Voisey s Bay Project Supplier Participation Opportunities

Transcription

1 Slide 1 Voisey s Bay Project Supplier Participation Opportunities Slide 2 This presentation will include projections and other forward-looking statements. While these projections and other statements represent our best current judgment, they are subject to risks and uncertainties that could cause actual results to vary, including the risk factors identified in Inco Limited s filings with the U.S. SEC.

2 Slide 3 Presentation Outline Project Overview and 2002 Update 2003 Activities Procurement Approach Construction and Supply Opportunities Summary Slide 4 Project Components Mine, Concentrator and Support Infrastructure Underground Exploration Demonstration Hydromet Facility Labrador Voisey s Bay Nickel Conc. To Market Copper Conc. Commercial Hydromet Facility Innovation Centre Newfoundland Argentia St. John s

3 Slide 5 Mine & Concentrator Capital cost ~ $710 million Construction will accelerate in 2003 Construction employment over 500 Scheduled for completion and first concentrate production in 2006 Create 400 direct jobs when operational Underground mining Slide 6 Support Infrastructure Diesel Power Generation & Distribution Roads & Airstrip Port Fuel Storage Accommodation Complex Services & Storage Buildings Concentrator Complex Communications Systems

4 Slide 7 Concentrator Complex Camp Pond Ovoid - Mine Mill-Ovoid-C.pan Overburden Storage Waste Rock Storage Slide 8 Mine & Concentrator Construction Schedule Bankable Feasibility Study First Shipment 1 July O N D J J J J J J M A M J F M A M A S O N D J F M A M A S O N D J F M A M A S O N D J F J J Weather Window Weather Window Weather Window Engineering Basic Engineering Detailed Engineering Follow-up Engineering Procurement Procurement Equipment & Bulks Construction Construction Contracts Mill Site Mill Installation & Site Construction Mine Site Mine Site Construction Port Port Construction Other Construction Other Construction Commissioning, Ramp-Up & Initial Operations Commissioning & Ramp Up Initial Operations

5 Slide Mine & Concentrator Work Program 12 contracts awarded valued at approximately $30 million Camp preparation began late June Barges arrived in August Civil construction began late August and wrapped up in mid-december Slide 10 Anaktalak Bay ROAD TO MINESITE PORT SITE CAMP EDWARDS COVE OLD JOE ANAKTALAK BAY

6 Slide 11 Edwards Cove Camp Slide 12 Mine Site Access Road

7 Slide 13 Barge at Temporary Dock Slide 14 First Flight on New Airstrip

8 Slide 15 Construction Camp Dec 2002 Slide 16 Underground Exploration $95 million overall exploration program First phase $20 million over four years Second phase during operations

9 Slide 17 Concentrate Processing Facilities Phased Approach Hydromet R&D Program Mini-Pilot Plant Demonstration Plant Commercial Hydromet Plant North-side Argentia Slide 18 Hydromet Development Schedule Years Mini-pilot Plant Design, Construction & Operation Demonstration Plant Site Preparation & Environmental Studies July 2006 Design, Construction & Commissioning Demo Plant Operation Commercial Plant Feasibility Study & Mobilization Design, Construction & Commissioning Commercial Plant Startup

10 Slide 19 Hydromet R&D Program Mini-Pilot Plant at Sheridan Park Building acquired Design nearing completion Demonstration Plant at Argentia Environmental baseline studies Site due diligence Environmental registration Begin work on temporary Project Office Site assessment studies Slide 20 Innovation Centre $20 million commitment $10 million capital $10 million towards operating costs Space planning initiated in September 2002

11 Slide A Year of Challenges and Accomplishments Successfully completed multi-party agreements Impacts and Benefits Agreements Definitive Agreements Expanded construction support capacity at mine site Installed preliminary site infrastructure Initiated hydromet R&D program Cleared environmental assessment for demonstration plant Completed space planning for Inco Innovation Centre Achieved employment and benefits objectives Successfully negotiated collective agreement with RDC Slide 22 Looking Ahead to 2003 Mine and Concentrator Complete Bankable Feasibility Study Establish procurement and engineering office Initiate training programs Implement 2003 Work Plan Expand camp and site facilities Continue civil construction activities earthworks, infrastructure Begin concentrator building construction Expand fuel storage capacity Finalize bid packages for support services, off-the-shelf equipment purchases and the design/engineering of facilities and equipment

12 Slide 23 Looking Ahead to 2003 Processing Construct Office/Warehouse at Argentia Establish Project Office at Argentia Initiate engineering site assessment studies Complete construction of Mini-Pilot Plant Innovation Centre Begin detailed engineering Begin renovations of Thompson Centre Slide 24 Procurement Approach

13 Slide 25 Contracting Strategy 2002 VBNC Owner ITSL Project Manager SNC Lavalin EPCM EPCM Construction Services Camp Services Support Services Slide 26 Guiding Principles For qualified provincial suppliers VBNC will provide full and fair opportunity and first consideration to participate in all phases of the project Our activities in Labrador are subject to IBA commitments requiring VBNC to Promote use of Innu and Inuit Businesses Encourage and facilitate development of Innu and Inuit business expertise, skills and capacity Adjacency Principle Applies only to project activities in Labrador First consideration given to other Labrador businesses once IBA commitments have been met

14 Slide 27 Enhancing Opportunities Strengthen provincial supplier base capability to ensure competitiveness Identify supply capabilities Encourage joint ventures to enhance capacity Require contractors to adhere to VBNC principles Make all potential bidders aware of provincial construction, fabrication and assembly services Require, where possible, bidders utilize qualified competitive facilities Slide 28 Procurement Process Objective Maintain integrity of Project budget & schedule Ensure Project is competitive Process Pre-qualify suppliers Competitive bidding Sole source may be used

15 Slide 29 Procurement Procedures Pre-qualify on commercial and technical attributes Issue RFQ to pre-qualified suppliers Technical and commercial evaluation Bid debrief upon request Slide 30 Evaluation Criteria Knowledge, appreciation and understanding of scope of work Experience, competence and ability to meet technical specification Cost Continuity of supply Ability to manage, perform and complete on schedule Safety, security, QA programs Level, nature and location of provincial benefits Ability to work with VBNC

16 Slide 31 Construction and Supply Opportunities Slide 32 Procurement Categories Construction Materials and Services Equipment Consumables Support Services

17 Slide 33 Quadrem E-commerce tool being used by worldwide mining companies Standardized catalogue, electronic auctions, electronic request for quotes (e-rfq) Reduction of transaction cost Provide provincial suppliers access to potential new markets Slide 34 Vendor Registration Company key information Business Gross revenues and employment levels Innu or Inuit business Joint ventures Quality program Products and services

18 Slide 35 Procurement Summary Suppliers should register with VBNC The mine/concentrator BFS will provide the direction required to initiate detailed engineering and procurement activities Suppliers should regularly review VBNC website for project and supply opportunity updates at Please communicate your concerns and suggestions to: Philip Bursey: Slide 36 Project Summary Mine Mine and and Concentrator Concentrator Construction Construction Inco Inco Innovation Innovation Centre Centre Development Development Processing Processing Facilities Facilities Construction Construction Project $2.9 $2.9 billion billion capital capital 76,000 76,000 p.y. p.y. employment employment $11 $11 billion billion impact impact on on GDP GDP Mine Mine and and Concentrator Concentrator Operations Operations Inco Inco Innovation Innovation Centre Centre Operations Operations Processing Processing Operations Operations

19 Slide 37 Questions