25635-220-G01-GAM-00001p2 Work Execution

Section 2 Work Execution Overview

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Las Bambas Project PROJECT EXECUTION PLAN 25635-220-G01-GAM-00001 Rev. 1, 13-Aug-2014 Page 2-1 of 2-72

2.0 WORK EXECUTION OVERVIEW

The scope of the project is to construct of all of the facilities required to process the Las Bambas mineral resource through a new sulfide flotation concentrator at a rate of 140 000 tons of ore per day from three open pit mines (Ferrobamba, Chalcobamba and Sulfobamba) over a minimum 18 year mine life. There are no existing facilities near the site suitable to support the development or operation of the project. Consequently the project includes all necessary utilities and infrastructure required for a fully operational mine and mineral processing plant.

The Las Bambas project is located in Southern Peru approximately 75 km south southwest of Cusco, 300 km north-northwest of Arequipa and 150 km northwest of Tintaya, Xstratas existing mining operation.

Las Bambas is the second project to start execution under the MMG Bechtel Alliance. The first project is the Antapaccay Project which received NTP for construction in July, 2010. Antapaccay is located approximately 150 km south, south-east about 2 km from the open pit mine at Tintaya. Las Bambas and Antapaccay are related for three very important reasons:

The copper concentrators at each project are based on the Standard Concentrator+ concept developed as part of the Alliance since late 2007 and consequently they share common design elements.

The Antapaccay Project is about 12 months ahead of Las Bambas with the development of the detail design of the concentrator and establishment of project execution infrastructure. Their common design heritage offers significant opportunities to Las Bambas to utilize that design advancement.

The 12 month delay between the projects and their proximity to each other also offers significant opportunities to leverage the work already completed on Antapaccay in all other areas including project tools, systems, procedures and work processes as well as sharing resources.

This execution plan for Las Bambas has been prepared to maximize the benefits from replication, synergy and integration (RSI) associated with many aspects of the two projects. Further examples of RSI strategies and benefits are included throughout this PEP and are further explained in Section 2.4, Implementation Approach.

Bechtels scope of services will include detailed engineering, procurement, (executed in Santiago, Chile) and construction or construction management (EPC/CM) as appropriate. The C/CM services will be executed by Bechtel with Graa y Montero (GyM).




2.1 Project Baseline The Project Baseline establishes the boundary of the contracted scope of work, schedule and budget. It is the benchmark against which change is controlled and against which project measurement and control is monitored. The source of the information for the Las Bambas Project Baseline is:

Scope of Facilities Prime Contract Scope document developed by the Project.

Scope of Services Prime Contract Scope document prepared by the Project.

Budget Capital Cost estimate based on the cost estimate from the Feasibility Study prepared by the Project adjusted for scope at time of NTP.

Schedule Schedule from the Prime Contract based on the schedule from the Feasibility Study adjusted for execution plan and scope at time of NTP.

2.2 Scope of Work

The following are descriptions of each facility that constitute the Las Bambas Project. Some of these facilities are indicated as deferred in the facility title.

2.2.1 Facility 0100 Mine Area Facilities

Facility 0110 Mine Site Development and Mine Roads (Split scope) An open pit mine to extract an estimate of 140 000 t/d of ore

from the Las Bambas ore-body for processing through the Las Bambas Concentrator process plant with its associated waste handling and storage areas.

Mine pre-stripping of 27 million tons of overburden at the Ferrobamba pit prior to start of operations that will start during

year minus 1 utilizing three 73 cubic yard rope shovels and three drilling machines. (Owner scope)

Five 73 cubic yard rope shovels and seven drilling machines

required for the first full year of production. (Owner scope)




The primary feed to the Plant will come from the Ferrobamba open pit.

Within 6 year, the Chalcobamba pit enters into operation and the Sulfobamba pit is estimated to start after year 14.

Mine runoff control and treatment facilities. (Split scope)

Drainage Control Ditching and collection system water (Owner)

Tanks and pumping system to consolidate mine contact water into the plant reclaim system (Bechtel) Location to be defined

Mine fuel storage and dispensing facility (Bechtels Scope.)There are dewatering wells (3) external to pit, and piping to a collection point outside the pit.

Horizontal pumps, piping and tanks associated with well pumps (Bechtels scope).

Well drilling (Owner)

The water is pumped to the main construction camp. The

overflow water goes to the 5,000 m3 pond in the construction water system.

Facility 0120 Mine Site Power Supply and Distribution (Split scope) The mine power loop from the primary crusher substation will

feed the mobile transformers feeding the mine equipment. This

system will include a combination of OH line and above or underground cables with disconnect switches to be able to

isolate sections of the loop when necessary. (Bechtel Design, Owner construction)

Four (4) mobile substations will be used to supply the rated voltages in the mine loop system for the shovels and the mine blast-hole rotary drill, both of 6.9 kV. The mobile substations




will be fed from the primary crusher area using a 23 kV O/H

line. Trailing cables will power the equipment from the mobile substations. (Bechtel Design, Owner construction)

The Power supply for the Mine Loop includes the 23kV switchgear at the Primary Crusher substation, the 23 kV O/H line structure, which is next to the Primary Crusher electrical room, which includes the structure and the physical connection to the 23 kV O/H line, and the external switches at the O/H line

structure.

The mine loop includes the O/H line starting at the tie-in

structure adjacent to the Primary Crusher substation, mobile substations and the trailing cables between the mobile

substations and the mine equipment. (Owner)

Facility 0130 Mine Ancillary Facilities Facility 0131 Truck Shop (Owner Scope)

The Truck Shop has been transferred to Owner Operations.

Facility 0132 Fuel Storage and Dispensing

The permanent fuel station is an EPC contract, with Bechtel construction management.

Bechtel is designing and building the platform in coordination with Owner operations and will bring the utilities to the platform

A heavy diesel fuel storage and distribution facility will be

located in the mine services area, adjacent to the Primary Crusher. It will be comprised of two 1,000 m3 above ground

tanks providing about a one week supply of diesel fuel. Distribution systems will be sized to allow for simultaneous fueling of two mine haul trucks and one ancillary vehicle

(loader, motor grader or bulldozer). The distribution area will




also include a booth for the operator who will be responsible

for the fueling of the mine vehicles and the unloading of fuel delivery trucks.

The facilities will include storage and distribution facilities suitably designed for protection against fire.

Facility 0133 Tire Shop

Transferred to Owner Operations

Facility 0134 Truck Wash


Facility 0135 Truck Shop Welding Area


Facility 0136/0137 Mine Office/Change House

Included in Facility 4511, MCC Camp

Facility 0138 Explosives Manufacturing and Storage (Owner) The explosives manufacturing and storage yards are located in a secure area having the capacity to contain raw material for explosive, mix

factory, powder magazines and administrative services of the blasting contractor

Facility 0139 Mine Yard Utilities (Deferred) Facility 0139 has been deferred by Owner.

Facility 0140 Mine Access / Control Gatehouse The mine and primary crusher area access control gate house is a modular prefabricated building with pre-formed and pre-painted steel siding. The gate house has an area of about 18 m2 manual entrance and exit gates. The gate house includes the following:

Control and access room with computer network access to the

overall facility security control and fire alarm system

Two (2) washrooms (Male and Female)




One (1) lunch room kitchenette for four (4) personnel

Guardhouse Vehicle barriers

2.2.2 Facility 0200 Ore Storage and Handling

Facility 0210 Primary Crushing Run of Mine Ore (ROM) will be delivered by 330t haul trucks

to the primary crusher installation which will be designed with two dump pockets to allow a truck to approach each primary

crusher dump pocket simultaneously on a 24 hour per day operation.

