Premier Issue

J u l y 2 0 11

in this issue

25 % 35
%

energy savings

Safe workers produce more, better

Safety has a dollar value

fewer electrodes

$15 million

Saved in budget, schedule and process

A mine life of 25 years from 62.5 million tonnes of saprolite ore

Koniambo:

Our band of principles

Hatch engineer wins PEO Award for Engineering Excellence designing and  installing worlds largest  furnaces since 1999

Nils Voermann

We have only our employees to thank.

To become a best-managed company, you hire the best people. Its that simple. Hatchs 9,000 people in 65 offices around the world set the standard in delivering value to our clients in the mining and metals, energy and infrastructure sectors. Were project and construction managers. Were engineers. Were business consultants. And were part of Hatchs legacy of excellence. Learn more about us at www.hatch.ca
AUSTR ALIA PERU BRAZIL CANADA CHILE
Metals Energy Infrastructure

CHINA UK

INDIA USA

RUSSIA

SOUTH AFRICA

UAE

Premier Issue

J u l y 2 0 11

4 | Welcome 5 | Award-winning project no surprise to client

20 | AltaGas wind project, first on BC power grid

Enough wind power to serve 26,000 homes

Port of Durban expansion, winner of the South African Institute of Civil Engineering Award for technical excellence

21 | Welland Ship Canal

An opportunity to generate electricity using spill water

6 | Madagascar Minerals: Patience pays dividends

Rio Tinto's ilmenite project in Madagascar is one of the world's most honored resource projects of all time

22 | Koniambo: A world-class resource

World-class resource base provides mine life in excess of 25 years

8 | Xstrata proud of new mine

24 | Mosaic expands mines

Three major mines expanding to meet growing demand

Nickel Rim mine in the Sudbury basin shows a modern face in its design of surface infrastructure

10 | An incredible journey

25 | Hatch engineer honored

Nils Voermann wins PEO Medal of Engineering Excellence

The design, manufacture and global transportation of the worlds largest pressure vessels

14 | QITs UGS, the third and best expansion

26 | Bruce Power: Two awards for restarts 28 | Commendations

Client feedback

Schreyer and Project of the Year

International Project of the Year Award

16 | Adelaide Desalination plant on schedule despite delays

Playing catch-up: $1.83-billion Adelaide Desalination plant remains on schedule for completion by December 2012

29 | Our band of principles

Safety, Quality, Sustainability and Innovation

17 | Impala Platinum, a milestone project

29 | Improved safety programs lead to improved productivity

Economics of safety and quality

New furnace achieved astonishing performance indices"

18 | Dalrymple Bay

30 | Transnet, focus on infrastructure

Seventh award-winning coal terminal expansion makes it worlds largest

The redevelopment and expansion of ports and railways Cover photo: Koniambo metallurgical plant lights up the night

Hatch Advantage July 2011

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Welcome to Hatch Advantage

This is a new publication from Hatch that will tell readers how clients receive direct benefits and added value beyond the expectations of the project team. As the global population grows the demand for commodities grows and prices rise. Our clients are committed to the urgent expansion of reliable and low-cost facilities. In this new environment of sustainability, safety management, and high quality, our legacy of excellence and our experienced staff have demonstrated that we can deliver to meet our clients' needs. This publication shows many examples of exceptional value delivered on projects. In one example (p14) client Rio Tinto completed a 15-percent production boost three months ahead of schedule and $15 million under budget. QITs UGS project was the winner in 2008 of the International Project Management Institute Project of the Year Award.

Our clients wanted the immediate expansion of reliable and low-cost production facilities.
For more than 50 years Hatch has established itself as a preeminent supplier of engineering and construction management in the Metals, Energy and Infrastructure sectors.

Kurt Strobele Chairman and CEO Hatch

Awardwinning project no surprise to client

The Port of Durban, the largest in Africa, was deepened and expanded to accommodate bigger ocean-going vessels carrying commodities in and out of Africa.

The project was a component of the infrastructure program that won the 2009 Technical Excellence Award of the South African Institute of Civil Engineering.

