2.15 Chapter 15 - Project - Execution

Chapterr 15 – PROJE
ECT EXECU
UTION PLAN
15 PRO
OJECT
T EXE
ECUT
TION PLA N
15.1 INTRO
ODUCT
TION
The projject executio
on plan (PEPP) is the govverning document that es
stablishes thhe means to execute,
monitor, and controll the project. This chapteer summaris
ses the strate
egy and asssumptions deefined by
BAMIN regardingg the im
mplementatio on of the
t PdF project via an EPCM
(Enginee
er/Procurement/Construc ction Manage ement) appro
oach.
It is com
mmon in Bra azil for large mining com panies to take significan nt responsibiility for direc
cting their
capital p
projects, inclu
uding “hands s on” engine ering and direct manage ement of crafft subcontrac ctors. As
BAMIN is a single project compa any, the inte
ent is to hire a firm that has
h the requiired specializ zed skills
and man nagement syystems, then utilize their systems witth their employees alreaddy skilled in their use
while maanaging that effort with a relatively sm
mall Project Owner’s
O team
m.
Schedulles, critical processes,

p co
onstruction ssequencing and
a key guid
delines desccribed throug
ghout this
chapter were jointlyy defined by ants which include Tetra Tech,
y BAMIN a nd its exterrnal consulta
Ausencoo, and otherss.
The inte
egrated workk programme e is expecte
ed to require 38 months to ship prodduct after th
he EPCM
contracttor is formallyy engaged and the Projecct is approve
ed.
15.2 PROJJECT CH
HARACT
TERIZA
ATION
15.2.1 Project Ob
bjectives
The PdF
F project will develop a Greenfield
G iro n ore operattion in Bahia by:
 pe with 10 MTPA hemaatite (DSO) plus an

Implementing ore processing faciilities to cop
average off 6.4 MTPA of direct red
duction pelle
et feed (DRP
PF) productioon, (see Cha
apter 5 –
Processing
g Plant);
 Developingg mining planns and scheddules accord
ding to its JO
ORC compliaant mineral re
esources
and ore resserves (see Chapter 4 – Mining);
 Defining state-of-the-a
s art processe s for tailings disposal managemennt (see Chapter 6 –
Tailings Maanagement);;
 Providing water
w supply
y and electriical power innfrastructure to support mining activ
vities and
ore processsing (see Chhapter 8 – Inffrastructure and
a Utilities);
 Securing th
he appropria
ate railway lo gistics and on-shore/off-s
o shore port faacilities for prroduction
flow (see Chapter
C 9 – Railway, Ch apter 10 – Rolling
R Stockk Dimensioni ng and Chap pter 11 –
Port Terminal);
 Timely andd competitivvely acquiring
g high-qualitty equipmen
nt and materrials for con
nstruction
and operattions (see Chhapter 12 – P
Procurementt Plan);
 Providing skilled
s resources to fulfil tthese plans (see Chapter 14 – Humaan Resources
s);
 Acquiring land rights and obtainning right-of--way and easements wwhere required (see
3 – Licensing
Chapter 13 g, Environme
ental, and So
ocial Manage
ement Plan);
BAMIN – P
PdF Project BFS
S, August 2016
546 / 783
Chapter 15 – PROJECT EXECUTION PLAN
 Obtaining all required licenses for the operating the mine and all required infrastructure (see
Chapter 13 – Licensing, Environmental, and Social Management Plan);
 Defining target markets and target prices for the produce, while also defining market
strategies and product positioning to reach those (see Chapter 19 – Market Study and
Commercial Plan);
 Establishing responsible and harmonious relations with local communities, governmental
authorities and other key stakeholders (see Chapter 13 – Licensing, Environmental, and
Social Management Plan);
 Defining operations controls, systems and workforce to bring all facilities into production
(see Chapter 16 – Operations Management Plan).
15.2.2 Project Characterization
Main project milestones according to the BAMIN’s integrated work programme are:
Table 15.1 – Main Milestones
Activity Name Date
BFS Report Pre Approval Jun, 2017
Shareholders’ Approval Jul, 2017
Construction Start – Plant Nov, 2017
Construction Start – Port Jul, 2017
Mechanical Completion – Plant Dec, 2019
Mechanical Completion – Port Apr, 2020
Start-up – Plant Apr, 2020
Start-up – Port Aug, 2020
SSEE – Electric Power Supply System Completion Jul, 2019
SSAI – Industrial Water Supply Completion Jul, 2019
15.2.3 Assumptions
Some of the key assumptions considered for the work programme describe by this chapter are:
 All installation licenses remain in place on the basis planned;

 Acquisition of all land tracts required for construction and future operation will be concluded
before the project construction start date;
 FIOL railway permanent right of way will be completed before rolling stock are required to
ship product;
BAMIN – PdF Project BFS, August 2016
547 / 783
ECT EXECU
UTION PLAN
 Key memb bers of the Project

P Ownner’s Team will
w be define ed and mobbilized as reqquired to
complete EPCM
E negotiations and ccontract sign
ning to allow the Project S
Schedule to start
s July
1st 2017;
 One single
e EPCM conttractor will p rovide overa all engineerin
ng, procuremment and con nstruction
manageme ent for both Project
P sites.. For clarity, the Mine Arrea includingg the process
sing plant
and associiated infrastrructure and thhe Port Area a are consideered as the twwo Project sites;
 Project pro
ocurement will be manage PCM, acting as BAMIN’s agent;
ed by the EP
 Power and
d water to sup
pply the proje
ect’s needs will
w be availa
able on-site;
 Constructio
on Contracto ors will be ma
anaged by th
he EPCM us
sing their in-hhouse system
ms for all
facets of Construction managem ment. The Owner’s Team
T will pprovide direction as
appropriate ose systems;;
e utilizing tho
 All interfacces with Governmental in nstitutions will be handled
d by BAMIN.. Where requ
uired, the
EPCM will be requeste ed to participaate.
 BAMIN will support the e IT effort via
a providing th
he EPCM, Co onstruction C
Contractors and
a other
participant’’s access to an IT Backb bone at the Project Sites
s and will maanage that backbone
b
during the Project and Operations p phases.
 BAMIN’s Finance
F Grou
up will be ressponsible forr the accounting & bankinng system paying
p for
goods and d services procured in BA AMIN’s name. The EPC CM will act aas BAMIN’s agent
a for
purchases of equipment, materialss and service es via manaaging compleete Procuremment and
warehousin ng systems s, managing g the apprroval of the Invoices and then making
recommendations to pay.
p The PProject Owne w be respoonsible for helping to
er’s Team will
audit comppliance with those
t proceddures and prrocesses, sup pporting BAMMIN and Shaareholder
audits as re
equired.
15.3 PROJJECT SC
COPE
15.3.1 Project Sc
cope State
ement
The imp
plementation of PdF Proje
ect comprise
es two main geographic
g areas:
a
 The Mine site