The crushing plant will be sized to handle a nominal 140 000 t/d of ROM ore. The crushing plant includes two 720 ton crusher dump pockets, two 1524 x 2 870 mm (60 in x 113 in) primary gyratory crushers each with a 750 kW motor, two 720 ton crusher surge pockets, two 2134 mm (84) wide x 11.0 m long primary crusher surge pocket apron feeders (each with a 5 200 tph maximum capacity) that feed the overland conveyor.

The primary crushers will be located close to the Ferrobamba Pit, a relatively short haul distance for mine trucks.

The apron feeders, one under each primary crusher will discharge onto a sacrificial belt provided with a weight scale to

measure crusher product tonnage. A tramp iron magnet is located in the discharge end of each apron feeder and metal detector in the sacrificial conveyor as a first stage tramp metal protection system. The sacrificial belt conveyor will discharge onto the overland conveyor No. 1 that in turn feeds overland conveyor No. 2 that then feeds the coarse ore stockpile at the

concentrator.

One electrical room is provided for the primary crusher.




Dust suppression at the dump pocket and extraction systems will be provided at various transfer points. A hydraulic rock

breaker will be installed in each primary crusher dump pocket to clear crusher feed blockages caused by oversized rocks.

The primary crushers are serviced by one primary crusher bridge crane with a 110/25 ton capacity, 15 m span, 70 m runway length, 42 m hook lift and a trolley bridge speed of 25/30 mpm.

A local primary crusher station office and control room will be provided.

One of the crushers will be relocated close to Chalcobamba pit before the pit. (Information only)

The substation for the mine and the primary crusher will be located at 3,834 meters and includes a 33 kV GIS made up of two bay feeders for the incoming 33 kV transmission lines and

seven outgoing bay feeders for power transformers. It includes the associated prefabricated building.

Area lighting and lightning protection

Facility 0220 Coarse Ore Conveying Las Bambas has a two (2) flight coarse ore (overland) conveyor

system designed to transfer crushed ore to the coarse ore stockpile. Crushed ore from the apron feeder beneath each

primary crusher surge pocket feeds onto the sacrificial conveyor belt which in turn feeds Fuerabamba overland

conveyor No 1. Fuerabamba No. 1 is a 1 830 mm (72) wide x approx. 2,608 m long, (223 m height difference). It has variable slopes along its length, most of which fall between 11.94% and 5.42%. . This conveyor is used to transport ore from the crusher station to the transfer station where ore is

transferred to Fuerabamba overland conveyor No 2.




Fuerabamba No 2 is an 1830 mm (72) wide x approx. 2,729 m long overland conveyor (approx. 229 m height differences) which is used to transport ore from the transfer station to the

coarse ore stockpile. Both overland conveyors have a 9 400 tph maximum wet capacity and maximum speed of 6.5 m/s. An electrical room is provided for each conveyor.


Facility 0230 Coarse Ore Storage/Stockpile Coarse ore from the overland conveyor is discharged onto the

coarse ore stockpile. The coarse ore stockpile has a live

capacity of approximately 105,000 tons and a total capacity of 555,000 tons. The live capacity represents the portion of the ore in the stockpile that will flow by gravity into the reclaim

hoppers below the pile. The dead portion of the pile will be available for periods when the overland conveyor cannot deliver ore to the concentrator either because it is inoperative or when there is a problem in the mine or at primary crusher

station. The dead portion will be moved to the reclaim feeder feed chutes using bulldozers. The plant will normally operate

from live capacity ore only.

The conical coarse ore stockpile at Las Bambas will not be

covered.

Facility 0240 Coarse Ore Reclaim The coarse ore reclaim system will consist of two parallel lines

of four (4) in line (one per grinding line) variable speed 1,524 mm (60 inch) x 9.35 m long, 1 279 tph maximum wet capacity apron feeders to withdraw material from the stockpile and deliver it to the SAG mill feed conveyor. Three feeders are capable of achieving design throughput of 70 000 tpd per line with the fourth feeder available for maintenance. Each grinding




line will be fed using a 1,829 mm (72 inch) x 274 m , 3 268 tph of fresh ore and a lift of 6.9 m, SAG mill feed conveyor. The apron feeders are located directly above and in line with

the SAG mill feed conveyors.

Crushed pebbles from the pebble crusher circuit as described

on Facility 0320 are returned to the SAG mill feed conveyor after the weigh scale. Grinding media from SAG mill ball feeder is added to the SAG mill feed conveyor after the weigh

scale. The SAG mill feed conveyors will be an adjustable speed belt (maximum speed 3.5 m/sec) with in-weight scale incorporated to allow for automated control of the variable speed feed rate.

One electrical room is provided for the coarse ore reclaim.


2.2.3 Facility 0300 Concentrator

Facility 0310 Grinding The grinding circuit consists of two 12.2 m (40 ft.) diameter x

6.7 m (22 ft.) effective grinding length (EGL) semi-autogenous grinding (SAG) mills, with each mill driven by a 24,000 kW gearless drive, and two 7.92 m (26 ft.) diameter x 12.2 m (40 ft.) (EGL) long ball mills, each powered by an 16 400 kW gearless drive. Space has been allowed for the installation of two future ball mills of the same size.

Each SAG mill feed conveyor discharges into the retractable

SAG mill feed chute where process water, lime and collector are added. The SAG mill discharges through a short trommel screen to a double deck vibrating screen. A roll in/roll out standby vibrating screen is provided for quick change-out to minimize plant downtime due to screen maintenance requirements. Wash water will be applied to both the trommel




and vibrating screen to clean pebbles delivered to the crushing

circuit. The washed pebbles from the vibrating screen fall onto the first of two pebble transfer conveyors, which transfer

pebbles to the pebble stockpile.

The undersize from the SAG mill discharge trommel and

vibrating screen flows by launder to the cyclone feed sump where it is combined with the ball mill discharge. Four operating cyclone feed pumps will be used to feed four

operating cyclone clusters, two for each ball mill comprised of 12 (10 op., 2 stand by) - 838 mm ( 33 inches) diameter hydrocyclones (plus one output for sampling system and one blind flange per cluster). The sump will be elevated, with an automated dump valve which will automatically open on plant

power outage to eliminate the settling of solids. The cyclone feed pumps are fitted with variable speed drives to control the level of the pulp with sump dilution water used to control pulp density and cyclone distribution head pressure. The sump level

is controlled with the quantity of operatives cyclones and the density of pulp in sump is adjusted with process water.

The underflow from each cyclone cluster flows by gravity

launder to the ball mill feed chutes. At the feed chute, milk of lime and water are added to the feed. Also, at this point, additional balls can be added as required. The layout allows for crushed pebbles to be added here as an option if so decided in the future.

The ball mill discharge flows through a magnetic trommel to

remove worn or broken balls and then to the cyclone feed sump by launders.

Overflow from the cyclone clusters passes through cyclone overflow collection boxes, a static screen trap to remove




oversize material, and two energy dispenser boxes in series per

line before reaching the samplers.

The floors in the grinding building are sloped to direct spillage

within the grinding area to a central collection channel through which the spillage water and fines flow by gravity to a settling pond outside of the building to avoid build-up of water within the building. Spillage solids are cleared by mechanical front end loader.

SAG mill grinding balls are discharged by transport trucks into the SAG mill ball storage/addition bin. From the storage bins,

the balls are fed individually onto the SAG mill feed conveyor via a fixed speed rotary drum feeder.

Ball mill grinding balls are discharged from transport trucks into the ball storage bin. The operator in the control room or in

the field will enter the weight of balls to be added to a specific mill. Balls are fed from the ball storage bin onto the high lift

ball conveyor using a fixed speed rotary drum feeder. The high lift ball conveyor discharges onto the ball transfer conveyor, then onto the feed belt to the mill. Diverter gates are used to divert the grinding balls from this conveyor into the appropriate

ball mill.