Goba Engineering, provided all engineering, procurement, and project and construction management. Moira Moses, Group Executive, Transnet Capital Projects, on hearing the project won the award said, For many years skeptics were doubtful that the Durban Harbor Entrance Channel project would ever get off the ground. "Not only did we complete it ahead of schedule, under budget and with an excellent safety record, we scooped one of the most prestigious awards in the industry.

ahead of schedule, under budget and with an excellent safety record

Hatch and its joint-venture partners, Mott MacDonald and

BY THE NUMBERS

1,000,000+
approach channel

work-hours without a lost-time injury

19 - m - deep
immediate % 811 traffic increase

Hatch Advantage July 2011

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Madagascar Minerals: Patience pays dividends

BY THE NUMBERS

3,900 12,500,000+

of workforce sourced % 85 and trained locally

personnel, Madagascar's largest project ever

work-hours without a lost-time injury

Rio Tinto's ilmenite project in Madagascar is one of the world's most honored resource projects of all time.
It was at the time also the largest project ever undertaken in Madagascar, an island state that is home to 200,000 species of animals of which 150,000 exist nowhere else on the planet. Hatch was most proud of the fact that it could recruit and train 85 percent of the workforce from Madagascar and amass 12.5 million work-hours without a lost-time injury. The project established precedents for very careful and incremental development, and still began production on schedule. Rio Tinto's approach to the novel development was one of sensitivity to Madagascar's unique ecology, and a singleminded determination at Rio Tinto's director level to respect the company's commitment to sustainability.

After several years of discussions with local communities and national regulators about how the ilmenite sands could best serve one of the most ecologically sensitive regions in the world, Rio Tinto drew up a plan to create a dredging mine, much like Rio Tinto & BHP Billitons successful facility at Richards Bay, South Africa. Using a conventional cutter/ suction dredge, a floating concentrator in the dredging pond, a land-based minerals separation plant, and associated infrastructure (including a new port facility, a power generator, a 20-km-access road, and a water supply), Rio Tinto developed "a model for future projects in Africa and elsewhere in the developing world," said Rio Tinto's Chief Executive Officer Tom Albanese. Despite its remote location and the need to educate and mobilize the local workforce, the construction was completed in three years and the overall project in five years.

AN OUTSTANDING PROJECT
 Winner, Rio Tinto's Chief Executive Safety Award  Winner, The Bentley Innovation in Mining Award  Winner, The Nedbank Capital Green Mining Award  Winner, The South African Steel Association Export Award

Hatch Advantage July 2011

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Xstrata proud of new mine

N U M B E R S

15 5,000,000+ 25 km 125 km

contracting firms on site

work-hours without a lost-time injury of lateral mine shafts of diamond-drilling

B Y

T H E

Nickel Rim, a new nickel mine in the Sudbury basin, shows a modern face in its design and project execution
Xstrata Nickel assigned the full EPCM scope for engineering, procurement, and construction management to Hatch in jointventure with a local partner. The Hatch EPCM team peaked at 120 members managing five design groups and up to 15 contracting firms on site at the same time.

Strict access rules and performance standards were imposed on all site personnel, contractors and suppliers to guarantee that safety protocols were obeyed to the letter. When the project was completed more than seven million hours were expended including a run of five million without a lost-time injury. The projects scope included all surface and underground infrastructure, a ventilation shaft sunk to 1,685 metres, and a production shaft sunk to 1,750 metres. The underground infrastructure includes 25 km of lateral mine

development, and, to prove ore body geometry, mineral grades and tonnage some 125 km of diamond-drilling. Nickel Rim is now producing at 1.2 million tonnes per annum; however hoisting infrastructure is designed to extract up to a maximum of 1.7 million tpa of combined ore and waste rock, when required. The project was completed safely, three percent below budget with first production ahead of schedule.

Meet the Specialists

Environmental Services Group
Permitting can be a long and tedious step in the development of a mine, port or power generation facility. Protecting the environment, engaging aboriginal groups and controlling energy costs require special expertise and knowledge.
Corinne Boone Global Director Environmental Services Group

Benchmark: We can show you where you areand where you should be.

Hatch Advantage July 2011

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BY THE NUMBERS

capital cost

$2.3 billion
four

brick-lined Hatch-designed autoclaves transported from Malaysia in Southeast Asia to the Dominican Republic in the Caribbean

780-tonne

One of four 780-tonne pressure vessels on the way to Barricks's new Pueblo Viejo mine site

10

An incredible journey
The design, manufacture and global transportation of the worlds largest autoclaves
The Pueblo Viejo gold operation in the Dominican Republic is on track for its first gold pour in the first quarter of 2012. But getting to this point has not exactly been easy sailing. Because the ore is double refractory, in order to access it, the project had to commission the largest autoclaves ever built and transport them halfway across the world from Malaysia to the Caribbean.

