MINING & METALLURGY
CONEXIG has a team of professionals with vast experience in a large number of sectors in the construction and engineering industry.
In the case of the MINING sector, our experts have experience in cases related to: production, extraction, transport, and other related facilities.
We present below a series of “Case Studies” based on our experiences, which have been developed, studied and presented by some of our leaders or associate professionals during their careers.
Many more projects and additional details on the listed projects may be presented upon express request.
MINING AND STEEL – LATIN AMERICA – RISK AND MANAGEMENT CONSULTING SERVICES
The service included the performance of a Health Check review of the Program Management techniques to manage project risks for one of the, at the time, largest Latin American mining and steel producers, which were applied to manage a USD 14 billion expansion program (CAPEX). This included to identify measure, assess, mitigate and monitor their major project risks and involved the project engineering / procurement teams with specific focus on Scope management, Schedule management, Budget control and cost management, Risk and issue management, and Contract & Procurement Management. As a result of this assignment new CAPEX policies and procedures as well as revised internal controls were implemented throughout the organization.
MINING – BRAZIL – TRAFIGURA/MUBADALA INVESTMENT – GRFC
Newly acquired private port super terminal dedicated to the movement of iron ore with an initial capacity of 50 m/year. The service included a risk assessment of the contracts, developing plans and support of claims and negotiation of claims and new contracts.
Approximately US $ 200 million in claims were evaluated, obtaining a reduction of approximately 68%. To carry out the analysis of demands, an evaluation was developed on the demands derived from the interruption in construction, demobilization and demobilization of personnel. Also, there were additional costs due to changes in scope and the increase in the period to complete the work. In addition, an evaluation was conducted and supported the negotiation of contractual amendments made as a result of the claims. Finally, support was provided in the negotiation of new contracts, verification of regulatory requirements (Environmental Licenses and DUP) and support was provided in the adequacy of the project processes and procedures. Also, the critical risks for the project were reviewed and action plans were established to mitigate and/or eliminate them.
MINING – CHILE – INTERNATIONAL ARBITRATION IN MINING PROJECT – CDR
In the framework of an international arbitration dispute process in Santiago de Chile (administered by CAM-Santiago), technical expertise services were provided for an objective, autonomous and impartial assessment of the controversies of a mining company. The dispute revolved around a controversy raised by the construction contractor of the project “Supply, Construction and Assembly of 26″ steel pipe with external cladding and internally clad” with more than 150 km in length. Topics discussed included delays / deadlines on the critical path, additional direct and indirect costs, and economic damages.
MINING – CHILE – EXPERT SERVICES (COPPER) – CDR
Services included the appointment as Quantum Expert on an international arbitration proceeding run under the CAM Santiago rules, seat in Santiago-Chile as a party appointed expert. Disputes analyzed and testified upon included cost claims and productivity and delays determination in a termination for convenience case. Amounts disputed are worth over USD 30 million. Hearings were held in Spanish language.
MINING – CHILE, BRAZIL, SOUTH AFRICA – MINING (DIVERSIFIED) COMPANY – RISK, FRAUD INVESTIGATIONS AND MANAGEMENT CONSULTING SERVICES
Services included selected portions of a larger project that focused on the delivery of project assurance services directly assisting international teams in the delivery of assignments in Chile, Brazil and South Africa. This included the review of their project management practices, tools and techniques applied for the management of multi-billion-dollar brownfield expansion projects. This included areas such as cost, schedule, scope, risk, and others. Recommendations were reported to the global Audit Committee and implemented by the project teams.
MINING – SOUTH AFRICA – IRON ORE MINE EXPANSION PROJECT – INDEPENDENT MONITORING AND ADVISORY SERVICES
The expansion was for 3 million tons pa additional output for a capital Investment of R 3 billion. Services included proving support for the Board which approved additional R 350 million escalation coverage (based on Escalation Analysis conducted for the project). Services included comprehensive project management guidance consisting of business, project manager’s and project controls handbooks and the development of contract closeout framework and assistance to project team to close 350 contracts (Technical, Commercial and Financial closeout).
MINING – INTERNATIONAL ARBITRATION: DISPUTE IN TAKE OR PAY CONTRACT _ NICKEL – CDR
Expert Witness services in international arbitration proceedings, including the following: contractual diagnostic, merit assessment and quantification of claims and counterclaims, issuance of technical Expert Report, issuance of technical rebuttal Expert Report, oral testimony at hearings and cross examination.
MINING – BRAZIL – COMPANY COMPLIANCE
Services included the implementation of a Diagnostic Project to evaluate whether the company had Compliance management practices in line with good market practices. The scope of the analyses carried out included: (i) use as the basis of the work a Compliance Methodology based on 4 main areas: 1. Corporate Governance and Culture, 2. Policies, processes and procedures, 3. People and 4. Monitoring, testing and reporting; (ii) areas included- sustainability, environment and security, controllership, finance, taxation, treasury, risk and insurance, internal controls, supply and procurement, internal audit, legal, human resources, public relations, corporate governance, ethics committee, ombudsman, investor relations, planning and budgeting, IT, commercial and corporate support services; (iii) we mapped the roles and responsibilities, and conducted a gap analysis, a benchmarking exercise and others.