Power to the grinding building is provided through in situ

electrical rooms installed inside the building. For the SAG mill area, there are three electrical rooms: two for

cycloconverters and one for auxiliary equipment. Additionally there are six (6) oil immersed transformers for cycloconverters of the building. Similar for the ball mill area, there are three electrical rooms: two for cycloconverters and one for auxiliary equipment. Six (6) silicon oil cycloconverters are located inside of the building.




Facility 0320 Oversize Crushing Pebbles (+13 mm) are separated from the SAG mill discharge

using a 6.4 m diameter by 4.0 m long trommel and a double deck 3.7 m x 7.3 m long vibrating screen and conveyed to a pebble crushing facility comprised of a 1,750 t live capacity stockpile, three belt feeder/conveyors each of which feeds one of the three, 750 kW short-head cone crushers.

SAG mill oversize pebbles are discharged from the vibrating screen onto the pebble conveyor system. Two weigh scales are used on the first belt conveyor to measure the pebble production rate from the SAG mill. Two belt magnets are

installed along the length of the first pebble conveyor. A third magnet is located at the discharge end of the conveyor. A

second transfer conveyor discharges onto an open stockpile.

Three pebble crusher feed conveyors are fed from the stockpile

using Mexican hat (Adjustable opening) feeders. Each pebble crusher feed conveyor has a metal detector at the discharge end of the conveyor which will activate a bypass chute around the pebble crusher to divert tramp metal away from the pebble crusher product conveyor.

Three pebble crushers, Type MP 1000, are fed pebbles by variable speed feed conveyors. The pebble crusher feed box level will be used to control the feed rate to the crushers to

ensure that they operate choke fed at all times. Product from the pebble crushers falls onto the pebble crusher product

conveyors which direct the material to a transfer tower N 2 hopper that distributes the crushed pebbles to two SAG milling circuits.

One electrical room is provided for the pebble crushing facility.





Facility 0330 Flotation and Regrinding Each cyclone overflow stream flows through a static tramp

screen prior to the static sampler, fitted with sample cutters to

obtain individual stream samples for size analysis before being combined to generate a flotation feed sample with suitable automation to allow for the generation of composite shift

samples for chemical analysis, and also to feed an on-stream

analyzer for on line reporting of solids assays.

A two (2) way top fed gravity type distributor is used to feed the first rougher cell in each of the four rows of rougher

scavenger flotation cells.

A total of twenty eight (28) 257 m3 rougher and scavenger flotation cells are provided in four (4) rows of seven (7) cells. The first two cells in each row of cells are dedicated rougher flotation cells, the third and fourth cell in each row can be used

as either a rougher or a scavenger cell and the remaining three cells in each row as scavenger cells. All cells are self-aspirated flotation cells, each driven by a 300 kW motor.

Rougher feed can be directed to feed either the first or second

cell in each row of cells to allow for operation of the row of

cells while taking the first cell out of operation for

maintenance. The design allows for by pass lines to be installed around each cell when a cell needs to be taken off line

for maintenance.

The rougher and rougher-scavenger circuit produces two

separate concentrates. A relatively high grade well liberated rougher concentrate is expected to be collected from the first two cells (rougher concentrate) and a lower grade scavenger concentrate (rougher-scavenger) from the following five cells. The individual rougher and rougher-scavenger concentrate




streams will be collected and fed to two separate concentrate

collection tanks.

The rougher concentrate from each row of cells is kept separate

and flows by gravity to the rougher regrind feed tank of 457 m3 of capacity (with agitator). Milk of lime can be added to this sump. . The combined rougher concentrate is pumped to the rougher concentrate regrind cyclone cluster.

The underflow from the rougher concentrate regrind cyclone cluster flows by gravity to the regrind mill feed sump and is pumped into the rougher concentrate regrind mill by variable

speed feed pumps. The rougher concentrate regrinding circuit includes one open circuit 1,500 kW, Model M3000 ISA mill where concentrates are reground to target a nominal P80 of 65 micrometers. This collection tank is sized to accommodate the surge in concentrate production rate via a relatively large pulp residence time of 20 minutes. The product from the rougher

concentrate regrind mill flows into the rougher concentrate regrind mill product sump where it is combined with the

rougher concentrate regrind cyclone overflow stream. From here the product is pumped to the second cleaner flotation cells

by the variable speed drive rougher concentrate regrind product pumps

The rougher - scavenger concentrates from each row of cells

are also kept separate and flow by gravity to the rougher scavenger regrind feed tank of 457 m3 of capacity (with agitator). This collection tank is also sized to accommodate a surging concentrate production rate via a relatively large pulp residence time of 9 minutes. Milk of lime can be added to this tank. The rougher - scavenger concentrate is pumped to one of the two (2) rougher - scavenger concentrate regrind cyclone clusters.




The underflow from the rougher-scavenger concentrate regrind cyclone clusters flows by gravity to the regrind mill feed sump

and is pumped into one of the two (2) scavenger concentrate regrind mills by the variable speed feed pumps. The scavenger concentrate regrinding circuit includes two open circuit 1,500 kW, Model M3,000 ISA mills where concentrates are reground to a target nominal P80 of 45 micrometers. The product from the rougher - scavenger concentrate regrind mills flows into the

rougher - scavenger concentrate regrind mill product sump where it is combined with the rougher -scavenger concentrate

regrind cyclone overflow stream. From here the product is pumped to the first cleaner flotation cells by the variable speed drive scavenger concentrate regrind product pumps.

The tailings from the last rougher -scavenger cell in each row

flows through a static sampler to collect a suitable sample to be directed via gravity to a Multi Stream Analyzer (MSA) located at the end of the row of flotation cells. Then the tailings flow by gravity to the tailings thickener area.

A regrind area spillage pump will be used to collect spillages and return this to the rougher-scavenger regrind mill feed sump.

A regrind area spillage pump will be used to collect local area rougher and rougherscavenger regrind spillages and return this

to the emergency pond or a rougherscavenger regrind feed tank.

The first cleaner flotation circuit consists of five (5) 160 m3 forced air flotation cells arranged in a single row. Level control is provided for each cell. Each cell is driven by a 150 kW motor. The first cleaner cells are fed by the rougher-scavenger

concentrate regrind product stream, cleaner-scavenger concentrate and second cleaner flotation tailings streams. The




concentrate from the first cleaner cells flows by gravity to the

first cleaner concentrate sump and pumped by the variable speed first cleaner concentrate transfer pumps to the second

cleaner flotation cells. A pressure pipe sampler is installed in the pump discharge line to obtain a sample stream for analysis in the cleaner circuit MSA. The tailings from the first cleaner cells will flow through a pressure pipe sampler and then into

the feedbox of the cleaner scavenger cells.

The cleaner-scavenger flotation cells consist of five (5) 160 m3 forced air flotation cells arranged in a single row. Level control

is provided for each cell. Each cell is driven by a 150 kW motor. The cleaner-scavenger cells are fed directly from the last cell of the first cleaner cells. Concentrate from the cleaner-

scavenger cells flows by gravity to the cleaner-scavenger concentrate sump and is pumped to the first cleaner flotation cells by the variable speed cleaner-scavenger concentrate transfer pump. A pressure pipe sampler will be installed in the

discharge line and used to obtain a sample stream to be sent to the cleaner circuit MSA. The tailings from the last of the

cleaner-scavenger cells flow through a static sampler which is

used to obtain shift and special samples, and also on line sample for analysis by in the rougher area in-stream analyzer.

The second cleaner flotation cells consist of six (6) 100 m3 forced air flotation cells arranged in a single row. Level control is provided for each cell. Each cell is driven by a 110 kW motor. The second cleaner cells are fed by the first cleaner concentrate stream, reground rougher concentrate and the third

cleaner tails. Second cleaner concentrate flows by gravity to the second cleaner concentrate sump and pumped to the third

cleaner by the variable speed second cleaner concentrate transfer pumps. The tailings from the second cleaners flow by




gravity to the second cleaner tailings transfer sump and

pumped to the first cleaner flotation feed sump by the variable speed second cleaner tailings transfer pumps.

