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project and business excellence for the resources, hydrocarbons and energy industries

…giving you a different perspective….

www.gomacprojects.com.au

Brisbane | Newcastle

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GOMAC provides study and project management people and systems to a multitude of Clients

representing global presence and diversity.

From Order of Magnitude and conceptual ideas through to operational readiness, our capability and

services harness the focus and key drivers of every phase of the project life cycle.

Our strategic partnerships allow us to offer turnkey solutions to exercise maximum added value and

professional leadership

We specialise in providing supplementary resource and systems to our Clients project teams.

In 2012 our growth will help to support many more landmark projects from inception to completion.

Our talent pool is carefully selected and our project delivery systems are continually improved to

assure our Clients of excellence in every engagement.

Our ability to maintain our overheads at a minimum, drawing on supporting resources only when

necessary, ensure our services are delivered in a manner representing value for investment. We serve

to provide professional services in a collaborative manner, exclusive of the excessive layers of non-

value adding costs and overloaded management, stripping back the top heavy approach to provide

clear and concise modes of communication and effectiveness

Infrastructure and Environment

• Pipelines

• Port and Rail

• Resources ‘Pit to Port’

• Hydrocarbon

• Water and Wastewater

Hydrocarbons

• Upstream and Downstream

• Petrochemical and Refining

• LNG and Coal Liquefaction and Gassification

• Process Piping

Minerals and Metals

• Coal

• Iron

• Aluminium

• Nickel

• Precious Metals

Superior Performance

A Proven, accomplished history of delivering distinguished client

objectives on admirable projects

Diversity

Operating amongst Australias largest

companies in Mining, Hydrocarbon and Heavy

Process Industries.

Value Added, Quality Driven, Client Focused.

Zero Harm HSEC Principles. FEL and Value

Analysis.

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An Evolutionary Approach to Projects

GOMAC‘s project portfolio has been honed throughout internationally diverse industries and

organisations to give us a globalised perspective in our approach to project delivery.

Our engagements among global leaders and their projects have allowed us to gain experience that

encourages us to challenge the norm. Never tiring of hearing Client feedback about the poor

performances of Consultant service providers, we‘ve turned that feedback and experience into a new

Project delivery system. Introducing….

iR-Evolution

Every project is different. Fact

It sounds simple when put like that but we aren‘t

merely referring to the material scope; we‘re

delving into identifying and evaluating the key

drivers and deep seated roots of where the best

value creating opportunities start – The market

needs, the technologies, the investment strategies

and the risks our Clients identify and evaluate and

are willing to manage in establishing a cause for

enabling their concepts and ideas to be evaluated

and evolved into living activities; innovative yet

able to be executed within the minimum of time

constraints.

To do this can be a leap of faith toward breaking the mould of ‗conventional‘ project and study

planning.

Our integrated Client team approach means we assume ownership of the scope and the direct

deliverables of the project and seek to assure the owners, financiers and more importantly,

customers, of the best value creating opportunity for their investments. All this whilst focusing on the

imperative Environmental and Community sensitivities associated with modern project developments

We still follow the intricate planning and evaluation methods through a risk weighted, hierarchal gate

process that our Clients have invariably nominated. The difference we make is that we engage

directly with Service providing Consultants – straight to source.

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We add value directly by removing the risk, and burden, of too many management interface layers,

varying systems and processes, non-standardisation, and the risk of not getting the optimal solution.

We engage directly with owners and their stakeholder groups to identify the key inputs, risks and

opportunities which are quickly, though thoroughly, scaled and grouped in a methodical evaluation

process whereby immediate, real time assessments can be made into the type and magnitude of risks

and value.

This means that fatal flaws

and other likely investment

risks, both material and

social, can be ranked to

leave the optimum

direction to be the main

focus from the outset with

reduced ‗optioneering‘ and

more energy and value

focus charged toward

delivering the base case.

A Client embarking on a

project must make an

important decision

regarding the method by

which the project is delivered. This decision has become more difficult in recent years as several

―alternative delivery methods‖ have been developed to address weaknesses in the traditional design-

bid-build scenario.

Methods that have gained in popularity include at-risk construction management, fast-track

construction, multiple prime contractors, and design-build. Proponents of particular alternative

methods promise improvements over the traditional system in terms of cost, project control and

reduction in risk.