s area, inc
cluding:
o Min
ne (Caetité)
o Pro
ocess Plant;
o Ind
dustrial Wate
er Supply;
o Tra
ansmission Line
L 230 kV;
o Ra
ailway (FIOL)) connectionss at the Mine
e Area
 The Port site area, including:
o Raailway (FIOL L) connectio
ons, rolling stock main ntenance faacilities and all rail
infrrastructure and
a superstruuctures locatted at the Po
ort Area;
o Po
ort Terminal (TUP
( Aritagu
uá)
For the Mine portion en pit, the waaste disposal and ore
n of the Mine Area, the sccope covers iron ore ope
stockpile
es and ope erational support areass (heavy ve ehicles work kshop, officee, changingg rooms,
explosivves warehouse, among others).
o Maain sub-area
as for activities breakdowwn are Mining, Mine
Industria
al Support Fa
acilities, Hau
ul Roads, Facctory and Ex
xplosives Depposits.
BAMIN – P
PdF Project BFS
S, August 2016
548 / 783
The Processing Plant scope covers all facilities from crushing through the filtration plant and the
stockpile for the concentrates. It also includes support infrastructure such as the administration
buildings, workshops, control rooms, stores, laboratory, dining rooms and substations. Main sub-
areas for activities breakdown are Crushing, Screening, Grinding, Desliming, Magnetic Separation,
Flotation, Thickening, Reagents, and Filtration. For details, refer to Appendix 15.1 – MD-2000-P-202
(in Portuguese).
Considered to be part of the Mine Area are all facilities required to support production of DSO and
Pellet Feed including design and construction of the tailings dam, water system, power system and
anything else required for Mine Area production to occur.
The Port Area scope includes everything required for the Port Area and BAMIN’s rail area scope.
This includes, but is not limited to, the Railway Terminal, Car Dumper, Stockyard, Access Bridge, Ship
loader, Breakwater, and all else required to unload DSO and pellet feed then load the ships.
For further details, refer to “Chapter 11 – Port Terminal”.
The Work Breakdown Structure (WBS), 4th level, is displayed in Appendix 15.2 – RA-0000-G-001.
For further equipment details, refer to Appendix 15.3 – LE-2000-M-201 and Appendix 15.4 – LE-2000-
M-202.
15.3.2 Area 1: Mine
The PdF Project mineral deposit is an open pit mine, developed in 15m high multi-tiered benches
utilizing rotational drilling operations, with dismantling by explosives. Construction of two-way roads
for the mine fleet will require approximately 33 km of road construction. Roads will be constructed and
sign posted to comply with all Brazilian standards for safety and environmental protection.
The Mine also includes the provision for the manufacture of explosives on site (Water Pump and
Tanks) and facilities for mine industrial support (pump and tanks).
The EPCM will be responsible for the procurement, logistics, assembly and commissioning of all mine
mobile equipment including the Mine Fleet in addition to the more traditional construction of shops
and all physical facilities on Site. The Owner’s Team will include members of Mine Operations that
will provide direction and oversight of these activities. Operator and Maintenance personnel training
are the responsibilities of BAMIN.
15.3.3 Area 211: Primary Crushing
15.3.3.1 Hematite Plant
The run-of-mine (ROM) is extracted with a target granulometry of <700mm, and transported by dump
trucks (235 st) to feed the Primary Crusher, where particles <150mm are bypassed from crushing and
the balance is fed to the Jaw Crusher (BR-2111-01). The area includes all belt feeders, hoppers,
substations and associated facilities to produce DSO.
15.3.3.2 Itabirite Plant
The run-of-mine (ROM) is extracted with target granulometry of <700mm, and transported by dump
549 / 783
trucks (235 st) to feed the Primary Crusher. Particles <150mm are bypassed from crushing and the
balance is fed to the Gyratory Crusher (BR-2112-01).
The Primary Crushing (Itabirite Plant) also includes the installation of all belt feeders, hoppers and
conveyors required. Two Secondary Substations will be required and installed in the area.
15.3.4 Area 213: Screening
In the Screening Station the first layer of the screen will send particles >32mm to Secondary
Crushing. The intermediary layer >12mm and <32mm will comprise the ore to the Tertiary Crushing.
Ore passing <12mm is called “hematite natural fines” and is the final product to the storage yard.
The Screening Station includes the installation of belt feeders, screens and conveyors.
In the screening station the top screen will feed particles >32mm to Secondary Crushing. The
intermediary layer >12mm and <32mm will feed that ore to Tertiary Crushing. Ore passing <12mm is
called “hematite natural fines” and is final product to the storage yard.
The Screening Station includes the installation of belt feeders, screens and conveyors. A Secondary
Substation will be required and installed.
15.3.5 Area 212: Secondary and Tertiary Crushing
Material >32mm is fed to the Conical Crushers, then recycled to the Screen Station.Secondary
Crushing includes the installation of belt feeders, bin and conveyors. The material >12mm and
<32mm material is fed to the Vertical Crushers, then recycled to the Screening Station.
The Tertiary Crushing includes the installation of Belt Feeder and Bin.
The >32mm screened product is fed to the Conical Crushers, then recycled to the Screening Station.
Secondary Crushing also includes the installation of belt feeder, bin and conveyors. The (>12mm and
<32mm) material is fed to the Vertical Crushers, then recycled to the Screening Station. Tertiary
Crushing also includes the installation of belt feeder and bin.
A Secondary Substation will be required and installed.
15.3.6 Area 215: Homogenization Yard
The crushed ore with particles <12mm will feed the two homogenization piles. The piling method
defined is a Chevron pattern, with 180,000 tons of static capacity in each pile. In case of any failure of
stacking and/or reclaiming operations, there will be the flexibility to direct feed to the following bin
550 / 783
using a diverter gate prior to the stacking system.
The Homogenization Yard also includes the installation of belt feeders, stacker, reclaimer, conveyors
and systems to create a complete, functioning, whole.
15.3.7 Area 215: Fine Transport
All the output of the crushing facilities with fraction <12mm is transported using belt conveyors with a
total length of 6 kilometres.
The Fine Transport includes the installation of Long Distance Belt Conveyor (TR-2151-01) and Belt
Conveyor (TR-2151-01 to 06)
15.3.8 Area 216: Grinding
The material from the homogenization yards is fed into the ball mill with the circulating load (pre-
concentrate magnetic), caustic soda (20% concentration) and spillage from the area included. In the
trommel the particles <12mm will be fed to a slurry tank where it will be diluted to 51.9% solids with
recovered water, and then pumped to the trash screens. The material >12mm and retained in the
trash screens will be sent to the Disposable Materials Centre. The Grinding includes the installation
of all pumps and equipment required to provide an operating system.
15.3.9 Area 221: High Frequency Screening and Desliming
15.3.9.1 HF Screening
The output of the grinding will feed distributors that will supply the slurry to twenty-two high frequency
screens, in parallel lines. The undersize <0,150mm will be pumped to the desliming process. The
>0,150mm oversize will be conducted to a tank with agitator where recovered water will be added to
adjust the solid content to 50%. That slurry will be pumped to the Magnetic Separation.
The HF Screening also includes the installation of Screens and Trash Screens.
15.3.9.2 Desliming
The undersize from High Frequency Screening will feed the primary desliming which is composed of
two sets of 15” hydro cyclones. The underflow of primary desliming will receive recovered water to
adjust the solid content to 40% and then will be pumped to the secondary desliming which is
composed of two sets of 10” hydro cyclones. The overflow of the primary desliming and secondary
desliming will combine and feed four sets of the 6” hydro cyclones of tertiary desliming. The underflow
of secondary desliming will be pumped to the buffer tank at Flotation. The overflow of the tertiary
desliming will be added to waste tank in the magnetic separation, and then will be pumped the
Thickener. The underflow of the tertiary desliming will be unloaded in a tank and pumped to Magnetic
Separation to recover the iron minerals.
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The Desliming includes the installation of pumps and cyclones as required to provide a functioning
system.
15.3.10 Area 222: Magnetic Separation
The oversize >0.150mm from High Frequency Screening will split into two slurry distributors which
then feed the two wet high intensity magnetic separation (WHIMS). The magnetic concentrate (pre-
concentrate) will feed the ball mill. The waste made of low grade and non-magnetic particles will be
pumped to the flotation waste tank and then pumped to the Drained Stacking Tailings.
Coarse Magnetic Separation includes the installation of all water and slurry pumps required to support
the coarse magnetic separator and provide a functioning system.
The underflow from tertiary desliming will feed the distributor of the same process. These fines fed to
magnetic separation will generate the magnetic concentrate, tailings and an intermediate magnetic.
The magnetic concentrate will be pumped to the thickener. The tailings and medium magnetic will be
pumped to the slime thickener.
15.3.11 Area 223: Flotation
The system will have two parallel lines with three columns in the Rougher Flotation stage and one in
the Cleaner stage for each line. The underflow from secondary desliming will feed the buffer tank in
the flotation. From that, the slurry will be pumped to another two conditioner tanks that will be the start
point of the flotation lines. To these tanks will be added starch (prepared in the Reagent Preparation
area) and water to adjust the solid content to 50%. It may also receive caustic soda at 20% weight to
adjust the pH in the flotation. The slurry will split to the three parallel flotation columns (rougher). The
overflow of the rougher stage will be pumped, together with the tailing of coarse magnetic separation,
to the Drained Stacking Tailings. The underflow will feed the cleaner flotation columns. The overflow
in the cleaner flotation columns will be addressed to the conditioner tanks, being the circulating load in
the flotation. The underflow of the cleaner flotation, will be the final concentrate and will be pumped to
concentrate thickener.
15.3.12 Area 224: Concentrate Thickening
The underflow of cleaner flotation, concentrate of fine magnetic separation and flocculants will feed
the concentrate thickener. The overflow will be pumped to the slime thickener or to recovered water
tank. The underflow will be pumped to the concentrate tanks to the filtering.
The Concentrate Thickening includes the installation of all pumps and equipment required to produce
a functioning system.
15.3.13 Area 225: Slimes Thickening
Slimes Thickening will receive the overflow of the concentrate thickener and slurry from tank at fines
magnetic separation. The underflow will be fed to the Drained Stacking Tailings, and the overflow will
552 / 783
be addressed to the recovered water tank.
The Slimes Thickening includes the installation of all pumps and equipment required to produce a
functioning system.
15.3.14 Area 226: Reagents Preparation and Distribution
The starch will be received in one ton bags through cargo trucks. The material is solid and granulated,
where will be added to in a tank with water in until reach a solution of 10% in mass of starch diluted in
water (w/w). After that caustic soda 50% w/w will be mixed until achieve a ratio of until 7:1
starch:soda. The soda will be received diluted in 50% w/w in cargo trucks, where will be stored in a
tank with agitators to avoid sedimentation and crystallizations. The amine can be received in two
ways: tank truck or in 200 liters barrels. The flocculants will be delivered in bags (25 or 40 kg) and
stored in a warehouse. The area includes the installation of all pumps and equipment required to
produce a functioning system.
15.3.15 Area 227: Concentrate Pumping System
The underflow of the concentrate thickener will be pumped to the distributor that will feed the storage
tanks. The centrifugal pumps (BP-2272- 01 to 05) will pump the material until the filtering, covering a
total length of 6km pipeline. The area includes the installation of all pumps, agitators and other
equipment required to produce a functioning system.
15.3.16 Area 230: Railway Terminal
The iron ore concentrate produced at the beneficiation plant will be pumped 7km north along a slurry
pipeline, to the Caetité railway terminal.
15.3.17 Area 231: Filtering
The material received in the tanks is pumped to a distributor that will split to the belt filters by gravity.
The cake produced by the filters will feed a belt conveyor, which will transport the material to the
product yard for final stacking. The recovered water will be fed to the filtering pond and will be treated
through a polishing filter. The filtered water will be used for washing, sealing, backwash, flushing,
service water and dust suppression. The area includes the installation of all pumps, agitator and
15.3.18 Area 232: Stockyard and Loading
The Hematite Natural Fines will be stored in the material yard, with a planned static capacity of
137,000 tons. The yard has the flexibility of stacking on an emergency pile with capacity of 12,000
tons or direct loading into railcar. The area includes the installation of the stacker, reclaimer and all
553 / 783
The cake from the filter plant will feed the stacking system. The stacker will receive the material and
pile it using Chevron or Cone Shell methods on a pile with the static capacity of 110,000 tons of pellet
feed (DRPF but possibly BFPF if required by market demand). The reclaiming process will utilize a
bridge reclaimer that will feed the train loading bin. The area includes the installation of the stacker,
reclaimer and all equipment required to produce a functioning system.
15.3.19 Area 233: Railway Loop
The railcars moving below the loading bin initiate the loading process. The position of each railcar is
detected by sensors that control the chute and the clamshell. As the railcar is positioned the clamshell
opens and loads the railcar. As the unit becomes full, the clamshell closes and awaits the next cycle.
The Railcar Loading System includes the installation of Belt Conveyor.
15.3.20 Area 252: Tailings-Drained Pile
The dam will receive separately the underflow of the slimes thickener, tailings from coarse magnetic
separation and tailings from flotation. The tailings from the slimes thickener will be disposed at the
head of the area. The tailings from the flotation and coarse magnetic separation will be close to the
dam’s crest. Downstream will have a secondary dike, being the water dam. As required that water
will be pumped from the water dam to the tailings-drained pile. The water in the tailings-drained pile
will be pumped from the raft to the recovered water tank. The area includes the installation of the
pumps, agitator, pipe and tank required to produce a functioning system.
Due to the risks associated with the tailings system, the EPCM and Owner’s Teams will include
dedicated teams to manage the Construction Contractor and QA/QC in this area.
15.3.21 Area 5: Industrial Water Supply
From an inlet constructed at the Sao Francisco river near the city of Malhada, water will be pumped
by a series of pumping stations 145 km to the Processing Plant near Caetité.
15.3.22 Area 510: Water Intake, EB1 Station And Pumping System
The water intake will be through a tapping point in a water channel installed the east side of Sao
Francisco river.
The water Intake includes the installation of Water Pump.
15.3.23 Area 520: EB2 Station And Pumping System
The water from the inlet will be transported to EB2 which will carry it to the suction tank. The EB2
includes the installation of Water Pump and all systems required for it to function as required.
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EB3 will receive water from the suction tank and will pump it to the suction tank in EB4. The EB3
EB4 will receive water from suction tank and will pump it to the suction tank in EB5. The EB4 includes
the installation of Water Pump and all systems required for it to function as required.
EB5 will receive water to supply everything that requires fresh water or make-up water. The EB5
15.3.27 Area 6: Electrical Power Supply
Given the location of the PdF Project in the southwest region of the Bahia State, all power for the
project will be provided by the local power grid and purchased under long term contracts. For the
mine and processing plant site the EPCM will manage the construction of a 3 km power line to
connect the main substation to the National Basic Power Grid via an expansion of an already grid
connected substation (SE A16.1) as shown by Figure 15.1 and described below:
The loads will be connected to power concessionaires according to their power demand class, as
required by the National Electricity Energy Agency (ANEEL):
 The SSAI pumping stations will have power demands less than 3MVA, and are therefore
categorised as regulated (captive) customers with a tariff and supply voltage (class A3 at
34.5kV) determined by the local power distribution concessionaire, COELBA. COELBA will
get the necessary approvals and easements and construct (at the project’s cost) the
necessary transmission lines to connect their substation to the transformers at each
pumping station. During operations, COELBA will charge the project for the energy
consumed plus a distribution charge.
 The Caetité site will have a power load of over 35 MVA for over 10 years at a load factor of
over 80%, and is therefore categorised as a free market customer and can request a 230kV,
class A1 power supply. The Ministry of Mines and Energy has granted approval (Appendix
8.14) to connect to the Basic Network of the National Integrated System (SIN) at the SE
Igaporã II substation, which is located 37km from the mine site substation. However, since
this approval was granted, there have been extensive windfarm developments with
associated sub-stations. One such substation, SE A16.1 owned by Renova, is located on a
contiguous property only 3 km from the mine site substation and accordingly a connection to
this substation is now the project’s design basis. BAMIN has commenced the formal
process to get government approval for this connection. The project will construct the
transmission line to connect to and expand A16.1 substation. The expanded A16.1 will be
given to the Basic Network. During operations, BAMIN will pay transmission charges to the
Basic Network and energy charges to a free market supplier.
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ECT EXECU
UTION PLAN
Figure 1
15.1 – Powe
er supply connections tto the Basic Grid and Uttilities Co.
For deta
ails of the port
p terminal power sup o the “Aritaguá Privativee Port Terminal DFS
pply, refer to
Report” by Ausenco
15.3.28 Scope Ex
xclusions / Battery Lim
mits
The Fed deral Govern sponsible forr the FIOL (Ferrovia de Integração Leste-Oeste
nment is res e) railway
construcction betwee
en the mine area (Caetitté) and the Port
P Termina
al (Ilhéus). R
Refer to Cha
apter 9 –
Railway (FIOL) for details.
15.4 PORT
T TERMINAL (IL
LHÉUS))
The porrt terminal iss described in Chapterr 11 and be etter defined in the attaached Port Definitive
D
Feasibiliity Study. For
F purposes s of project execution (tthis Chapterr) it is considdered as a separate
geograpphic area whiich falls unde
er the single EPCM and Owner’s Tea am responsibbility, using the
t same
conceptual and con ntracting phillosophy. Th he ports primary sectionns that will be managed by the
EPCM in nclude:
 Rail loop, rolling

r stock maintenance
e facilities an
nd tandem ca
ar dumping ssystem
 Storage an
nd product re
eclaim for up to 1.3M tonn
nes of iron ore.
 Loading facilities includ
ding a 16,000
0 tph ship loa
ader
 Dredging as
a required to
t allow acce
ess and load
ding of up to
o 220,000 toon capacity cape
c size
BAMIN – P
PdF Project BFS
S, August 2016
556 / 783
vessels
 A breakwater sized to allow 95% plus availability for ship access to the dock
For the purpose of this chapter, integrated project management means:
 Providing basic structure to successfully coordinate and manage the interfaces between all
project disciplines and/or areas, including Procurement, Engineering, Planning and Control,
Health and Safety, Environment, Operational Readiness, Construction, Security,
Communications, Community Interface and others;
 Ensuring project constraints compliance;
 Assisting with early definitions or decisions needed for the work;
 Promoting clear, accurate, timely and consistent communication among all project areas;
 Promptly identifying issues with potential cost or schedule impacts.
15.4.1 Implementation Strategy
The execution of the PdF project is based on a dedicated BAMIN Project Owner’s Team managing
the project based on BAMIN’s policies and engaging an EPCM contractor for delivery of the works.
BAMIN’s project team will be ultimately responsible for the overall project, managing the execution
contract and all other activities related to project implementation and permitting.
The management model to be adopted by BAMIN will be based on:
 Establishing a project management team comprised of Project and Operations team

members that are dedicated full-time to the project and are responsible for the execution of
all of the management actions required for its implementation;
 Establishing clear definitions of BAMIN and EPCM contractor responsibilities on decision-
making and activities execution.
15.4.2 Organizational Structure
The Project will be Brazilian centric. The Owner’s Project senior management team will have its
Project Director based in Brazil as well as all direct reports. The EPCM will have its Project Director
and certain staff in that same office. The EPCM’s overall scope will include the management of
overall engineering, procurement and construction of the Mine and Port. Where there is to be
procurement done directly by Owner, that will be understood and addressed by the EPCM as will the
procurement of spare parts and warehouse stock during procurement of equipment and materials. It
is expected that the Construction Contracting strategy will fall into two geographic areas – Mine/Plant
Area (hereafter “Mine”) and Port Area. Additional responsibilities outside the Project’s basic mining
area include the Water pipeline and bore field, the power line with substation and the tailings system
which will be managed by the EPCM.
All Government interface will be provided by the Owner. The EPCM has not yet been selected, so
while Belo Horizonte is expected to be the location for the engineering and early phases of the work
due to it’s prominence as a mining hub, that must be confirmed during the RFQ phase. An Owner’s
Project Director will report to the BAMIN CEO and will be responsible for overall coordination of all
Project activities. Also reporting to the CEO will be a BAMIN Chief Operating Officer who will be
responsible as the Owner for Commissioning, Operational Readiness and future Operations as the
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Project Team’s Technical Director phases out at construction’s end. The description of the main
Owner’s Team roles is described below:
 The Owner’s Project Director, will be based in Brazil. There will be seven direct reports, as
detailed below. The Project Director is expected to be located wherever the Project’s “center
of gravity” exists, but also to interface routinely with BAMIN’s Salvador Office.
 Deputy Director - Commercial will be based in the office with the Owner and EPCM Project
Directors. Prime responsibilities will include the responsibility for management development
of the overall commercial strategies and the associated implementation, management and
administration of the EPCM contract. Commercial will also serve as the nominated project
sponsor for Mine/Plant and Port Master Contracts for Construction and all BAMIN Services
contracts.
 Deputy Directors (2) - One at Mine/Plant Area and one at the Port Area will be the primary
interface to the EPCM Mine/Plant and Port Areas Construction Managers. They will be
responsible for the performance of the EPCM’s Deputy Project Managers at each site and
the ultimate performance of their Area’s Construction Contractor(s) via managing the EPCM
in each geographic area.
 Contracts and Finance Manager - Responsible for legal and contracts efforts on the Project.
It is expected that the EPCM will manage all facets of procurement and contracts
management up to the point that a recommendation to pay is made, at which time BAMIN
will actually pay the bill. This position will have a very strong dotted line to the BAMIN CFO
and is responsible for ensure audits are supported and that the Project is compliant with all
processes agreed.
 Deputy Director - HSEC will be based in Salvador, but with travel as required to the Sites.
The position will serve as the senior Owner’s Representative to provide HSE oversight of
the EPCM and as interface between the Project and the local communities. The Clinics on
each site will report to the Owner’s HSEC Manager on that Site. That position will serve as
the Owners Team’s senior interface with the Government, the responsible author of the
future Owner’s Operations HSE program and the eventual Operations Manager of HSE.
 Technical Director will be based initially in the EPCM office and then transition to Salvador
as engineering is completed. The role provides Operations input into design including
operability review, identification of spares for purchase and providing oversight for Operating
Systems BAMIN will develop during the Project period.
 EPMC Project Director: Based in the same office as the Owner’s Project Director, this
individual, reporting to the Owner’s Project Director, will manage all activities within the
EPCM contract The EPCM Project Director will work cooperatively with the Owner to ensure
all personnel on site are safe and working in a cost effective manner while delivering the
Project Execution Plans. Included in the scope of work of the EPCM Project Director will be
the management of the Mine/Plant and Port Areas Construction Contractors and their
associated deliverables as this is the overall critical path to the Project schedule. The
remaining key aspects of the EPCM scope of work includes, but is not limited to, power,
water, and the Site Services within each area. A key criteria in the performance of the
EPCM’s Project Director will be the effective implementation of the EPCM”s global project
execution tools and work processes in delivering the Project to International Project
Standards. The Owner will evaluate the robustness and transparency of the EPCM to
implement their work processes and ensure that the reporting mechanisms will meet the
criteria of the anticipated independent auditors (which the Owner will appoint). The EPCM
Project Director is also responsible for all EPCM Systems as well as Project Execution
within the Areas
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Conceptually, there will be six direct reports to the EPCM Project Director, which are listed below.
 The HSE Deputy Director is responsible for EPCM management of health, safety and
environment for within the two geographic areas. The HSE Deputy Director will have a HSE
Manager at each geographic Area, reporting to him. It is expected that the EPCM will
provide and administer their own, fit for purpose, HSE System for the construction period.
 The Interface Project Engineer will assemble data and narratives for monthly progress
reports; maintain interface charts among entities at all locations (Contractor and EPCM) and
ensure that information and data flow is by plan and timely. He also performs miscellaneous
duties such as updates to key documents (e.g. Project Procedures Manual, project risk
register and tracking results from mitigation champions, Project Execution Plan), produces
meeting minutes and Job Bulletins. Scope includes consolidation of reports and data as
required by BAMIN for inclusion in the Owner’s Monthly Report and finances.
 The EPCM Administrative Manager will be responsible for overall EPCM interface with all
EPCM and Contractor Staff for HR, legal, Government Relations (where requested by
Owner), business services and contracts.
 The EPCM Commissioning Manager is responsible for developing and implementing a
commissioning plan in tandem with the Owner for all Areas. This includes interface with the
Owner’s Plant GM and the Owner’s Port GM in co-ordinating the handing over of facilities to
Operations at project completion.
 There will be two EPCM Deputy Project Directors (2), one located at the Mine/Plant Area
and one at the Port. Each will have the following direct reports:
o There will be PMC QA/QC Manager responsible for all EPCM quality assurance and
control at each area (Port and Mine/Plant).
o There will be a Civil Works Manager at each Area. Specialized projects within the
areas like the Port Breakwater and the Mine tailings-drained pile will have dedicated
Teams.
o The EPCM Business Services Manager at each Area will be responsible for HR,
Finance and Site IT interface with the Owner’s Group and administration. In addition
the Business Service Manager will be accountable for all foreign work permit
management where required.
o The EPCM Contracts Manager at each location is responsible for all EPCM contract
execution and management of the Construction and Services Contractors’
contracts.
o The Operations & Maintenance Manager at each Areas will be responsible for;
Rigging, Operation of the construction power operation and distribution, gensets,
batch plants, fuel farms, construction water and boilers and maintenance of
facilities, camps, power distribution system, heavy equipment, commercial vehicles
and light vehicles.
o The EPCM Materials Manager at each Area is responsible for material
management, warehouse, purchasing, logistics and SQS for onshore activities. The
position will also be responsible for managing spare parts ordered by BAMIN
Operations, storing them and then for eventual handover of those parts and all else
to BAMIN Operations.
o The EPCM Project Controls Manager is responsible for cost, schedule, change
management and estimating within his Area.
o The EPCM Site Services Manager will manage the services of field engineering, site
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permits, construction management of camps & temporary facilities as required by

