Samarco 3 Pelletizing Plant Project

Transcription

1 Samarco 3 Pelletizing Plant Project Turn-key Project Development and Implementation in Brazil 2005 to 2008 Thomas Schwalm Vice President Ferrous Technologies June 5, 2009 / Outotec CMD 2009 Frankfurt, Germany

2 2 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

3 3 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

4 4 Basics: Why Pelletize? From the Mine (Iron Ores) To Product (Iron Ore Pellets) Pelletizing is the agglomeration of very fine (<100µm), often beneficiated raw materials into spherical products of preferably 9 16mm diameter with defined properties for transportation and further processing in blast furnaces or direct reduction furnaces.

5 5 Basics: Pelletizing Market Technology/Supplier Installed Annual Capacity LKAB KK4 5.0 Mill. t/a Outotec Traveling Grates 45,0 million t/a LKAB MK3 4.0 Mill. t/a Other Traveling Grates 9,5 million t/a Grate Kiln 19,5 million t/a Gol-e-Gohar 5.0 Mill. t/a Caofeidian 4.0 Mill. t/a 13% 26% 61% GIC 5.0 Mill. t/a CVRD Sohar 4.5 Mill. t/a JSW 3.5 Mill. t/a BRPL 4.0 Mill. t/a WISCO 5.0 Mill. t/a Outotec Other Traveling Grates Grate Kiln Samarco Mill. t/a Paradeep 6.0 Mill. t/a MBR 7.0 Mill. t/a Tata Pellet 6.0 Mill. t/a Tubarão VIII 7.5 Mill. t/a Plant size >3,5 mtpy, status 04/2009

6 6 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

7 7 Project Overview - Client Owned 50/50 by Vale and BHP Billiton The world s second largest seaborne exporter of iron ore pellets Integrated mining activities include iron ore mining, beneficiation, transportation, pelletizing and shipment

8 8 Project Overview Production capacity increase from 14 to 21.6 mtpy Total investment USD 1,183 Million New concentrating plant in Germano (MG) New pipeline approx 400 km long New pelletizing plant in Ponta de Ubú (ES).

9 9 Project Overview - Highlights Outotec s Scope Design, engineering, delivery and construction of the core plant (induration furnace) on a lump-sum-turnkey basis Contract value > EUR 160 million (200 USD) Project implementation time 30 months Erection Quantities tons of steel structure and tons of equipment Origin of Supplies and Services Approximately 80% from Brazil Approximately 20% from abroad

10 10 Project Overview - Geographical Location

11 11 Samarco 3 Project Key Data Technical Key Data Capacity [t] gradual increase to 7,6 mtpy Availability [dpy] 335 gradual increase to 352 dpy Grate Size [m²] 768 Grate Factor [t/d m²] 28,2 Commercial Key Data Total Samarco Investment OT Contract Execution Time 1,183 Billion USD 200 Million USD 30 months

12 12 Important Project Milestones First Inquiry Budgetary Proposal Test Work Samarco s Prefeasibility Engineering Proposal 1 st LSTK Proposal Final LSTK Proposal Start of Engineering Contract Signature Start of Civil Works Start of Erection Start of Hot Commissioning Mechanical Completion First Production Plant Take-Over December 2003 May 2004 May June 2004 July 2004 August 2004 November 2004 July 2005 September 2005 September 2005 April 2006 August 2006 February 2008 March 2008 March 2008 April months after first inquiry 8 months after project start 11 months after project start 30 months after project start 31 months after project start 31 months after project start 32 months after project start

13 13 Overall View 15/04/2008

14 14 Samarco 3 - General Roller Plot Plan Filtration Presses Product Screening Substation Substation Thickening Slurry Storage Coal Grinding Mixing Process Fans Dust Cleaning Process Gas Ducts Green Pelletizing Oil Heating Oil Storage Indurating Machine

15 15 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

16 16 Project Development Definition of Sales Strategy Identification and Promotion of Technological Advantages such as Continuous Technological Updates (Energy Consumption, Environmental Relevance, Easy Maintenance ) Availability of Own Fully-equipped Laboratory Facilities for Ore Testing and Plant Costumization Plant Design Experience as Market Leader

17 17 Project Development Development of a Project execution Concept to Take care of Clients Limited Resources for Project Implementation (->LSTK-concept) Suit Clients Conditions from Project Financing (->maximize local services and supplies)

