instructor (6-29-2012)

• CPR (American Red Cross) 10-10-2012)

• Illinois Mine Examiner (5-12-2005) #11871

• Illinois Mine Manager (10-6-2005) #7818

• Illinois Surface Supervisor (9-18-2007) #218

• Indiana Department of Labor Mine Forman (7-9-2012) #2884

• OSM Wastewater Operator’s License (6/1/2012) WW019673

• Visible Emissions Evaluation (3-24-2011)

• Operations Supervisor Training (12-14-2007)

• Project Management Certifications (12-2014)

• 35hr PMP Certification (11-2016)

• PMI PMP Certification (in progress)

• PMI member

• Leadership Training Certification (2017)

• MARC Training (2018)

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MEETING SPACER

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DATE

Mtg Start PLAN ACTUAL

Mtg End PLAN ACTUAL

Meeting Objectives1

2

3

Additional Expectations1

2

Attendees:

Ron Pickering Scribe: Sally Time Keeper: Process Monitor:

Leader Mins Start End

1 5 From 07:00 To00:05

2 5 From 07:05 To00:05

3 10 From 07:10 To00:10

4 10 From 07:20 To00:10

5 5 From 07:30 To00:05

6 2 From 07:35 To00:02

7 8 From 07:37 To00:08

8 15 From 07:45 To00:15

9 From To00:0

10 From To00:0

00:0

Assignments:

RESPONSIBILITY DUE DATE

1

Review Project Management for New Barge Loading Facility

07:30

Good vs bad project management

RonHow CB mine projects work

All

Meeting Highlights, Issues, General Comments & Notes

DESCRIPTION

PMI Meeting8-Jan-19

Increased knowledge of salt mining

Applying PM to Mining

Team: PMI

MEETING NO. 19-016:30 PM

8:00 PM

TASK TEAM LEADER Ron Pickering

8-Jan-19

Ron 07:20

07:05

ROLES:

Additional Topics:

Introduction Ron 07:10

Request: Jefferson Island Disaster

Q&A

Ron

Ron

Request: What is a salt mine in Louisiana Cote Blanche Mine Overview

Ron

08:00

SAFETY Share - TBD Ron

Team:

Facilitator:

07:37

07:45

07:35

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REQUESTS

• Where is Cote Blanche Mine located?

• What does a Salt Mine look like?

• Can you explain the salt mine disaster on Jefferson Island?

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SAFETY MANAGEMENT

Effective project management plays a critical role in the success of any venture. Without

it, projects flounder, delays ensue, and most importantly, a company’s reputation can be

at risk. But perhaps nowhere is project management more important than in the high-risk

environment of a construction site.

• Contactor Management Plan

• Regulatory safety requirements

• Safety training plan

• “Top 9” Policies

• Material staging areas

• Change rooms

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SAFETY SHARES

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11

12

13

14

REQUESTS

MINE DISASTER

JEFFERSON ISLAND

• http://www.youtube.com/watch?v=ddlrGkeOzsI&hl=en_US&fs=1&

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COTE BLANCHE

MINE OVERVIEW

BACKGROUND

• Cote Blanche Mine is operated by Compass Minerals

- The largest salt producer in North America and the U.K.

- A leading supplier of highway deicing products

- The leading sulfate of potash specialty fertilizer producer in the Western Hemisphere

- Number one producer of dry dispersible powder micronutrients and phosphorus

- Provider of secure records management services in the U.K.

• Cote Blanche is a salt-producing mine in South Louisiana

- Located around 50 miles South of Lafayette and120 miles West of New Orleans

• The salt deposit is in salt dome form

• Around 500 diapirs exist in the region

- Most accessible domes have been mined or are currently being mined

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HISTORY

• Geological investigations date back to the early 1900s

• Mining has been carried out on the 1,100’ and 1,300’ levels

• Mining the 1,500’ level currently

• Future potential mining 1,300’ level extension, 1,600’ sub level and 1,700’ level

