11013-0A CCM Pipe Storage Facility

PRELIMINARY FEASIBILITY REPORTFEL-2

Copper Cliff MineCCM Pipe Storage Facility

11013-0A

Preparedby

Name Name

Name

December 23, 2011

Vale

Central EngineeringCopper Cliff, Ontario

11013-0A CCM Pipe Storage Facility

Background

10ft long pipe bundles are off loaded at the shaft station, where the current practiceis to store them along the main drift walls. They are stored here until they are required byoperations at which time they are loaded onto scissor lift trucks (S/L) to be delivered to thework site. 20ft long pipe bundles are trucked down via the ramps.

An 079 report #055971, was filled out after an incident occurred while loading pipebundles onto the S/L using a forklift. The follow up investigation recommended that thepractice of using a forklift to load a S/L was to stop immediately and that a pipe storagefacility be established complete with a certified lifting device system ( jib crane and electrichoist ).

Not providing the storage facility as recommended in the 079 report could result inmajor damage to equipment and has the potential to cause serious injury or even result in afatality. Three storage facility options were investigated, one option re-uses an existingexcavation while the 2 other options require “new” excavations be driven.

Summary of Options

Common to all 3 options:ω provides storage for pipe lengths up to 20ft long.ω forklifts will be used to transfer pipe bundles to and from the storage racks or

laydown area.ω for frequently used pipe sizes a roll-out storage rack will be located within the span

of the jib crane for quick retrieval and loading.

Option 1: Pipe Storage Facility ( dwg. 11013-0A-001 )

Pipe bundles are off loaded at the shaft station, picked up by boom truck andtransferred to the pipe “storage facility” located further down the level towards the mineworkings. Multiple storage racks, for permanent pipe storage, will be situated along theperimeter walls along with a 3Ton jib crane and electric hoist. When required, pipe(s) willbe hoisted from the laydown area or adjacent storage rack onto a S/L and trucked to sitefor construction.Approximate size 35ft x 71ft x 20ft high.

Estimated cost $ 762,000.

Advantages of this option are:a) only one excavation is required.b) using a jib crane to load the S/L satisfies the recommendations as outlined in theincident report.c) can be located close to mine workings and / or electrical switchroom.

Disadvantages of this option are:a) pipes off-loaded at the shaft station remain in the main drift until completelymoved into the pipe “storage facility”.

11013-0A CCM Pipe Storage Facilityb) a ‘new’ excavation is required c/w reinforced concrete floor, ground support( bolting screening shotcrete), lighting, electrical service, and jib crane.

Option 2: Pipe Transfer Station with Pipe Storage Facility (dwgs. 11013-0A-002 and 003 )

One pipe “transfer station” located in close proximity to the shaft ( before the end ofrails ). A pipe rack and laydown area will be provided along the perimeter walls, fortemporary pipe holding, along with a 3Ton jib crane and electric hoist.Approximate size 30ft x 76ft x 20ft high.

One pipe “storage facility” located further down the level towards the mine workings.Multiple storage racks, for permanent pipe storage, will be situated along the perimeterwalls, along with a 3Ton jib crane and electric hoist.Approximate size 30ft x 76ft x 20ft high.

Pipe bundles will be off loaded at the station on rail cars. The bundles will then bemoved off of the rail car, using a forklift, and placed temporarily into the pipe “transferstation”. From here the pipe(s) either from the rack or from the laydown area will be hoistedonto a S/L and trucked to the pipe “storage facility” for permanent storage. The pipe(s) willthen be hoisted off of the S/L and put on the storage racks. When required, pipe(s) from the“storage facility” will be hoisted from the laydown area or adjacent storage rack onto a S/Land trucked to site for construction.Estimated cost $ 1,400,000.

Advantages of this option are:a) pipes bundles, on rail cars, are off-loaded at the shaft station and can be movedinto the “transfer station” quickly keeping the main drift area clear. This is goodhouse keeping practice.b) using a jib crane to load the S/L satisfies the recommendations as outlined in the079 incident report.c) the “transfer station” could be used as short term storage as there is onepermanent storage rack located within.d) can be located close to mine workings and / or electrical switchroom.

Disadvantages of this option are:a) 2 ‘new’ excavations are required each c/w reinforced concrete floor, groundsupport ( bolting screening shotcrete), lighting, electrical service, and jib crane.b) pipe bundles would have to be handled multiple times before getting to the worksite.