Accessing gold
Pueblo Viejo, a joint venture between Barrick Gold Corporation and Goldcorp Inc., boasts gold reserves of approximately 23.7 million ounces. Barrick owns 60 per cent and is the managing partner. The sulphidic refractory gold deposit is being constructed to a 24,000 tonne-per-day design capacity. In the first five years, it will produce an average of 1.042 to 1.125 million ounces annually (100 per cent basis). Hatch Autoclave Technology Group has been on the project

since 2006 with the engineering, procurement, construction management (EPCM) contract for the core part of the refractory process, namely, the autoclaving facility and supporting oxygen plant. Its a double refractory gold ore, associated with two mineralogical issues: sulphides, in the form of pyrite and minor base metals such as silver, copper and zinc, which prevent cyanidation from directly recovering the gold; and a natural carbon component to the ore, which causes issues with the recovery under a conventional system, explains Hatch project manager Kevin S. Fraser. The incorporation of autoclaving in the processing of the ore addresses these challenges. In the autoclaves, all sulphides are oxidized, producing sulphuric acid as a by-product. The iron, copper and zinc dissolve into the solution; then the acid is washed out in a counter-current decantation (CCD) circuit leaving free microscopic gold to allow for leaching in cyanide. The

Each 780-tonne autoclave took 18 days to be transported just over 120 kilometres from the port at Samana, Dominican Republic, to the Pueblo Viejo operation.

Hatch Advantage July 2011

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underflow slurry is pushed to a carbon-in-leach circuit. Also in the autoclaves, the carbon contained in the sedimentary materials is oxidized with the combination of oxygen and high temperatures. Within the autoclaves, oxygen is the primary reagent. During design of the autoclaves, Hatch included a heat recovery circuit that, combined with the nature of the exothermic reactions that produce heat within the autoclaves, makes the heat autogenous by design. Without the heat recovery system, we would need some external heat source, Fraser adds. This way, we keep the energy needs down. The Pueblo Viejo autoclaves are the largest, by weight, refractory-lined autoclaves built to date globally, with an onhook weight of 780 tonnes when shipped lead lined. The massive structures are each 5.6 metres by 34.8 metres, and will nominally operate at 230 degrees Celsius. There are four in total.

The autoclaves were then shipped approximately 10 kilometres to the Kuantan Port using a 24-line, selfpropelled modular transporter (SPMT) heavy-haul unit. At the port, they were loaded on the Beluga Bremen, a P2-class ship owned by Beluga Charters out of Germany, for its maiden voyage. The autoclaves were transported in two shipments of two autoclaves each on the Bremen, which used both of its 750-tonne cranes and needed six hours to load the autoclaves from the SPMT into the cargo hold.

I think Ive walked every kilometre of that route Ive definitely driven it many times, says Fraser. The Goldhofer moves at an average of two kilometres per hour and can only operate during the daytime. Prior to the autoclaves arriving in the Dominican Republic, the project of readying the route to get them to site took about 16 months. Due to the sheer size of the autoclaves, there were a lot of interference issues to deal with: trees, power lines, communications lines, signs in villages that had been modified so they could rotate, and bridges (some had been temporarily reinforced to support the excess weight of the load; others had metal ramp structures added along each side to allow the Goldhofer to drive over them). The actual trek across the land with the autoclaves required a number of teams. Heavy lifting and transport specialist Mammoet Caribbean Inc. was responsible for driving the Goldhofer. A crane and ramp team moved the ramps the team would go ahead, ramp up a bridge, and then once the Goldhofer crossed, dismantle the ramp, move ahead of the Goldhofer and ramp up the next bridge. A safety team acted as an escort and ensured all were well-fed and hydrated, while also providing necessary crowd control near towns. Upon reaching the massive gates at Pueblo Viejo, which

We had two full-time quality assurance inspectors on site throughout the 33-month fabrication
The ocean voyage took four weeks one way, heading through the Panama Canal to reach Samana in northeastern Dominican Republic. Samana is basically an old and unused former cruise ship pier that was refurbished for the Pueblo Viejo project, including the autoclaves, Fraser explains. There, the autoclaves were transferred from the Bremen onto a 4.9-metre-wide 22-line Goldhofer heavy-haul trailer unit to transport the autoclaves over 120 kilometres to the Pueblo Viejo site, a trek that took about 18 days, and had to be repeated for each of the four autoclaves.

The grand voyage

Hatch designed the autoclaves and provided quality assurance during fabrication. They were built by KNM Process Systems Sdn Bhd in Gebeng, Malaysia. We had two full-time quality assurance inspectors on site throughout the 33-month fabrication, Fraser recalls.

