Combining Project Management, Infrastructure and Mining Expertise
The Roy Hill Iron Ore Project is located in the Pilbara region of Western Australia. The project involved the delivery of a new mine and its process plant, a 344 km heavy haul railway from mine to port, a new two-berth port facility at Port Hedland. The project also encompassed all non-process infrastructure including airstrip, power, water, access roads, accommodation villages (temporary and permanent) and facilities to support ongoing operations.
The project has been designed to produce 55 million tonnes per annum of hematite as lump and fines. WSP is engaged as the Project Management Contractor, providing the full scope of assurance services to successfully deliver the project, working closely with the Roy Hill management team. A risk-based approach, high-performance team culture and quarterly forward-planning cycle underpinned our methodology.
The project used an Engineering, Procurement and Construction (EPC) form of contract, with Samsung C&T executing the mine process, rail, and port facilities, and multiple contractors undertaking the non-process infrastructure works packages. Monthly capital expenditure peaked at $400 million in August 2014 and practical completion of the EPC contract with Samsung C&T was achieved in May 2016.
Pillars for Success
Four main elements contribute to the success of the PMC role – a risk-based approach, a strong commercial management strategy, a high-performance team culture, and the adoption of full transparency with frequent communication between the team and the client.
The risk-based approach enables potential issues to be identified early so that appropriate plans and commercial positions can be discussed openly and worked through with the client, enabling effective actions to be implemented in a timely manner.
Delivering on Time and on Budget
WSP’s role involves assuring all works are delivered according to the overarching project requirements and within the agreed timeframe and budget, through testing, commissioning and handover.
As the project management contractor, we are providing services across the procurement lifecycle from contracting strategy through to contract close-out. This includes implementing robust project contract management systems where contracting, procurement and subsequent expediting and contract administration processes are audited, verified, analyzed and reported in a timely manner to minimize adverse time and cost impacts to Roy Hill.
Our team delivered the following:
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Contract superintendence and contract management
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Project controls including payments, cost forecasting, schedule updates, commodity tracking, consolidated reporting as required by financial institutions and forecasts at completion
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Health and safety, quality and environmental assurance
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Industrial relations management
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Total project reporting (daily, weekly, monthly)
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Trend and change management such as the management of contract notices, change notices and change orders
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Total project interface management
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Commissioning and handover management
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Assessment of the capability and suitability of potential contractors and subcontractors
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Review and acceptance of all Contractor project management documentation including project execution plans, project baseline schedules, project controls plans, project reporting plans, change management plans, project completion plans and associated procedures
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Facilitating the Approval Authority’s timely review of contractors technical and non-technical deliverables
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Supporting Roy Hill in the start-up of operations, maintenance and asset management philosophy, policy, strategy and objectives
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Records and document management<
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Ad hoc project management services and advocacy
Multi-award Winning Project
In 2016, the Roy Hill Iron Ore project has received several prestigious industry awards including: Project of the Year 2016 at the Project Management Institute of Australia Awards; the Biennial Railway Project Award at the Railway Society of Australasia; the Australian Excellence Award for Project Management, Australian Excellence Award for Resource Development, and Engineers’ Australia West Australian (WA) Engineering Distinction Award 2016 at the Engineers’ Australia Engineering Excellence Awards (WA); and, a High Commendation for the Collaboration category at the Consult Australia Awards.