• Life of mine exceeds 50 years

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GEOLOGICAL MECHANICS

• Salt is ductile and liable to flow

• The salt has intruded up through overlying

rock

- Uplifted from the main salt deposit c.5miles

deep

- Typically forms a column

and expresses as a dome

Hydrocarbons can be sequestered and

accumulate near the margin of the dome

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MINE INFRASTRUCTURE

• Island accessed via ferry

• Mining currently at the 1,500’ level

- 200’ is left between mining horizons

• Access via three shafts

- #1 (8’ shaft) to 1,300’ level used for

personnel and emergency

- #2 (14’ shaft) to 1,500’ level for personnel,

materials and under-slinging

- #3 (16’ shaft) to 1,500’ level for production

hoisting

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MINE DESIGN

• Room and pillar operation

- Development 30’, bench a further 45’

- Total mined height 75’

- Room width 50’

- Room centers 150’

• Extraction ratio 56%

- [(150*150)-(100*100)]/(150*150)

• Rock mechanics allows for self-

support

- Some remedial spot bolting and/or

mesh is used

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MINE CYCLE

• Undercut

• Sample

• Drill

• Charge and blast

• Load

• Haul

• Dump

• (Scale)

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MINE CYCLE

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PROCESSING AND TRANSPORT

• All crushing carried out underground

- Primary, secondary, tertiary crushing

• Underground conveying

• Mill and screening plant

- Separated into product piles (chemical, highway, medium, course, feed)

• Hoisted to surface using #3 (16’) shaft

• Either directly to barge (1,500t), surface stockpile or surge bins

• Quality tested in lab

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GOOD VS FAILED PROJECT

BAD VS GOOD PROJECT MANAGEMENT

Project #1

• Designed Underground and Surface facilities for new Underground Coal Mine

operation

- Spent several months to develop a good project

Several hundreds of drawings, Bid packages, meetings, trips, surveys, etc…

- Time to present to management

Great Design, accomplished all objectives?

Presented package to owner

• Completed design and bidding packages

• Looked at first page (Objectives)

• Looked at last page (Costs)

• Handed it back to me and “Told me to cut the cost it in half”

• Re-designed took a several months

• Presented the package to the owner again

• What were the lessons learned?

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1 LESSON LEARNED

• Always, Always, Always Complete a Charter

- Identify Scope of Work

- Identify Sponsors expectations

(In this case cost expectations)

- Identify stakeholders and their expectations

Sales, Regulatory requirements, etc...

- Identify all constraints associated with the project.

(in this case spending constraint)

• Sponsor must sign off on Charter

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GOOD PROJECT MANAGEMENT

Project #2

• Initiation Phase

- Charter

Important for signoffs for the objectives to be met “This must be completed AND Sponsor sign off”

- Stakeholder register

This is one of the most important parts of Project Management

• If you don’t get this right you could be sent back to the drawing board each time a new stakeholder

is introduced

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COTE BLANCHE PROCESS

COTE BLANCHE PROCESS

How a project gets started at this facility

• Capital Manager

- Manage all capital assets

Budget projects

• MOB, Mobile equipment, safety, environmental,

**Structural Analysis

• Identify structural issues

• Structural Data Base created

• Identify priorities• Creates Projects

*Note: Salt, High Humidity, Heat, and Oxygen creates highly corrosive conditions.

• Strategic Manager

- Develop Strategic Plan

Strategic projects

• Seismic program, drilling program, new level mining,

- Manage these assets

• We just created our own project list (We are also the Customer)

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STRATEGIC FACILITY PLANNING PROCESS

• Step one: Setting up your planning environment. To begin the strategic facility

planning process, configure Strategic Facility Planning and define the planning

environment...

• Step two: Forecasting...

• Step three: Evaluating plans and scenarios...

• Step four: Implementation and follow-up

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STAKEHOLDER ENGAGEMENT

• Created a Value Stream Map (VSM) of the entire mine

• Created a “Current State” Process Maps of Facilities phases

• Created a “Future State” Process Flow map

- Defined deficiencies

- Objectives to meet:

- MSHA

- EPA

- OSHA

- Corp Permits

- Air permit

- “Top 9” Safety Initiatives

- Sales Forecasts

- Future Mine Expansions

- Maintenance issues (Corrosion)

- Mining Process

- MOC process and application

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STRUCTURAL PROJECT DATA BASE (2 OF 12

PAGES)

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COTE BLANCHE VSM PROCESS

COTE BLANCHE VSM 2.2M & 3.0M EVENT

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Event Profile

Team Members Dept.