12

is situated on a mountain, the autoclaves were transferred from the Goldhofer to an SPMT trailer unit, as it can rotate and manoeuvre tightly, using hydraulics for better accuracy. The autoclaves were transported to the north bench area of the project and negotiated into the autoclave building, where a jack-and-slide process was used to lift the large items to be slid sideways onto piers and lowered down onto two six-metre bearing plates and sixteen 70-millimetrediameter anchor bolts. The fit was perfect, Fraser says. By August, the first two autoclaves were on site, and the remaining two were there by mid-November.

Brick by brick
The autoclaves are constructed of carbon steel, with the vessel shell made of 100-millimetrethick plate. A lead lining was put in during fabrication to protect the vessel shell from corrosion. A team of 12 lead burners from JL Goslar GmbH & Co. KG welded approximately 60 tonnes of lead into each autoclave. Currently, at site, a refractory brick lining is being put in the autoclaves by Koch Knight LLC to thermally insulate the process and protect the vessel from the challenging conditions. The lining will be 300 millimetres thick, comprising four layers of brick. A team of 12 masons is working on site laying 98,000 bricks in each autoclave.

Bricking the autoclaves takes talent there are many nozzles, openings for pipes, agitators, internal structural components and so on, Fraser says, all with specific designs to ensure they are protected thermally and chemically and perfectly fit. The brick work started at the beginning of September 2010 and will finish at the end of June 2011.

Article from CIM Magazine, March/April, 2011 Reprinted with the kind permission of Canadian Institute of Mining, Minerals and Petroleum www.cim.org

Meet the Specialists

Consulting
From asset audits to maintenance management Hatch helps clients to set realistic improvement targets, monitors equipment, trains personnel, develops strategic operating plans and provides technical support.
Mary Ann Crichton Global Practice Director Hatch Consulting

Benchmark: We can show you where you areand where you should be.

Hatch Advantage July 2011

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QITs UGS, the third and best expansion

N U M B E R S

Every objective was met with the highly successful third expansion of Rio Tinto's UGS to 375,000 tons per year. The project was fast-tracked from the outset and was completed three months ahead of schedule and $15 million under budget. During the 525,000 work-hours dedicated to the expansion project in a facility operating at full capacity there was not a single lost-time injury. Rio Tinto had concluded that a 15-percent increase of production could best be accomplished with two new production lines.

525,000
ahead of schedule

work-hours without a lost-time injury

3 months $15 million

under budget

T H E

400+ 15%

B Y

piping, mechanical and elecrical tie-ins required

production increase

14

The project won the Project Management Institute Project of the Year Award in Qubec. UGS is at Sorel-Tracy, Qubec, on the St. Lawrence River.
The project was then entered into the International Project of the Year competition, against competitors from more than 60 nations, and Rio Tinto captured that honor as well.

It was a global project:  All the main production equipment was designed at Hatch Mississauga in Canada;  The preliminary design studies were completed in Hatch Montral and Hatch SorelTracy; and  The structural engineering and steel detailing of the Slag-Preparation Plant were assigned to the team at Woodmead, South Africa. Hatch's scope of services were engineering, procurement and construction management, i.e. the full EPCM.

Hatch also designed the process equipment including the reactor, dryer, and classifier; and programmed the controls. More than 400 piping, mechanical, and electrical tie-ins were needed. A dozen major pieces of equipment were installed. Through it all, production continued without interruption. The Acid-Leach Plant was on stream after two days. The Slag-Preparation Plant was operational in a week.

Hatch Advantage July 2011

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57254973
N U M B E R S

J  ohn Ringham, SA Water Chief Executive

Milestones include:  Completion of the transfer pump station and transfer pipeline system to Happy Valley  Completion of significant marine works for the intake and outfall pipelines  All site structures, including process buildings and chemical storage buildings  All site civil works  Tunnel boring machine reached its destination 1.1 kilometres from shore.  Power supply infrastructure ready to meet the needs of the 50-billion-litre facility  The energy recovery system. We are continuing to work closely with AdelaideAqua to ensure safety, quality, durability and environmental compliance remain at the highest levels, John Ringham South Australia Water, Chief Executive Officer, said. AdelaideAqua reassured the government that safety remains a key priority on the construction site.

