olympic dam project supplier information - barossa...
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This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.
Olympic Dam ProjectSupplier Information
Confidentiality Obligation
The information to be presented in this briefing includes information that is confidential to BHP BillitonOlympic Dam Corporation Pty Ltd or its related bodies. This information, and any document, informationor data in any medium containing or derived from it (including any notes taken in this presentation), mustbe used solely for the purpose of evaluating the transaction to which this briefing relates.
The information, documents or data may be copied or reproduced solely for the purpose of theevaluation, and may be disclosed only to those persons who need it for the purpose of the evaluation,each of whom must first be informed that it is confidential. All material in any medium that containsconfidential information must be destroyed or deleted upon request.
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 2
Agenda
� Olympic Dam today
� The Olympic Dam Project
� How to engage with BHP Billiton
� Questions
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 3Slide 3
Olympic Dam today
� Discovered in 1975
� Fully integrated processing facility from ore to
concentrate to metal
� Poly-metallic orebody with 9.1Bt resource
� Current nameplate annual capacity of:
• 235,000t copper
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 5
• 4,500t uranium
• 100,000oz gold
• 800,000oz silver
� Workforce of 3,000, majority residential in Roxby Downs
Olympic Dam Supply Overview
• Supply is responsible for all sourcing and contract set up, purchasing, inventory management and transport & logistics
• Currently have: – 87,000 catalogued materials – 25,000 materials held in inventory– $105M in inventory holdings– create 150,000 PO’s per annum
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.
– create 150,000 PO’s per annum – 460 Contracts – 1,800 pre-qualified vendors– $1.3bl of annual spend– 73% of Spend is Services and 27% Goods– 90% of spend is on Contract– 2,800T product per day – 80% from Adelaide 20% Pt Augusta – 2,100t
N, 700t S– 1,000,000T per year transported (finished product, general & bulks)
• Businesses should register with the ICN
Slide 6
Contract Case Study – Olympic Dam
EPCURS
Australia
Brownfield Tailings Dam Project Project office facility - accommodation
Engineering Tier 1
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 7
Subcontractor HeadingsSupply & Install BuildingsTier 2
Electrical
Works
MPS
Buildings
Ausco
IT&T
Outback
ElectronicsTier 3 or 4 works
Contract Case Study – Olympic Dam
EPCMAker
Solutions
Brownfield Tailings Discharge Upgrade Project; Pipe trace
Engineering, Tier 1
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 8
Trade Contractor ODT AustralisProject managementTier 2
Tier 3 or 4 works Pipe supply
PIHA
Hire
equipment
Lucas
Operators
Toll
Olympic Dam Project Approvals
� Supplementary Environmental Impact Statement (SEIS) released May 2011
� EIS approved by 3 Governments (Federal, State and Northern Territory) on 10 October
2011
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 10
� Indenture negotiations are currently underway with the State Government
� Project approval conditions and Indenture analysed by BHP Billiton before Board
investment decision
Mining
• Top soil and over burden removal– Tendered clear and grub (removal of top soil)– Pre-strip and pre-mine work to be BHP Billiton
• Purchase of mining fleet– Procure direct from OEM’s (e.g. Caterpillar)– Likely to require regional fleet assembly > 100 items
• Hydro (misc water work)
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 11
• Hydro (misc water work)– Dewatering / de-pressurisation / misc water studies
• Fleet maintenance– Working with CAT dealership
(Cavpower) locally to develop best solution
– Training and induction
Infrastructure
• Contracted on BHP Billiton paper, via our selected EPCM, Jacobs Engineering– Bulk earthworks (early design work commenced)– New accommodation modules – supply, install and operate (supplier identified
– soon to tender for central facilities) – Expansion of existing accommodation facility (contracted to Ausco/Headings)– Pre-strip temp accommodation and office facility (design underway)– New Roxby Downs airport (currently documenting performance spec)– Mine Maintenance Facility (MMF)– Concrete batch plant
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 12
– Concrete batch plant– Contractor Village management– Fencing– 11kV and 132kV electrical (powerlines and
substation)– Roads (both unsealed and sealed – design work underway)– Buildings (mine maintenance facility / gatehouse / admin building etc)– Structural, Mechanical and Piping (SMP – bundled or separated?)– IT&C– >500 items of misc procurement
Contracting – the process
• Contract strategy
• Database; utilising ICN (SA) database to create portal to industry
• Database push; will push individual package opportunities
• Database pre-qual; more from ICN (SA) on this
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 13
• EPCM pre-qual; Jacobs will undertake a detailed pre-qual (and have already commenced this work)
• Selective request for tender or sole source award based on package by package contracting strategy
• Award notification to all contractors on ICN SA database
• Tier 2 and 3 opportunity with the successful BHP Billiton contractor
Typical Contracting Process
Contracting Strategy
Pre-Request for
Communicate award via ICN
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.
Contracting Strategy
- High level
- By package
Pre-qualification
via ICN then EPCM
Request for tender or
direct award
award via ICN to support
flow down of contracts
Slide 14
Jacobs Role with BHP Billiton
� Infrastructure Option Studies
� Estimates, schedules and execution strategies
� Early contractor engagement
� Pre-qualification of contractors and suppliers (major works)
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 15
� Pre-qualification of contractors and suppliers (major works)
• What does this mean and what does this involve?• HSEC
• ER / IR
• QA / QC
• Capability / Capacity
• Financials
• Anti-corruption
• Olympic Dam Experience
Next Steps
� To target opportunities for either the existing Olympic Dam operation or the Olympic Dam Project, register on the Industry Capability Network (SA) website www.bhpodp.icn.org.au
� Review the BHP Billiton Olympic Dam Purchase Order Terms and Conditions and Site Specific Information & Conditions for Contractors to understand the minimum requirements for supplying to Olympic Dam. This is located on the BHP Billiton website www.bhpbilliton.com. Refer to the “Suppliers” link at the bottom of home
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.
website www.bhpbilliton.com. Refer to the “Suppliers” link at the bottom of home page.
� Assess your business against the key pre-qualification areas as outlined in today’s presentation and the Site Specific Information & Conditions for Contractors and identify any gaps.
� Utilise the resources of your local Regional Development Australia Board or the Industry Capability Network (SA) www.icnsa.org.au .
Slide 16
Questions
This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd
or its related bodies. It must not be made available to or used by any other person.Slide 17