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<strong>Th<strong>is</strong></strong> <strong>is</strong> <strong>Hatch</strong> <strong>2007</strong><br />

Absolute Quality: Our Goal Always<br />

METALS • ENERGY • INFRASTRUCTURE


HATCH QUALITY<br />

The <strong>Hatch</strong> Quality Management Systems are part of <strong>Hatch</strong>’s global process to improve and expand<br />

the quality of our services to our clients. From each of our market sectors of Mining & Metals;<br />

Energy; and Infrastructure, our clients are ra<strong>is</strong>ing their expectations for quality performance,<br />

innovation and the efficient delivery of projects. It’s our goal and absolute commitment to meet<br />

our clients’ expectations. In th<strong>is</strong> <strong>is</strong>sue of <strong>Th<strong>is</strong></strong> <strong>is</strong> <strong>Hatch</strong> <strong>2007</strong>, you will read about the <strong>Hatch</strong><br />

performance for several of our most important and successful projects from across the globe.<br />

Message from the Chairman & CEO . . . . 1<br />

Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2<br />

Sustainable Development . . . . . . . . . . . . . 3<br />

MINING & METALS<br />

Non-Ferrous Metals . . . . . . . . . . . . . . . . . . 6<br />

Light Metals . . . . . . . . . . . . . . . . . . . . . . . . 8<br />

Iron & Steel . . . . . . . . . . . . . . . . . . . . . . . . 9<br />

Industrial Minerals . . . . . . . . . . . . . . . . . . 9<br />

Mining & Mineral Processing . . . . . . . . . 11<br />

PROJECT DELIVERY<br />

ENGINEERING<br />

PROCUREMENT<br />

PROJECT MANAGEMENT<br />

CONSTRUCTION MANAGEMENT<br />

ENERGY<br />

Oil & Gas . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />

Hydro & Wind Power . . . . . . . . . . . . . . . . 15<br />

Thermal/Nuclear/T&D . . . . . . . . . . . . . . . 17<br />

Industrial Projects . . . . . . . . . . . . . . . . . . 18<br />

INFRASTRUCTURE<br />

North America . . . . . . . . . . . . . . . . . . . . . 22<br />

South Africa . . . . . . . . . . . . . . . . . . . . . . . 25<br />

Asia-Pacific . . . . . . . . . . . . . . . . . . . . . . . . 26<br />

Spatial Information . . . . . . . . . . . . . . . . . 28<br />

OPERATIONS<br />

SUPPORT<br />

BUSINESS PRACTICES<br />

Operations Support . . . . . . . . . . . . . . . . . 33<br />

Systems & Process Control . . . . . . . . . . 33<br />

Technologies . . . . . . . . . . . . . . . . . . . . . . 34<br />

Environmental . . . . . . . . . . . . . . . . . . . . . 35<br />

Consulting . . . . . . . . . . . . . . . . . . . . . . . . 37<br />

BUSINESS PRACTICES<br />

SYSTEMS & PROCESS CONTROL<br />

TECHNOLOGIES<br />

CONSULTING<br />

ENVIRONMENTAL<br />

PEOPLE . . . . . . . . . . . . . . . . . . . . . . . . . . 37<br />

RECENT EPCM PROJECTS . . . . . . . . . . . 38<br />

GLOBAL OPERATIONS . . . . . . . . . . . . . . 39<br />

ANATOMY OF A PROJECT<br />

Escondida Norte & E3 . . . . . . . . . . . . . . . 41


MESSAGE FROM THE CHAIRMAN & CEO<br />

The global economy continues to perform well, and shows<br />

no evidence of slowing down. In fact, if there <strong>is</strong> any<br />

impediment to improving project and business results<br />

for our clients it <strong>is</strong> the shortage in many regions of skilled<br />

and experienced professionals and technicians.<br />

In the mining and metals sector new resources are being<br />

uncovered and developed; in energy, the burgeoning need<br />

for power at a reasonable cost must be addressed; and<br />

in the infrastructure sector most governments and corporations<br />

acknowledge that w<strong>is</strong>e investments in roads, transit<br />

and water systems must be aggressively implemented<br />

to sustain our collective growth.<br />

The extraordinary level of project activity around the world<br />

has created labour-and-equipment-shortage hotspots. In the<br />

meantime, markets for commodities have outstripped supply,<br />

resulting in never-before-seen cost pressures on major<br />

capital projects.<br />

In very busy times, delivering quality projects <strong>is</strong> paramount.<br />