The third cleaner consist of six (6) 70 m3 forced air flotation cells arranged in a single row. Level control is provided for each cell. Each cell is driven by a 90 kW motor. The third cleaner concentrate flows by gravity to the 60 m diameter concentrate thickener. A gravity sampler will be used to obtain

a concentrate sample from the concentrate launder through an in line probe analyzer. The tailings from the third cleaner flow

by gravity into the second cleaner flotation cell feed box.

Tailings from rougher-scavenger flotation cells are combined

with the tailings from the cleaner-scavengers and flow in a concrete launder to the tailings thickeners. The samples from each tailings sampler passes through MSA and its combined reject produces the final tailings sample.

Three electrical rooms are provided for the flotation and regrinding facilities.

Area lighting and lightning protection.

Facility 0340 Concentrate Thickening Concentrate from the third cleaner flotation cells flows by

gravity to the feed box of the 60 m diameter concentrate thickener. Concentrate thickener overflow flows by gravity to the reclaim water tank. Thickener underflow at 62% solids by mass is pumped by the variable speed concentrate thickener underflow pumps to the concentrate storage tanks.

There is one electrical room dedicated to the concentrate thickener.





Facility 0370 Molybdenum Plant The Molybdenum plant, will have a daily capacity to receive and treat

bulk Cu-Mo concentrate from Las Bambas at a feed rate of approximately 2 835 tons per day to produce 2 798 tons of copper concentrate and 37 tons of molybdenum concentrate. The Moly and Filter plant includes three enclosed buildings, i.e. moly filter/dryer building, CU-Concentrate filter building and filter cake storage and load out building. The facility includes:

The concentrate is pumped to the molybdenum separation plant

that is comprised of roughing, first cleaning, cleaning scavenger followed by two stages of column cell cleaning and regrinding, producing a final concentrate containing 50 percent molybdenum. The plan includes a scrubber for toxic gas cleaning.

Final molybdenum concentrate is discharged to a 17 m diameter thickener ahead of pressure filtration and drying. The dryer is equipped with a scrubber for particulate removal.

Final molybdenum concentrate will be stored in a 20 ton surge bin prior to packaging in one ton bags for shipment.

One electrical room is included.

The Moly plant area electrical room, 5.8m wide X 89m long is located outside of the flotation building.


Facility 0390 Other Facilities Facility 0391 Lime Handling and Preparation The lime preparation plant is mainly fed by a hydrated lime

slurry 1 000 ton storage silo with storage capacity for 11 days. Preparation concentration varies; lower than 20% in grinding

and no less than 7% solids in flotation and thickening,




generating two dependent operational requirements determined

by the distribution point: an 80 m3 tank for preparation and two 420 m3 distribution tanks. The lime slurry preparation plant

operation has been designed to operate in batch mode, five (5) preparation cycles per day.

One electrical room is provided

Facility 0392 Other Reagents The liquid reagents in the Las Bambas area (fuel oil, secondary

collector, and frother) are brought by tanker trucks to each storage tank with 5, 30 and 60 m3 capacities. All these reagents are connected to dosing pumps for feeding tap points. Discharge from tanker trucks is done at an unloading station

through independent pumps associated to each storage tank. Fuel oil discharge will be done by the truck pumps.

Flocculant:

The preparation is made in two (2) separate systems. The first system is associated with the tailings thickeners and is prepared with fresh water and stored at 0.3% to be distributed in diluted form at 0.03% in weight. The second system is associated with the bulk concentrate and copper concentrate thickeners and is

prepared with fresh water and stored at 0.3% to be distributed in diluted form at 0.01% in weight. Reagent reception shall be

at storages designed for seven (7) and four (4) day production in 25 kg or one (1) ton bags. The preparation and storage tanks will be 10 and 600 m3 for concentrates and tailings thickening, while the distribution tank capacities are 25 and 1 000 m3.

Primary Collector:

The Las Bambas design includes a 30 m3 preparation tank with an agitator, and a 60 m3 daily and distribution storage tank. A




56 t storage capacity warehouse receives bags of one (1) t. The preparation of this reagent requires six (6) maxi-sacs per day in nominal conditions. Fresh water is added to achieve a 10%

solid dilution in weight.

Frother (MIBC):

Frother is delivered by 25 ton truck and stored in a 60 m3 capacity storage tank. The frother is pumped to a rougher flotation circuit, first and second cleaner stage by positive

displacement dosification.

Secondary Collector

Alongside the MIBC Frother system, there is a Spare Reagent System of almost identical design, with a 30 m3 capacity

storage tank instead the 60 m3 capacity storage tank in the Frother system. This system could be used as a backup to the collector or can be used to prepare and distribute test reagents.

All tanks are installed in a containment area that can retain

emergency and normal spills up to 125% of the total tank capacity.

Preparation/storage tank spills are handled through vertical well pumps into a storage tank.

Area 0393 Air Compressor Plant The compressed air plant which is located at the concentrator

area, supplies plant and instrument compressed air to the process facilities. The primary crusher area and the mine

ancillary facilities will be installed with local compressed air systems.

All Area 300 Facilities include lighting and lightning protection




2.2.4 Facility 0400 Concentrate Handling and Filter (Dewatering) Plant

Facility 0410 Concentrate Receiving

Following molybdenum separation, the final copper

concentrate flows to a 60 m diameter final copper concentrate thickener through a feed box.

Thickened copper concentrate is pumped to the filter feed tank.

Overflow water is collected in a tank and partly returned to

thickeners as spray water and the balance of the water is pumped to the tailings thickeners.

A flocculants plant is provided for the thickener.

An emergency pond of 18 000 m3 capacity is provided to handle concentrate in case of thickener failure.

Facility 0420 Dewatering/Filter Plant Thickened copper concentrate is stored in one 1 084 m3 copper

concentrate filter feed tank located in the Filter Plant. The

concentrate is pumped from the tank to three pressure filters, each with a capacity of 62.07 dtph, via a common circulating loop. The filter plant building could be extended in the future to accommodate the four future filters.

Three oil free type air compressors, (2 working and 1 stand by), are used for the air filter supply. The air supply system is also

equipped with three, (3), booster air compressors for membrane compression.

Filter cake from each filter drops directly onto a dedicated belt

conveyor with variable speed, which then feeds the product onto a common belt conveyor. This belt conveyor transports filtered concentrate to the stockpile building.

There is one electrical room and one control room provided.





Facility 0430 Filter Cake Storage and Load-out The copper concentrate belt conveyor conveys the concentrate

from the filter plant to the stockpile building. This building has

a total capacity of approximately 40 000 t, corresponding to two (2) weeks of operation. The concentrate storage building is a covered structure designed to store up to 40 000 t of concentrate at approximately 9% moisture. The discharge end of the concentrate stockpile feed conveyor is equipped with belt plows to allow for separate storage of different quality

concentrates if required. A belt scale is installed on the concentrate stockpile feed conveyor to provide for

metallurgical accounting. Grab samples for moisture content are to be taken from the stockpile feed conveyor.

Concentrate in the stockpile building will be transferred by two, (2), front-end loaders which will load trucks directly. A truck scale will be provided inside the building. A truck wash station will be provided adjacent to the building. The system is also provided with two (2) dust collector system above the hoppers which in turn would help in maintaining a slight negative

pressure inside the stockpile building.

Facility 0490 Miscellaneous Concentrate Handling Facilities These facilities were cancelled. All support facilities for the

molybdenum and concentrate handling facilities were transferred to facility 0370.