Statement of Current Condition

1.) Team expected to review the mining process and develop gap plan.Expected Outcome

Event DateDept.

Core Team

• Process Owner Event Leader• Functional Leader Business Leader

Approvals

Current State-1500 Mapping

All 10/24/18

Review Current State -1500 Level –Mining Method

MaintenanceEngineering Production

V.P. OperationsOperation Engineer

Mining EngineerProcurement

FacilitatorFinance

TEAM EXPECTATIONS (FROM 09_12 EVENT)

• Clear Personal (mgr) Actions and KPIs

• Clear defined projects that are assigned to Dept

and Mgr

• Visual aid that allows ALL to view how we relate to

each other and the process

• Clear communication between Dept and Mgr on

projects and goals

• Everyone stay focused

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The newly established

(from 10/24 Event)

Daily Meeting should

provide solution for all

VALUE STREAM MAPPING (VSM)

• Developing plan for moving forward

• Decisions based on facts

• Define TAKT

• Develop Process Map by Process Phase

• Develop Gap Plan by Process Phase

• Develop Action Plan

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TYPICAL VSM (VALUE STREAM MAP)

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ORDER OF WORK FOR PROJECT

PROJECT MANAGEMENT INSTITUTE (PMI)

PROJECT MANAGEMENT PROCESS

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ORDER OF WORK FOR PROCESS

• Strategic plan

• Structural analysis

• Determine project

Initiating process group

• Charter

• Stakeholder register

- Kaizen event

High level scope

Planning process group

• Project Management Plan

- Utilize the VSM

- Current state process map

Kaizen events

- Future state process map

- Budget

RFQ, send out to potential bidders

• Capital Project Process for Company Board Approval

- Conduct meetings to award bids

- Award Engineering for project

- Detail engineering

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STOP

CHARTER FOR BARGE DOCK

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Effective: 10-2013

Page 1 of 1

Engineering Project Charter

1. Project Name

2. Project Information

Purpose and Business Justification Describe the business need this project addresses and measurable outcomes desired.

Scope List what the project will and will not address.

Milestones Propose start and end dates for Project Phases (e.g., Inception, Planning, Construction, Delivery) and major milestones

Constraints and Assumptions List any conditions that may limit the project team’s options with respect to resources, personnel, or

schedule (e.g., predetermined budget or project end date, limit on number of staff that may be assigned to the project).

3. Resources

Project Sponsor: Budgetary Estimate:

Project Manager: Go/No Go Target Date:

Team Members:

4. Stakeholders (e.g., those with a significant interest in or who will be significantly affected by this project)

5. Sign-off

Name Signature Date

Project Sponsor

Project Manager

Capital Focus

Team

6. Notes from Capital Focus Group

RISK REGISTER

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Stake Holder RegisterDate

Project Name

Project Phase

Name of Stakeholder Role in ProjectType of

StakeholderTypes of Communication Expectations Interests

Influence on Project

Outcome

Stakeholder: An individual, group or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity or outcome of the project.

WBS

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MANAGEMENT PLAN

• Scope management plan

• Quality management plan

• Traffic management plan

• Fatigue management plan

• Human resource management plan

• Hurricane preparation plan

• Training plan

• Safety Management Plan (Top 9)

• Risk assessment plan

• Lifting plan

• Non-routine Hazardous task plan

• Contractor agreement plan

• Procurement plan

• Engineering plan

• Fire protection plan

• Site reporting plan

• Contractor management plan

• Discipline plan (Union)

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COTE BLANCHE MINE

NEW BARGE DOCK

PROCESS MAPPING

BARGE DOCK

PHA ANALYSIS

NEXT STEPS

• Obtain approval from Corporate office

• Detail engineering phase

• Bid packages prepared then sent to potential construction companies

• Award packages

• Execution Phase

• Monitoring Phase

• Completion Phase

• Presentation to PMI from PM

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