Despite delays caused by ground conditions under the seabed, inclement weather, safety investigations on site, and delays in the supply and installation of electrical infrastructure, the $1.83-billion Adelaide Desalination plant remains on schedule. Hatch is a member of the design and construction multidisciplined consortium, Hatch/SMEC Joint venture, that is developing the facility.

capital cost

$1.83 billion

100 gigalitres
total expanded capacity

T H E

B Y

1.1 kilometres
of undersea tunnel bored
16

Adelaide Desalination plant on schedule despite delays

AdelaideAqua advised the South Australia government that the overall project completion date, incorporating the 100 gigalitre-expanded plant, remains within the Governments approved schedule.

The first 50 gigalitre plant can start producing desalinated drinking water by the end of July 2011 and will reach capacity by the end of October 2011.

BY THE NUMBERS

Impala Platinum, a milestone project

Hatch developed an efficient electric furnace for Impala Platinum. Power needs were slashed by 25 percent, and electrode consumption was reduced by 35 percent. Impala Platinum had a clear objective when it asked Hatch to expand its smelter and that was to increase production while cutting costs per unit of production. Hatch designed a single smelting furnace designed to operate at 40MW, equal to the combined

power of Impalas previous four furnaces. The single furnace throughput is now more than the total of the other four furnaces. When the new furnace was commissioned, it achieved astonishing performance indices, says Bert Wasmund, Executive Director, Hatch. The new furnace uses 25 percent less power per tonne of feed, and has 35 percent lower electrode consumption. Impala used Hatchs proprietary refractory cooling and highvoltage technologies. Hatchs specialized team of furnace technologists designed all components of the new furnace including the innovative

35% 25%

fewer electrodes power savings

three-dimensional (3D) structural binding arrangement as well as mechanical and electrical systems for the 40-tonne automated Soderberg electrodes that deliver power to the furnace. The Impala furnace No 5 in South Africa was designed in 1991 by Nils Voermann, Hatchs Global Managing Director, Technologies. He also led the team that commissioned the furnace. Nils was the winner of the 2011 Professional Engineers of Ontario Engineering Excellence Medal.

Meet the Specialists

Technologies
Original ideas from Hatch often lead to research and development, technology audits, intellectual properties and tax concessions that provide clients with continuing income from improved and exclusive processes and equipment.
Nils Voermann, Global Managing Director Technologies

Benchmark: We can show you where you areand where you should be.

Hatch Advantage July 2011

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Dalrymple Bay: Award-winning terminal expansion

BY THE NUMBERS

When the award-winning Dalrymple Bay Coal Terminals (DBCT) seventh expansion concluded, the capacity of the terminal was increased by 56 percent from 54.5 million tonnes per annum (mtpa) to 85 mtpa, making it one of the largest export terminals in the world. Under Hatchs leadership the Aurecon Hatch JV provided full engineering, procurement, construction and project management services. The $1.26 billion project had a total of 5.5 million hours worked and more than 21,000 audits of safety protocols. The DBCT project won the 2010 Queensland Engineering

$1.26 billion 56% 85 Mtpa

increase in capacity upgraded terminal capability

capital cost

18

Excellence Award. A year earlier the project captured a Facilities Excellence Award. Engineering design excellence produced:  Automated wagon vibrators that eliminate manual handling and noise-related occupational health and safety hazards  Jetty widening on a single row of vertical piles to ensure the benefits of lower capital cost, smoother constructability and easier maintenance  Further expansion accommodated by the jetty widening and the vertical pile structure

 Processes that allowed full production being achieved within days of startup  An enhanced working environment that is cleaner, provides good maintenance access and is less constrained for operational personnel. At program completion, a distinguishing operational feature of DBCT was the technology of two reclaimers simultaneously feeding each outloading conveyor/shiploader. This feature enables DBCT to efficiently blend cargoes out of the stockpiles which have enhanced

terminal users' commercial positions in global markets. The DBCT 7X project scope of work included the introduction of 3D anti-collision technology that increased the advantage of cargo blending. In addition to the innovative higher bund walls in the stockyard, greater capacity, efficient blending and simultaneous machine operation, is only part of the engineering components that have placed DBCT as the highest throughput coal export terminal in the southern hemisphere