For the Client, the wealth of choices can be both good and bad. The downside is that with the variety

of delivery systems—along with the accompanying assurances of the superiority of one method over

others—confusion can be inevitable. The good news is the increased number of alternatives offers the

Owner or developer more flexibility to choose an appropriate and effective system for its particular

project.

iR-Evolution Project Delivery by GOMAC Projects

Evolutionary project management (EPM) is a Project delivery method

developed and pioneered by GOMAC and is uniquely tailored to the

planning, design and construction process of individual projects. It has

proven effective regardless of the chosen form of project delivery method. Indeed, EPM has been

used successfully in all contracting methods and delivery systems by Owners who do not continuously

maintain the staff expertise or numbers necessary to deal with the complex responsibilities involved

in the management of major growth and sustaining projects.

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Owner’s Essentials

An Owner has several areas of concern when

embarking on an investment. The following

highlights some of the key considerations in

developing a project program:

Budget

The Owner has an obviously important need to

determine a realistic budget before design to

evaluate project feasibility, to secure financing, and

as a tool to choose among alternative designs or site

locations. Once the budget is determined, the

Owner requires that the project be completed at or

near the established figure without excessive

overruns.

Design

Of foremost importance to the Owner is that the desired operation functions as envisioned, that the

design program successfully fulfils the needs of the Owner and users. The Client requires that its

design team be well qualified in the type of facility being designed. In

addition, the Owner must ensure that their and their users‘ program needs

are clearly conveyed to the design team. Since the design of the facility

actually must be buildable and properly communicated in order to be

useful, the Owner requires that the design documents are constructible,

complete, and coordinated. The documents should properly incorporate

unique features of the site to include subsurface conditions, interface with

adjoining properties, access, and other characteristics.

Schedule

The Owner has similar needs in the area of scheduling. The date of completion of a new facility can

be critical, either in terms of generating revenue from the facility, or in terms of providing needed

functional space by a particular deadline. Therefore, a realistic assessment of project duration and

sequencing needs to be performed early in the planning process. The schedule should then be

monitored throughout design and construction.

Risk Assessment

The development of any

facility involves many risks.

Issues of risk are closely tied

to schedule and budget issues.

The Owner requires an

understanding of the risks

involved in construction, and should make a conscientious decision regarding allocation of these risks

among project participants, so that all areas of exposure are properly understood. In considering risk

allocation, the Owner should strive to assign risks to those parties that exercise control over those

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aspects. For example, it would typically be problematic to require that the contractor correct

problems due to design errors at no extra cost since a contractor generally has little control over the

cause or magnitude of such errors.

Owner’s Level of Expertise:

The Owner‘s familiarity with the building process and level of in-house management capability will

have a large influence over the amount of outside assistance required during the process and may

guide the Owner in determining the appropriate project delivery system.

Traditional Project Delivery Methods

Traditional Plan, Manage, Engineer, Design > Bid > Build

Fig.1 The current traditional PMC / EPCM engagement, particularly in CONCEPT and PRE-FEAS adds little or no value. iR-Evolution reduces

the involvement and ensures value added when the selected delivery model is engaged

The traditional design-bid-build system remains the most popular delivery method for construction

projects yet still has the following flaws associated amongst the chief disadvantages of the system:

The process is time-consuming since all design work must be completed prior to solicitation of the

construction contract.

The designer may have limited ability to assess scheduling and cost ramifications as the design is

developed which can lead to a more costly final product.

The Owner generally faces exposure to contractor claims over design and constructability issues

since the Owner accepts liability for design in its contract with the contractor.

The traditional approach tends to promote more adversarial relationships rather than cooperation

or coordination among the contractor, the designer and the Owner.

The contractor pursues a least-cost approach to completing the project, requiring increased

oversight and quality review by the Owner.

The absence of a contractor‘s input into the project design may limit the effectiveness and

constructability of the design. Important design

decisions affecting both the types of materials specified

and the means of construction may be made without

full consideration of a construction perspective.

By integrating immediately and offering the relevant

engineering discipline driven Study Management,

GOMAC identify the value creating opportunities and

can apply first engineering principles through our

talented pool of engineers and project specialists with a

real hands on feel for risk and viability of the available

opportunities.

We take the ideas, apply stringent bases of design and work with designers and constructors to

target their optimal solutions. Simple. The full benefit of robustly engineered ideas and tested and

optimised solutions available at the outset – couple this with our concept application and risk

evaluation tools and the Owner is assured of having the investment confidence at the outset; up to 2

or 3 years ahead of existing means in some cases.

