CONSTRUCTION

 

The construction of Vale Inco Nouvelle-Calédonie’s industrial complex will be spread over a little more than two years, that is between the middle of 2005 and the end of 2008. It is the largest project ever built at one time in New Caledonia. By the end of the project 800,000 cubic metres of soil will have been moved.

The construction of the project will include, apart from the infrastructure (the transformation plant, the ore treatment plant, and the treatment plant for the residues), the related infrastructure (port and power-station) a pipeline to supply fresh water, a conveyor belt, storage areas for mining residue, a system to dispose of neutralised effluent, decanting basins, and numerous other buildings such as the extension of the mine site built during the first phase and the installations that went with it.

A modular plant

For reasons of cost and quality the approach adopted for the construction, was to build the plant and some of the related installations in module form outside the Territory. The contract was granted to two Filipino companies who specialise in the construction of industrial modules, EEI and AG&P. The modules were therefore largely built in the Philippines, notably at Batangas, but some of the work was undertaken by companies from other countries such as Italy, Israel, Belgium, China and Germany. The first modules, mainly destined for the power station, were delivered to the site at the beginning of August 2006.

These are gigantic modules. The two storage reservoirs for heavy fuel in particular, which have a capacity of 3,350 cubic metres, are each 18 metres high, and the decanting vats can be as high as 36 metres. In order to unload these modules, an immense crane weighing 1,200 tonnes and 120 metres high was itself delivered in units from Norway and assembled on site with the help of another crane.

The modules are delivered fully equipped, complete with pipes and electrical fittings . They are installed on concrete foundations and then are connected. So the concept, construction and preparation have required work of extreme precision and great detail.

Many hundreds of specialist foreign workers, particularly from the Philippines, were necessary to undertake the assembly and construction work. The Philippines have made of the exportation of specialised manpower a national industry. These workers are experienced, fast, efficient and used to working on large-scale construction sites.

Priority for local employment

Vale Inco Nouvelle-Calédonie has nonetheless consecrated a lot of effort in order to comply with its commitment to optimise local benefits right from the beginning of construction. During the first phase, principally devoted to earthmoving and the construction of related infrastructure up to 1,600 people worked on the site of which 88 per cent were local workers and over 660 local businesses supplied their services for a contract value of some 30 billion cfp (around 300 million US dollars).

At the peak of activity, i.e. of transporting and erecting the modules on site, the construction will require the presence of over 4,000 people. The foreign workers, principally Filipinos, will be reinforcing local teams where those teams are insufficiently numerous, or in some cases insufficiently experienced, to respond to the needs of the construction and the requirements of the timetable.

The team known as Goro Construction Team (GCT) is responsible for the success of the construction project, excluding the power station which is Prony Energies’ responsibility. The equipment to be connected to the power station is also Vale Inco Nouvelle-Calédonie’s responsibility.

GORO CONSTRUCTION TEAM - GCT

This integrated group is responsible for the construction of the whole of the Vale Inco Nouvelle-Calédonie industrial complex. Goro construction team comprises three groups:

• The Vale Inco Nouvelle-Calédonie service support team
• The CEG team, an association of companies SNC-Lavalin (Canadian) and Foster Wheeler (English)
• Inco Australia Management Team (IAM)

GCT is responsible for managing the concept and the construction of the Vale Inco Nouvelle-Calédonie complex. It was responsible therefore for preparing the tender offers using the plans and quotes, and to analyse them applying rigorous criteria, and then finally allocate the contracts.

key locations involved in the project

Noumea, New Caledonia

• Project's implementation team
• Vale Inco Nouvelle-Calédonie Management Team
• Project interface management New Caledonia
• Training
• Management information
• Community relations
• Communications and public relations
• Local suppliers’ management
• A 150 staff
• Contact point

Prony Construction site, New Caledonia

• Construction activities management
• Labour and supplies management of
• Earthmoving construction and module assembly works
• 4,500 people at the height of construction
• Integration and training of teams for production phase
• 800 staff at full production

Brisbane, Australia

• Conception and Engineering *
• Preparation for approach to potential suppliers
• Management of international tenders
• Financial management
• 550 staff

* Part of the Engineering was undertaken in Thailand and in Canada

 

Batangas, Philippines *

• Construction of 400 modules
• Employment of specialised workers for on-site module assembly.

* numerous other countries have also contributed to the construction of the modules and related equipment including Italy, Israel, China, Belgium, Germany, the United States, Spain and Japan.

Procurement

Clearly a world-class project like that of Vale Inco Nouvelle-Calédonie must have rigorous standards as regards costs and material quality, equipment and services and concern for the viability of the company's suppliers. Its pool of suppliers covers the whole world. In this sense dozens of countries have been involved, at one moment or another, in the project with three bey bases; New Caledonia (Noumea and the Prony site), Australia and the Philippines.