The unprecedented activity in mining and metals, energy<br />

and infrastructure sectors demands careful management to<br />

ensure the highest standards of project quality are delivered<br />

to our clients. It <strong>is</strong> not enough to have a comprehensive<br />

quality-management system, as <strong>Hatch</strong> and other global firms<br />

do, we must ensure that the quality programs are cons<strong>is</strong>tently<br />

applied and regularly audited to ensure success.<br />

Delivering quality projects of course <strong>is</strong> more dependent<br />

on our people than our policies. In <strong>Hatch</strong>’s case it has<br />

been a long-term business strategy to attract, train and<br />

develop the very best people. Through our people we can<br />

and do routinely develop the best practices and project<br />

tools needed for the efficient implementation of our client<br />

programs and projects.<br />

<strong>Hatch</strong> <strong>is</strong> widely known and appreciated for its culture<br />

of learning, safety awareness, sustainability and innovation.<br />

Within that culture <strong>Hatch</strong> has created an environment that <strong>is</strong><br />

challenging and sat<strong>is</strong>fying to our employees, and motivates<br />

them as professionals to deliver quality projects to our clients.<br />

As we move forward our clients and our staff will be asked<br />

to apply their technical skills and knowledge to address<br />

such emerging <strong>is</strong>sues as Climate Change, as the world<br />

adapts to new strategic directions and preferred solutions.<br />

In the following pages, you will read of several very<br />

successful metals, energy and infrastructure projects completed<br />

or under way in all regions of the world.<br />

Our Project Delivery Group provides the resources and<br />

systems for major project development, including engineering,<br />

procurement, project and construction management, project<br />

controls, comm<strong>is</strong>sioning and startup ass<strong>is</strong>tance. PDG has<br />

maintained its excellence during these busy times despite<br />

shortages in the key components of labour and equipment.<br />

I would like to thank our employees and those of our<br />

partnerships and clients for their excellent contributions to<br />

the successful joint delivery of our many projects.<br />

Kurt Strobele<br />

Chairman and Chief Executive Officer<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

1


SAFETY<br />

Safety <strong>is</strong> our most important priority on all projects, while we’re traveling, and in every <strong>Hatch</strong><br />

and project office. We do everything humanly possible to ensure the safety of our employees,<br />

our contractors and our v<strong>is</strong>itors through frequent communications, continuous training and<br />