Hatch Advantage July 2011

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N U M B E R S T H E

Enercon prototype WTGs

34 turbines 40-metre-long
electricity generated
homes powered

turbine blades

102 MW 26,000

B Y

AltaGas wind project first on BC power grid

The Bear Mountain wind project in the Peace River Country of British Columbia generates 102 MW of power, enough to serve the needs of 26,000 homes. To appreciate the scale of the project, consider that nearby Dawson Creek, a community in the northeast corner of the province, has a population of about 11,000. Hatch provided full EPCM services for the design, construction and commissioning of access roads, turbine pads, a substation, a 34.5-kV collection system and 138-kV transmission system. The project was completed on schedule and on budget. The Bear Mountain project features 34 Enercon prototype wind turbine generators. The Enercon wind generators hub height is 80 metres. Each is capable of producing 3 MW, making them the largest wind generators in Canada. The Bear Mountain project was the first wind farm to be tied into the BC power grid. Sea, rail and road were all used to transport the turbine components. The blades of Bear Mountains 102 wind turbines are 40 metres long.

M  ARC BOUCHER,

AltaGas project manager

20

Construction management was very efficient, and site supervision was focused on safety and results.

B Y

T H E

N U M B E R S

Water spills generate electricity for historic Welland Ship Canal

The Welland Ship Canal was first constructed in 1824 to help cargo vessels ascend and descend the escarpment between Lake Erie and Lake Ontario in the Great Lakes system. Today more than 40 million tonnes of cargo move freely each year through the canal avoiding the famed Niagara Falls. But the St. Lawrence Seaway Management Corporation saw another opportunity in the canal: the generation of electricity.

25 GWh 16,000 tonnes

of green energy generated of CO2 offset annually
and variable confines of the canal and that the construction activities could be completed during the icy months of January to March when the canal was closed. The objective was no interference with shipping in this critical waterway. Hatch was up to the challenge and for this novel project received the Canadian Consulting Engineering Award of Excellence.

Today the spill water from Locks 1 and 2 generates 25 GWh of green energy and offsets annually 16,000 tonnes of carbon dioxide. Hatch was retained to design two water-power facilities within the locks. There are eight locks in the canal between Port Colborne (Lake Erie) and Port Weller (Lake Ontario), compared with 40 in the first Welland Canal. Hatchs scope was to ensure the designs were constructible within the tight

Meet the Specialists

Systems & Process Control
Hatchs Systems & Process Controls business practice is a key differentiator for Hatch. We offer a full spectrum of services from instrumentation and automation to operational information management in order to ensure our clients' facilities operate at the highest reliability and efficiency.
Bruce MacKay Global Director Systems & Process Control

Benchmark: We can show you where you areand where you should be.

Hatch Advantage July 2011

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Koniambo: A world-class resource

BY THE NUMBERS

Koniambo, Xstratas nickel mine in New Caledonia, benefits from a world-class resource base, and will have a mine life of more than of 25 years from 62.5 million tonnes of saprolite reserves grading 2.40% nickel at a 2.0% cut-off grade.

142.1 million
tonnes of saprolite reserves

50+ years

economic production life span

22

This major resource has the potential to extend mine life beyond 50 years of economic production. The Koniambo Nickel project, a joint-venture partnership between Xstrata Nickel and Socit Minire du Sud

Pacifique (SMSP), is a greenfield pyrometallurgical facility in New Caledonia designed to develop one of the worlds largest and highest-grade nickel laterite deposits. The project will process ore in a 60,000-tonne-per-annum

ferronickel smelter. The smelter will use a standard pyromettallurgical process and a new technology to confine dust. Because of the scale of the project and its remote location, the metallurgical plant was constructed in 15 separate modules in Qingdao, China, then shipped to site. The modules, weigh up to 3,500 tonnes each and can be more than 50 metres tall. They arrived in New Caledonia between October and December 2010. Hatch, in joint venture with Technip in an integrated owners team, is constructing a metallurgical plant; a 350 MW coal-fired power station; an ore preparation plant; an 11.5-kilometre ore conveyor; a port; and a construction camp for more than 4,800. Hatchs Systems & Process Control group was responsible for the projects fully integrated systems-and-automation approach, which includes state-of-the-art communications infrastructure, operational systems, fibre optics and networks, security systems, management systems and all automation.