18 18 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

19 19 Project Execution Task Force Project-specific engineering with three local engineering companies Technology-specific engineering by technology owner Integrated and harmonized realization of procurement Project specific execution of all site activities Samarco 3 Tubarão VIII MBR

20 20 Project Execution Task Force situated in Belo Horizonte, Funcionários Av. Afonso Pena, 4001, 4th floor up to 250 engineers and specialists 210 Brazilians 40 expatriates multidisciplinary task force process engineering plant engineering mechanical engineering civil and structural engineering electrical and instrumentation engineering procurement and expediting

21 21 Project Execution Site Office situated in Anchieta, Ponta Ubu, E.S., Rodovia ES 060, km 14,4 at Samarcos pellet plant site approx. 20 engineers and specialists 5 Brazilians 11 expatriates construction company Liderança with approx. 120 people erection company Enesa with up to people refractory installation company RIP with up to 200 people

22 22 Manpower - Samarco Engineering and Expediting in Belo Horizonte Outotec up to 15 CRA/SEI up to 60 Civil Works and Erection in Ponta de Ubú Outotec up to 20 Liderança 120 (incl. night shift) Enesa up to (incl. night shift) RIP up to 200 Suppliers Supervisors up to 10 Other Activities Home Office Support Germany up to 5 Expediting in Brazil up to 5 Total up to 3.000

23 23 Organization Chart Overall Project Outotec GmbH Oberursel Germany Outotec Tecnologia Brasil Ltda. Belo Horizonte Brazil Outotec Technology Project Task Force Belo Horizonte Brazil Engineering Contractors Equipment Suppliers Steel Structure Suppliers Erection Companies Germany Germany Brazil Brazil Brazil Brazil South Korea USA

24 24 Organization Chart OT Project Manager QM Manager Scheduling & Reporting 2nd Scheduler Procurement Manager Commercial Manager Engineering Manager Conctruction Manager Commisioning Manager Procurement Local Equipment Contract Management & Invoicing Plant Engineering Process Engineering Deputy Site Manager Commissioning Engineer 1 Procurement Import Equipment Cost Control Germany Mechanical & Piping Civil & Structural Steel HSE Manager Commissioning Engineer 2 Expediting Coordination Cost Control Brazil Indurating Hood & Burner Equipment Electrical & Automation Supervisor Civil & Steel Commissioning Engineer 3 Expeditor Mechanical SP Invoice Control Refactory Lining & Insulation Instrumentation Supervisor Mechanical & Piping Commissioning Engineer 4 Expeditor Mechanical MG+ES Indurating Maschine & Support Structure Erection & Site Planning Supervisor Proprietary Equipment Mechanical Engineer Expeditor Steel 1 Expeditor Steel 2 Piping Engineering Plant Dedusting Supervisor E & I Electrical & Autom. Engineer Quantity Surveyors Specialists Subsuppliers Subsupplier Specialists Process Fans Burners Process Fans Burners

25 25 Work Breakdown Structure - Total Project Units Construction/ Erection 19,77% Commissioning 2,76% Project Management 1,36% Engineering 4,81% Supplies 71,30%

26 26 Work Breakdown Structure - Supplies Units Structural Steel 11,63% Others 32,70% ESP's 10,83% Pallet Cars 10,35% Grate Bars 2,76% Cables 2,86% Indurating Hood 3,10% Refractory 5,73% Process Gas Ducts 5,83% Process Fans 7,96% Motors/ Transformers 6,27%

27 27 Progress Curve - Total Project early target late

28 28 Samarco 3 Start of Civil Works

29 29 Samarco 3 DR-Main Installation

30 30 Samarco 3 Start-up

31 31 1.Basics 2.Project Overview 3.Project Development 4.Project Execution 5. Services Business

32 32 Services Business 24 months technical assistance after plant start-up Contractually agreed supply of commissioning spares and selected other spares Contractually agreed development project for an alternative operator support system including remote monitoring option

33 33 Synergies, Succession Projects Technical consultancy on capacity increase and technological update for existing plants in 2006/2007 First choice partner for planned expansion projects 4 and 5 from 2011 onwards with an extended scope Benchmark performance for other projects with annual plant availability 6% higher then industry standard energy consumption 20% lower than similar applications Project implementation with extremely low incident/accident rate (considered lowest world-wide) Production ramp-up within 3 weeks after first production

34 34

35 35 Outotec Oyj CMD 2009 Overall View Samarco

36 36 Grinding mill at Kittilä gold mine in Finland Q&A More out of ore!