appropriate safety equipment.<br />

<strong>Hatch</strong> safety stat<strong>is</strong>tics for 2006<br />

indicate that <strong>Hatch</strong>’s safety<br />

performance <strong>is</strong> 10 times more<br />

successful than the mining<br />

and construction industries<br />

worldwide.<br />

For several years, <strong>Hatch</strong> has been a regular<br />

winner of Safety Awards in Australia, North<br />

America, South America and South Africa.<br />

AWARDS INCLUDE:<br />

• Employment and Training Initiative Award<br />

• National Safety Council Five-Star<br />

Health and Management Award<br />

• Work Safe Gold Certificate<br />

in joint venture<br />

• Most Effective Implementation<br />

of Safety Management Systems<br />

• Safety Effective Action Award<br />

Our safety programs and methodologies<br />

have been cited by clients<br />

as “outstanding” and “world class.”<br />

The measurement of our work hours<br />

without a lost-time incident <strong>is</strong><br />

reported in the millions of hours<br />

on several major projects.<br />

We develop safety plans that include<br />

standards, incident reports, site<br />

procedures and training details for<br />

major-project personnel, contractors<br />

and suppliers.<br />

Every major <strong>Hatch</strong> project implements<br />

the Safety Information Management<br />

System to ensure clients are fully<br />

aware, on a timely bas<strong>is</strong>, of safety<br />

program data. <strong>Hatch</strong> also <strong>is</strong>sues alerts<br />

to <strong>Hatch</strong>, client and project personnel<br />

when external events ar<strong>is</strong>e that put<br />

people at a health or safety r<strong>is</strong>k.<br />

<strong>Hatch</strong> also helps clients manage their<br />

safety and health r<strong>is</strong>ks during the<br />

engineering-design process, which<br />

can result in the elimination of many<br />

potential hazards.<br />

Nickel Rim Sets New<br />

Safety Milestone<br />

On February 19, the Xstrata Nickel Rim<br />

project surpassed a milestone of no<br />

lost-time incidents in 2 million workhours.<br />

Our project team included more than<br />

3,000 people from 319 supplier companies<br />

on site. The Nickel Rim Lost-Time<br />

Frequency rate <strong>is</strong> running at 0.17<br />

compared with Ontario-averages of<br />

0.70 and 2.33 for the mining and<br />

construction industries respectively.<br />

2


SUSTAINABLE DEVELOPMENT<br />

Modern mining, energy and infrastructure companies are sensitive to the impacts of their development<br />

and operation activities on the economy, society and environment of the local communities in which they<br />

work. <strong>Hatch</strong> fully embraces the principles and practical application of sustainability, and actively supports<br />

our clients who do the same.<br />

<strong>Hatch</strong> consults with<br />

client-project neighbours<br />

in Mandromodromata,<br />

Madagascar.<br />

Alcoa has “made significant progress<br />

against many goals…such as meeting<br />

the 25 percent reduction in greenhouse<br />

gases seven years before the 2010<br />

deadline and achieving a 50 percent<br />

reduction in landfilled waste before the<br />

<strong>2007</strong> goal.” In 2005, 2006 and <strong>2007</strong>,<br />

Alcoa was named one of the most<br />

sustainable corporations in the world.<br />

“Conduct business in a socially responsible<br />

and ethical manner…support<br />

universal human rights…protect the<br />

environment, benefit the communities<br />

where we work…learn from and<br />

respect the cultures in which we work,”<br />

The Chevron Way. Chevron has<br />

recently increased energy efficiency<br />

in its operations by 24 percent.<br />

“Our focus <strong>is</strong> on the efficient production<br />

and sale of electricity while operating<br />

in a safe, open and environmentally<br />

responsible manner…and making positive<br />

contributions to the environment,<br />

economy and communities in which<br />

we operate,” Ontario Power Generation.<br />

Two-thirds of electricity generated by<br />

OPG produces virtually no em<strong>is</strong>sions.<br />

“We are committed to sustainable<br />

development. Health, safety, environment<br />

and community responsibilities are<br />

integral to the way we do business,”<br />

BHP Billiton. The company has<br />

aboriginal employment initiatives under<br />

way in Australia, Canada, South Africa<br />

and other regions of the world.<br />

“We seek to operate a safe, healthy<br />

and non-d<strong>is</strong>criminatory workplace<br />

with progressive development<br />

opportunities; ensure a sustainable<br />

environment and operate in harmony<br />

with local communities; and operate<br />

ethically,” Xstrata Sustainable<br />

Development policy.<br />

“Improvement of social performance<br />

includes development of community<br />

consultation and engagement plans, and<br />

the creation…of partnership foundations<br />

to advance sustainable livelihoods and<br />

health and education services, including<br />

among indigenous populations,”<br />

Leigh Clifford, Chief Executive, Rio Tinto.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