Option 3: Re-use Existing 114 Storage Excavation ( dwg. 11013-0A-004 )

Pipe bundles will be off loaded at the shaft station and transferred via forklift to theexisting 114 storage excavation to be used as the pipe “storage facility”. Multiple storageracks, for permanent pipe storage, will be situated along the perimeter walls along with a3Ton jib crane and electric chain hoist. When required, pipe(s) will be hoisted from thelaydown area or adjacent storage rack onto a S/L and trucked to site for construction.Approximate size 23ft. x 104ft. x 17.5 ft high.

Estimated cost $ 535,000.

11013-0A CCM Pipe Storage FacilityAdvantages of this option are:

a) re-use of an existing excavation c/w ground support, lighting and electricalservices.b) using a jib crane to load the scissor lift (S/L) satisfies the recommendations asoutlined in the 079 incident report. c) located in close proximity to the shaft andelectrical switchroom.

Disadvantages of this option are:a) pipes off-loaded at the shaft station remain in the main drift until completelytransferred to the “storage facility”.

Recommendation

Option 3 re-using the existing 114 storage excavation on 2600L has been identifiedas the recommended option to use. Pipe bundles would be transferred via forklift or timbertruck to the existing 114 storage facility. Having one facility makes sense logistically as itreduces excessive handling of the pipe bundles underground.

There is great savings in both cost and construction time using the existing 114storage excavation versus going with options 1 or 2 of which both require ‘new’excavation(s), reinforced concrete floors, ground support, shotcrete, lighting, electricalservices and jib crane(s). In option 3 there will be some work required to satisfy the power /lighting needs, to re-condition the ground support and similar to options 1 & 2 a reinforcedconcrete floor will need to be poured. All work required is outlined in the following Scope ofWork.

Details of Options

GeneralProvide all necessary labour, materials, equipment and services required to perform thework for the Pipe Storage Facility as indicated by the specifications, drawings and thescope of work.

Option 1 (dwg. 11013-0A-001) - Work Includes

Removalsω Excavate approx. 35ft. x 71ft. as indicated on project drawing

Civilω Supply and install concrete formworkω Supply and install floor reinforcing steelω Supply and install min. 6” sloped concrete floorω Supply and install ground support ( bolting screening and shotcrete)ω Install compacted mine rock at cutout entrance, sloped up to concrete floor

Mechanicalω Supply and install 3T jib crane – 18ft. span c/w 180 degree power rotation.

“Motivation” style ‘BQ’ or Vale approved equal

11013-0A CCM Pipe Storage Facilityω Supply and install motorized trolley and 3T electric chain hoist – pendant controlω Supply and install heavy duty cantilevered storage racksω Supply and install roll-out storage racks, “Space Saver” by Steel Storage System or

equivalent

ElectricalNote: All electrical equipment to be a minimum of NEMA 12 construction.

ω Supply and install 100A fused disconnect switch complete with 400’ of 3/C #2 teck toexcavation site.

ω Supply and install 400’ of #4/0AWG green PVC copper ground conductor toelectrical distribution rack ground bus.

ω Supply and install 30’ of #2/0AWG green PVC copper ground for bonding ofmessenger system.

ω Supply and install four point messenger support system in Pipe Storage facility andsingle point messenger support system in drift for all cable runs. Supply and installBosserman cable rings to support cables at a maximum of 5’ intervals. Refer toEngineering standard 5319-02.01.511.

ω Supply and install 600V electrical distribution rack complete with the following:o 100A non-fused local disconnect switch complete with 10’ of 3/C #2 teck to

125A splitter.o 125A, 600V, 3ph, 4wire Splitter.o One 1 ½” x ¼” x 48” Copper Ground Bus.o Size 2 starter complete with 2’ of 3 x 1C #6AWG in 1” conduit from 125A

splitter. Supply and install 50’ of 3/C #10 teck and 20’ of 4/C #12 teckcomplete with stop/start pushbutton station for exhaust fan.

o 60A fused disconnect switch complete with 3 x 1C #6AWG in 1” conduit from125A splitter. Supply and install welding receptacle complete with 20’ of 3/C#6 teck.

o Mini-Power centre with 15kVA 600-120/208V transformer. Supply and install4’ of 3 x 1C #8AWG in 1” conduit from 125A splitter. Mini-Power centrecomplete with12cct 120/208V panel board. Supply and install rack mountedweather proof receptacle and 5’ of 3/C #12 teck cable. Ground Xo with 5’ of#6AWG bare copper conductor.