None the less, this approach is not incompatible with the local employment priority and the calling upon local businesses to supply in those areas where they are suitably qualified, either directly or as subcontractors to large international groups. CGT is convinced that the establishment and the maintenance of efficient partnerships with individuals, companies and Caledonian authorities are determinant factors in the success of the project, from the conception of the installation for extraction and treatment at Prony right up to the start of production.

In 2004 the project team undertook a study concerning the resources that were available within Caledonian companies in order to optimise their involvement in the construction of the project. This study enabled a number of those companies to become involved. A significant percentage of contracts for the construction phase was therefore able to be attributed to local companies, either directly or through sub- contracts.

Thanks to these shared objectives and the concerted efforts made at each phase of the Vale Inco Nouvelle-Calédonie project, it can therefore advance in a way that is to the advantage of both Vale Inco Nouvelle-Calédonie and New Caledonia.

The different types of contracts

In order to respond to the different criteria in terms of efficiency, quality and local involvement, GCT divided its needs in 25 different contracts:

• Type A contracts: made-to-measure contracts which correspond to the resources of small economic units surrounding the Prony industrial site. Contracts negotiated with defined prices and for a defined period. These contracts were awarded on a competitive and non-exclusive basis.

• TYPE L contracts: made to measure contracts for Caledonian companies (resulting from the study mentioned previously). Restricted tenders (in French) launched by invitation to companies whose local resources correspondent to expressed needs. Contracts allocated according to New Caledonian law.

• Type I/L contracts: contracts subject to international tenders (in English) and for which Caledonian companies with the resources and adequate guarantees can respond directly or as declared subcontractors for an international company.

• Type I contracts: contracts subject to international tender (in English) sent only to major international groups, with an obligation to optimise local content in their offers.

• TYPE P contracts: contracts subject to the creation of a partnership with major specialized international groups who work with the project team to establish the best methods to undertake the work based on the types of contracts previously defined. Local companies can also be associated with this type of contract.

Vale Inco Nouvelle-Calédonie’s commitments during construction

Criteria applied to international contracts

Because Vale Inco Nouvelle-Calédonie made a moral commitment concerning the participation of Caledonian businesses in the construction of its project, the international tenders contained a guide defining the policy of a local content for the Vale Inco Nouvelle-Calédonie project which must be respected by companies wishing to tender. The local content could be in the form of direct employment, local suppliers, partnerships or sub contracts.

The local content was one of the key criteria for allocating contracts. Other criteria such as references in terms of health, safety, environmental protection, skill base, required guarantees and economic competitiveness were as important.

Site safety

Safety is a major preoccupation of all the teams working on the Vale Inco Nouvelle-Calédonie construction. All individuals and organisations which work on the construction site must conform to the policy and the safety rules of Vale Inco Nouvelle-Calédonie and GCT

• Contractors are obliged to apply strict safety rules on the site.
• And the failure to respect health, safety or environmental rules could be a justification to cancel the contract.
• Objective= zero accidents.

The Vale Inco Nouvelle-Calédonie in its desire to achieve coherence and efficiency also adopted an integrated policy of quality, health, security safety and environment (QHSSE).

Environmental protection

Vale Inco Nouvelle-Calédonie included in its tenders specific obligations with a view to protecting the unique environment which surrounds the construction site in such a way as to minimise impacts.

And the environmental management plan during the construction establishes operating rules and responsibilities for everyone on the construction site in such a way as to ensure the protection of the environment. These rules have been widely distributed throughout the site and their application is controlled by the project team. Other plans also apply such as those for the Protection of the bio diversity and that for the protection against the introduction of foreign species.

A presentation to sensitise people to the environmental problems is given for all visitors to the site during the initial welcoming briefing.

politique QHSSE

The mine camp

The mine camp is due to accommodate the workers who will be working on the construction site. Commenced in 2002, at the moment of the initial start-up, its construction was recommenced when the site re opened in 2005 and has gradually grown in line and with the needs for the new arrivals. In August 2006 it had a capacity to accommodate the 3500 workers who will be working on site at the peak of construction activity, i.e. towards the end of 2006 and the beginning of 2007.

It has an accommodation capacity which is constantly growing: 908 beds were operational at the beginning of August 2006. The rooms are algecos that is to say accommodation units including doors windows and electricity. Fitted to accommodate, according to needs, have one, two or three people, they are air-conditioned. Each group of accommodation units has a shower and toilet facilities at its disposition and shaded terrace areas.

The mining camp also includes a canteen serving hot and cold meals and can serve 1,500 people at a time, sports facilities (basketball football) a faré (a typically Melanesian meeting building), a bar, a gymnasium, games room and television, a library and a cyber space.

The various sporting and leisure activities are organised, depending on demand and the abilities available, as well as festivals and special events.

The mine camp is managed by the company Sodexho.