Olympic Dam Project Supplier Information - Barossa RDAbarossa.org.au/assets/Uploads/Presentations/BHP-Billtion... · Olympic Dam today The Olympic Dam Project How to engage with BHP

This document is confidential to BHP Billiton Olympic Dam Corporation Pty Ltd

or its related bodies. It must not be made available to or used by any other person.

Olympic Dam ProjectSupplier Information

Confidentiality Obligation

The information to be presented in this briefing includes information that is confidential to BHP BillitonOlympic Dam Corporation Pty Ltd or its related bodies. This information, and any document, informationor data in any medium containing or derived from it (including any notes taken in this presentation), mustbe used solely for the purpose of evaluating the transaction to which this briefing relates.

The information, documents or data may be copied or reproduced solely for the purpose of theevaluation, and may be disclosed only to those persons who need it for the purpose of the evaluation,each of whom must first be informed that it is confidential. All material in any medium that containsconfidential information must be destroyed or deleted upon request.


or its related bodies. It must not be made available to or used by any other person.Slide 2

Agenda

� Olympic Dam today

� The Olympic Dam Project

� How to engage with BHP Billiton

� Questions


or its related bodies. It must not be made available to or used by any other person.Slide 3Slide 3

Olympic Dam

Olympic Dam today

� Discovered in 1975

� Fully integrated processing facility from ore to

concentrate to metal

� Poly-metallic orebody with 9.1Bt resource

� Current nameplate annual capacity of:

• 235,000t copper



• 4,500t uranium

• 100,000oz gold

• 800,000oz silver

� Workforce of 3,000, majority residential in Roxby Downs

Olympic Dam Supply Overview

• Supply is responsible for all sourcing and contract set up, purchasing, inventory management and transport & logistics

• Currently have: – 87,000 catalogued materials – 25,000 materials held in inventory– $105M in inventory holdings– create 150,000 PO’s per annum



– create 150,000 PO’s per annum – 460 Contracts – 1,800 pre-qualified vendors– $1.3bl of annual spend– 73% of Spend is Services and 27% Goods– 90% of spend is on Contract– 2,800T product per day – 80% from Adelaide 20% Pt Augusta – 2,100t

N, 700t S– 1,000,000T per year transported (finished product, general & bulks)

• Businesses should register with the ICN

Slide 6

Contract Case Study – Olympic Dam

EPCURS

Australia

Brownfield Tailings Dam Project Project office facility - accommodation

Engineering Tier 1



Subcontractor HeadingsSupply & Install BuildingsTier 2

Electrical

Works

MPS

Buildings

Ausco

IT&T

Outback

ElectronicsTier 3 or 4 works

Contract Case Study – Olympic Dam

EPCMAker

Solutions

Brownfield Tailings Discharge Upgrade Project; Pipe trace

Engineering, Tier 1



Trade Contractor ODT AustralisProject managementTier 2

Tier 3 or 4 works Pipe supply

PIHA

Hire

equipment

Lucas

Operators

Toll

Olympic Dam Project

Olympic Dam Project Approvals

� Supplementary Environmental Impact Statement (SEIS) released May 2011

� EIS approved by 3 Governments (Federal, State and Northern Territory) on 10 October

2011



� Indenture negotiations are currently underway with the State Government

� Project approval conditions and Indenture analysed by BHP Billiton before Board

investment decision

Mining

• Top soil and over burden removal– Tendered clear and grub (removal of top soil)– Pre-strip and pre-mine work to be BHP Billiton

• Purchase of mining fleet– Procure direct from OEM’s (e.g. Caterpillar)– Likely to require regional fleet assembly > 100 items

• Hydro (misc water work)



• Hydro (misc water work)– Dewatering / de-pressurisation / misc water studies

• Fleet maintenance– Working with CAT dealership

(Cavpower) locally to develop best solution

– Training and induction

Infrastructure

• Contracted on BHP Billiton paper, via our selected EPCM, Jacobs Engineering– Bulk earthworks (early design work commenced)– New accommodation modules – supply, install and operate (supplier identified

– soon to tender for central facilities) – Expansion of existing accommodation facility (contracted to Ausco/Headings)– Pre-strip temp accommodation and office facility (design underway)– New Roxby Downs airport (currently documenting performance spec)– Mine Maintenance Facility (MMF)– Concrete batch plant



– Concrete batch plant– Contractor Village management– Fencing– 11kV and 132kV electrical (powerlines and

substation)– Roads (both unsealed and sealed – design work underway)– Buildings (mine maintenance facility / gatehouse / admin building etc)– Structural, Mechanical and Piping (SMP – bundled or separated?)– IT&C– >500 items of misc procurement

Contracting – the process

• Contract strategy

• Database; utilising ICN (SA) database to create portal to industry

• Database push; will push individual package opportunities

• Database pre-qual; more from ICN (SA) on this



• EPCM pre-qual; Jacobs will undertake a detailed pre-qual (and have already commenced this work)

• Selective request for tender or sole source award based on package by package contracting strategy

• Award notification to all contractors on ICN SA database

• Tier 2 and 3 opportunity with the successful BHP Billiton contractor

Typical Contracting Process

Contracting Strategy

Pre-Request for

Communicate award via ICN



Contracting Strategy

- High level

- By package

Pre-qualification

via ICN then EPCM

Request for tender or

direct award

award via ICN to support

flow down of contracts

Slide 14

Jacobs Role with BHP Billiton

� Infrastructure Option Studies

� Estimates, schedules and execution strategies

� Early contractor engagement

� Pre-qualification of contractors and suppliers (major works)



� Pre-qualification of contractors and suppliers (major works)

• What does this mean and what does this involve?• HSEC

• ER / IR

• QA / QC

• Capability / Capacity

• Financials

• Anti-corruption

• Olympic Dam Experience

Next Steps

� To target opportunities for either the existing Olympic Dam operation or the Olympic Dam Project, register on the Industry Capability Network (SA) website www.bhpodp.icn.org.au

� Review the BHP Billiton Olympic Dam Purchase Order Terms and Conditions and Site Specific Information & Conditions for Contractors to understand the minimum requirements for supplying to Olympic Dam. This is located on the BHP Billiton website www.bhpbilliton.com. Refer to the “Suppliers” link at the bottom of home



website www.bhpbilliton.com. Refer to the “Suppliers” link at the bottom of home page.

� Assess your business against the key pre-qualification areas as outlined in today’s presentation and the Site Specific Information & Conditions for Contractors and identify any gaps.

� Utilise the resources of your local Regional Development Australia Board or the Industry Capability Network (SA) www.icnsa.org.au .

Slide 16

Questions





Documents

Olympic Dam Project Supplier Information - Barossa RDAbarossa.org.au/assets/Uploads/Presentations/BHP-Billtion... · Olympic Dam today The Olympic Dam Project How to engage with BHP