the PEP.
15.4.3 Interfaces
Management strategy defined by BAMIN is to use an EPCM contractor as an extension of the Project
Owner’s Team, sharing responsibilities and tasks within the scope implemented. In that model an
Owner’s staff shares some of the management executive responsibilities with the EPCM contractor.
The EPCM contractor will be responsible for contributing with its management systems and previous
experiences in the management of similar Programs and Projects, adapting its methodology to the
Project specific demands and answering for the performance of the executive actions related to the
scope of its services.
The EPCM scope includes the below activities:
 Overall Project Management

 Detailed Engineering
 Procurement
 Construction Management
 Commissioning
 Assisted Operation
Construction will be executed by large Brazilian companies, with full responsibility within their
geographic area, working under the supervision of the EPCM team. This model allows and assumes
that these contractor(s) will take schedule and quality commercial risk, at least to the level of putting
their fee and profit at risk.
15.4.4 Key Responsibilities
 BAMIN - Establish the project objectives, provide all necessary project permits, agree the
acquisition model for project equipment/material/services acquisition, help with selection of
suppliers, contract payment, human resources, design approval and operability, external
communication, approve scope changes, provide security and transportation for owner team
staff.
 EPCM – Manage the engineering including multidisciplinary drawings (earthworks,
foundation, steel structure, electrical, etc.). Review basic technical specifications, integration
of equipment supplier design, preparation of technical specifications and technical
evaluations. Support acquisition of project material, selection of suppliers and bid
preparation utilizing their inhouse management and procurement systems. Project Planning
and Control, implementation of project construction management, constructability review of
design, manage the interfaces between the different suppliers, report project
physical/financial progress, checking and approval of construction services measurement
bulletins
 Contractors – All activities required to construct everything within a geographic area as
defined by the Owner. Mobilization of construction equipment and personnel, technological
control of construction works, worker’s transportation and accommodation, all consumables,
diesel generators sets required to perform the work until permanent power is available, fuel
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and all other activities required to complete the work.

 Equipment Suppliers - Equipment Supply, equipment loads, general arrangement, erection
and operational manuals, equipment outline drawings
15.4.5 Insurances
Insurance for the project design and construction period will be specified, procured, provided and
managed by the Owner. The EPCM will be charged with supporting any claims from a technical
perspective. The Owner shall prepare an Insurance Plan before effectively initiating the project
implementation. The objective of insurance plan is to identify risk of the project and to prepare
optimum insurance purchase plan to manage the risk under certain acceptable level. The insurance
plan covers from project stage to operational stage.
The size of insurance coverage is closely related to the level of risk of a project. In order to ensure
that all risks are identified and managed under certain acceptable level, risk assessment and
engineering will be required. The objective of risk assessment and risk engineering is to prevent
and/or mitigate loss. Below are some Critical Areas and Risk Definition that may impact in the
insurance plan:
 Natural Catastrophes Exposure

 Fire Risk
 Bottleneck of main supplies
 Bottleneck of main production equipment
 Occupational exposures
 Combustible material usage
 Wet Work Risk
 Site Access
Main insurances concerning the PdF project constructions are:
 Engineering Risk Insurance (Construction All Risks / Erection All Risks or CAR / EAR
insurance): it covers assets and works implemented during all the project execution by the
contractors and sub-contractors. It may also be divided into:
 Section 01 (Engineering insurance itself)
 Section 02 (General Liability and Cross Liability Insurance).
 Liability Insurance (General Liability or Cross Liability Insurances): normally is taken in
conjunction with the Insurance CAR / EAR that was described above. Cover damage to third
parties arising from events covered under the policy of Engineering Risks (CAR / EAR) and
damage caused by contractors.
 Secure Transportation (Marine Cargo Policy): covers the assets in transit and related to the
works.
 Other Insurances: There are compulsory insurance, or by local law, or required in standard
contracts, depending on the number of people, cars, level of coverage, etc.
Insurance plan must address how to evaluate risks and allocate proper resources to cover project
requirements.
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15.4.6 Loss Prev

vention
Loss prrevention pro

ocess guidees project te
eams in praacticing prevention of mmaterial and financial
losses, conducting self-evaluations and evvaluations ex
xternal to th
he project inn order to verify
v the
executio
on of works and
a services..
PdF project, BAMIN had defined losss prevention as:

For the P
 g the vulnera
Diagnosing abilities of th
he project reg
garding the occurrence
o oof losses due
e to poor
manageme ent and/or mismanageme ent;
 Implementing, in advan
nce, routiness to eliminate
e or mitigate losses;
 Monitoring the effective
eness of the routines imp
plemented;
 Executing action plans already esta
ablished;
 Adopting corrective
c me ecessary, and regardless
easures, if ne s of preventivve measures
s;
 Conducting g self-evalua
ations and in
ndependent evaluations (audits with BAMIN’s Enterprise
E
Security arrea, companies contracteed for the pro
oject, etc.) on
n a regular bbasis;
 Implementing a culture
e of “zero tole
erance”.
 Loss preve ention empha
asizes contro
ol of activitie
es considered
d as highly liikely to be vu
ulnerable
to losses. For
F the PdF project we eenvisage thos se to be:
 Supplies and contracts
s;
 Manageme
ent and exec
cutions of con
ntracts;
 Warehouse
e and materials managem
ment.
 ocedures for those activitties will include:
Control pro
 Focus on loss
l occurren e points due to improperr management and/or
nce and mosst vulnerable
fraudulent managemen nt of third-parrties;
 Act focusin owing dimenssions: process, Staff and
ng to the follo d Systems;
 n through sellf-evaluation
Monitor losss prevention
Figure 1
15.2 – Loss Prevention Strategy
BAMIN – P
PdF Project BFS
S, August 2016
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The PDC
CA cycle for the loss prev
vention proccess can be defined
d as se
een in Figuree 15.3.
Figure 1
15.3 – Action and Evalu
uation Routiine Cycle
It is the
e responsibility of the project
p team
ms to properrly adopt procedures, pprocesses, to ools and
practicess developed by the normmative area in order to minimize
m or avoid
a all typees of losses
s such as
operatioonal failuress, damages s caused b by improper handling and inapppropriate pa ackaging,
administtrative loss and
a errors, fra
aud, and com
mmercial or financial
f lossses.
The Extternal Evaluaations are too be perform b BAMIN’s Audit area or a compe
med either by etent and
capable external co ontractor, tw
wice yearly. Within the e Project, th he EPCM w will be charg
ged with
managinng the claimss process forr the Project Team, reporrting to the Commercial
C D
Deputy Direc
ctor.
15.5 PROC
CUREMENT ST
TRATEG
GY
It is the procurement plan’s obje
ective to defin
ne the main strategy of the
t procurem ment team too meet all
requestss from the project
p (mateerials, equip
pment and services)
s in a structuredd way, cluste
ering the
scope off work in pacckages that will
w reduce rissk and add value
v to the implementatiion.
The projject strategy map has cle

early identifie
ed areas for interface,
i as following:
 orporate Area
BAMIN Co as
 EPCM Con
ntractor
 Constructio
on Contracto
ors
 Partners
 Strategic Technical
T Suppliers
 Other Stakkeholders
BAMIN – P
PdF Project BFS
S, August 2016
563 / 783
 The following Procurement objectives, principles and sourcing strategies will guide the
purchasing activity for materials and equipment.
 Best Value
 Where appropriate, life-cycle costs rather than initial purchase price will determine
acquisition, aligned with the scope planned and budget approved.
 Local Content
 Participation by local suppliers will be maximized subject to meeting expectations on quality,
schedule and overall cost-effectiveness;
 All bidders will be afforded equal opportunity in a competitive situation.
 Bidding Process Procedures:
 Competitive bidding process shall be pursued to the maximum extent utilizing wherever
possible qualified suppliers;
 Whenever possible issue the RFQ (Request for Quotation) and RFP (Request for Proposal)
to a meaningful number of bidders to ensure the at least the receiving of three bids;
 Direct Contract (Sole and Single Source Situations):
 Wherever possible materials and equipment will be procured using a competitive basis to
eliminate “single source” situations;
 Sole Source will require justification and approval from senior management, according the
Delegation Authority Matrix
 Suppliers Selection:
 Suppliers invited to bid on the project shall be derived from the vendor list for the project and
the new supplier inclusion will be under the responsibility of the Delegated Procurement
Area.
 Contract Conditions:
 The Contract Draft will be included in the RFQ to bidders, for their analysis and comments,
assuring the contract terms discussion previously to the final stages of the procurement
process.
 Generic Strategy Actions
 There will be certain equipment categories that will be standardized across all BAMIN sites.
These equipment types and sizes will be identified in consultation with the EPCM with a
view towards ensuring the best price (volume driven) and reducing spending on BAMIN
warehouse stock. Also a key consideration is ensuring that equipment and processes that
require specialized training but exist on both Project Sites (high voltage switchgear as one
example) are standard for operational reliability and personnel safety reasons.
 Define the criteria of technical analysis of the proposals;
 The RFQ shall indicate the period of tests in commissioning period for each equipment as
well as the performance parameters required (if applicable);
 Contract a specialized supplier for international Logistics (including the customs clearance
services)
 Establish the limits of batteries between BAMIN and the construction contractors regarding
to the material supply.
 Spare parts (for commissioning) must be valued and purchased in a separate item than the
main equipment.
 During the procurement process several areas exchange information and decisions resulting
564 / 783
in the bidder selection. Within this context, the main responsibilities of each project
area/department are:
 Engineering - Team responsible to issue all documents necessary to purchase/hire specific
suppliers/contractors according the details stated in the Procurement Plan and the
Execution Schedule. Responsible also for the technical evaluations (supply) of the
proposals.
 Procurement - Team responsible for procuring/hiring all goods and services needed during
the Project. Also responsible for final negotiation with the bidders.
 Contract Manager - Member of the Owner’s Team that is responsible for coordinating the
execution of contracts.
 Planning - Responsible for defining the milestones that will drive the execution of the entire
scope, the reporting structure required and also the payments events used.
 Control - Guarantee that all contractual documents are updated and ensure follow-up of the
payments are according to BAMIN’s instructions.
 Project Management - Team responsible for supporting the technical evaluation (services)
of the proposals, equalization of the bidder’s proposal and as well review the documents
that will be part of the contracting process. Review bulletins for accuracy for
invoicing/payment as necessary.
15.5.1 Procurement Strategy
It is expected that there will be three general categories of procurement of equipment and materials:
High value and/or long lead equipment will be purchased by the EPCM and free issued to the
Construction Contractor.
Bulk materials and equipment that will be purchased by the EPCM and free issued to the Construction
Contractor and;
Equipment, materials and consumables that will be included in the Construction Contractors’ scope of
work and supplied by them.
When the EPCM is formally engaged, the Procurement plan to decide and detail each of these
categories will be an early deliverable. The EPCM will be involved in all areas and expected to
coordinate them as an integrated whole.
15.5.2 Procurement Process
All steps in the procurement process (Figure 15.4) will be handled with absolute transparency, while
exploring opportunities for cost reduction through demand forecasting and purchase scaling, with
emphasis on the consolidation of acquisitions.
The acquisition will always consider both the technical and the economical-financial capacities of a
supplier, their history of client service demonstrating their reliability, as well as appropriate compliance
with legal obligations.
The Procurement Process is defined in line with the procurement macro-process:
 Request Formalization - The demand formalization will be executed and authorized with all
565 / 783
ECT EXECU
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necessary information to guarantee

e that acquisitions are ma
ade effectiveely.
 Vendor Seelection – In order to en nsure compeetitiveness, vendors will be invited so as to
guarantee at least three
e valid propo
osals, whene
ever possible
e.
 Technical and Comme ercial Analys is - Technica al Evaluation n from Requuesting Area must be
conclusive, indicating ifi the propossals have be een technically approvedd or not, in a manner
ompliance with
that is in co w the techn nical conditions specified in the requissition. In case of non-
approval, the associa ated techniccal reasons must be presented,p to
together with formal
authorizatioon in line with the limits of authority. For high value procureement, the bidder will
be instructed to providee their quota ation divided into technica al and comm mercial sectio
ons, each
in sealed envelopes
e which will be handled by separate
s grooups during tthe analysis process.
The Techn nical Review team will nott see the cos sts until afterr their review
w is completed.
 Negotiationn - The negotiation proccess must se
eek opportun nities to reduuce costs, gain
g from
scale or syynergy, with an
a emphasiss on the cons
solidation of acquisitions.
a .
 Acquisition
n Approval - The details of necessarry information n in the acquuisition of go
oods and
services, as
a well as in the
t registrati on and filing of informatio
on containingg the same.
 Contract Monitoring
M and
a Amend ment - Contractual prices may bbe updated through
negotiation
n of market in
ndexes (paraametric form
mula/price trig
ggers) compaatible with th
he source
and the characteristics of goods or services being purchase ed.
Figure 1
15.4 – Procu
urement Pro
ocess
15.5.3 Expediting
g
Expediting controls several phases involving g supply of equipment, materials orr services in order to
achieve deadlines agreed
a upon in all contra hase orders. Effective coontrol of all activities
acts or purch
related tto the supplyy will be exec
cuted by the EPCM’s exp pediting team
m, as follows:
 Critical ana
alysis of the Agreement
A o
or PO technic
cal documen
ntation;
 Analysis off the planning stage of th
he supply or performance
e of the serviice, among which
w are
the preparration of doccuments, ma terials procuurement, manufacturing, packaging, logistics,
and equipmment delivery y;
 Monitoring of each phhase of the ssupply or se ution in ordeer to ensure whether
ervice execu
scheduled dates are be
eing complie
ed with and th
he existence of any relateed potential delays;
d
 Alert about delays in delivery or sservice and request that the supplieer or contractor take
actions to recover
r dead ollow up of these actions;
dlines and fo
 Monitor the
e implementa ned inspectio
ation of plann ons;
 Monitoring of the issue of required d
documents for
f handling and
a deliverinng the supply
y.
 In particula
ar BAMIN wiill expect the
e EPCM to monitor,
m expedite and reeport on the status of
materials/eequipment/se
ervices requ uired and the Construction Contraactor’s skille ed labor
required to
o meet the re
equirements oof the detaile
ed schedule.
 Quality asssurance leve opted will be defined by BAMIN
els to be ado B and the EPCM according
a
to the risk of
o delays rep
presenting co
onstruction. Examples would
w be:
BAMIN – P
PdF Project BFS
S, August 2016
566 / 783
ECT EXECU
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 Level 1: appplicable to well-known and controlleed manufacttured standaard equipmen