Koniambo represents the opportunity to develop an outstanding nickel operation with cash costs in the lowest quartile and exciting, low-cost growth potential from its vast resource base. The project is based on very strong valuation metrics.
Mick Davis, Xstrata Chief Executive

Hatch Advantage July 2011

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BY THE NUMBERS

increased % 50 production capacity

tonnes shipped per annum

5.3 million

Mosaic expands mines

Mosaic is the worlds second leading producer of potash with mines and mills in the USA and Canada. Mosaics facilities in Saskatchewan, Canada, are in the first phase of expansion of their production capacities. Hatch has completed a series of studies at all Mosaic sites within Saskatchewan and is providing prefeasibility and feasibility studies, as well as engineering, procurement and construction management (EPCM) services for the expansion program. The capacity of facilities near Esterhazy, Saskatchewan, the worlds largest potash mine, will increase to seven million tons per annum (Mtpa). The expansions at Esterhazy include a new mining complex that will add a new source for potash ore to feed the local mills. The new mining complex, named K3, is currently being prepared for shaft sinking activities that will take more than two years to complete. Hatch is the EPCM provider for these services, plus the shaft lining system and all surface facilities. Hatch is also the EPCM service provider for the current expansion project at the Colonsay mine and mill located

24

Nils Voermann wins PEO Medal of Engineering Excellence

Nils Voermann, Hatchs Global Managing Director, Technologies, will be awarded the Professional Engineers of Ontario Medal for Engineering Excellence in November in Toronto. The Award is presented jointly by the Professional Engineers of Ontario and the Society of Professional Engineers. Nils joined Hatch in 1989 after graduating from Queens University in Kingston with a B.Sc. in Mechanical Engineering. He is currently assigned to the Hatch Brisbane office. As a member of the global electric furnace team, Nils and his colleagues introduced Hatch technologies in the early 1990s to the platinum industry in South Africa. Hatchs new technologies made it possible to double the power level of rebuilt furnaces by adding Hatch sidewall copper-plate coolers and taphole blocks. The rebuild option for electric furnaces is popular today thanks largely to the Hatch technologies, the faster implementation schedule, and a much lower capital cost As GMD, Technologies, Nils is responsible for the technical and commercial performance of the global technologies business unit of 150 engineers and designers in the Furnace, Hydrometallurgy, Steel Mills, Advanced Controls, Electrotechnologies, NonDestructive Testing, and Energy Technologies Commercialization groups. Nils has won several awards for his technical papers, and has been awarded three patents from the US Patent and Trademark office. In 1994 Nils received his MBA (Business) at INSEAD in Fontainebleau, France. Nils is a member of the Hatch board of directors.

near Saskatoon, Saskatchewan. The expansion will increase the capacity of the mill by up to 2.5 Mtpa. At another Mosaic site at Belle Plaine, Saskatchewan, a feasibility study has been completed to increase the capacity by an additional 1 Mtpa. The Belle Plaine site is the worlds largest potash mine and refining complex.

Hatch Advantage July 2011

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Bruce Power: Two awards for restarts

N U M B E R S T H E B Y

capital cost

$4.25 billion 6,200 MW

of Ontario's % 25 electricity

total output potential

constant delivery rate

25-year

26

The restarts won two prestigious awards: The Canadian Consulting Engineering 2004 Schreyer Award, and the Project of the Year Award from Power Engineering for the restart of Bruce Power A (Units 3 & 4).
Hatch is a member of the AcresSargent & Lundy and E.S. Fox Ltd Joint Venture, known as ASLF, which currently provides Bruce Power with engineering and construction services for upgrading the fire protection systems and installing a secondary control area. The joint venture is working as an integrated team with Bruce Power in its $4.25-billion investment program. In October 2005, Bruce Power announced the restart of Units 1 and 2. Ultimately the four units will boost Bruce Powers output to more than 6,200 MW, making it potentially the source of about 25 percent of Ontarios electricity. The restarts will give Bruce Power enough nuclear generating capacity to supply the annual power needs of more than four million homes. The units have been designed to deliver power at the same rate for another 25 years.

QUICK FACTS:
 Bruce A is a 4 x 750-MW CANDU nuclear plant commissioned in the 1970s.  The plant was shut down in the late 90s, when the demand for power slumped.  In 2001 Bruce Power opted to restart two of the Bruce A units (3 and 4) to take advantage of a revitalized economy.  In 2005 Bruce Power commenced work to restart two more units (Units 1 and 2).

Hatch Advantage July 2011

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The Shikwamkwa Replacement Dam was a high priority project for Brookfield Renewable Power. This complex and challenging job was completed significantly ahead of schedule on a fast-track basis with no losttime injuries and well within budget.  Colin L. Clark, Executive Vice President, Brookfield Renewable Power

We had an excellent meeting with the Ministry of Natural Resources and they were very complimentary of the work Hatch has done. Your reports were praised as textbook in their thoroughness and presentation.  Brian J. Barr, President, 3G Energy Corp.