3


We are an innovative<br />

organization committed<br />

to helping our clients<br />

achieve unprecedented<br />

and sustained business results.<br />

<strong>Hatch</strong> Quality Policy


METALS<br />

NON-FERROUS METALS<br />

LIGHT METALS<br />

IRON & STEEL<br />

INDUSTRIAL MINERALS<br />

MINING AND MINERAL PROCESSING


MINING & METALS<br />

NON-FERROUS METALS<br />

Ravensthorpe/Yabulu Nickel Projects<br />

<strong>Hatch</strong> <strong>is</strong> leading a joint-venture team to<br />

provide engineering, procurement, and<br />

project and construction management at<br />

both Ravensthorpe Nickel Operation in<br />

Western Australia and the Yabulu Nickel<br />

Refinery on Australia’s east coast.<br />

The Queensland Nickel (QNI) Yabulu<br />

Refinery in Australia <strong>is</strong> one of the world’s<br />

largest nickel/cobalt processing plants,<br />

and one of the few locations in the world<br />

where nickel ore <strong>is</strong> transformed to nickel<br />

metal at a single site. The Yabulu Project<br />

will double the capacity of QNI.<br />

<strong>Hatch</strong> has been providing operations<br />

and capital-project support to QNI since<br />

1999. The refinery <strong>is</strong> a world leader<br />

in nickel extraction technology, having<br />

a number of internationally patented<br />

processes including Ammoniacal Solvent<br />

Extraction (ASX), which separates nickel<br />

and cobalt. There are 30 <strong>Hatch</strong> professionals<br />

on site at QNI full-time.<br />

Ravensthorpe Nickel Operation (RNO)<br />

<strong>is</strong> a BHP Billiton mine and processing<br />

facility in development.<br />

The RNO mine and processing plant will<br />

produce up to 220,000 tonnes per annum<br />

of a mixed nickel and cobalt-hydroxide<br />

intermediate product that contains up to<br />

50,000 tpa nickel and 1,400 tpa cobalt.<br />

The intermediate product will be packaged<br />

and shipped through the Port of Esperance<br />

to Townsville, Queensland for final refining<br />

at the Yabulu Refinery.<br />

Startup of both facilities <strong>is</strong> scheduled<br />

for <strong>2007</strong>.<br />

Onça Puma Nickel Mine<br />

CVRD will mine lateritic nickel located in the<br />

Onça and Puma mountain ranges of Brazil.<br />

The ores were confirmed nearly 30<br />

years ago, and the ore body has changed<br />

hands several times.<br />

In Western Australia, <strong>Hatch</strong> provides<br />

EPCM services for the development<br />

of BHP Billiton’s Ravensthorpe<br />

Nickel Project.<br />

<strong>Hatch</strong> has full EPCM responsibility for the<br />

development of Onça Puma’s world-class<br />

laterite ore deposit in Brazil. Our Project<br />

Delivery group, with more than 4,000 staff<br />

worldwide, provides the resources and<br />

systems for engineering, procurement<br />

and project management.<br />

6


Revealed finally were mineral resources<br />

of 110 million tons of lateritic ore with<br />

first-rate nickel content. More than 500<br />

tons of ore samples were metallurgically<br />

tested and showed excellent rates for<br />

ferronickel recovery, quality and operational<br />

stability.<br />

A Feasibility Study was completed in<br />

2005 and found the deposit to be world<br />

class, and confirms the economical<br />

feasibility of the undertaking.<br />

<strong>Hatch</strong> and its Brazilian project partner<br />

started detailed engineering and consultation<br />

in 2006.<br />

The first line of the project <strong>is</strong> scheduled<br />

to begin the hot comm<strong>is</strong>sioning in<br />

November 2008.<br />

Vo<strong>is</strong>ey’s Bay Nickel Targets 2011<br />

<strong>Hatch</strong> <strong>is</strong> completing a prefeasibility study<br />