All Area 400 Facilities include lighting and lightning protection

2.2.5 Facility 0500 Tailings Management

Facility 0510 Tailings Thickening Final tailings from the rougher scavenger and the cleaner

scavenger circuits will flow by gravity to two (2) 80 m




diameter thickeners to produce tailings slurry of 62 % solids by weight that will flow to the tailings storage area. The overflow

is collected in a concrete tank and pumped to process water

ponds. Flocculant dilution by means of 5 centrifugal pumps, (four operating and one stand by), 3 900 m3/h capacity each.

Each tailing thickener is provided with one recirculation pump for start- up and density control.

There is one electrical room dedicated to the tailings thickeners.

Lighting and lightning protection

Facility 0520 Tailings Pumping System (Owner) A pumping system will be required after year five.

Facility 0530 Tailings Distribution The tailings slurry will flow to the tailings area by gravity until year 5; centrifugal pumping will be required thereafter. No tailings pumping is included in Bechtel scope.

Facility 0540 Tailings Impoundment (Owner) Area 0541 Tailings dam and impoundment No description available from Glencore at this time

Area 0544 Drainage system and monitoring wells

No description available from Glencore at this time

Area 0545 Non-contact water management (Contour Channel)

This water system includes three diversion channels which collect rain and run-off water from hillsides above the plant site and divert the water around the plant

Channels 1, 2, and 3 divert water around the plant and the tailings impoundment

Channels 4 and 5, water diversion around the contact water storage area, have been deleted by Glencore




Facility 0550 Reclaim Water System Area 0551 Reclaim Water System (Barge Pumps)

Reclaim water is reclaimed from the tailings impoundment area

using four, (4), barge mounted vertical turbine type pumps, with a total capacity of 4 500 m3/h.

One mobile substation is provided for the reclaim water barge pump system.

Area 0552 Reclaim Water System The recovered water from barge pumps is carried to a lift

pumping station which includes four (4) horizontal centrifugal pumps and a tank. This tank receives also the waters from the booster station that carries the water from the contacted water settling pond. All this system is designed for 4,500 m3/h.

From the lift pumping station, the waters are pumped to an intermediate booster station which pumps to the process water ponds. This system is designed for 4,500 m3/h.

Three electrical rooms are provided for the reclaim water

system.

Lighting and lightning protection

Area 0553 Contact Water Settling Pond (Owner Design) The design of the contact water settling pond will be the

responsibility of Owner. Construction will be through open bid

and managed by Bechtel.

The volume of the settling pond will be determined by

Glencore.

No description available from Glencore at this time




2.2.6 Facility 0800 Ancillary Facilities

Facility 0810 Concentrator Office Building The Concentrator Office Building, (1,515 m2), will be located at the

concentrator area and will include a kitchen (Dining room area, not a working kitchen) and casino (497 m2). This facility will be used by Bechtel and Owner during the construction as temporary facilities and after project completion will be used by Owner Southern Peru Operations (Concentrator Area) as a permanent facility.

Facility 0820 Shop and Warehouse

The mechanical and electrical shop (1512 m2) and the concentrator warehouse (2880 m2) will be two separate steel framed structures.

The mechanical and electrical maintenance shop area (1,512 m2) will provide facilities for the maintenance of the concentrator mechanical and electrical equipment.

- The building is a steel framed structure with metal siding and one 15t overhead bridge crane.

- This building is composed of two areas: one electrical and mechanical workshop. The second area has two floors with workshops on the first floor and offices and restrooms on the second floor.

- The types of components that will be serviced by the mechanical area include pumps, piping, cyclones, agitator mechanisms and gear assemblies etc.

- The types of components that will be serviced by the electrical maintenance area include motors, transformers and electrical assemblies etc.

- There will be a 1,000 m2 fenced outdoor storage yard.

The Concentrator Warehouse (2,880 m2) will provide facilities for the concentrator.

The area is a steel framed structure with metal siding and roofing.




Facility 0830 Laboratory (Split Scope) Metallurgical sample preparation, testing and assaying and

environmental analyses will be carried out in laboratory

facilities located at the concentrator.

This facility includes a 770 m2 steel building containing the

following: Sample reception area, Metallurgical lab, Chemical lab, Environmental area, Offices, and Warehouse area.

Laboratory equipment to be provided by Owner Operations group.

Facility 0890 Other Ancillary Buildings Facility 0891 Concentrator Offices These facilities were cancelled and were replaced by the

Concentrator Office Building. See facility 0810.

Facility 0892 Light Vehicle Shop (Owner Scope; Deferred) Owner scope, this has been deferred

Facility 0893 Ambulance / Fire Station / Hospital / Clinic This Facility (The Ambulance, Fire station and clinic) (564 m2)

was relocated to the Main Construction Camp. This facility will

be used by Bechtel and Owner during the project and after project completion will be used by Owner Southern Peru Operations.

Facility 0894 Guard House The site area access control gatehouse is located on the

Fuerabamba bypass road and is a modular prefabricated building with pre-formed and pre-painted steel siding of about 255m2, manual entrance and exit gates. The gate house includes:

Control and access room with computer network access to the overall facility security control and fire alarm system




2 washrooms (Male and female)

1 entrance indoctrination room

A second access control gatehouse will be provided along the Chalhuahuacho road. This gate house is a modular prefabricated building with pre-formed and pre-painted steel siding. The gate house has an area of about 30 m2, manual

entrance and exit gates. The gate house includes the following:

Control and access room with computer network access to the overall facility security control and fire alarm system

Two (2 ) washrooms (Male and Female)

One (1) lunch room for four (4) personnel

2.2.7 Facility 0900 Site Development and Yard Utilities

Facility 0910 Site Development & Plant Roads Facility 0911 Site Development There are no existing industrial facilities at or near the site that

can be used to support the development or operation of the project. The project will include all necessary process facilities, utilities and infrastructure required for a fully operational mine and mineral processing plant.

Site development will include mine facilities, process facilities, ancillary facilities, on-site infrastructure and off-site facilities associated with the Las Bambas project.

Facility 0912 Plant Roads Plant area roads include:

The overland conveyor road from the coarse ore storage facility

to the Ferrobamba primary crusher. This is the plants primary access road on the south side of the plant.




Dirt roads will be used for Plant site traffic. The basic criteria include:

For Principal Roads:

- Ten (10) meter width (two lane traffic)

- One (1) meter minimum shoulder each side

- Maximum slope of 8 %

For Secondary roads:

- Seven (7) meter width (two lane traffic)

- One (1) meter minimum shoulder each side

- Maximum slope of 10 %

For Maintenance Roads:

- Six (6) meter width (single lane traffic)

- One (1) meter minimum shoulder

- Maximum slope of 12%

For Principal, Secondary and Maintenance Roads:

- Maximum speed on any plant site road shall be 30 km per hour

- Speed limits lower than 30 km will apply in areas of high pedestrian traffic.

On single lane roads, direction of traffic will be determined by the requirements of mine and plant operations. Driving direction on two lane roads will be on the right-hand side

except within the mine area where the direction of travel will be suitably signed and marked at crossover locations.

Facility 0920 Yard Utilities Facility 0921 Water Process Water Storage and Distribution




The process water distribution system for the concentrator site and mine area will be fed from two process water ponds each

holding 25 000 m3.

One electrical room is provided.

The process water ponds are fed with water reclaimed from:

Tailings Thickener overflows.

Tailings Dam.

Contact water settling pond.

The plant is supplied by a network of buried pipes and

aboveground pipes inside the concentrator battery limits. The most significant process water users are the cyclone feed pump boxes, regrind pumps, cleaner flotation circuit, and lime slurry and reagent preparation.

Fresh Water Storage and Distribution

The fresh water storage tank has been situated above the plant

site to provide the required pressure to supply fire water and potable water by gravity. Fresh water will be distributed via a

network of buried pipes and above ground pipes within the battery limits of the concentrator itself.