nt and/or
materials. Simple
S contrrol procedure
es should suffice.
 Level 2: applicable to equipment and materia als of some manufacturinng complexity or the
quipment of relative impo
auxiliary eq ortance to the
e task.
 Level 3: applicable to equipme ent of a hig gher manuffacturing com mplexity (e.g.: steel
structures)). At this leve
el, expediting
g control proc
cedures shou
uld also incluude subcontrractors to
the EPCM main contractor.
 Level 4: appplicable to all
a long-lead time, oversizzed or complex equipme nt and systems (e.g.:
ball mills and conveyorrs). At his levvel, BAMIN will
w implemen nt end-to-endd expediting controls,
including allocation
a of full-time
f forw
warding agents (or inspec
ctors).
15.6 PROJJECT CO
ONTRO
OLS
Project ccontrol syste
ems will provvide the PdF F project team with an in ntegrated woorking framewwork and
tools tha
at provide all managers in the projecct, at differennt levels, role
es and scoppes, with a consistent
and reliable way to o manage the t project. Project histtory will therefore be fuully docume ented; all
commun nication and reports issuued on a tim ely basis in adequate de etail and form
rmat accordin
ng to the
EPCM’ss best practicces for Projeect Managem ment and Co ontrol. Controol systems too be implemented by
BAMIN b before consttruction start include:
 Methodology and tools for scheduli ng and contrrol;

 Controls off procuremen
nt processess, materials handling
h at th
he warehousse, documentts;
 Logs and registers of Contractors’’ performancce and incide
ents, weatheer conditions
s, health,
safety and environmental actions a
and indicators
s;
 Control of external
e influ
uences in the
e Project;
 Minutes of meetings;
 Coordinatio
on procedure
es;
 Reports.
15.6.1 Integrated
d Schedule
e
The ma acro-schedule e for the inttegrated imp

plementation
n of both the
e Mine and the Port sites (plus
utilities a
and railway logistics) is summarised b
by Figure 15
5.5 below:
BAMIN – P
PdF Project BFS
S, August 2016
567 / 783
ECT EXECU
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Figure 1
15.5 – PdF Project
P Overrall Executio
on Plan Sch
hedule
For furth
her details, re
efer to Integrrated Schedu
ule Appendix
x 15.5 – NCB
BFS-PS-00000-PM-001
Constraints/Assumptions
 EPCM Ten
nder Process
s being comp
pleted before
e Project App
proval
 All Basic Engineering
E being
b comple
eted before Project
P Appro
oval
 SSEE – Electric Powerr Supply Sysstem contractt signature ju
ust after Projeect Approval
 SSAI – Ind
dustrial Water Supply con
ntract signatu
ure just after Project Apprroval
 Rolling Sto
ocks Equipme purchase order submitted
ent Supply p d just after Prroject Approv
val
15.6.1
1.1 Critical Path
The projject’s critical path is relatted to long le

ead times in the plant/mine such as the Ball Mill and Belt
Conveyoors. For portt the critical activities
a are
e Dredging annd Rock Placcing in the brreakwater.
BAMIN – P
PdF Project BFS
S, August 2016
568 / 783
Plant/Mine
The Ball Mill equipment has an estimated sixteen month manufacturing duration. This risk can be
mitigated by accelerating the completion of the design to allow an earlier bid than planned. In the
current market, ball mill delivery with remediation by the EPCM is not expected to be an issue.
Belt Conveyors are equipment with known fabrication techniques and standard durations, however
due the volume of equipment (16,000 Meters of Conveyors and initial estimates of more than 11,000
tons of supply) it is an item of particular focus in the PdF plan. Bidders have indicated to BAMIN
approximately 22 months from purchase order to completion if one supplier meets the total
requirement. This risk can be mitigated during the bidding process by providing the option of either
meeting our schedule requirement (or example by the supplier adding a shift to manufacture) or by
the Project Team dividing the order between two or more suppliers.
Port
The Port Terminal in Aritaguá accounts for the critical path activities for the PdF execution plan.
Appendix 15.7 – NCBFS-PS-0000-PM-001 summarises a high-level (2nd level) scope of main
activities for the on-shore/off-shore works. For further details on the work schedule refer to “Aritaguá
Privative Port Terminal DFS Report” by Ausenco.
15.6.2 Cost Controls
Cost controls will provide a structure to follow up and control capital expenditures, including:
 A baseline for the control of project budget;

 Financial and economical adherence assessments;
 Identification of trends and deviations to the baseline;
 Define standards for budget management process;
 A data base available for future references;
 The final economic evaluation of the project;
 Monitoring actual cost and incur the budgetary forecasts;
 Elaborating and updating monthly disbursement forecasts;
 Requesting and proposing budget allocation;
 Comparing actual cost x baseline;
 Estimate budget for scope changes
The control area will provide on regular basis:
 Records related to the contract’s data: initial value, variations, balance, claims, etc.;
 Record of commitments and forecasts against all signed contracts;
 Prepare and maintain the cost reports
 Visibility about the payments events and assurance of supplier/contracts measurement
process.
For more details, Appendix 15.6 – PL-0000-G-107 must be consulted.
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15.6.2.1 Expenditures and Commitments
Standard requirements to record and prove execution of services by contractors will be properly
defined by BAMIN and the EPCM before construction starts. The EPCM will be responsible for the
approval of all measurements and supporting documents from the Construction Contractors, including
legal verification of documents and invoices issued by contractors/suppliers. These activities will be
managed by the contract management area of the EPCM. Some key roles and responsibilities
addressed by these processes are:
 Construction Contractor’s Contract Manager

o Manage service execution in accordance with weekly or monthly schedule in
compliance with scope defined in contract and technical documents attached to
same;
o Issue and sign off a service measurement report from contractor side;
o Submit service measurement for approval on monthly basis.;
o Submit approved service measurement report and invoice to PdF Project team.
 EPCM Contract Manager
o Manage follow up of services in accordance with weekly or monthly schedule, in
compliance with scope defined in contract;
o Check and validate measurement report with calculation records of quantities and
findings of weekly or monthly executed services;
o Inspection service execution on weekly or monthly schedule, in compliance with
scope defined in contract.
 BAMIN
o Received invoice from contractor;
o Input approved report and/or invoices in the ERP system;
o Inform the stakeholders about the payment process;
o Approve invoice in SAP system for payment.
15.6.3 Reporting
A managerial report will be regularly issued (e.g.: monthly) by the EPCM and provided to the Owner’s
Project Director as a tool to align information and status of the scope, planning, capex, trends,
engineering, H&S, risks, environment, procurement, implementation, change management, training,
project team mobilization curve, among others. This report will show an update for all the essential
project information, including but not limited to: updated schedule, capex trends, monthly physical
progress, procurement reports, HSE indicators and all KPI’s required by the project leaderships to
evaluate the project, and if necessary, take actions that will guarantee the achievement of the goals.
This report will be consolidated with other BAMIN activities by BAMIN’s Salvador office for submittal to
BAMIN’s executive board. The following EPCM routine is envisaged by BAMIN to support preparation
of the reporting data:
Daily Reports - During the execution of the contract the EPCM shall issue a Daily Report. This
document will contain information of the previous worked day, such as quantities executed,
manpower (labour) and number of equipment mobilized per working fronts and controlling areas. This
report shall be created based on the daily measurements with the construction team in order to
570 / 783
ECT EXECU
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assure tthe consistency of the data. In this regard a speecial team of

o planning aand analysts shall be
planned and mobilized by the contractor duri ng the time of
o the contract.
Weekly Progress Re eports - The EPCM conttractor must also submit a weekly prrogress repo ort stating
the actu
ual progress of the previo ous week. T This report must
m include progress of ccurrent activ
vities, the
planned activities foor the next th hree (3) wee eks, the percentage of actual
a progreess compare ed to the
contractt baseline, th
he physical progress
p curvve, the upda ated schedule and the arrea of conce erns. The
weekly rreport shall also presentt the quantit ies planned and execute ed for each type of serv vice. This
progresss shall contain all the men/hours sspent during g the week for each froont of work and the
productivity reached d in each wo An Action Plan “5W1H” must be attaached to the
orking front. A e Weekly
Report iff the producttivity is below
w what was o originally plan
nned or expeected.
Monthly Reports - The

T EPCM co ontractor wil l also submiit once a mo
onth a progreess report sttating the
progresss of the prevvious month. This report must be an assessmentt with both aanalytical con ntent and
quantitative data, such as:
 Safety stattistics;
 Progress and
a schedule
e as describe
ed in the prev
vious section
n, Progress R
Reporting;
 Cost inform
mation includ
ding forecastss.
15.7 CONS
STRUCT
TION METHOD
DOLOGY
Y
There w will be early works
w at both
h Sites requ ired to meett (or improvee) schedule bbefore engin neering is
complete e and beforee a Constructtion Contracttor could be engaged. This
T section ooutlines those issues,
the workk done to da ate to preparre and the ccurrent BAMIN Team’s th hinking on hhow to proce eed. The
plan is too engage thee EPCM with h contract siggned the dayy of Project Release,
R thenn jointly decide which
activitiess need to bee addressed immediatelyy and which h would be better
b accommplished by including
them in one of the Construction
C Contractor’ss scope. Thee existing BAAMIN Team hhas the ability to kick
off and m manage som me of the earlly work imme n Project Rellease if requ ired.
ediately upon
The Con nstruction Coontracting ap

pproach in teerms of identtifying the nuumber of geoographic areas within
Mine an nd Port to bee contracted is not yet fiinalized. Thhe concept once
o done iss that all connstruction
(other th
han work do one prior to arrival on SSite) will be managed by y a Construcction Contra actor with
responsibility for maanaging all crafts
c ng within his geographic area. Currrent expectations are
workin
that therre would be one Contrac ctor in the Mi ne Area respponsible for all work therre, one perfo orming all
land bassed activity at
a the Port an
nd one perfo orming all maarine activity at the Port ((3 total), but that may
change based on EP PCM input and
a the comb bined Team’s view of Co ontractor apttitude in Braz zil at that
time. Finalizing the Contracting Plan is also an early activity with the EPCM.
Within th he above gu uidelines, the e objective o on is to present the currrent thinking on early
of this sectio
works a and will brieffly present the implemen ntation apprroach of the PdF Projecct Team. These sub-
sectionss provide ke ey informatio on identified by BAMIN and the Co onstruction Contractors about i)
impleme entation strategy to be followed
f durring the exeecution, ii) work
w methodoology consid dered for
critical cconstruction works,
w iii) co
onstruction s equence acttivities, and iv) main guiddelines to be
e in place
to ensurre construction managem ment is alignned with the project objectives of heaalth and safe ety, cost,
time and d quality. The
T strategie es that follow
w are offeredd for informaation only annd are base ed on the
informattion availablee at this time.
BAMIN – P
PdF Project BFS
S, August 2016
571 / 783
15.7.1 Site Facilities Strategy
There are several temporary and permanent facilities planned to be developed for PdF Project to
properly support construction activities. These structures are either for BAMIN Owner’s Team or for
Contractors. These will be better detailed during the early works period for delivery by the Owner’s
Team with local contractors as required. Wherever possible, the site facilities required to support
construction will be included in the Construction Contract(s) scope(s) of work.
15.7.2 Contractor Facilities
15.7.2.1 Mine and Plant
The temporary facilities will be located in areas that will not impact the construction activities or be
located in areas assigned for parking the cranes or other heavy equipment required during the
assembly. The overall layout of temporary facilities will be reviewed and confirmed by the EPCM
contractor taking also in consideration the areas required to stock the construction material, accesses
and roads.
The material unloading areas will be under the supervision of the EPCM contractor, and before the
handover to construction contractors, the area will be prepared and should be released by them in the
same way. Other relevant items in the layout definition are:
 Access Ways;
 Waste Management and Disposal
 Fuel/Petrol Stations
 Walking Ways
Also will be developed technical specification of the below site services:
 Power Source and distribution;

 Water Source and distribution;
 Potable Water
 Effluent Treatment System and Disposal
 Fire Fighting System
 Fuel Storage
 Lighting of Site Facilities
 Raw Material Storage (cement, aggregates, sand)
 Materials Laboratories
 Equipment Maintenance Workshops
15.7.2.2 Port Terminal (Aritaguá)
The EPCM and the Construction Contractor(s) will be responsible for all works in the site
infrastructure scope.
The main goal is to supply the facility with adequate access for people, vehicles, material and
equipment. It is also a goal to add temporary facilities in order to help the activities of supervision,
572 / 783
administration, nourishment, safety, health, environment, controls, stores management and all else
necessary for the Project.
Prior to award of the main Construction Contract(s), there will be early work required at Site to
maintain schedule. The Owner’s Team will create an early works program after the BFS is complete
to plan the following activities:
 Install, operate and maintain all facilities necessary to the fulfilment of the contractual object
such as: concrete plant, equipment workshop, maintenance workshop and others;
 Install, operate and maintain self-generation of power and its distribution to all need during
the implementation of the Project;
 Execute the civil and assembly works and install a warehouse for the receipt, stocking and
handling of material to be used in their services. The Management Company will keep the
warehouse close in order to receive and distribute materials of common use in the
electromechanical assembly;
 Provide the water supply for the execution of works;
 Hire specialized companies to manage the property security in the construction site;
 Supply the equipment of sewage and water treatment stations.
15.7.2.3 SSAI – Industrial Water Supply
Due the characteristics of a linear project (piping installation) and continuous mobility from of work,
the site facilities will be part of the scope of the contractors. Empowering them to decide the best
solution to match with their strategy of implementation. However, BAMIN will include in the
specification to allow temporary installations that will allow the agility needed in accordance with the
best practices of cost efficiency.
15.7.2.4 SSEE – Electric Power Supply System
Even considering the total length of 3 km the transmission line, the project is planned to install only
two site facilities to receive construction personnel. These site facilities should have water and
sewage treatment systems (septic tank with sink), aiming to avoid any conflict between the local
demand and project demands. BAMIN will include in the construction contracts clauses that will the
requirements for water, sewage, waste and healthy systems applicable for the workers involved the
transmission line. The site facility will be a group of several temporary facilities like:
 Site Facilities for BAMIN’s team

