I am a Miner
Q: We have signed a major iron ore concession in west Africa. Development will be phased, initially 5 MTPA, rising in phase two to 15 MTPA. The site is 150 miles inland, with no existing transport/communications infrastructure. There is also no logical port available, either for the development logistics or the subsequent production over a 40 year life-cycle. We are also in deep and as yet inconclusive discussions with our EPC about the fundamental question of whether to build on a stick or a modular basis. There have been various high-profile cases recently of major mining developments being delayed by problems in the logistics and supply chain, causing the project to run late and incur substantial budget overspend. Our senior management (at Board level) is very concerned that we don’t face the same problems, and our CEO does not want to have to explain to shareholders and analysts that we are running 12 months late and USD 500M over budget. We need a root and branch review covering the total life-cycle of the project that will identify and eliminate at source all potential weaknesses in our methods, contractors’ methods, budgets and project management systems. Above all, we want the review to be totally independent. The advice we are receiving so far is from our potential contractors and they are all “recommending” methods that seem to suit them and not necessarily us.
Q: We operate our own fleet of period, trip and owned tonnage from handy to capesize and have a great deal of in-house expertise in bulk, but need help with our project cargoes as we do not have our own specialists in this trade. Next year we will be busy with 16 new locos for Australia, a ship-loader of 1750 tonnes for Canada, and a 7000 tonne dragline for Brazil. Sometimes we contract a forwarder, and sometimes we fix direct with the heavylift carriers. Our last loco shipment was not a success, the vessel was late, did not stick to schedule, there were loading (MWS) issues and heavy detention charges at the discharge port. Can you review our options, budgets and contracts and help us to guarantee reliable service at the budgeted cost?