that will define the scope of Vo<strong>is</strong>ey’s Bay<br />

Nickel Company’s commercial plant in<br />

Newfoundland. Two process options are<br />

currently being evaluated, hydrometallurgical<br />

and nickel-matte refining.<br />

<strong>Hatch</strong> provided full EPCM and comm<strong>is</strong>sioning<br />

services to the client for the 1:100<br />

scale hydromet demonstration plant. The<br />

project went on to win <strong>Hatch</strong> Global’s Roy<br />

Curt<strong>is</strong> Project Excellence Award in 2005.<br />

The commercial processing facility <strong>is</strong><br />

scheduled for comm<strong>is</strong>sioning in 2011.<br />

CVRD Inco has made a major commitment<br />

to the people of Newfoundland and<br />

Labrador in terms of jobs, educational<br />

and business opportunities.<br />

<strong>Hatch</strong> <strong>is</strong> also providing engineering<br />

support to the mine/mill development in<br />

Vo<strong>is</strong>ey’s Bay, Labrador in association with<br />

Torngait Services Inc, an Inuit-owned<br />

company. VBNC has agreements with<br />

both the Innu Nation and the Labrador<br />

Inuit Association regarding development<br />

and operations of the mine/mill. These<br />

agreements provide specific industrial and<br />

<strong>Hatch</strong> provided full EPCM and comm<strong>is</strong>sioning services<br />

for Vo<strong>is</strong>ey’s Bay Nickel Company’s research and<br />

development demonstration plant in Newfoundland<br />

and Labrador.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

7


MINING & METALS<br />

employment opportunities and cover<br />

a wide range of topics including environmental<br />

protection, protection of aboriginal<br />

social and cultural values, as well as<br />

education, training and employment.<br />

The Vo<strong>is</strong>ey’s Bay project <strong>is</strong> expected<br />

to be a major contributor to the<br />

Newfoundland and Labrador economy<br />

well into the future.<br />

LIGHT METALS<br />

Alumar Refinery Expansion<br />

The Alumar Refinery <strong>is</strong> currently increasing<br />

capacity by 2.1 million metric tons per<br />

year (mtpy) of alumina to meet the world<br />

demand for aluminum products. Alumar<br />

<strong>is</strong> located in the northwest of Brazil in the<br />

state of Maranhão. The expanded refinery<br />

will have a total capacity of 3.5 million<br />

mtpy when completed in 2008. It <strong>is</strong> the<br />

largest refinery expansion in the world.<br />

<strong>Hatch</strong> <strong>is</strong> working as part of an integrated<br />

team to deliver the project. From its office<br />

in São Paulo, Brazil, <strong>Hatch</strong> <strong>is</strong> providing more<br />