 Site Facilities for contractors
 Fencing
 Storage Area
 Toilets and Washing Rooms
 Store Rooms
 Canteen
 Basic Medical Facility
 Waste Management
 Communication Networks
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15.7.3 Infrastructture
15.7.3
3.1 Mine and Proce
essing Plant
The scoope of the relocation

r of current roa
ads includes Earth Work ks, Drainagee Works and d Paving
Works tto remove all nces in the public roads BA-611 and
a interferen a BA-156, around the e tailings
manage ement facilities, the pro
ocessing plaant area, the loading stockyard
s booundaries, and
a new
crossroa
ad of BA-156 6 with BA-61
11. The folllowing inform ovided to beetter explain the work
mation is pro
required
d.
Figure 1
15.6 – Roads
s Required Work
 CO-19 - Relocation
R off existent pub
blic state-ow
wn roads - removal of inteerferences in
n the BA-
611 e BA-1
156 (and con
nstruction)
 CO-20 – Earthworks
E – Earthworkks of Mine, Plant (includ
ding Filteringg), Branch Line
L and
Tailings-drrained pile.
15.7.3
3.2 Porrt Terminal (A
Aritaguá)
Locatiion
ure port term

The futu minal in Aritag
guá is locate
ed 10 km far from Ilhéus downtown aas indicated in Figure
15.7 below:
BAMIN – P
PdF Project BFS
S, August 2016
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Figure 1
15.7 – Locattion of Aritaguá Private
e Terminal
Topog
graphic and soil
s condition
ns
The futu
ure area for Aritaguá
A minal is basiccally flat in the level 20 m MSL and thhe region is subject to
term
flood sometimes durring the year, so the soil iis humid in la arge extensio
on.
Vegetal covering is basically

b a fo
orest as is sh
hown in the fiigure below:
BAMIN – P
PdF Project BFS
S, August 2016
575 / 783
ECT EXECU
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Figure 1
15.8 – Overv
view of the Aritaguá
A Re
egion
Accesss roads and Quarries
The maiin road to access project area is by B

BA 001 betwe
een Ilhéus an
nd Itacaré citties.
owing map (Figure 15.9

The follo 9) presents municipalityy downtown villages andd near communities,
roads an ays surrounding the Porto
nd vicinal wa o Sul area an
nd some qua
arries.
Figure 1
15.9 – Roads
s and quarrries
BAMIN – P
PdF Project BFS
S, August 2016
576 / 783
ECT EXECU
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Ilhéuss infrastructure
Ilhéus iss a medium m size town in accordan nce with thee Brazilian standards
s annd has infraastructure
adequatte to supportt the construcction includinng roads, sea
aport and airrport. A consstruction cam
mp for the
Port is n
not required. Infrastructure location iss shown on the map in Figure 15.10:
Figure 1
15.10 – Ilhéu
us Region Map
M
15.7.3
3.3 Elec
ctric Power S
Supply Syste
em
The conntractor respo onsible for th

he construct ion of the tra
ansmission line will deveelop if neces
ssary, the
access tto the right of
o way underr the line. Thhe existent access
a able in the reegion should be used
availa
as muchh as possible e. In the area
as where shoould be open n new access ses or changged the existeent, must
be inclu
uded the dra ainage work ks under BA AMIN’s appro oval. In all the
t slopes pproduced du uring the
earthworks, shall be using draina age systemss (stairs, speeed reducing, and galleriees) and for th
he slopes
with exp
posed soil, ree-vegetation shall be app lied.
15.7.4 Mobilizatio
on / Demo
obilization
The Co onstruction Contractor(s)

C ) will be acccountable to t provide the
t resourcees, installations and
servicess required, in
ncluding the
e availability of water annd power tapping pointss to be used by the
contracttors, according each con g actions sh all be handled when
ntract detailss. Due this, the following
applicabble:
BAMIN – P
PdF Project BFS
S, August 2016
577 / 783
 Temporary facilities with canteen and lodging installation available;

 Access to worksite using public roads;
 Access ways, unload area, access gate and fences;
 Offices
 First Aid Installations Facilities for emergency (ambulance, helicopter)
 Housekeeping Services
 All temporary services required in the Construction
 Temporary Systems: Power, Water, Sewage and Communications
The mobilization of the EPCM and Project Owner’s Team will be executed according the manpower
histogram planned and according the adherence with a Mobilization Check List. The site mobilization
will be planned and programmed based on the manpower histogram and also based in the overall
project schedule, as engineering and contract signature from Procurement. The following items shall
be completed, before the initiation of construction works:
 All the agreements and licenses, received and finalized;

 All the Induction Training (Safety, Health and Environment) organized according the PdF
HSE Plan for early work, per the EPCM’s plan for the full construction period. Refer to the
“Human Resources” chapter for details;
 Material Storage and Unload areas ready to be used;
 Areas allocated to the Contractors Facilities with power and water tapping points available;
 Communication Devices/Equipment ready to operate;
 Documents/Drawing Procedure Control already defined.
Ground rules and responsibilities for the light vehicle usage inside the site facilities, as well, the
histogram of permanence of light vehicle, according the PdF Project guidelines. The contractors will
be responsible for the development and presentation of your own mobilization plans, to be included in
the General Mobilization Plan.
15.7.5 Key Permits and Authorisations
The main Licenses and Authorization relevant for the PdF (not considering the environmental licenses
(LP, LI and LO) are summarised by Table 15.2:
Table 15.2 – Key Licences and Authorisations for the PdF implementation:
License Objective
FIRE BRIGADE Approval of facilities
ANTT Work permit on highways and railways
ANTAQ Authorize the construction and operation of port terminals for private use
Implementation and operation of telecommunications networks. Temporary

ANATEL
use of radio frequencies.
578 / 783
ANEEL Contracts of concession or permission of public electricity services.
ANP Transport and storage of oil, natural gas and its derivatives.
ANVISA Approval of facilities
ARMY Use of explosives
NAVY Navy informing the "no objection "
15.7.6 Construction Sequence
During the early works period the BAMIN team will take responsibility for managing any work required
to maintain schedule and in advance of Construction Contractor(s) mobilization. That work is
expected to be minor.
For construction of the major area(s), the Construction Contractor for a geographic area will be
completely responsible for managing subcontractors engaged (if any) and performing the work in a
professional and timely manner.
15.7.7 Mine and Plant
After the establishment of temporary facilities to accommodate the project team, the priority will be the
preparation of the areas to receive the contractor site facilities. Once these are completed, the
construction team will focus in the preparation of the areas and plateaus according the terrain and
final design. To be clear, there are no construction camps (accommodation) planned for Mine or Port.
Contractors, EPCM and Owner’s employees will live in the nearby communities.
15.7.8 Tailings Dam
Much of the tailings dam (Figure 15.11) construction will be done in phases during operation. During
the project phase the scope of initial preparation that will allow the commencement of production is
included in the initial project. In general, the soil removal, dike preparation and deep drainage are part
of the scope of the works, being the following construction sequence:
 Vegetal Suppression, tree stump removal and organic soil removal in the reservoir (from top
of initial dike top level – Green Line)
 Construction if the initial Bottom Gallery and to River diversion.
 Caisson Construction
 Cleaning and foundation treatment of Initial Dike
 Internal drainage system construction
 Initial Dike construction
 Closing River diversion
579 / 783
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Figure 1
15.11 – Tailings Dam co
onceptual de
esign
Further d
details aboutt the design and operatio
on of the Tailling Dam are
e available inn Chapter 6 – Tailings
Manage ement.
15.7.9 Port Term

minal
To be clear, theree are no construction

c camps (ac ccommodatioon) planned for Mine or Port.
Contracttors, EPCM and Owner’s he nearby communities.
s employees will live in th
15.7.9
9.1 Off Shore
Load Out Point (LO

OP)
The purp pose of the Load

L Out Pooint (LOP) is to provide a marine load
d out facility ffor the supplly of rock
fill for th
he offshore construction
c of the mainn Breakwaterr (Figure 15..12). Currentt planning envisages
trucks bringing in prre-sorted rocck from the qquarries and stockpiling materials of differing sizes in the
Stockpile e LOP Yarrd that also o provides lland area for f receipt and
a dispatcch offices and truck
maintenance
The Stocckpile LOP Yard

Y and thee adjacent co
onstruction yaard provide sufficient
s areea for the mo
obilisation
and initia
al construction of the LO
OP. A dedicaated fleet of off-road
o trucks is envisagged running from the
Stockpilee LOP Yard, along a haul road conn necting to the access tre estle that runns around 1kkm out to
sea to coonnect to the
e LOP,
The acccess trestle will

w be constru
ucted as an independentt trestle, both
h connectingg to the LOP platform.
The con
nceptual design considerss a two-berth
h layout
The LOP
P layout conssists of the fo
ollowing:
 11m wide access

a trestle approxima
ately 1,360 m long
 A 210 m lo
oading quay accommodat
a ting 2 berths
s.
 A breakwa
ater aligned North
N to Soutth 250 m long.
 A quay carrgo handling area 48 m w
wide
m of the stru
The form ucture is sele
ected for con
nstruction by the cantitravel method tthat uses lan
nd-based
BAMIN – P
PdF Project BFS
S, August 2016
580 / 783
ECT EXECU
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plant.
Figure 1
15.12 – Load
d out point
The pierr implantation uses the same

s cantitra
avel that hav
ve been used
d in the tempporary acces
ss bridge,
which sh
hall be adaptted.
The secction of the provisory breakwater (b berm breakwwater) exten

nds under thhe pier and, for this
reason, the structure e constructio
on also foressees the plac ocks by the aauxiliary work front in
cement of ro
the rear,, followed byy the superstructure asse
embly.
Some p part of the provisory breakwater will be directly built with th

he placemennt of rocks under
u the
structuree and by the
e seaside. Th
he completio on of the berm breakwate er is done affter the comp
pletion of
the provvisory boarding pier because it depe ends on the disposal of material in a remote area. This
activity w e the main breakwater activities are sttarted.
will be complleted immediately before
Onsho
ore Conveyo
or and Bridge
e Crossing
The con nstruction sta

arts in the Transfer
T Towwer and will use cantitravvel over floooding area and
a River
Almada (CT3) and willw use pylon n foundation s for the rem
maining extension until aachieve the beginning
b
of the acccess bridge construction
n.
Accesss Bridge
The connstruction of the

t access bridge
b and th e ramp will be
b performed d by a cantitrravel. This work
w front,
denominnated as Ca antitravel 1 (CT1 - Canti travel Seaw ward Construction from LLand. The front goes
forward though the access
a bridge
e until the pie
er, where it shall
s stop..
Main Breakwater
B
The maiin breakwate

er activities begin
b with the
e dredging of
o a soft ground layer thatt has a volum
me about
1,500,00
00.00 m3 and a reposition of granularr material.
The conncept used foor the constrruction of the e breakwateer uses two distinct
d workk stages bein
ng one at
sea (knoown as undeerwater cons struction) and nown as dry construction (rock fill com
d another kn mpaction
by bulldozer). Even n though equ uipment travvels over it, the
t dry cons struction for the main breeakwater
has a ro
ock supply byy sea, using vessels
v fit fo
or that purpos
se.
BAMIN – P
PdF Project BFS
S, August 2016
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ECT EXECU
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For the u
underwater construction,
c , two kinds o
of vessel will be utilized: the
t first is thee “Slip Barge
e”, with a
bottom oopening, use
ed for the execution of th
he breakwate er core or the e stability beerm. The sec
cond type
is the “D
Dump Barge e” for the roc
ck placemen nt along the sides for the e constructioon of the unnderwater
protectio
on berm.
The sup
pply of base material
m will be
b from the A
Aninga quarrry (localized inside the arrea of the en
nterprise)
For the dry construction of the breakwaterr the materiaal supply willl also be doone by sea, using a
landing point at the breakwater. The loading
g of rocks an
nd equipmennt, in that sittuation, can be made
through a vessel of the
t “Flat-topp
ped” kind.
In termss of equipment, it has beeen considereed that the dry constructiion is compoosed of an ex
xcavator,
a large ccrane, a bulld
dozer and a front loader over the breakwater.
Accesss Channel Dredging

D
This works consists of the dredg ging of the ch

hannel that accesses
a the
e navigation basin, whichh is used
for berth
h ship manoe euvre with a bottom level at elevation -21 m (DHN N) after dredgging. It comp
prises the
dredgingg of 3.7 millio
on cubic metters of sand and silt clay oach and thee manoeuvring areas
y in the appro
etty and theirr deposition 16 km out to
to the je o sea. Figure
e 15.13 indiccates the reggion impacteed for the
terminal:
Figure 1
15.13 – Acce
ess Channe
el and Navig
gation Basin
n
Loadin
ng pier and Tug
T pier
The pierr will be built at anotherr work front parallel to thhe constructtion of the bbridge. It will have a
separate
e constructioon site at Porrto de Ilhéus (Ilhéus Port)) in the area known as Arrea IX.
The connstruction of the pier has s been divide ed in two staages. The first will use aan elevating platform
(Jack-upp barge) for the construction of an initial stretch h of approximately 63 m meters and 9 meters
longitudinal opens. This platforrm is a partt of the stru ucture and will
w be usedd as supporrt for the
assembly of a secon nd cantitrave
el, what will sstart a second stage. Thhis work fronnt, known as CT2 will
be respoonsible for th
he completionn of the pier constructionn, and will be demobilizedd at the end.
BAMIN – P
PdF Project BFS
S, August 2016
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The using of the ca antitravel for the loadin g pier aims to minimizee the utilizattion of the elevatinn
platform
ms as these are
a largely de ependent on the conditionns of the sea
a for its produuctivity.
Figure 115.14 showss the arrang gement of th he structures s and the work
w fronts. The CT1 workw front
represennts the cantittravel 1 for th
he access brridge to the looading pier. The PE workk front repres sents the
work areea of the eleevating platfo orm that willl start the lo
oading pier construction,
c creating a sea
s work
platform
m for the assembly of the e cantitravel 2 that will build
b the loadding pier, ideentified as CT2.
C The
CT3 wo ork front is the
t construc ction of the provisory structures
s (LOP) for thee constructio on of the
breakwa ater.
Figure 1
15.14 – Structures and Fronts of W
Work
Area IX
I - Ilhéus Po
ort
At the P
Port of Ilhéus (approximattely 13 km soouth of Aritaguá), there is an area thaat is identifie
ed for the
production, storage e and board ding of pre efabricated piles,
p concrrete beams and slabs for the
construcction of the pier. There e will also bbe the plac cement of ro ocks with s maller sizes s for the
construcction of the breakwater.
b
Figure 115.15 below shows the arrangement

a t of the temp
porary facilitiees (superimpposed to the e satellite
picture) divided in tw
wo parts. In the bottom part, the are ea kept for the pier consstruction site e (33,100
m2) shoows the production and assembly
a es that go dirrectly to the shipment strructures. In the upper
line
part the area reserveed for the roc
ck lung piles (51,200 m2)) is indicated d.
BAMIN – P
PdF Project BFS
S, August 2016
583 / 783
ECT EXECU
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Figure 1
15.15 – Ilhéu
us port
Once co
omplete, the steel frame shipment
s stru
uctures will be
b removed from
f the sitee.
The con
nstruction me
ethodology and
a quantitie
es are shown in docume
ent Appendixx 15.7 34203
38-A000-
MD400006_B.
15.7.9
9.2 Ons
shore
Almad
da River Brid
dge and Adja
acencies
For the construction of the River Almada Brridge, the bridge access ramp and thhe pier acces ss bridge
will use steel piles, concrete beams
b and p prefabricated
d concrete slabs.
s Materrial will be stored
s or
produceed on the connstruction site
e and then trransported to
o the Cantitra
avel.
The con
nstruction site
e for the bridges, ramps a
and adjacenc
cies are show
wn in Figure 15.16:
BAMIN – P
PdF Project BFS
S, August 2016
584 / 783
ECT EXECU
UTION PLAN
Figure 1
15.16 – Cons
struction Site
The pierr will be utilizzed as a disp