The most significant uses of freshwater are for seal water for

the slurry pumps, dust suppression, reagent area make-up,

cooling systems, cleaner flotation and fire water.

Fire Water

The concentrator area fire water system is comprised of a common fire and fresh water tank and an underground piping system. All the facilities that require protection water are fed by gravity except the sprinkler system of the stockpile conveyor,

the lime preparation plant tank and the reagent storage area. All




of these facilities require rotary pumps (diesel, and jockey pump) for system pressurization, hydrants, and sprinklers.

The design, materials, and installation of the underground

network and automatic fire protection systems, including sprinklers and hose stations, will be in accordance with the Factory Mutual (FM) engineering standards. Material and equipment must be approved by FM and/or UL.

The construction camps, mine area fuel station, primary crusher

(Bechtel scope), and truck shop (Owner) will have a separate standalone system for fire protection.

Potable Water Treatment, Storage and Distribution

Potable water will be supplied from two new potable water treatment plants. One for the concentrator and one for the Main Construction Camp.

The mine and primary crusher will be fed by water truck.

Facility 0922 Sewer Sewage Treatment and Handling

Sewage generated during the project operation will be treated in two sewage treatment plants. Each plant will be purchased as modular system. The design of the plants will be capable of accommodating the required capacity for the Las Bambas concentrator area and MCC camp.

The sewage treatment plants will produce a disinfected waste stream (or treated effluent) free from odors and/or foams. The treated waste water or effluent from the plants will be stored in an adjacent effluent holding pond with a membrane liner and will be used for dust control (using tank trucks), as required. Excess treated waste will be fed to filter fields located within

the established Las Bambas mine waste area.




Storm Water

Storm water runoff collection channels and buried piping are

required to protect the facilities from rainfall runoff.

Storm water captured by the contour channels around the

concentrator area will be discharged into the tailings dam and reclaimed.

Storm water captured at the primary crusher area will be discharged into the contact water settling pond.

Facility 0925 Light Fuel Oil (Owner Scope) Light diesel fuel storage and distribution services for the Las

Bambas Project will be located at the Main Construction Camp.

Bechtel will perform the earthworks.

Facility 0928 Environmental Monitoring (Owner Scope) All environmental monitoring facilities will be engineered,

procured and constructed by Owner Operations.

Facility 0930 Yard Electrical Facility 0931 Main Substation The Las Bambas substation will be located at an elevation of

approximately 4,300 meters and includes a 220 kV GIS with associated building, 3 x 220 - 33 kV 75/100/125 MVA ONAN/ONAF/ONAF 65 C rise power transformers, yard, 33 kV GIS and associated prefabricated electrical room, control room, auxiliary services, one emergency generator of 2 MW,

two transformers of 20 MVA and two synchronous condensers of 20 MVA, and harmonic filters

The main 220 kV gas insulated switchgear (GIS) will have six (6) bays. Each bay will include one circuit breaker; disconnect switch, current transformer, control and protection panels, etc.




The main 33 kV gas insulated switchgear (GIS) will have three (3) incoming circuit breakers, three busbars and twenty six, (26), breakers for secondary distribution of electric power to the concentrator facilities.

The main step-down transformers will provide power to the concentrator and local infrastructure as well as supply the mine

and mine facilities, primary crusher, overland conveyor, fresh water system, and tailings disposal system.

A SCADA system will be installed in the substation control room to monitor and control of the electrical system, including the 220, 33, 23, 4.16 and 0.48 kV breakers.

Area 0932 Yard Distribution Power distribution includes 33 kV overhead distribution lines

and 33 kV underground cables from the Las Bambas main

substation. Underground cable routing in duct banks will be used to feed the following areas: coarse ore reclaim, pebbles grinding, grinding, flotation and regrinding, concentrate

thickening, tailings thickening and ancillary facilities. Overhead distribution lines will be used to feed the following

areas: mine area, mine ancillary facilities, primary crusher,

overland conveyor, fresh water supply system, reclaimed water system, and MCC camp.

Connection from primary crusher substation to the mine loop (22.9kV) first pole will be done with duct banks.

Facility 0933 Communications, Data Highway, Fire Detection and Alarm Communications

Every system uses the Fiber Optic (FO) media as the main path to transmit data and to connect to different nodes. A fiber optic back bone will give service to control system, SCADA system, fire detection systems, CCTV, analyzers, IP phone and LAN.




The media for the Local Area Network (LAN) for Las Bambas will have a design based on FO back bone. Offices and others

ancillary facilities will be covered by structured cabling. (Bechtel Scope)

Owner will provide the LAN servers and computers, IP phone severs and phones, vigilance cameras, monitors and video

servers.

Data highway

A Fiber optic cable, with 48 fibers, will be installed between the main locations of the plant in a star topology. In every

location there will be a communication node where the different systems can access and use the FO loop.

The intent of the design is to have a, redundant, high speed

communication highway covering the whole plant.

Fire Detection and Alarm

The fire detection and alarm system consists of a network of local, interconnected panels that have been ordered

hierarchically for managing alarms.

The fire alarm system consists of smoke detectors located in

buildings, offices, control rooms, communications rooms and electrical rooms. Sirens and flashing lights will be installed in

new buildings to warn plant personnel of any alarm activated on the fire panel.

All alarm signals from any part of the project will be received in the plant fire monitoring station for mitigation, control and management.

The proposed detection system will be dedicated to the project facilities.




2.2.8 Facility 2000 Off Site Facilities

Off-site ancillary facilities will be included in the project to support the operation of the Las Bambas concentrator and tailings storage facilities:

For facilities located at Molybdenum and Filter Plants see Area 0370.

2.2.9 Facility 2100 Infrastructure

Facility 2110 Access Roads The project included the following site access construction

roads. For additional clarity the descriptions should be read (note color scheme) in conjunction with the diagram shown in Figure 2-1.

Cusco to Chalhuahuacho (dark green), via Ccapacmarca, is an existing road which will be upgraded as required. A 3.5 km bypass to the Ccapacmarca town will be built with a 9 m wide platform to allow the transportation of the heavy haul avoiding

the crossing through the town. From approx. 6 km east of Chalhuahuacho to the plant site (red) a new main access road will be constructed to provide access with the heavy haul to the concentrator (Evitamiento Fuerabamba).

The section from Ccapacmarca Turnoff to Chalhuahuacho is an existing road which will be upgraded as required and will also serve as the heavy haul road. The width of platform is 10 m (between km 142+000 and km 161+000) and 8.5 m (between km 142+000 and the Ccapacmarca Turnoff). Partial conservation works will be performed between Quehuira (km 161+000) and Chalhuahuacho since this part of the road will not be part of the heavy haul road.

Between KP 86 +590 and the Ccapacmarca Turnoff (light green), the access road connects with the Cusco to Las Bambas




road. It will include approximately 46 km of existing road that will require improvement for use by heavy haul traffic.

The section between Kp 86+590 and Velille (brown) is an upgrade to an existing road which will provide access as well as heavy haul. This road section will have a minimum of 9 m platform width.

The section between Velille and Urinsaya (light brown) will be a new road to provide access to the heavy haul road and between Urinsaya and Coporaque will be an upgrade to an existing road. A 5 km bypass to the Velille town will be built with a 9 m wide platform to allow the transportation of the heavy haul to avoid the crossing through the town. In the

Velille area, three river crossings will be built. One to cross the Velille river using culverts, and two for the Fauce river, one using culvers and the other using a Bailey type bridge.

Fuerabamba By-pass road intersects with the Challhuahuacho

road approximately six kms east of Challhuahuacho and proceeds to the north end of the Las Bambas plant site. This road is used as the primary access into the plant for deliveries and the primary egress from the plant with concentrate haul

trucks.




