MINING EPC / EPCM
Terms of engagement
Putting the right people in the right place at the right time continues to be critical in the mining EPCM space , Dan Gleeson reports
“ The problem with project expertise is exactly that : it is project based ,” Morgan Lekstrom , President and CEO of Silver Hammer Mining Corp , says .
Lekstrom , who has a technical , project and mining background , has been on both sides of the mining EPC / EPCM ( engineering , procurement and construction / engineering , procurement and construction management ) equation – working for mining companies progressing a project through construction and a contractor providing input on a huge underground mine build .
While focused on his executive role at a junior mining company ( Silver Hammer Mining ), Lekstrom also provides consulting for engineering firms on project builds . He believes the contractor and mining company dynamic in the mining EPC / EPCM space needs to evolve . This , he says , is vital to coping with the welldocumented skills shortage and to ensuring wellconstructed projects become well-run mining operations .
“ Where I think the mining industry is going to have to lean on the EPC / EPCM contractors is on the human capital side of things ; there is a lack of human capital coming into the mining and engineering space , in general , so those houses that have got the in-house expertise will be highly sought after ,” he told IM .
At the same time , mining companies need to change the rules of engagement to ensure contractors are not employed purely as a way of getting more bodies on site .
“ When you talk about the design-build of processing plants , there is definitely an argument for employing a contractor with the requisite skill set to take this on and let them run with it ,” Lekstrom said . “ When it comes to sinking shafts , underground works and other types of development , however , miners should be running
“ For a long time , we have designed mines around the resource , but that is going to take on a new meaning going forward . The ‘ resource ’ will be viewed not only from a geological perspective , but from a human capital perspective ,” Morgan Lekstrom says
WSP Golder acted as the Project Management Consultant to help deliver over $ 10 billion worth of infrastructure for the Roy Hill iron ore operation in Western Australia ( photo : WSP Golder )
those projects , only employing contractors with the required expertise to fulfil specific functions .”
A clearer distribution of tasks to contractors , as well as a pledge to bring operations teams into the thinking around the design and construction phase , could lead to integration that has positive ramifications beyond commissioning , Lekstrom argues .
“ If you completely rely on an EPCM contractor without integrating your operations and maintenance team then there is going to be a significant amount of change along the construction path ,” he said .
“ I believe there is a hybrid method where there is an integration of the EPCM contractor and the mining operations group into the wider construction model , so , when the build is complete , there is the operational expertise on hand to ensure a seamless transition into operations .”
This is even more important in times like today where resources are thin on the ground ; a factor that could further accelerate a move towards employing new technology .
“ For a long time , we have designed mines around the resource , but that is going to take on a new meaning going forward ,” Lekstrom said . “ The ‘ resource ’ will be viewed not only from a geological perspective , but from a human capital
44 International Mining | NOVEMBER / DECEMBER 2022