posal area on
n the Ilhéus Port.
P
The Alm mada River Bridge

B s adjacencie s (“flood plain’, the areas
and its s subject to fflooding due to tides)
will be cconstructed utilizing
u a can em and will be composed of steel pil es, drainage
ntitravel syste e channel
and slab b.
Detou
ur of the BA
A-001 road aaccess, acce
ess by BA-2
262 road annd internal ways
w and
access to Aning
ga quarry
The layo
out of the BA
A-001 road (Ilhéus – Itaccaré) will be modified by and detour w
with 1.5 km length to
the main
n access to Aritaguá
A vate Termina l.
Priv
The deto
our is as sho
own in Figure
e 15.17 below
w
BAMIN – P
PdF Project BFS
S, August 2016
585 / 783
ECT EXECU
UTION PLAN
Figure 1
15.17 – Deto
our of BA-00
01 Road
The exe
ecution workss for the dettour of the B
BA-001 road access, access by BA-2262 road and
d internal
nd access to Aninga quarrry will be acccomplished simultaneous
ways an s sly. .
Bridge
e over Tirui River
R and roa
ad bridge to access locom
motive worksshop facilities
s
The con nstruction seqquence of these bridges will be a cla

assical one, beginning
b byy the construction site
installatiion, deforesttation, stripp
ping and cle
eaning of the
e area, steeel piles crim ping, concreete block
executioon, execution n and assem mbly of beam
ms and slabs and the con nstruction off the bridge deck
d and
meeting earthworks.
Aninga quarry exp

ploration
The worrk will begin with

w the defoorestation, sttump remova
al and cleaning of the qu arry area. All organic
soil will b
be moved to the ADME area.
a
pping works will done by excavators a

The strip and the mate
erial removed
d will be useed during earrthworks.
The rock production n will be according to the on’s demand for the ripraap of the bre
e constructio eakwater
and the riprap of the provisory pier.
Earthm
moving for ra
ailroad loop & other onsh
hore areas
The preliminary servvices for the execution off the defores station, stum
mp removal aand area cleaaning will
begin in
n the consttruction site e area, folloowed by the stockyard d, the car ddumper, wo orkshops,
administtrative facilitiies and the infrastructure
e, regulariza
ation of subg
grade and loccation of the
e railroad
loop.
At the sttockyard area, a layer of crushed sto ne will be ad

dded, followe
ed by a geo ddrain at the bottom
b of
the gullie
es.
The cuttting and filling teams mus

st follow the program of civil
c works an
nd its scheduule.
BAMIN – P
PdF Project BFS
S, August 2016
586 / 783
Before the execution of earth filling it complete installation of the drain at the bottom of the thalwegs
(gullies).
The progress of the earthworks team shall open work fronts for the execution of the superficial
draining elements and for the execution of soil reinforcement at the railway platform.
The average distance to the excess material disposal area is approximately 5 kilometres.
Organic soils from the earthworks of the Aritaguá Private Terminal must be disposed of at the ADME
area.
15.7.9.3 Railroad superstructure assembling
The railroad loop has an approximate 13.5 km extension plus an interconnection branch of about 700
meters.
The execution of the railroad superstructure shall be done as it is described below and it may present
superposition of activities according to the detailed programming.
Railroad loop’s superstructure execution sequence:
 Rail transport and laying;

 Grid assembly;
 Assembly of the rail changing apparatus;
 Ballast transport and laying;
 Tamping, levelling and alignment.
Civil works for car dumper, stacker, reclaimer & conveyors
The concrete works will begin after the clearance of the earthwork plateaus.
Areas requiring concrete include:
 Car dumper;
 Conveyors and transfer houses foundations;
 Stockyard machines runway foundations;
 Workshop and warehouse foundations and paving;
 Tanks of service and firefighting water.
Details on this are included in the project documents.
Assembly of car dumper, apron feeder, stackers, reclaimer & conveyors
After completion of civil works electromechanical assembly begins, which will take into account the
critical path for the project that has been determined with the productivity level methodology based on
quantity bills created by Engineering.
The electromechanical assembly is focused on the following areas:
 Car dumper;
 Conveyors and transfer houses;
587 / 783
 Stockyard equipment (Stacker and Reclaimer);
For further details on this works it must be consulted the project documents.
15.7.9.4 Construction of support facilities and workshops
The administrative and industrial buildings will be constructed alongside the stockyard’s main access
route. The facilities will have concrete structure and trapezoidal tile roofs.
The warehouse, administrative facility and locomotives and wagons workshop will be steel frame with
metal panels. Other administrative and support buildings will be made of brickwork with steel roofing.
The execution of this work will take place concurrently with other works as required by Project
operational necessities.
15.7.10 SSAI – Industrial Water Supply
In the Planning and Programming of the Pipeline construction activities have adopted the usual
guidelines for building this type of work, including with respect to the harmonic-lags between each
stage of implementation, as follows:
 Temporary Facilities – Installation of the facilities in intermediate where will be located the
main resources needed, including the management team.
 Site Offices – Distributed spread the construction area where the pipes will be stored to
avoid long transportation and smooth balance of material allocation.
 Pipe Joint – Proceeding the pipe joint to allow a buffer to the team that will lay the pipes in
the trench.
 Pipe Laying – The pipes are staged close to the trench where they will be installed.
 Trench Excavation –The trenches are excavated keeping a certain lag from previous
activity, but with attention in areas where rock removal may be necessary or water
crossings.
 Pipe Installation – The pipes are installed in the trenches in batches.
 Hydro Test - Execution of hydro test in ranges, aiming the use of water in the next section.
 Easement Recovery – As the tests are completed, the area is prepared and recovered.
15.7.11 SSEE – Electric Power Supply System
The route studied for 230 kV single circuit, which will connect the Renova substataion and has an
approximate length of 3 km.. The transmission line has the below characteristics:
 Operation Voltage: 230 kV;

 Structures: Metallic Truss/Frame self-supporting (380 ton)
 Total Length: 3 km
 Circuits: 1
 Easement wide: 40 m
 Towers: 91 units
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ECT EXECU
UTION PLAN
 Cable Weig
ght: 155 ton
Accordin ng the transm

mission line characteristtics, the meth
hod aimed is s of a linearr construction
n, having
all four sstages being executed in the same inn different are
eas with a lagging periodd between the em.
 Vegetal Suuppression – Easement: In order to minimize environmental impact, tran nsmission

lines are designed
d to minimize d deforestation along the easement. T Thus, trees are only
cleared wh
here structure
es will be insstalled, or the e middle of thhe span.
e areas in the
 Civil workss: The following types of ffoundations are
a planned to be used:
 Tubular Pile: deep fou
undation of rreinforced co
oncrete basee and extendded cylindriccal shape
pth ranging from
with a dep f 3 to 8 m meters, acco
ording to the
e type of soiil and the fo
oundation
efforts;
 Direct Fou undation: foundation off reinforced concrete, small s heightt in relation
n to the
dimensionss of the base e. It is applie
ed to shallow w depths (lesss than 3 meeters) because of the
difficulty off digging, and
d lack of suittability for are
eas subject to
t erosion.
 Installation
n of structure es - The partts of the stru
uctures will be
b taken to tthe place wh
here they
will be mo ounted. Depe ending on thhe degree of o difficulty of
o access to the installation site,
these partss may be eve en taken ind
dividually, carrried by the assemblers.
a The assembbly of the
structures can be piec ce by piece oor pre-assem mbled sections on the grround and th hen lifted
and placed d in its final lo
ocation.
 Cable Pulliing: To preve
ent deforesta
ation during construction,
c will be installed using
, the cables w
"launch on mechanical traction”.
15.8 QUAL
LITY
The conncept of qualiity managem
ment establis hes that the quality mana
agement proocess is com
mposed of
three criitical sub-pro
ocesses:
 Quality Pla nes relevant parameters

anning: defin s and control measures and how to
o achieve
them;
 uarantee: ap
Quality Gu pplies planne
ed and syste
ematic activities to guara
rantee the necessary
requiremen
nts are achie
eved;
 Quality Co
ontrol: meas
sures and m
monitors res
sults aiming
g at necesssary corrections and
improvemeents
15.8.1 Quality Planning
The EPC CM must ca ause to havee, on site, a

all devices, in
nstruments and/or
a technnological con
ntrol labs
necessa ary for servicce execution
n, measurem ment and pro oduction monnitoring of evvidence manndatories
for produuct complian
nce with established requuirements.
The qua ality planning for constrruction mustt ensure thaat products and servicees resulting from the
activitiess developed meet all requirements off quality, cost and time es
stablished foor the PdF Prroject.
Measure ement and monitoring

m mu
ust be carrie
ed out as perr standards and
a procedu res agreed on o during
the proccurement phase. When n applicablee, labs for quality conttrol of steell, concrete, asphalt,
earthworks, grounding, welding, among othe ers, must co
omply with requirementss and criteria
a used in
design.
BAMIN – P
PdF Project BFS
S, August 2016
589 / 783
The EPCM shall use and prove traceable standards recommended by international calibration
institutes. Whenever verified that a specific measurement device is out of the required conditions,
contractors shall provide the calibration, in accordance with the International Calibration Standard.
Then, the approval of validation of measurement results previously carried out by mentioned device is
mandatory, and, whenever necessary, the measurement shall be done again.
Checking and calibration result records must be kept by the Contractor in order to be incorporated in
the respective data book and transferred to the Owner.
15.8.2 Quality Assurance
The quality assurance consists in the application of planned and systematic activities to guarantee
that the project uses all the necessary processes to fulfill the established quality standards pursuant
to the EPCM contract clauses and applicable contracts for the sub-contractors under the main
contractor responsibility.
15.8.2.1 Engineering
The EPCM will manage all engineering inputs to the Project. Engineering providers contracted must
consider their own procedures to assure the quality of deliverables, such as: drawings, technical
specifications, data sheets, material take-offs, quantities spread sheets, calculations and all other
documents within scope according the guides defined by BAMIN.
The engineering teams of all parties involved must be responsible to manage and follow up the quality
processes associated to the scope. Procedures, guides and quality requirements formulated to serve
as reference to quality control. Such procedures are consolidated aiming at guiding, establishing
criteria and ensuring the quality of all documentation generated in the project.
To accomplish the completion dates in the delivery of the engineering documentation, the EPCM must
follow internal controls of interfaces between disciplines and levels of verification, validation and
approval required in the process. The exchange information between suppliers and engineering
providers is a critical process for the success of project and adherence to the KPIs.
15.8.2.2 Construction
Construction Contractors must follow the quality procedures aimed at the assurance of services
executed and, as a result, perform in accordance with the engineering specifications and criteria
adopted in the project. These procedures must match the conditions adopted in the planning phase to
avoid discrepancies with the targets defined for the project.
The Contractor’s Quality Plan is associated with inspection and testing procedures, construction
method statements and procedures that must be reviewed and approved by the EPCM before
initiating the work. The Contractors shall be responsible for effective construction controls, and the
EPCM shall measure and monitor them through the approved documents.
15.8.2.3 Procurement
The EPCM shall carry out the Quality Planning in a consistent manner and in accordance with the
requirements defined in the contract, standards, ITP and other applicable documents for the
manufacture of equipment and services.
590 / 783
The EPCM must have a Quality Management System (QMS), implemented and maintained in
accordance with ISO 9001 standards or other similar standard of QMS accepted by BAMIN. The
EPCM is responsible for managing its subcontractors under QMS.
The EPCM’s QMS must be able to consistently provide equipment and services that meet BAMIN’s
and regulatory requirements. The Supplier shall submit the project's Quality Plan for owner’s approval
along with the technical bids or prior to manufacture. The Quality Plan must be structured so as to
provide a general, yet effective, description of the quality system and the material and human
resources needed for the contracted project.
15.8.2.4 Quality Records
Quality records such as check lists, pending lists, result reports, certification of materials, instrument
or device calibration, among others, are used for document traceability and to provide verification,
preventive action and corrective action evidence.
The Contractor must implement quality record systemic control, according to essential guidelines set
forth in the PdF Project.
15.8.3 Quality Audit
All equipment, material and service supply must be audited. Such condition must be explicit in the
Engineering Technical Requisitions as part of the supplier’s contracts. The audit may occur in the
form of supervision, inspection and expediting, or monitoring of suppliers' quality processes, as
defined in the supply or service contract.
The planning of quality in construction must present the audit schedule, with approval of the EPCM’s
Project Director. In order to create or review the audit schedule, other events related to the quality
management system must be taken in consideration, as well as the importance and current situation
of the Project maintenance management system to be audited. All requisites related to the Project
must be defined and documented taking into account:
 Project Quality Plan;