We are fully confident in recommending Hatch to any other client who is in need of detailed hydroelectric design expertise.  Ralph Wittebolle, Division Manager, New Generation Construction, Power Supply, Manitoba Hydro

Ten months after the restart I would like to put on the record our great satisfaction with the furnace that we are seeing in action every day. The work that Hatch did for us, all the way through the project, was first class. A  ndrew Nelson, Minera Loma de Niquel, Venezuela, Anglo American Group

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Band of principles
Our band of principles begins with Safety. There is nothing more precious to us than the well-being of our employees and visitors. Quality is embedded in our professional and technical performance on every project, irrespective of size, to meet and exceed the high standards
FROM THE EDITOR'S DESK

and realistic demands of our clients. Sustainability is the promise that Hatch plans for the continuous development of our employees, our teams of specialists, our technologies and our methodologies. Innovation

is the easiest of our principles to discuss. For Hatch, new concepts, designs, materials, processes and disciplines are instinctive, stimulating and productive.

Improved safety programs lead to improved productivity

Every dollar invested in workplace safety can deliver as much as $10 to a company's income statement, says a study funded by Liberty Mutual Insurance. A recent statistical study of construction records showed a strong association between improved safety and improved productivity. Another company's records agreed with that finding and went on to say that by cutting accidents in half, the company could immediately reap a 12 percent improvement in productivity. Unknown is why a relationship between productivity and safety exists. The speculation is that companies that want both improved safety and productivity, simultaneously create cultures in which the employees see management supporting safety while at the same time demanding improved productivity. A meat processing company analyzed 10 years of safety and productivity records and found that the company could point to an internal rate of return of 30 percent. It was clear too that large construction companies could claim better productivity and safety programs for the simple reason that they could afford to implement comprehensive safety training and supervision programs.

Foster Wheeler examined the safety and productivity records of 19 major projects and 34 million work-hours on site and concluded that the key performance indicators of cost, schedule, safety and productivity are all "interdependent." The School of Health Services at Purdue University concluded that the primary element that reduced falls from elevations on construction sites was the commitment of senior managers to promote safety as a priority. The second important element was training supervisors on how to promote safety. Leadership was found to be the key to success in improving safety results and productivity.
Contact us: hatchadvantage@hatch.ca Send to us: Hatch Corporate Office Sheridan Science and Technology Park 2800 Speakman Drive Mississauaga, Ontario, Canada L5K 2R7

Hatch Advantage July 2011

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Transnet, focus on infrastructure

BY THE NUMBERS

$12 billion 91 mtpa

iron ore rail capacity total

infrastructure-expansion program

Hatch and its jointventure partners in South Africa were selected to manage the EPCM roles for all projects in an aggressive $12-billion program.

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Seven ocean ports and the associated export rail lines were expanded to ensure that South Africas economic growth was not constrained by lack of capacity of those infrastructure facilities. Hatchs scope included:  Increasing the capacity of the iron ore rail line from Sishen to Saldanha (800km) from 37 million tonnes per annum to 91 mtpa

 Expanding the Port of Saldanha, including revamping tipplers, conveyors, stacker reclaimers and ship loaders  The award-winning widening of Durban Harbor  Developing Ngqura container terminal, and  Expanding the Cape Town container terminal.

How do you spell that?

Offering professional services on a global basis can be both instructive and engaging. The Republic of South Africa has been expanding its port and rail facilities to accommodate burgeoning commodity exports. A website for one of the port projects explains the potential for confusion over its name, Ngqura. Several spellings exist for Coega. These include Ngqura, the Xhosa spelling, which is used in the Port of Ngqura Establishment Act and is the official spelling used by the National Ports Authority; Ngqurha, as has been used on occasion by the Department of Public Enterprises; and Coega which is that used by the Coega Development Corporation, the Industrial Development Zone, and by most other people. Other spellings include Cougha, Coecha, Koecha and Koega. The name is of Khoekhoen origin for the river of the same name and means 'ground water.' Coega is pronounced 'koo-gha,' with a guttural sound forming the last syllable. To pronounce Ngqura correctly requires an ability to sound the click as used in Koekhoe and Xhosa.

Hatch Advantage July 2011

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World leader in mining & metals, energy and infrastructure

Hatch is among the worlds largest companies providing safe and high-quality projects to the mining and metals, infrastructure, and  energy sectors. Were project and construction managers. Were engineers. Were business consultants. And were part of Hatchs legacy of excellence. Learn more about us at www.hatch.ca
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