ω Supply and install lighting as follows:o 6 x 150W H.P.S. Mini glow fixtures complete with 5’ cord and receptacle.

Provide 120’ of 3/C #12 teck cable between lighting receptacle and back topanelboard.

o Lighting fixtures to be supported by single-point messenger and sister hooks.ω Supply and install power to hoisting system as follows:

o 30A fused disconnect switch complete 2’ of 3/C #10 in ¾” conduit from 125Asplitter. Supply and install 50’ of 3/C #10 teck cable to hoisting system controlpanel.

11013-0A CCM Pipe Storage FacilityOption 2 (dwgs. 11013-0A-002 and 11013-0A-003) - Work Includes

Removalsω Excavate approx. 30ft. x 76ft. as indicated on project drawingω Excavate approx. 35ft. x 71ft. as indicated on project drawing

Civil ( per excavation )ω Supply and install concrete formworkω Supply and install floor reinforcing steelω Supply and install min. 6” sloped concrete floorω Supply and install ground support ( bolting screening and shotcrete)ω Install compacted mine rock at cutout entrance, sloped up to concrete floor

Mechanical ( per excavation )ω Supply and install 3T jib crane – 18ft. span c/w 180 degree power rotation.

“Motivation” style ‘BQ’ or vale approved equal.ω Supply and install motorized trolley and 3T electric chain hoist – pendant controlω Supply and install heavy duty cantilevered storage racks, as indicated on project

drawingsω Supply and install roll-out storage racks, “space saver” by Steel Storage System or

equivalent, as indicated on project drawings

Electrical (per excavation )Note: All electrical equipment to be a minimum of NEMA 12 construction.

ω Supply and install 2 x 100A fused disconnect switch complete with 400’ of 3/C #2teck to excavation site.

ω Supply and install 2 x 400’ runs of #4/0AWG green PVC copper ground conductor toeach electrical distribution rack ground bus.

ω Supply and install 2 x 30’ runs of #2/0AWG green PVC copper ground for bonding ofmessenger system.

ω Supply and install four point messenger support system in Pipe Storage and PipeTransfer Facility and single point messenger support system in drift for all cableruns. Supply and install Bosserman cable rings to support cables at a maximum of 5’intervals. Refer to Engineering standard 5319-02.01.511.

ω Supply and install 2 x 600V electrical distribution rack complete with the following:o 100A non-fused local disconnect switch complete with 10’ of 3/C #2 teck to

125A splitter.o 125A, 600V, 3ph, 4wire Splitter.o One 1 ½” x ¼” x 48” Copper Ground Bus.o Size 2 starter complete with 2’ of 3 x 1C #6AWG in 1” conduit from 125A

splitter. Supply and install 50’ of 3/C #10 teck and 20’ of 4/C #12 teckcomplete with stop/start pushbutton station for exhaust fan.

o 60A fused disconnect switch complete with 3 x 1C #6AWG in 1” conduit from125A splitter. Supply and install welding receptacle complete with 20’ of 3/C#6 teck.

11013-0A CCM Pipe Storage Facilityo Mini-Power centre with 15kVA 600-120/208V transformer. Supply and install

4’ of 3 x 1C #8AWG in 1” conduit from 125A splitter. Mini-Power centrecomplete with12cct 120/208V panel board. Supply and install rack mountedweather proof receptacle and 5’ of 3/C #12 teck cable. Ground Xo with 5’ of#6AWG bare copper conductor.

ω Supply and install lighting for the Pipe Storage and Pipe Transfer Facility as follows:o 6 x 150W H.P.S. Mini glow fixtures complete with 5’ cord and receptacle.

Provide 120’ of 3/C #12 teck cable between lighting receptacle and back topanelboard.

o Lighting fixtures to be supported by single-point messenger and sister hooks.ω Supply and install power to hoisting system for the Pipe Storage and Pipe Transfer

Facility as follows:o 30A fused disconnect switch complete 2’ of 3/C #10 in ¾” conduit from 125A

splitter. Supply and install 50’ of 3/C #10 teck cable to hoisting system controlpanel.

Option 3 (dwg. 11013-0A-004) - Work Includes

Removalsω Remove deteriorated existing ground support as required ( bolting and screening )

Civilω Supply and install concrete formworkω Supply and install floor reinforcing steelω Supply and install min. 6” sloped concrete floorω Re-condition excavation ( bolting screening and shotcrete)ω Install compacted mine rock at cutout entrance, sloped up to concrete floor

Mechanicalω Supply and install 3T jib crane – 20ft. span c/w 180 degree power rotation.