 Compliance with work procedures and instructions, including H&S tools;
 Contract and measurement management;
 Non-compliance handling;
 Execution and monitoring of action plans;
 Control of labour requirements;
 Instrument maintenance and calibration plans;
 Work inspections;
 Warehouse procedures;
 Assets capitalization;
 Governance.
Audits must be carried out by qualified auditors, and coordinated by an Audit Manager (internal
auditing of Project Quality compliance). The audit manager shall define the auditing team for each
supply or service package. In each audit, the treatment of nonconformities of previous audits must be
checked.
591 / 783
ECT EXECU
UTION PLAN
15.8.4 Inspection
n and Expe
editing
The devvelopment an nd certification processe es provided in the contra act must be followed up p and the
correspoonding recorrds inserted ini the Procurrement Tracking. The In nspections shhall be carrie
ed out by
qualified
d professiona
als, reportingg to the Qua ality Coordinator of the EPCM’s
E teamm. Expeditinng will be
carried oout by a spe
ecialist profe
essional, repo e EPCM’s Prrocurement oorganization (see the
orting to the
“Procureement Plan” chapter for this
t report fo r some further details). Coordination
C n between the Quality
Inspectioon services and expediting service es contractoors will be required
r in cconjunction with the
Planningg team to exeecute the insspection requ uirements.
15.8.4
4.1 Exp
pediting
The Exp
pediting Team
m shall execu
ute an effecttive control of
o all activities
s related to tthe as follows
s:
 Critical ana
alysis of the Agreement
A o
or PO technic
cal documen
ntation;
 Analysis off the planning stage of th
he supply or performance
e of the serviice, among which
w are
the preparration of doccuments, ma terials procuurement, manufacturing, packaging, logistics,
and equipmment delivery y;
 Monitoring of each phhase of the ssupply or se ution in ordeer to ensure whether
ervice execu
scheduled dates are be
eing complie
ed with and th
he existence of any relateed potential delays.
d
 Alert BAMIN about dellays in delive ery or servic
ce and requeest that the ssupplier or contractor
c
ns to recoverr deadlines a
take action and follow up of these acttions;
 Monitor the
e implementa ned inspectio
ation of plann ons;
 Monitoring of the issue of required d
documents for
f handling and
a deliverinng the supply
y.
 In particula
ar, BAMIN will
w expect thee EPCM to monitor,
m exppedite and reeport on the status of
materials/eequipment/se
ervices requ
uired and the Construction Contraactor’s skille ed labor
required to
o meet the re
equirements o
of the detaile
ed schedule.
15.8.4
4.2 Insp
pection
The EPCCM’s Qualityy Control Tea

am must havve free acces
ss to all site areas
a duringg the executio
on of any
work or test at any unit
u covered by
b purchase order.
Supplierr shall provid

de, at no add
ditional charg
ge, all facilities required by Quality T
Team to ackn nowledge
and con uipment is being approp riately manu
nfirm that equ ufactured and d tested. Thee same crite
eria apply
to sub-vvendors.
Inspectioon reports shhould be issued accordin

ng to specifie
ed, in the lattest revision.. And also arre part of
the attrib
butions of the
e Inspection Team:
 Initial Visit
 Inspection on Vendor Facilities
F
 Release fo
or Packaging and Shippin
ng
 Inspection and Test Pla
an
15.9 HEAL
LTH SAF
FETY AN
ND ENV
VIRONM
MENT
The Ow
wner and EPCM Team’s personnel sshall provide
e strong, visible leadershhip and com
mmitment,
BAMIN – P
PdF Project BFS
S, August 2016
592 / 783
and ensure that this commitment is translated into the necessary resources to develop, operate to
attain the H&S Policy and strategic objectives. The overreaching concept here is that the EPCM will
bring with them a HSE Program with procedures that will represent the best fit for a construction
environment. They will also bring personnel experienced in administering those procedures, ideally
with past experience with the Construction Contractors that will be on the bid lists. The Owner’s Team
personnel shall take full accountability of the HSE Policy requirements and shall provide support for
EPCM actions to protect health and safety.
In parallel, the BAMIN Operations Team will take the existing BAMIN HSE system and update it for
current regulations and best practice within Brazil.
15.9.1 HSE Programs
Along with several actions in the Health and Safety routines, the below programs will be implemented
during the project life cycle. For the Construction period, the EPCM’s HSE program and systems will
be reviewed by the Owner, approved and then implemented. A different HSE system will be
developed for future Operations by BAMIN during the Project period.
15.9.1.1 Alcohol and Drug Use Prevention Program
It’s an objective of PdF Project keep the working and project areas free of alcohol and drugs. This
contributes to ensure the health and safety of all project members, contractors and subcontractors by
providing efficient and effective operational routines. The professionals providing services in the
construction site are prohibited:
 Work under influence of alcohol, drugs or abuse usage of any other substance
 Own, distribute or sell alcohol, drugs or controlled medicines
 Consumption of alcohol, drugs or medicines not prescribed in the working areas, as well in
the lodging areas.
15.9.1.2 Preventive Medicine Program
The PdF Project Team is committed with the health and wellbeing of all professionals in the project,
and through Programs of Quality of Life and Health Promotion, will support in the development and
implementation of campaigns to support these initiatives during the project duration.
15.9.1.3 Behavioural Program
Another program that will be implement by project team is the Behavioural Audit that will the basis of
a behavioural assessment by the HSE team, related the construction teams, evaluating the level of
commitment with the project objectives and targets of the project.
15.9.1.4 Safety Rules
The safety rules are key elements for the safe execution of the daily works and will be fit for purpose
during the Construction Period (by EPCM) and then changed during Operations (by BAMIN) to one
better suited then. They are based on tasks and have specific requirements that should be attended.
All the contractors should follow these requirements. The task risk analysis of each work activities
shall be executed prior to the initiation, and communicated to all stakeholders before the works start in
593 / 783
a specific area. The monitor and control activities shall be implemented to guarantee the continuous
improvement of the processes. The main safety rules that will part of the procedures are:
 Permit to Work
 Excavation
 Vehicle Driving
 Confined Space
 Working at height
 Lifting cargo
 Pressure test
 Power isolation
 Movable Equipment
 Housekeeping
 Poisonous Animals
 Right to Refuse to work
 Solitary Work
 Isolation and Lockout
 Manual Handling Cargo
 Hand Tools
 Hot Work
There are also component of the legal requirements that will be part of the HSE routines during the
PdF Project.
 Occupational Safety
 Occupation Health
 Internal Committee Accident Prevention (CIPA – Comissão Interna de Prevenção de
Acidentes)
 Work Environment and Conditions Program
15.9.2 Training
During the project, the contractor must supply a competent work force, including foremen,
supervisors, and support personnel, to meet the terms of the contract and commercial guarantees.
Should there be a need for additional skills training, this will be achieved through the development
and administration of a Training Plan designed to provide necessary training for the workforce as per
a competency training matrix. This training plan will contain the training matrix, training schedule,
booking process, training evaluation, training attendance list and training quality audit. The training
program will be the responsibility of the Health and Safety Coordinator with support and assistance of
the HSE and construction teams.
Personnel will receive training to the level commensurate with their particular task on site. Records
relative to all training carried out will be maintained and it could include performance test, written test
evaluations and training evidence card.
594 / 783
The Owners HSE team will assess the effectiveness of the training programs through diverse
methods:
 Workers safety awareness tests

 Number of unsafe acts or conditions reported overall safety performance of the project
 Monthly Audit Result.
 Monthly HSE Performance evaluation
The EPCM shall establish training requirements for the Construction Period in order to assure that the
employees are capable of working and have a safe attitude. These will be provided by the
Construction Contractors and audited by EMCP and BAMIN personnel. The training be in classroom,
or on the field or a combination of these. All of the employees shall have the appropriate skills and
knowledge to execute their activities in a safe manner.
Contractors shall submit to their EPCM compliant training program schedule/ plan, program of study
and training packages to PdF Project Team for reviewing. The training curriculum shall include
existing risks in the current work places and meet with local and BAMIN requirements.
In accordance with the daily work activities, precautionary and instructive on-the-job trainings can be
established and arranged in case of recurring occurrence of unsafe acts or incidents/accidents and
near misses. The objective of the training is to educate, inform and attain knowledge and techniques
required to perform the activities, preserving the physical integrity and health of all employees as well
as preserving the equipment, facilities, tools and environment. Find below a compiled of trainings
what shall be part of the Training Matrix:
 Rights and Responsibilities

 PdF Project Site Rules
 Risks associated to site functions
 Organization and Information - PdF Project
 First Aid / Industrial Hygiene;
 Personal protective equipment;
 Fire Prevention and fire watch;
 Emergency Response Procedures;
 Spill response;
 Scaffold Safety Training Course;
 Rigging Safety Training Course;
 Crane Operations-Heavy Lifting;
 Working at Height Safety;
 Safe Journey Management;
 Risk and Hazard Identification;
 Permit to Work (PTW);
 Personal Protection Equipment (PPE);
 Falling Objects;
 Confined Space;
 Isolation and Lockout
595 / 783
 Manual Handling Training.

 Basic Life Support;
 Defensive Driving;
 Advance Cardiac Life Support;
 International Trauma Life Support.
The evaluation of the training’s success must be accomplished through written tests for all the
employees, in addition to successful adherence to the induction training perspective and basic H&S
requirements in order to efficiently commence their activities in the PdF Project.
Contractors shall submit details of the training conducted, including the following documents:
 List of attendees;
 Training Declaration/Certification;
 List of authorized personnel authorized to conduct training (trainers and assessors);
 Other documents, according to Health and Safety Team request.
15.9.2.1 Safety Induction Training
Safety Induction training on Project policies and the main elements of Health and Safety must be
provided by EPCM’s Health and Safety Team. Specific Technical training and certification for the
works must be provided by Contractors and reviewed by PdF Project Team. This training must reflect
BAMIN policies and the main elements of Health and Safety procedures.
All site personnel (including field personnel, office personnel, visitors and vendors) must attend the
Project HSE induction and orientation program prior to their integration to the Project team without
exception regardless of position or experience. Special care will be taken to present induction training
in languages easily understood by personnel of the workforce. Any person not willing to undergo the
induction will not be allowed to enter the site by security or the project HSE Manager. Nobody is
permitted to enter the site without identification after induction training (security entry badge). The
badge will only be issued when the person has completed the HSE Awareness Induction and is in
possession of PPE required for the task to be performed on site. The induction will include:
 Project Description;
 Project HSE Policy and PdF Project Leadership commitment to HSE;
 Project HSE goals and philosophy;
 Site specific rules (both on and off duty);
 Areas requiring special PPE’s;
 Evacuation alarms, procedures, escape routes and assembly points;
 Identification of location of safety equipment;
 Hazard communication;
 Permit to work procedures;
 Reporting Accident, Incident, Near miss and unsafe acts or conditions;
 Toolbox meetings;
 Physical health hazards;
 Chemical Hazards;
596 / 783
 Personal and industrial hygiene;

 Environmental issues and environmental emergency response;
 Defensive driving;
 Site security;
15.9.3 Emergency Plan
Despite proper management of the overall risks, there will always be some residual risk and a
potential incident can still occur, which would require immediate and appropriate actions. Based on
that, the EPCM with BAMIN interface shall develop an emergency response plan that outlines
measures to mitigate and/or eliminate the cause of emergency situations such as personal injury,
fires, leaks, natural disasters, etc.
A number of emergency scenarios will be outlined, along with the procedures and equipment required
for alert, danger mitigation, rescue, evacuation, and normalization phases.
This emergency and disaster response plan calls for personnel training to handle emergency
situations and fight fires as well as during construction, commissioning and operational stages.
Continuous facility monitoring (inspection, surveillance systems and other instruments) would ensure
an immediate response in case there is any anomaly or substandard situation.
Lastly, the emergency plan lists the exercises/drills to be carried out on a regular basis to assess the
emergency team's response capacities, effectiveness and ability performing their activities.
The PdF Project will seek an agreement and understanding with contractors and other parties
involved in this project to pool resources, knowledge, professional expertise and equipment to support
the implementation of emergency response actions. In case project team cannot control the
emergency situation, the Project Manager will escalate to the Senior Leadership in BAMIN for further
management and support, and may ask the relevant governmental emergency response agencies for
support if the situation is uncontrolled.
The following objectives have been outlined for the Emergency Plan (EP) manual:
 The establishment of a formal emergency organization structure to control and contain any
emergency on site through prompt and effective response measures, so that its effects are
localized, thereby preventing / minimizing injury to personnel in the worksite, contract
employees, visitors, neighbouring company and the surrounding community;
 To provide response guidelines to be used in dealing with specific emergency scenarios to
minimize as much as possible the impact to the public, company assets and interest, as well
as to the environment;
 To respond to emergencies within the boundaries of the PdF project, in a timely and
coordinated manner so as to prevent loss to lives and injuries with minimum interruption to
the construction and operation activities;
 To minimize the effects on the environment and restore normal site conditions prior to
personnel re-enter the area after an emergency and resume work;
 To provide adequate and efficient training in emergency response management to maintain
a high level of readiness at all times and effective communications and coordination within
the organization during emergency events.
597 / 783
This section contains guidance on the first discovery actions to activate the Emergency Plan and
general procedures for responding to different types of emergencies. The chain of events in any
emergency is not predictable. Therefore, the emergency procedures and guidelines outlined in this
item should only serve as a guide and checklist.
A responsible employee should exercise his/her best judgment in order to implement the company's
directives with discretion and to meet demands of the occasion as they arise. Description of
emergency situations and procedures, as:
 Serious illness and injury

 Fire and explosion
 Gas leakage
 Spill onshore
 Transport emergency
 Structure collapse or loss of stability
 Major flood and natural events as earthquakes
 Bomb threat
 Terrorist incident
 Serious crime
 Civil unrest/disturbance/ demonstration
The Emergency Plan Organization Structure will at a minimum incorporate the following elements:
Emergency Response Coordinator
o ER Coordinator is the Manager at the location where the incident occurred;

o Take control of the emergency response on arrival to the scene;
o Control and manage all resources, personnel and activities required to take control
of the emergency situation. The cooperation of all parties and personnel with the
Emergency Coordinator is required to ensure a coordinated response to the
emergency;
o Delegate responsibilities to required personnel on site;
o Monitor the situation and Inform to BAMIN Management regarding the emergency
conditions and actions taken.
 Legal
o Provide legal advice to personnel involved in emergency response;
o Provide legal advice on information to be sent to governmental agencies, prepared
considering the area involved in emergency and appropriate for the area of
communications;
o Maintain contact with the prosecutor, when necessary.
 External Relations and Spokesperson
o Contact and meet communities directly affected by the accident, when necessary;
o Contact with the media, when necessary;
o Contact governmental agencies in situations in which it is necessary.
 Health and Safety
598 / 783
o Ensure that systems are in place to minimize the likelihood of emergencies and the
severity of associated outcomes and consequences;
o Periodically review additional operational controls that can be used to prevent
environmental emergency situations and major incidents from occurring;
o Ensure adequate training in Emergency Response Procedures is conducted
according to the plan;
o Ensure emergency simulations are periodically organized and held to test
emergency readiness and responses for each scenario at BAMIN operation;
o Ensure adequate emergency equipment is available for use as appropriate by staff
and regularly review, in consultation with the operational area;
 Environment
o Conduct the environmental assessment of areas affected by the emergency, taking
into account the impact on the different compartments (physical, biotic and
anthropic);
o Prevent and/or eliminate pollution, focusing on actions to be taken by operational
areas;
o Monitor and, when prompted, provide the necessary information to representatives
of environmental agencies during and after the emergency.
 Medical Department
o Provide first aid to victims;
o Alert health institutions (hospitals and clinics) to be ready in case they receive
casualties;
o Refer the victim to the hospital if necessary;
o Advice teams involved in the emergency and to provide medical care to victims;
o Provide guidance to clinics/hospitals and to special care, especially in accidents
involving toxic and poisonous animals/wild.
 Construction/ Operation
o Provide resources (equipment & operator) for the emergency to be handled
immediately upon request.
o Ensure all relevant construction employees are adequately trained in Emergency
Response within their area;
 Operations Area (by BAMIN)
o Ensure all relevant employees are adequately trained in Emergency Response
within their area;
o Ensure that systems within their area, equipment and procedures are in place to
minimize the likelihood of emergency incidents and the severity of associated
outcomes and consequences;
o Upon consultation with Health and Safety department, regularly review the
Emergency Response Plan and Procedures;
o Arrange whatever is necessary to support emergency handling and provide support
for the Emergency Response Team.
 Procurement
o Provide conditions for acquisition and provision of resources for emergency
handling immediately upon request by Coordinator.
599 / 783
ECT EXECU
UTION PLAN
 Security
o hen needed, contact exte
Wh ernal institution such as the, Police;
o Su
upport the handling of the
e property afffected and/or lost;
o Su
upport the tea
ams and Fire
e Brigade in case
c of fores
st fires or maassive fire;
o Acct in emergenncies involvi ng automob
bile accidents
s that occur on Roads, Industrial
Areeas and in th
he Urban Areeas;
o Co
ontrol the en
ntry or movvement of personnel
p an
nd vehicles in the area
a of the
occcurrence;
o Iso
olate and eva
acuate areass as determin
ned by the Coordinator;
o Pre equipment and materials
eserve the safety of e s transporteed, during and
a after
em
mergency han
ndling.
15.10
0 OPER
RATION READINESS
15.10.1 Training Plan