Another primary consideration for the Owner is proper selection of the subsequent design and build

Owners Team

$240/hr

PMC Team

$300/hr

EPC Team $225/hr

Specialty Sub Consultants

$200/hr

Equipment Suppliers $0

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(D-B) team. Since the Owner selects a team that has been created prior to selection, it may be

difficult for the Owner to maintain the proper balance of design expertise, financial capability,

construction experience, and experience in D-B team roles. In particular, the Owner should strongly

favour D-B teams with a successful track record working together on previous projects in the same D-

B roles, more so than in any other delivery system, the success of a D-B project hinges on the initial

selection process.

An iR-Evolution Project Management scheme is often most cost effective during the planning stages

of the project, since the EPM provides the intricate planning and organisation skills that can help

prevent costly problems during construction. Properly executed

services such as risk ranging and design and constructability

reviews can result in significant risk reduction, schedule and cost

savings many times initial cost in terms of limiting change orders,

delays, and contractor claims. Here the Owners can maximise

the benefits of EPM in a professional advisory role throughout

the planning design and construction process because the EPM

has no stake in the construction contracting.

The most frequently cited criticism of current EPCM services is

that the providers add levels of bureaucracy to a project,

resulting in added cost and time, hence more cost.

While it can be argued that such costs may actually reduce

overall project costs, an Owner can realise the benefit of the

GOMAC EPM services without necessarily committing to large

increases in expense – it achieves this by supplementing its own

project management skills as necessary and selecting the iR-Evolution project delivery on a service-

specific basis.

The following considerations should guide the Owner in selecting the proper delivery method:

Type of Project: The Owner should gauge the level of complexity and uniqueness of the project,

and maintain an appropriate level of control.

Size of Project: The amount of outside assistance and number of project participants should

match the significance of the project. Obviously, the more complex and costly a project, the

greater the need for professional

management and advice.

Owner Capabilities: The Owner should

realistically assess its own in-house

capabilities in evaluating project

procurement methods.

Time Considerations: If the project needs

to be constructed in a severely compressed

time limit, methods adaptable to fast-track

construction should be considered. However,

the Owner must weigh the need for the

compressed time limit against the increased

cost and risk of fast tracking.

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Likelihood of Changes: If the Owner is aware that its requirements may change considerably

during the project, this should be evaluated against the potential cost of such changes. For

example, a D-B team may present the most fluid method of incorporating changes during

construction, but those changes may come at a higher cost than through other methods.

iR-Evolution project management can help

Owners in developing and constructing the

best project possible, on time and on

budget. Quality project and study

management services are essential to a

successful project especially for Owners

lacking this expertise in-house. These

services are adaptable to any project

delivery system, and are scalable to meet

the specific needs of the project. An Owner

should thoroughly explore available options

for construction procurement, and consider

the benefits of professional management

services regardless of the contractual

approach used to deliver the project

Our Recent Experience and Capability

Below are a cross section of our previous project experiences and current capabilities. These are

possible thanks to our esteemed Clients who have kindly allowed us to produce these abstracts with

the use of images attained by GOMAC directly or indirectly.

Client: BHP Billiton Mitsubishi

Alliance

GOMAC provides Study management

resources to BMA‘s project

development group. Projects to date

have been studied and delivered across

many of the BMA assets and ancillary

infrastructure from mine operation, pit development and infrastructure to FIFO / Accommodation

studies and Rail and Port development.

Central Region Revenue Planning (C2020)

This involves Project and study managing complex opportunities in parallel with the resource

development group in formulating the key five-year mine plans and growth strategies for three

interdependent large open cut mines. The task is very dynamic having to quickly apply FEL principles

in ascertaining viable planning and capital scopes to progress these as studies and projects to deliver

value creating expansions with an overall capital investment value of a A$1Billion dollars

Process Debottlenecking

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Apply lean FEL principles to establish process constraints and the development of projects related to

minimising these. This involves complex interactions and modelling with Queensland Rail, port and

mining operations, consultants and internal groups to identify and deliver best value adding work

scopes.