“Motivation” style ‘BQ’ or Vale approved equal.ω Supply and install “low headroom” motorized trolley and 3T electric chain hoist –

pendant control. “Chester Hoist” model ELM-3 or Vale approved equal.ω Supply and install heavy duty cantilevered storage racksω Supply and install roll-out storage racks, “space saver” by Steel Storage System or

Vale approved equal.

ElectricalNote: All electrical equipment to be a minimum of NEMA 12 construction.

ω Supply and install 100A fused disconnect switch complete with 400’ of 3/C #2 teck toexcavation site.

ω Supply and install 400’ of #4/0AWG green PVC copper ground conductor toelectrical distribution rack ground bus.

ω Supply and install 30’ of #2/0AWG green PVC copper ground for bonding ofmessenger system.

ω Supply and install four point messenger support system in Pipe Storage facility andsingle point messenger support system in drift for all cable runs. Supply and install

11013-0A CCM Pipe Storage FacilityBosserman cable rings to support cables at a maximum of 5’ intervals. Refer toEngineering standard 5319-02.01.511.

ω Supply and install 600V electrical distribution rack complete with the following:o 100A non-fused local disconnect switch complete with 10’ of 3/C #2 teck to

125A splitter.o 125A, 600V, 3ph, 4wire Splitter.o One 1 ½” x ¼” x 48” Copper Ground Bus.o Size 2 starter complete with 2’ of 3 x 1C #6AWG in 1” conduit from 125A

splitter. Supply and install 80’ of 3/C #10 teck and 40’ of 4/C #12 teckcomplete with stop/start pushbutton station for exhaust fan.

o 60A fused disconnect switch complete with 2’ of 3 x 1C #6AWG in 1” conduitfrom 125A splitter. Supply and install welding receptacle complete with 40’ of3/C #6 teck.

o Mini-Power centre with 15kVA 600-120/208V transformer. Supply and install4’ of 3 x 1C #8AWG in 1” conduit from 125A splitter. Mini-Power centrecomplete with12cct 120/208V panel board. Supply and install rack mountedweather proof receptacle and 5’ of 3/C #12 teck cable. Ground Xo with 5’ of#6AWG bare copper conductor.

ω Supply and install lighting as follows:o 10 x 150W H.P.S. Mini glow fixtures complete with 5’ cord and receptacle.

Provide 140’ of 3/C #12 teck cable between lighting receptacle and back topanelboard.

o Lighting fixtures to be supported by single-point messenger and sister hooks.ω Supply and install power to hoisting system as follows:

o 30A fused disconnect switch complete 2’ of 3/C #10 in ¾” conduit from 125Asplitter. Supply and install 80’ of 3/C #10 teck cable to hoisting system controlpanel.

Attachments

1) Estimate cost worksheet2) Drawings.

Form: E-1312C

PLANT: Copper Cliff Mine DATE ISSUED: Dec. 6, 2011

BUILDING: Underground JOB/EST: 11013-0A

PROJECT: Pipe Storage Facility ORIGINATOR: Name

MATERIAL LABOUR TOTAL

Mobilization & Demobilization $15,000 $15,000 $30,000Removals $15,000 $20,000 $35,000Mining $25,000 $55,000 $80,000Civil $40,000 $75,000 $115,000Mechanical $30,000 $30,000 $60,000Electrical $45,000 $55,000 $100,000

TOTAL DIRECT COSTS $170,000 $250,000 $420,000

Engineering DesignCivilMechanicalElectricalInstrumentation

Project ManagementConstruction Management

TOTAL ENGINEERING COSTS (15% X Direct Cost) $64,000

Commissioning/Quality Assurance $2,000

Consultant Services/NDE/Core Drilling/Etc. $0

Permits/Taxes/Fees $0

TOTAL INDIRECT COSTS $66,000

TOTAL DIRECT & INDIRECT COSTS $486,000

Project Contingencies (10%) $49,000

OVERALL PROJECT COST $535,000

Remarks/Assumptions:

VALEO.M.E. ESTIMATE COST WORKSHEET

DIRECT COST

INDIRECT COST

OPTION #3 - RE-USE EXISTING EXCAVATION FOR NEW PIPE STORAGE LOCATIONO.M.E. ESTIMATE COST (+25% to -10%)

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