Project Completion Report

Project Summary

Client: WorleyParsons / FMG Contract No.: 510P-00000-PU-PC-0059

PROJECT DELIVERABLES TARGET ACTUAL

Safety Nil LTI NIL

Scope Fabricate and supply two dust collection and

disposal systems including associated

tippler cell plate work

As per target

Schedule PC 28/10/2011 PC 24/02/2012

Budget $9,869,999 $11,191,043

Margin $2,241,014 (22.7%) $4,138,308 (36.9%)

Quality (NCR) 0 1

Customer Satisfaction Score 80% or above >80%

Project Overview

The FMG 155Mtpa Port Expansion Project aimed to increase the current port capacity at Anderson Point, Port Hedland from 45 Mtpa to 155 Mtpa. The project included two train unloader stations TU602 and TU603, each capable of tipping two rail cars concurrently as part of the unloading operation.

The driving desire was to fast track the design and construction of TU602 and TU603 to gain initiatives typically associated with being early to market.

Project Overview

Parties Involved

• Primary Stakeholder: FMG• EPCM: WorleyParsons• Supply Contractor: Aerison

Aerison’s Scope

Design, fabricate & ready for transport……

• Two off dust collection and disposal systems• Two off forced air ventilation systems• Two off tippler cell and end ring dust enclosure systems• Two off trunnion level pressurisation systems• Two off compressed air supply systems

Project Overview

Project Overview

Design

Design

• Lycopodium• A repeat of TU601 (completed 2008)

Design Changes

• Agglomerator removed from dust slurrying system • Design upgrade of slurry hopper • Bin fogging system removed• Larger capacity ventilation and pressurisation fans • Two off compressed air supply systems• New layout of ventilation & pressurisation ducting

Fabrication – In House

• Baghouse• Lower wall seals• Lower ring seals• Upper ring seals• Fan access platform

Top Section Mid Section

Fabrication – In House

Lower Wall Seal

Hoppers Lower ring seal

Upper Ring Seal

Fabrication – In House

Fan Access Platforms

Fabrication – Sub Contractor

• Shedder panels Arch Engineering• Push air walls Arch Engineering• Slurry hoppers Arch Engineering• Batch hopper & chutes Arch Engineering• Hood wall Phillips Engineering• Trunnion wall Phillips Engineering• Dirty & clean air duct Sabre• Ventilation & pressurisation duct Unique Metals• Fans Turbo Air• Pumps Mining & Hydraulic • Compressors SullAir Australia• Conveyors Sanwest• Rotary & slide valves Ansac• Structural steel Fremantle Steel• Surface treatment Ferogalv

CapeNovacoatDRA

Fabrication – Sub Contractor

Push Air Wall - Arch

Shedder Panels - Arch

Push Air Wall Duct - Arch

Fabrication – Sub Contractor

Slurry Hopper - Arch

Batch Hoppers - Arch Chutes - Arch

Fabrication – Sub Contractor

Dirty Air Duct - Sabre

Trunnion Wall - Phillips Hood Wall - Phillips

Clean Air Stack - Sabre

Fabrication – Sub Contractor

Main ID Fans - TAT

Ventilation/Pressurisation Duct - Unique

Ventilation Fans - TAT

Fabrication – Sub Contractor

Conveyors - SanWest

Pump – MHS Compressor - SullAir

Rotary/Slide Valves - Ansac

Project Pictures – Commissioning

Pre-Assembled Plate Work

Trunnion Level Tippler Cell

Project Pictures – Commissioning

Installed Wall & Lower Ring Seals

Ground Level Overview Install of Tippler Cell

Project Pictures – Commissioning

Upper Level Construction

Project Pictures – Commissioning

TU602 System

Project Summary

Safety and Environment

Target – Nil Incident Actual – 1 (Lost load)

Note:

• Baghouse top section fell from trailer en route to site.• Transport under the control of WorleyParsons• Internal issue with use of incorrect bolts

Comments

• Safety and environment record for project excellent• No reported incidents from sub contractors

Project Summary

Scope of Works

Target - Original Contract Scope of Works Total Number of SCN’s 17 Total Approved 13

Comments

• 4 month extension of time • Over $1.2 million in variations • Installation assistance• Commissioning (no load)• Commissioning (load)

Project Summary

Schedule

Project Summary

Schedule

Project Summary

Schedule

Project Summary

Schedule

Original Contract Delivery 28/10/2011 Actual Practical Completion – 24/02/2012

Comments• Design delays at beginning of project• Delay in client issuing AFC drawings• Extension of time and costs negotiated and approved• Revised schedule of deliverables

Project Summary

Budget and MarginEq

uipm

ent

Gen

eral

Fab

Bagh

ouse

Fab

Cons

truc

t. M

gmt

Shop

Sup

ervi

sion

QA

/ D

oc C

ontr

ol

Dur

ation

Air

fare

s

Tran

spor

t / C

rane

s

Cour

ier

Bank

Gua

rant

ees

Engi

neer

ing

Engi

neer

ing

- Sub

cont

ract

Dra

ftin

g

Dra

ftin

g - S

ubco

ntra

ct

ND

T /

Wel

d Q

uals

Vari

ation

s

MA

RGIN

1-00 2-00 4-00 7-11 7-21 7-23 7-57 7-59 7-75 7-76 7-87 8-01 8-03 8-11 8-13 8-33 9-00 AAA

$0$500,000

$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,000

BudgetEstimated Final

Project Summary

Budget and Margin

Original Contract Sum $9,869,999 Expected Final $11,191,043Original Contract Margin $2,241,014 (22.7%) Expected Final $ 4,138,308 (36.9%)• Includes Site based income: $250,000 Margin: $62,000 (25%))

CommentsOver budget items were:-• QA / Doc Control (-$32,237)• Transport / Cranes (-$2,489)• Engineering subcontract (-$1,330)• Load cells (-$3,357)

Under budget items were:-• Fabrication• Compressors• Construction management• Engineering• Drafting

Project Summary

Quality

Target – Nil Quality Issues or NCR’s Actual – 1 NCR

• NCR issued by client for release breach (Due to client not managing transport –

signed by Aerison under protest)

Comments

• Internal fabrication checks• Sub contractor quality review documentation• Tracking

Issues

Unfinished Duct

• Invoice management – maintain upper hand• Progress reports / checks• Early identification of problems and implementation of controls

Sabre

Issues

Damaged Baghouse Top Section

• Transport readiness• Photographs • Quality documentation

Lost Load

Issues

• Bolt take offs• Trial fit outs• Painting – Sabre• Tagging• Conveyor not reversible• Batch hopper flexible• Rotary valve underspeeds• Plastic fittings on damaged baghouse• Forgotten items (Tracking sheet)

Project Summary

Human Resources

Comments

• Expeditor• QA• Engineering• Document Control• Safety• Management

Project Summary

Communications

Comments

• Internal• Sub contractor• Client• Site

Project Summary

Client Satisfaction

Project Summary

Lesson Learnt

• Expediting• Transport• Quality• Contract management – Sabre• Tracking sheet• At source inspections

Project Summary

Project Completion

Unfinished Business

Comments

• Thank You Letter

• Bank Guarantees

• Future Business or Related Projects - Training

• Aerison Procedures