Figure 2-1 Las Bambas Site Access Roads




Facility 2120 Power Supply (Owner Scope) Power required by the Las Bambas Project will be supplied

from the existing 220 kV Cotaruse substation located in

Apurimac Department, approximately 320 km north of Arequipa. Cotaruse Substation is operated by SEIN of Peru and is located between Mantaro and Socabaya Substations. A 220 kV double-circuit overhead line will be installed from

Cotaruse substation to the Las Bambas main substation located next to the grinding facility.

Power supply required for the construction camps and offices is 7.5MW and will be supplied by diesel generators.

Facility 2130 Fresh Water Supply Facility 2131 Fresh Water Intake (Owner Design) For the future mine at Las Bambas, it will be necessary to have

a water source that can supply fresh water at a maximum rate of

900 l/s to the Las Bambas Mine and Site. The main source will be from the Challhuahuacho River.

A water intake will be located on the Challhuahuacho River to act as the primary catchment for the fresh water system in order

to guarantee a constant supply of fresh water.

A water intake consists of a 3m deep structure and

approximately 15 m in length.

Facility 2132 Pump Stations and Pipeline

Three stages of pumping and pipeline are required, to carry the fresh water to the storage reservoir. The first pump station,

(EB1), has a concrete underground water storage tank with four vertical turbine pumps. The second station, (EB2), has a steel tank, which provides fresh/fire water to truck shop, and four

multistage horizontal centrifugal pumps. There is a branch line off the fresh water pipeline between the second and third




stations, which is used to supply fresh/fire water to the primary

crusher. The third station, (EB3) has a steel tank to provide fresh/fire water to the main construction camp. This steel tank

also contains four multistage horizontal centrifugal pumps to

provide fresh/fire water to the concentrator.

From the fresh water dam to the overland conveyor, the fresh water pipeline goes in a platform that contains also a service

road, the concentrate pipeline (future), and in some areas three construction water pipes.

In order to supply water to the concentrator from the pipeline, a

branch pipe with a valve system is provided.

Three electrical rooms are provided.

Facility 2133 Fresh Water Reservoir (Owner Design)

A fresh water storage facility will be provided within

Fuerabamba mine area, in a reservoir formed behind the Chuspiri dam in the Chuspiri basin. The selected site is located north of projected tailing deposit and south of the future pit of Chalcobamba. This system will operate as a supply source only for dry seasons and will guarantee a constant supply of

fresh water.

The flow design rate will be of 800 l/s, greater than the fresh

water demand of 738 l/s in an average year from

Challhuahuacho River. This design rate will provide sufficient capacity to fill Chuspiri basin in the event of a dry year.

An electrical room is provided

Facility 2140 Communications (Owner) An off site communications system for voice, data and internet

will be provided for Las Bambas similar to the system already




in place at Tintaya. Design details of these systems will be

provided by Owner.

Facility 2150 Concentrate Transport (Owner Scope) During operations, concentrate will be transported from the

project site to the port of Matarani via gondola trucks.

The gondola trucks will be unloaded at the Port of Matarani in an area called Baha Islay, where new port facilities will be

built.

The transportation network has been sized to move up to 3400

tons per day based on the estimated Las Bambas production.

Facility 2160 Air Strip

Removed from project scope by MMG

Facility 2170 Nueva Fuerabamba (Owner Scope/Bechtel Scope) The construction of a new town, Nueva Fuerabamba, and the relocation of the existing Fuerabamba community which is currently located on the site the Las Bambas Project Facilities.

The new town of Nueva Fuerabamba will be located about 15km south of Las Bambas.

Demolition of existing community houses and buildings once the community has relocated (Bechtel Scope)

Phase 1

Construction of the residential buildings, utilities, infrastructure, and roadways (Owner Scope)

Phase 2

Owner will provide all Engineering. Bechtel to perform Procurement, Construction and Management for the following facilities:

Slaughterhouse




Bus Station

Israeli Church

Museum

Catholic Church

Artisanal Market

Main Square

Town Hall

Police Station

Market

Adventist Church

Phase 3 Owner will provide all Engineering.

Bechtel to perform Procurement, Construction and Management for the following facilities:

Retirement Home

Owner to provide all Engineering, Procurement and Contract Administration. Bechtel to provide Construction Management Support as requested by Owner for the following facilities:

Soccer Field

Bull Ring

Horse Racetrack

Eco Park

Zona de Fabricas

2.2.10 Facility 2200 Port (Owner Scope and excluded from the Definitive Estimate)

The Matarani port is located on the south-west coast of Peru. The port is located within Islay Bay, approximately 120 km west of Arequipa and 1 070 km South of Lima, Peru.

Approximate coordinates for the port are latitude: 16 59' 42.5''




south; longitude: 72 06' 13.2'' west. Cargo can be delivered to the port by a modern highway, appropriate for the handling of heavy load vehicles or by rail. Railway transportation services

to this port offers access to the interior of Peru, specifically to

the cities of Arequipa, Puno and Cusco.

The port facilities being constructed in support of the Las Bambas project are comprises of truck unloading, storage of the copper concentrate, and reclaiming, handling and ship loading

of the copper concentrate.

Ships will be loaded using a single quadrant ship loader

together with the pipe belt conveyor. There will be one transfer conveyor receiving concentrate from one of the two stockyard

conveyors via a transfer tower. The transfer conveyor will be a pipe belt conveyor. A fixed length loading spout will be attached at the end of the pipe belt conveyor boom via a hinge below the ship loader conveyor head pulley. The ship loader

will load the vessel one hatch at a time.

The designed ship loader will be capable of:

Loading vessels ranging from 20 000 to 55 000 DWT (deadweight tonnage).

Loading copper concentrate at a peak rate of 1 800 t/h.




2.2.10 Facility 2300 Executive Camp

The executive camp was moved and all of its facilities were relocated to the main construction camp, Refer to Facility 4511.

2.2.11 Facility 4000 Other Facilities / Tasks

Facility 4100 Construction Water During the construction phase, a temporary Construction Water

System will be used to provide water to the construction camps,

batch plant, and plant offices and for dust control.

The construction water system consist of:

Water intake that captures water from the

Fuerabamba River is conducted by gravity through a 20 HDPE pipeline to a 5 000 m3 capacity accumulation water pond.

The accumulation water pond is protected with a

HDPE liner.

From the accumulation water pond using a barge

pumps system (2 in operations + 1 standby) that feeds a high pressure centrifugal pumping station (2 in operations + 1 standby), the water is pumped through a 10 carbon steel pipeline up to a tank located at the intermediate pumping station. From the tank that water is pumped through two 10 carbon steel pipeline up to a

4 000 m3 capacity distribution water pond located close to the Chuspiri dam.

After the intermediate pumping station, one of the two 10 pipe branches will feed the batch plant, and

the other will go to the XP Camp where the water will be treated to make it potable.




From Chuspiri dam, the water can be pumped to the 4000 m3 pond to be used in the construction water

system during the dry season.

Two barges, each with two vertical pumps

having 75 m3/h of capacity, are located in the 5 000 m3 pond to load water trucks.

Two 25 m3 tanks are fed from the well water overflow of the MC Camp. These tanks are equipped

with a pumping system that will be used to load water trucks.

As an alternative to the dewatering well system, (See Facility 0110), the water for the main construction camp could also be provided through a branch pipe

from the main construction water pump system.

Facility 4510 The XP Camp The XP Camp will have a capacity for 1 500 beds in total and a

possible expansion to 1 800 beds.

The XP Camp site will include infrastructure and auxiliary

facilities such as: site access, catering and accommodation, recreation facilities, administration offices, medical and first

aid center, on/off site communication systems and offices for 300+ personnel.

The XP Camp will be located at the north access to the mine.