Client: Port Waratah Coal Services

Project: Newcastle Export Terminal

Expansion

GOMAC provided project resources to the

PWCS team during the planning and concept

phases of the current expansion program. This

involved the investigation and concept layouts

of the reclaimer configurations as well as the

scope development for the engagement of Hatch and Bechtel as tier 1 service providers. The complex

interactions with multiple stakeholders provided the biggest challenge and lead to a multitude of

modelling options throughout the whole Hunter Valley and NSW logistics chain. GOMAC not only

provided specialist package management but provided a binding, overarching strategic facilitation of

the multiple stakeholder interests including port authorities, ARTC, Pacific National, Xstrata, RTCA,

BHP, Idemitsu, Shenhua, Whitehaven and other regional coal players.

The key outcomes and highlights included a first time successful EIS and approvals stage, and a

lower definition engineering cost thanks to the careful FEL and options analysis works.

Client: Multiple Clients, HVO, NSW

Project: Strategic growth planning,

Debottlenecking and Logistics Options

GOMAC provided Study and PM resources to

the Hunter Valley Operations planning group

as part of a collaborative assessment of the

Hunter supply chain and capacity increase

projects. This involved fully modelling the

operation processes as deep down as

individual long wall machines and draglines. Each site was modelled dynamically to indicate

constraints from operations and external risks including adverse weather and industrial disputes.

From this a number of projects were conceived as mitigation and control against some of these

events. GOMAC managed truck fleet and integration for Thiess operations as well as rail load out and

replenishment stations at PWCS. Interactions with multiple stakeholders again provided the biggest

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challenge and lead to a multitude of modelling options throughout the whole

Hunter Valley and NSW logistics chain. GOMAC provided specialist package

management ranging from bulk earthworks and rail design to community

liaison and compliance support.

The key outcomes and highlights included an additional 2 million tonnes

of product at a very attractive NPV delivered in minimal time.

Client: Hancock Galilee, Hancock Coal

Project: Kevin’s Corner and Alpha Coal

GOMAC is providing Senior study and Project

Management leadership and support to Hancock

/ GVK owners team on their flagship Galilee

Basin Pit to Port coal project developments. The

aggressive timing and economic environment

has created a need for an efficient approach to

delivering the engineering and study planning

works by engaging directly with key consulting

resources.

The GOMAC approach has been planned,

developed and applied successfully to a variety

of key work packages including Water, Earthworks, Power and Control, Mine Infrastructure, Airport

and Accommodation. The planning and evaluation tools are set to deliver value added engineering

whilst incorporating innovation not yet seen on coal projects in Australia. The remoteness and sheer

magnitude of the scale of the projects has called on existing project perceptions to be discarded and

replaced with a new generation of technological and design excellence.

Client: 2nd Largest Global resources company – Brisbane Hub Office

Project: Pit to Port Nickel Development, Indonesia

GOMAC Projects Supplemented the Order of

Magnitude through to the end of Pre-

Feasibility in a timeframe that was initially

thought impossible.

The assignment began with a desktop

assessment of business planning and

strategic evaluation whereby we presented

valid capital option cost analysis and

schedule appraisal to rule out options that

were immediately unviable. Our work with

the exploration team and business finance

analysts, applying our iR-Evolution practises, delivered a concise assessment of validated options to

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be studied in the PFS.

The Value was again learned by committing to thorough option analysis and direct dialogue with

design and construct service providers to give an immediate execution and operations rationale in

parallel to the detailed commercial and global analysis. The scope included all Mine Infrastructure,

conveying and pipeline (off plot Infrastructure), roads, refinery infrastructure, tank farm and services,

main power generation, water management, sustainability and environmental engineering, port

location selection, materials logistics investigations.

Client: Middle Eastern based, state owned, global Petrochemical Corporation

Project: Asia Pacific Market Capacity Evaluation and production site evaluation

GOMAC provided and managed resources to identify a number of technical opportunities in response

to a request from an overseas oil company. Our role involved assessment of available major

infrastructure at various sites around Australia and the

broader AP region to provide a GAP analysis in

determining potential magnitudes of scope. Evaluation

was made across a diverse range of areas including

utilities, skills dynamics and trends of local, available

skilled workforce and Consultants, port suitability,

pipeline routes and land assessment.

The results were presented in a summary report format

for engagement of international marketing agencies to

attain the interest of potential investors. This appears

to have been quite a successful opportunity as the continuation of our relationship with the Client has

put us firmly in the frame to represent their onshore interests.

GOMAC Projects Pty Ltd

PO BOX 10152 | Adelaide Street | Brisbane | QLD 4000

www.gomacprojects.com.au

Main Office Hubs

Brisbane | Newcastle