P
BAMIN’ss Plant Ope erations Mannagement w will develop the

t operation team mobbilization pla
an and a
training program fo or this team, in accordaance with thhe operating
g manual annd other infformation
compiledd for the pha
ases of mechhanical comp
pletion and co
ommissioning.
In this trraining, the fo

ollowing will be presented
d to the operrating team:
 The checklists and reco

ord forms to be used for the commiss
sioning impleementation.
 The techn nical docummentation of engineering g and equipment and systems suppliers,
s
including operation
o manuals of all e
equipment an
nd systems.
 The record
ds produced during the co
old commiss
sioning.
 The lists off components, equipmen
nt, subsystem
ms and systems.
 The complete list of spare
s parts p
purchased and
a made av
vailable in thhe warehous
se of the
plant, duly checked and
d stored.
CM contracttor will develop a data b ook with the

The EPC e plant opera
ating manualls, and the operation
o
and maintenance ma
anuals of equuipment sup pliers.
The train
ning prepara plementation will be cond
ation and imp ducted by BA
AMIN.
15.10.2 Commissiioning Plan

nning
The com mmissioning g planning (Figure

( 3.1) activities will
w be deve eloped takinng into account the
requirem
ments and EPCM E specifications, wiith the participation of BAMIN and in accordance with
current legislation, to
o ensure an efficient
e startt of commerc
cial operation
n of the plantt.
Commisssioning detaailed planningg will be devveloped in ac

ccordance with the contraactual milesttones set
out in the PdF Projecct Master Sc
chedule.
The folllowing conssiderations should

s be ttaken into account
a in the planningg and exec
cution of
commisssioning activvities:
BAMIN – P
PdF Project BFS
S, August 2016
600 / 783
 Compliance of engineering interfaces with the construction methodologies and

commissioning tasks.
 The interface commissioning with construction, in regards the mechanical completion dates
and delivery systems dates to commissioning.
 Contractual and legal requirements related to HSE.
 The planning of the commissioning activities will include at least the following activities:
 Preparation of a sequential plan for equipment / systems testing and operation after
construction completion.
 Design verification to ensure that systems are secure and operational, individually and
collectively.
 Ensuring that control software applications have been properly designed for start-up plan.
 Consolidation of testing procedures for commissioning.
 Preparation of operating manuals.
 Preparation of commissioning procedures for PdF Project that comply with the requirements
of BAMIN.
 Requirements verification: spare parts, lubricants, chemicals products and other
consumables.
 Procedures preparation of for cleaning systems, use of acids, lubricants and plant protection
against contamination, corrosion or other deterioration.
 Where necessary, ensure that pressurized equipment have been registered and/or certified
with the competent authorities.
 Plan preparation for the transfer of equipment/system by commissioning team to BAMIN
operation team, with the formal acceptance of both.
601 / 783
ECT EXECU
UTION PLAN
Figure 1
15.18 – Com
mmissioning
g Process
The plaanning of th he commiss sioning impllementation should be developed,, and conducted in

accordance with the BAMIN proc cedures. A ccomplete list of commissio
oning proceddures and de
escription
can be ffound in the Appendix
A 15.8 – PL-0000 0-G-105.
15.10.3 Commissiioning Stra

ategy
The straategy for commmissioning will be the use of senio or profession

nals, with deefined responnsibilities
available resources for im
and all a mplementatio
on of activitie
es, according
g to the plannning and the
e detailed
schedulee.
The com
mpliance withh health, saffety and envvironment re equirements will be the pprimary facto
or for the
development of the work,
w ensurin
ng the physiccal integrity of
o the team involved in coommissionin
ng.
The Commissioning g Manager anda his teamm, together with a speccialized com pany to work in the
commisssion will support the no lo
oad (cold co mmissioning
g) and load (h
hot commisssioning) testin
ng, noise
and alig
gnments verification, as well
w as mon nitoring and equipment
e operation
o reccords during its initial
operatio
on.
15.10.4 No Load Testing/

T Co
old Commissioning
After alll individual equipment has been cchecked for construction n completionn and readiiness for
operatioon, all powereed equipmen
nt will be sta
arted up and run for some hours deppending on ty ype. This
`no-loadd `operation is expectedd to expose e constructioon flaws suc ch as misallignments le eading to
vibration
n, abnormal noise, hot be
earings, non n-functioning interlocks and other irreegularities. These
T will
BAMIN – P
PdF Project BFS
S, August 2016
602 / 783
all be corrected before a second `no-load` phase. Water Circulation is introduced and maintained for
some hours to expose leaks, power draws and the same irregularities that might re-appear under
lightly loaded conditions. When all equipment has been shown to be ready for integrated `load testing`
and processing of ore, the plant will be handed over to BAMIN personnel.
15.10.5 Load Testing/Hot Commissioning
Load Testing will be controlled by BAMIN Construction and Operational personnel with the support of
EPCM contractors and where necessary technical personnel from the equipment suppliers.
Loading will be commenced by running the crushing circuit at its minimum operation rate initially, until
the stockpile is partially full but leaving some feeders uncovered, thereby able to provide a steady
feed at reduced rate of say 20% to the downstream circuits from at least two feeders, while providing
for modifications if shown to be necessary. It is especially important that when feed is taken to the
downstream circuits the ore will flow properly through the chutes to the feeders and no bridging will
take place over the chutes. Design of stockpiles and extraction arrangements would have been sub-
contracted by the EPCM contractor to specialists. When it is shown that the stockpile will function
satisfactorily at design moisture content from two feeders and from minimum to maximum stockpile
height on the feeders without bridging, the crushing and stockpiling rate can be stepped up
progressively as required by the demand from the downstream circuits.
For all downstream circuits load would be increased progressively from 20% for some days to allow
the downstream circuits to be integrated and synchronized at that particular rate. This would require
operators to check and regulate settings on control instruments and to experience and define the
residence times and reagents necessary in magnetic separation, flotation, etc to optimize the process
recovery. Where the practice in precious and base metals is to feed lower grade ores to avoid losses
from low initial recoveries, iron ore circuits must be fed with higher grade ores to meet the more
stringent concentrates products grades under the initial lower recoveries. Failing to achieve
commercial grades would require re-processing of the concentrates with the obvious loss of
production and increased costs.
Beyond the numbers planned for Operations, BAMIN will bring in an additional five skilled, hands on,
operations consultants per shift for a six-month period commencing with Commissioning under load.
These contractors will be tasked with helping to train BAMIN’s new Operations personnel in running
the new equipment professionally with the goal of coming to 100% operation as quickly as possible.
Around 50,000 tonnes of itabirite material will be made available by the mine three months before the
formally agreed start-up date (production ramp-up start date) to commission the itabirite circuit
(sufficient for a nearly 24 hours testing cycle once the ball mill is started). For the DSO circuit, another
50,000 tonnes of any material (waste preferably), will also be available.
15.10.6 Acceptance Criteria / Performance Testing
Handover activities will be executed and performed as planned, and will be recorded to keep the
traceability of deliveries. The Operational Team is responsible for receiving the deliverables, ensuring
compliance with requirements, acceptance criteria, and strategies defined in PdF Project. The
Owners Project Director, by means of the Operational Readiness Team, will ensure that all handovers
are formalized by acceptance certificates.
603 / 783
This phase will be achieved after the implementation of all phases of load testing, as defined in the
procedures and commissioning manuals and after interconnection with each operating system.
15.10.6.1 Continuous operation
Continuous operation is to maintain operation of a system, part of a system or equipment, operating

conditions, continuously, for a minimum of twelve (12) hours within the predetermined operation
target.
However, the acceptance will only be formalized through the commitment from the supplier to correct
the deficiency in the scheduled date.
15.10.6.2 Final Acceptance
The final acceptance is the Formal Accept by BAMIN that the equipment and systems met the
specified performance requirements and that suppliers and contractors have fulfilled their contractual
obligations excepting only the remaining contractual guarantees.
15.10.6.3 Final Acceptance Certificate (FAC)
After the issue of Commissioning Completion Report BAMIN to carry out the technical inspection and,
on that basis, will issue the term to certify acceptance, provisional or final services.
If the technical inspection conducted by BAMIN verify the satisfaction of reception conditions in
accordance with the provisions of the contract, the services will be considered completed, and BAMIN
issue the Final Acceptance Certificate(FAC).
However, if the technical inspection conducted by BAMIN, identifies the need for making any
adjustments and / or repairs to the suppliers / contractors, the BAMIN issue the Provisional
Acceptance Certificate - PAC, which lists the pending issues to be solved by suppliers / contractors
under supervision of EPCM contractor.
Once solved the pending issues, the BAMIN will issue the Final Acceptance Certificate.
15.10.6.4 Performance Testing
After installation, systems or components of the plant that do not reach their specified performance
require corrective actions by their manufacturers, and its solution must not impact subsequent
operations.
Performance tests should be completed before the equipment warranty expiration, thus ensuring that
the specified production is achieved and the technical integrity and security are maintained in the
delivery of the plant for operation.
15.10.7 Handover to Operations
Handover to Operations will only take place when Construction Completion certificates have been
accepted by the Owner’s Team. These are often conditional on the completion of outstanding `punch
lists` directly associated with the Scope of Work.
Where changes have to be made due to contractor error then the Owner’s Team will ensure that
604 / 783
ECT EXECU
UTION PLAN
these errrors are corrrected within the scope o

of wok no exttra cost to BA
AMIN.
The maiin Handover deliverables

s are defined below.
 Manuals
 Engineerin
ng Deliverables
 Contracts and
a Guaranttees
 on and erection documen
Constructio nts
 Equipmentt manufacturrers and supp
plier’s docum
ments
 Commissio
oned systems
 Peripheral systems
 Warehouse
e
 Excess con
nstruction ma
aterial
 Laboratorie
es
 Mobile equ
uipment
 Railways
 Software
Ramp up of producttion will be th he responsibbility of the Operations

O grroups in the Mine, Proce
ess Plant,
Utilities, Infrastructurre Facilities, Rail and Po
ort. They will be supporteed by the Prroject Ownerr’s Team,
EPCM, C Constructionn Contractor staff as requ uired and com mmissioning engineers frrom the supppliers.
15.11
1 PROJJECT CO
ONCLUSION
The projject conclusion process is defined byy the formal delivery
d of th
he approved scope, comm mitments
and the documenta ation elabora
ated during tthe project life cycle. Thus,
T projectt conclusion process
doesn´t involve the preparation of new docu uments, in faact it includess the collectiion, organiza
ation and
transfere
ence of the documentatio
d on accordingg to procedurres defined by b the Projecct Team.
15.11.1 Lessons Learned

L an
nd Practice
es
The Ow wner’s Projecct Director shall

s ensure that all less
sons and prractices learnned identifie
ed during
Project lifecycle havve been duly recorded and made available.
a Su uch file shaall be based on data
d and assesssed by Project team
collected
As the commission ning is comp

pleted, the equipment and
a systemss are formaally handed over for
operatio he handover commission
on through th ning system, therefore, closing
c the cconstruction phase of
the Proje
ect.
After thiis step, equuipment and system perrformance te ests begin with
w processs feeding, under the
responsibility of the operational team, with th o the assembler, the maanufacturer / supplier,
he support of
the commissioning coordinator
c and
a Operation nal Readinesss team.
15.11.2 Project Cllose-Out E

Evaluation
In this sstep the perrformance off equipment and system ed, and achiievement of goals of
ms is checke
BAMIN – P
PdF Project BFS
S, August 2016
605 / 783
operability, health and safety, environment, quality, etc. is assured, as prerequisites for the supply
procurement phase, for evaluation and verification of the specific performance agreed between the
parties, and for releasing of the respective percentage of the contractors’ payment.
Whenever possible, the performance test shall be done on a per system basis and as soon as the
handover process had been initiated.
15.11.3 De-commissioning of Temporary facilities
At the end of the project implementation, temporary facilities will be fully demobilized; however, some
facilities may remain throughout the period of assisted operations and possibly, to meet some
warranty clause demands referred in the contract.
15.11.4 Buildings
Some of the BAMIN´s construction facilities and support offices / buildings will either be maintained
for the operations phase or closed up and kept for future work phases, or even for other objectives
formally agreed between BAMIN and the EPCM contractor.
All contractors’ and suppliers’ facilities and support offices / buildings will be demobilized, unless
otherwise requested and or agreement between the local authorities and BAMIN legal
representatives, since guaranteed the full functionalities of the main business objectives.
15.11.5 Utilities
All utilities built on under provisional basis and deemed by BAMIN as no longer necessary to the
Project will be demobilized.
15.11.6 Infrastructure
The entire Project temporary infrastructure – temporary roads, drains, etc., will be demobilized.
606 / 783

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Chapterr 15 – PROJE

Schedulles, critical processes,

 pe with 10 MTPA hemaatite (DSO) plus an

15.2.2 Project Characterization

Table 15.1 – Main Milestones

Activity Name Date

BFS Report Pre Approval Jun, 2017

Shareholders’ Approval Jul, 2017

Construction Start – Plant Nov, 2017

Construction Start – Port Jul, 2017

Mechanical Completion – Plant Dec, 2019

Mechanical Completion – Port Apr, 2020

Start-up – Plant Apr, 2020

Start-up – Port Aug, 2020

SSEE – Electric Power Supply System Completion Jul, 2019

SSAI – Industrial Water Supply Completion Jul, 2019

 All installation licenses remain in place on the basis planned;

BAMIN – PdF Project BFS, August 2016

 Key memb bers of the Project

 The Mine site

For further details, refer to “Chapter 11 – Port Terminal”.

15.3.2 Area 1: Mine

15.3.3 Area 211: Primary Crushing

15.3.3.1 Hematite Plant

15.3.3.2 Itabirite Plant

BAMIN – PdF Project BFS, August 2016

15.3.4 Area 213: Screening

15.3.4.1 Hematite Plant

15.3.4.2 Itabirite Plant

15.3.5 Area 212: Secondary and Tertiary Crushing

15.3.5.1 Hematite Plant

15.3.5.2 Itabirite Plant

A Secondary Substation will be required and installed.

15.3.6 Area 215: Homogenization Yard

BAMIN – PdF Project BFS, August 2016

using a diverter gate prior to the stacking system.

15.3.7 Area 215: Fine Transport

A Secondary Substation will be required and installed.

15.3.8 Area 216: Grinding

A Secondary Substation will be required and installed.

15.3.9 Area 221: High Frequency Screening and Desliming

BAMIN – PdF Project BFS, August 2016

A Secondary Substation will be required and installed.

15.3.10 Area 222: Magnetic Separation

15.3.11 Area 223: Flotation

A Secondary Substation will be required and installed.

15.3.12 Area 224: Concentrate Thickening

15.3.13 Area 225: Slimes Thickening

BAMIN – PdF Project BFS, August 2016

be addressed to the recovered water tank.

15.3.14 Area 226: Reagents Preparation and Distribution

15.3.15 Area 227: Concentrate Pumping System

15.3.16 Area 230: Railway Terminal

A Secondary Substation will be required and installed.

15.3.17 Area 231: Filtering

A Secondary Substation will be required and installed.

15.3.18 Area 232: Stockyard and Loading

15.3.18.1 Hematite Plant

BAMIN – PdF Project BFS, August 2016

15.3.18.2 Itabirite Plant

15.3.19 Area 233: Railway Loop

The Railcar Loading System includes the installation of Belt Conveyor.