Facility 4511 The Main Construction Camp (MCC)

The main construction camp will have a capacity for 3,008 new

beds and 2656 beds relocated from Antapaccay. The camp will include infrastructure for 7 258 people.




The main construction camp site will include infrastructure and auxiliary facilities such as: site access, catering and

accommodation, sewage water treatment plant, recreation facilities, administration and construction offices (2,500 m2), onsite clinic and fire station and on/off site communication systems.

The Administration building has an area of 2,500 m2. This facility will be used by Bechtel & Owner during the project and after project completion will be used by Owner Southern Peru Operations.

The main construction camp will be located near the transfer station of the two overland conveyors, at an altitude ranging from 4,000 to 4,250 meters.

One electrical room is provided for the main construction camp.

The main construction camp will be connected to permanent power, but also has independent power generators located

throughout the camp, for backup power.

This camp will be partially re-furbished, as necessary, after the

completion of construction to serve as the Las Bambas permanent camp

2.3 Scope of Services

Bechtels scope of services associated with the scope of facilities as setout in Section 2.2 will include detailed engineering, procurement, construction and construction management (EPC/CM) as appropriate for the Las Bambas Project. At the outset of the Project, a Project Procedures Manual (PPM) will be prepared to guide the execution of this plan and to facilitate the interfaces between Bechtel, MMG, and Contractors' personnel throughout the course of the Project. The following service descriptions are supported by additional details delineated in sections 3 through 17 of




this Project Execution Plan. Although the services will be performed under on-shore and off-shore contracts, no detailed differentiation is made in this document.

Project Management/Project Controls

The Las Bambas Project manager will have overall responsibility for the execution of the project and be based in Santiago. He will have the responsibility to lead the replication, synergy and integration (RSI) initiative across all aspects of the project and the various work sites in order to minimize services costs, capital costs and reduce schedule on Las Bambas.

He will be supported by a Deputy Project Manager who will provide day-to-day oversight of the areas of Engineering, Procurement, Finance and Pre-Ops.

Reporting directly to the Project Manager, the Manager of Replication and Productivity will be responsible for management of the development and implementation of plans, procedures and work processes required to maximize the cost and schedule benefits to the Las Bambas Project from replication, integration and capitalizing on synergies with the Antapaccay Project. In general, the management of Bechtels scope will include:

Establish a management organization that will be responsible for directing and coordinating all of the activities associated with the scope of services as specified in the contract and the accompanying documents.

Provide the technical and other resources required for the proper execution of the services in the detail engineering and construction phase.

Plan and execute an initial Team Building Session with project management team members from Bechtel and MMG from all disciplines. This meeting will provide an opportunity for the combined team to confirm alignment on the project key objectives and the path forward.

Manage a detailed project kick-off meeting to be held in Santiago including MMG Peru Division.

Monitor and control the work schedule for the project scope and the relevant budgets, in order to obtain timely information on project status.

Prepare a monthly status report on the project progress, schedule and costs. Provide early detection of potential deviations related to schedule and cost. Report

actual costs and commitments on a monthly basis, update the forecast costs to completion, and report deviations from the control budget. Bechtel will propose to MMGs project manager remedial action as may be required to address deviations from the approved budget and schedule.

Establish and maintain a trend program based on the control budget and the project master schedule. The trend program will constitute the main control tool to maintain cost and schedule control of all project activities within the Bechtel




scope, and will provide timely information to MMG on potential changes in costs or schedule.

Submit for MMG approval the procedure manual for the management of changes and use of contingency.

Prepare monthly projections of commitments and expenditures. Prepare cash flow projections for all activities within the project scope. Coordinate the work of all disciplines in order to achieve technical consistency. Coordinate the work of other consultants and contractors as agent of MMG to

obtain consistency within the scope managed by Bechtel. Cooperate with other advisors, experts, consultants and specialists that may be

periodically engaged by MMG for the project. Prepare the Project Procedures Manual for the project scope including

engineering, purchasing, accounting and administration, contract formation and administration of construction and service contracts, and management of direct-hire construction activities. Submit the procedures manual to MMG for approval and address any comments.

Prepare, disseminate and manage a quality assurance program appropriate for all services provided by Bechtel including that of sub-contractors managed by Bechtel.

Coordinate the acquisition and review soundness of vendor data (but this does not require Bechtel to validate, verify or check that data).

Bechtel will obtain MMGs prior written approval for purchase and contract commitments, pursuant to the project procedures agreed with MMG.

Hold weekly meetings with the MMG project team to review project status and to make timely decisions/actions to keep the project on track.

Prepare labor (manpower) staffing plans for management, engineering, procurement, and construction services.

Administer the EPC/CM contract between Bechtel and MMG. Implement a control budget based on the Feasibility Study capital cost estimate. Establish the project office as required in Santiago, to meet the needs of the

project. Expand the project IS&T systems based on the currently networked MMG and

Bechtel offices to meet the needs of the project including network connections to connect with offices in Lima, Cusco, Arequipa and Las Bambas Site.

Incorporating the use of Six Sigma principals utilizing the Six Sigma Black Belt who has been assigned to the alliance since the Las Bambas FS Phase to continue to work with the Bechtel and MMG team to improve project work processes and develop cost and time saving strategies.

The Six Sigma program has been modified to focus on construction productivity utilizing a productivity coordinator who reports directly to the Site Manager.




Develop, implement, maintain and monitor conformance of a Project Quality Plan and manage its implementation across the project including service and construction subcontractors and contractors.

Develop, implement, maintain and monitor conformance of comprehensive Sustainable Development, Labor Relations, Community Relations and Environmental Protection plans and manage their implementation across all aspects of the project.

Establish the finance and accounting operations in Santiago and Lima for in-country requirements including management of general ledger, accounts payable and payroll. Develop and maintain an asset register for the project. Payroll accounting for direct-hire personnel will be maintained at the jobsite or in Lima.

Process for payment vendor invoices, performing appropriate matching and cross-checking against purchase orders and material receiving reports.

Establish a procedure for managing payments as an agent to MMG of all vendor and contractor invoices on a zero balance bank account basis. Operate the zero balance account working with project controls, procurement and MMG to prepare advance cash flow requirements to enable MMG to ensure sufficient funds are in place to pay all vendors and contractors in a timely manner.

Manage the administration aspects of the project using Bechtels standard procedures for managing all administration, communications, and document control functions.

Implement project document control and administration utilizing InfoWorks to log the receipt of all project documentation in all forms including all correspondence related to project engineering, construction packages, material requisitions, specifications, drawings, and tracking of open items related to engineering work execution. All official document communications with MMG will be done through MMGs Aconex System or through the system designated by MMG.

Develop a full automation and communications plan to augment the current IT infrastructure for the more demanding execution phase of the project. Bechtels project offices in Santiago, Lima, Cusco, Arequipa and the site will be fully equipped with computer-based tools and communications systems for execution of engineering, procurement, and construction, including:

Develop a definitive cost estimate for the project at an appropriate time during detail engineering phase. The definitive estimate will be developed by the project team, accounting for all approved trends, commitments and expenditures, as well as a reassessment of all to-go work. This definitive estimate will occur at a point in time when detail engineering is approximately 70% complete and construction has progressed in the civil trades on site.

Monitor and control detailed engineering discipline man-hours and costs through the use of the engineering progress and performance reporting (EPPR) module of




the Bechtel proprietary software ePCWorks. The tool will be used to plan, monitor, and evaluate the progress and performance of engineering tasks and deliverables.

Replication, Synergy and Integration (RSI) Management

The Manager of Replication and Six Sigma will be responsible for management of the development and implementation of plans, procedures and work processes required to maximize the cost and schedule benefits to the Las Bambas Project from replication from, integration with and capitalizing on

Documents

25635-220-G01-GAM-00001p2 Work Execution