Mining Supply Chain Forum, April 06, 2014 Saskatoon, Saskatchewan

Transcription

1 Experience growth. 6th Saskatchewan Mining Supply Chain Forum, April 06, 2014 Saskatoon, Saskatchewan Ronald Kikkert Procurement

2 Agenda Introductions Small introduction K+S Small introduction K+S Legacy Project Procurement Legacy LPET vs Operations Material Management Legacy KSPC-AMEC One Team Capital Inbound Logistics KSPC-AMEC One Team Closing statement

3 Focus on Two Strong Pillars 2012: 3.9 billion (2011: 4.0 billion) EBIT I 2012: million (2011: million) Potash and Magnesium Products Business Unit Salt Business Unit 1,422 Revenues / EBIT I in million 1,867 2, , Revenues / EBIT I in million 1,729 1,710 1, , Complementary Activities (Revenues 2012: 154 million; EBIT I 2012: 21 million) Waste Management & Recycling Logistics Animal Hygiene Products Trading business (CFK)

4 K+S is the Leading Player in its Markets Potash and Magnesium Products Potash Sulphate of potash and magnesium sulphate One of the leading suppliers worldwide Leader in Europe Fifth-largest producer worldwide Leading position worldwide Salt Europe The leading supplier worldwide With esco No. 1 in Europe South America North America With SPL No. 1 in South America With Morton Salt, Windsor and ISCO one of the leading suppliers in North America Sources: IFA, Roskill, K+S

5 The K+S Legacy Project Presence of K+S in Canada today

6 The K+S Legacy Project Project Introduction: About the Project About the Project: Legacy project is a greenfield solution potash mine and production plant near Bethune, Saskatchewan Potash production from the Legacy mine is anticipated for 2016, reaching two-million-tonnes per year rate by the end of The gradual extension of the annual capacity to 2.86 million tonnes of potash products will occur in subsequent years. Saskatchewan s first new potash mine in nearly 40 years 5

7 The K+S Legacy Project Primary Mining 6

8 The K+S Legacy Project Secondary Mining 7

9 The K+S Legacy Project Process Block Diagram Secondary Mining Secondary Mining Sekundärsolung Primary Mining Primary Mining Primärsolung Brine Recirculation Condensate Recirculation Evaporation Cooling Pond Crystallization Make-Up Brine Cavern Development Cavern Development Kavernenentwicklung NaCl Debrining 2 Mtpa primary KCl Debrining 0.86 Mtpa secondary KCl99 Leaching NaCl Slurrying KCl Drying Reclaim Brine Pond Tailings Pile Compaction Screening Fresh Water Disposal Well Storage Load-Out 2.86 Mtpa product: Gran B pink Standard pink KCl 99 chicklet

10 The K+S Legacy Project Site Facilities Overview 9

11 The K+S Legacy Project 2014 Project Objectives Commencement of process plant foundations Q Commencement of operations training program Mar 2014 Construction camp operational April 2014 Commencement of Wellfield pipeline installation April 2014 Commencement of product storage buildings April 2014 Commence on-site fabrication ECC vessels Q Completion of site wide piling program Q Commencement of Admin and Maintenance Buildings Q Completion of cavern development program construction Q First steel process plant main program Q Cavern development facilities operational (Pads 2 and 3) Q

12 The K+S Legacy Project Milestone Achievement Permanent Water Supply to Legacy Operational Nov 2012 Design Supply contract with Veolia for ECC Dec 2012 Commencement of major drilling program Feb 2013 Commencement of main construction program April 2013 Rail contract with CP Rail signed July 2013 Completion of Basic Engineering program Nov 2013 Commencement of plant piling program Dec 2013 Completion of first 72 production boreholes Feb 2014 Connection of first cavern at Legacy Feb 2014 Engineering and Construction Mgmt. Contract with AMEC Feb 2014 Natural gas supply to site operational Feb

13 Experience growth. Procurement Organization and Working Procedure for KSPC/AMEC procurement

14 Procurement Project: (LPET) KSPC has a EPCM (engineering, procurement, and construction management) contract with AMEC. KSPC Has embedded employs within Amec Procurement to support, control and assist Amec. KSPC issue's the Po s with all vendors. Operations: KSPC procurement team based in Saskatoon and at Site, deals with all normal scoops outside Project. Wellfield operations, KSPC trailers, maintenance, HR, Training etc... Procedures aligned with K+S procedures.

15 K+S Potash Canada Legacy Project Contract and Procurement Strategy Update The K+S Legacy Procurement team in conjunction with AMEC Engineering Supply Chain would like to advise all interested in providing goods or services to the Legacy Project, of the following: The project execution plan must be mainly based on large-scale packages; however, K+S is committed to working with local contractors and suppliers where possible. K+S encourages local contractors and suppliers to consider collaboration where possible to provide goods or services. K+S does encourage the collaboration of the local business community and First Nations and Metis parties in the area. 19

16 K+S Potash Canada Legacy Project Contract and Procurement Strategy Update K+S will also create an Internal line card of local contractors and suppliers that will be made available to large contractors and suppliers for utilization during their construction or fabrication phase of the project. K+S also encourages local contractors and suppliers to contact us for long-term business opportunities, such as maintenance. 20

17 K+S Potash Canada Legacy Project Supply Chain Management Opportunities Direct Purchases will include Major Process and Plant Wide Equipment consisting of: Mechanical e.g. Pumps, Dryers, Process Valves, Cranes HVAC e.g. Industrial Heating, Cooling and Ventilating Systems Piping e.g. Small and Large Bore Stainless, Carbon and Specialty pipe and fittings Electrical e.g. Motors, MCC s, SwitchGear and Transformers. Instrumentation e.g. Pressure gauges, Transmitters and Analyzers Service Rigs and Rig services 21

18 Experience growth. Materials Management Organization for joint KSPC/AMEC Materials Management

19 KSPC-AMEC One Team! Schedule Offloading and Storage Preservation and Handling Issuing Preservation and Handling Issuing

20 Experience growth. Capital Inbound Logistics Organization for joint KSPC/AMEC Capital Inbound Logistics management

21 /Contracts and Procurement/Logistics Capital Inbound Logistics Incoterm Strategy What s the best way to get the material from Seller to Buyer? INCOTERMS define interfaces, responsibilities and risks! over vendors ordered K+S in Group

22 /Contracts and Procurement/Logistics Capital Inbound Logistics Contract Concept for Legacy Safe transportations at all time! Utilizing one Logistic Service Provider (LSP) for all FCA inbound shipments - applicable for different scopes - reliability reg. safety - optimizing efficiency reg. cost and time, e.g. by consolidation of shipments - minimizing complexity, e.g. reducing contact persons, establish workflow Flexible in Incoterms preferred: - FCA (Free Carrier) at vendor s Workshop or - DDP (Delivery Duty Paid) to KSPC Site Dec 2013, O. Goitzsch 31

23 K+S Potash Canada Legacy Project Project Supply Chain Management: Closing Statement Closing Statement: The K+S Legacy team looks forward to working with local and global suppliers and contractors to support this exciting project and upon completion leave a Legacy for generations to come Contact Information for KSPC- Andrew.Gajadhar@ks-potashcanada.com 34

24 Goal!!!