MINING EPCM
Delivery with a difference
With prerequisites that include a competitive bid , ability to incorporate new technology and , often , guarantees on deadlines and budgets , EPCM firms face varied and extreme pressures from their mining clients . Dan Gleeson looks for their coping mechanisms
The backdrop for mining EPCM companies has changed substantially in the last five years . A half decade ago , the talk was still focused on offsetting execution risk and generally trying to improve on the performance of the most recent commodity boom and initial bust – a period that witnessed project overruns and capital cost blowouts .
The application of new technology was mentioned , but it was a side note on the agenda of most miner-contractor discussions . Times have changed . “ Now , it ’ s expected that systems and tools in the management and engineering process , as well as construction planning , methodology and execution , are taking advantage of technological advances ,” Steve Rusk , VP of Mining at Stantec , to ’ s ld IM . “ The bar has definitely risen . We have to be able to demonstrate an understanding of these tools as well as show specific uses and applications .”
Noting the same technology considerations rising on the agenda of Tier 1 and Tier 2 miners in the last five years , DRA Global ’ s Senior Vice President – Global Origination , Christo Visser , said advances made in 2020 – a year when the ability to operate remotely was tested to its fullest – could prove pivotal .
“ In 2020 , this has moved from an agenda item to a priority with the outbreak of the COVID-19 pandemic ,” he told IM . “ Digitisation and related initiatives are fast becoming a prerequisite when bidding ; this includes project management , construction , safety , efficiency and decarbonisation .”
Janne Tikka , Head of Global Mining and Metals at AFRY Process Industries – a company created with the 2019 merger of ÅF and Pöyry – has witnessed this transition at both greenfield and brownfield projects in the sector .
“ In the case of greenfield investments , the enterprise-level digital architecture is planned and established during feasibility study phases in order to optimise the used resources for the investment case ,” he said . “ For brownfield investment projects , an Industry 4.0 roadmap can be created to provide a holistic approach to develop a digital transformation pathway .”
Technology-agnostic value
Applying new technology is a major component in
the pursuit of Stantec ’ s work in the mining business , according to Rusk .
“ Our clients want to see that we are engaged and that we are putting our best foot forward to even be considered for award ,” he said . “ Mining companies are integrating technological advances across their
business and expect service providers to be doing
the same .”
There are different routes mining EPCM providers can pursue for these innovative technological advances , all of which come with an element of risk .
Fluor recently exhibited the ability to futureproof process plant design in a Project Execution Plan for Clean TeQ Holdings ’ Sunrise Battery Materials project , in Queensland , Australia ( photo : Clean TeQ Holdings )
Nick Bell , SVP , Mining , Minerals & Metals Sector Lead for Worley , said : “ Innovation , by its nature , is a change from what has been done before . It introduces new risks , uncertainties and costs . Being the first adopter of concept and prototypes is not within the comfort zone for many companies .”
He says there is support required to explain , manage and mitigate these risks , with Worley recommending a partnership approach that allows miners to draw on a mining EPCM provider ’ s experience in developing and transferring similar technologies in comparable operating environments .
It is partnerships with OEMs and other mining service providers that have many mining EPCM companies competing in this new mining tech space . Wood ’ s President of Mining and Minerals , Dave Lawson , says his company is already working closely with miners and technology providers to deliver digital twin offerings to clients , while concepts such as cloud-based design and global integration have helped Wood deliver the latest designs at the same time as controlling project cost and schedule .
Such abilities proved vital on a project where Wood was tasked with implementing haul truck and drill automation on an open-pit greenfield gold development in Ontario , Canada .
The company ’ s design for IAMGOLD Corp ’ s majority-owned Côté project included layout work to develop the Autonomous Operating Zones ( AOZ ) and operational interfaces ; communication networks for AOZ ; interface management with facilities for AOZ ; design layouts including AOZ requirements ; and
74 International Mining | NOVEMBER / DECEMBER 2020