than 300 people for the engineering (both<br />

office and field), procurement, and project<br />

and construction management assignments.<br />

The project <strong>is</strong> currently more than 25<br />

percent complete. To date, there have<br />

been more than 3 million hours worked<br />

without a lost-time incident.<br />

The expansion of the Alumar Refinery<br />

<strong>is</strong> part of a US$1.8 billion investment plan<br />

that the owner consortium <strong>is</strong> implementing<br />

for its primary metal production operations<br />

in Brazil. Alumar <strong>is</strong> owned by Alcoa<br />

(54 percent), BHP Billiton (36 percent)<br />

and Alcan (10 percent).<br />

Jamalco 3 Early Works Program<br />

Alcoa has joined with the Government<br />

of Jamaica to significantly expand the<br />

Jamalco alumina refinery in Jamaica.<br />

An Early Works Program includes<br />

a 150,000-tonnes-per-year expansion of<br />

Alumar Refinery in Brazil <strong>is</strong> expanding by<br />

2.1 million metric tons per year from 1.4 million<br />

tons. The work <strong>is</strong> done from our São Paulo office<br />

with specialized support from <strong>Hatch</strong> offices<br />

in Australia and Canada.<br />

<strong>Hatch</strong> provided EPCM services for<br />

the development of BlueScope Steel’s<br />

$280-million Suzhou, China metallic<br />

coating and painting facility.<br />

8


efinery capacity, which <strong>is</strong> almost complete.<br />

The current capacity of Jamalco <strong>is</strong> 1.27<br />

million metric tonnes.<br />

IRON & STEEL<br />

Suzhou Coating & Painting Facility<br />

BlueScope Steel’s new $280-million stateof-the-art<br />

metallic coating and painting<br />

facility in Suzhou, China produced its first<br />

commercial coil in September 2006. The<br />

project, 80 kilometres west of Shanghai,<br />

<strong>is</strong> Australia’s largest manufacturing investment<br />

in China, and BlueScope Steel’s<br />

largest single investment in Asia. The<br />

facility <strong>is</strong> part of BlueScope’s $2-billion<br />

investment program, compr<strong>is</strong>ing 20<br />

projects in eight countries.<br />

BlueScope Steel China has won a number<br />

of large contracts to supply premium<br />

quality steel-building solutions to key<br />

infrastructure projects for the 2008 Beijing<br />

Olympics including the Tianjin Olympic<br />

Centre Stadium, the Olympic Fencing<br />

Training Centre and the Olympic<br />

Swimming Training Centre.<br />

INDUSTRIAL MINERALS<br />

Madagascar Mineral Sands Project<br />

Rio Tinto has retained <strong>Hatch</strong> to help with<br />

the development of a US$585-million<br />

heavy mineral sands operation and port<br />

in Madagascar.<br />

Production <strong>is</strong> expected in late 2008 and<br />

the initial capacity will be 750,000 tonnes<br />

per year.<br />

The ilmenite will be smelted at Rio Tinto’s<br />

facilities at Sorel in Quebec, which will<br />

require an upgrade of storage and handling<br />

facilities as well as their associated<br />

ancillary services at the Sorel site.<br />

The project will be a model of the<br />

contribution mining can make through<br />

the successful integration of financial,<br />

environmental and community objectives,<br />

says Rio Tinto Chairman Leigh Clifford.<br />

<strong>Hatch</strong> <strong>is</strong> providing EPCM services<br />

for the capacity expansion of Alcoa’s<br />

alumina refinery in Jamaica.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

9


MINING & METALS<br />

The development <strong>is</strong> the largest project in<br />

Madagascar’s h<strong>is</strong>tory and will be the catalyst<br />

for broader economic development of the<br />

country. It <strong>is</strong> being developed by QIT<br />

Madagascar Minerals (QMM), a subsidiary<br />

of Rio Tinto and the Government of<br />

Madagascar.<br />

The Madagascar ore-body <strong>is</strong> the largest<br />

known undeveloped high-grade ilmenite<br />

deposit in the world.<br />

A deep sea multi-use public port will be an<br />

important component of the project. Over<br />

time, the port will make an important contribution<br />

to economic development of the<br />

whole region.<br />

Jericho Diamond Mine Opened<br />

In mid-August 2006, Tahera Diamond<br />

Corporation held the official opening ceremony<br />

for its Jericho Diamond Mine in Nunavut,<br />

Canada. The Jericho Diamond Mine <strong>is</strong><br />

Canada’s third diamond mine, and the<br />

Territory of Nunavut’s first. Construction of<br />

the Jericho Diamond Mine was completed<br />

in 2005, and the first diamonds were<br />

produced in January 2006. Commercial<br />

production began on July 1, 2006.<br />

<strong>Hatch</strong>’s assignments at Jericho included<br />

process-plant definition for a 100-tonneper-hour<br />

treatment plant, basic engineering<br />

and a capital-cost estimate. <strong>Hatch</strong> also<br />

provided detailed engineering, equipment<br />

procurement, expediting and inspections,<br />

site-communication systems design and<br />

procurement, site-plan coordination and<br />

project capital-cost reporting. Finally,<br />

<strong>Hatch</strong> provided construction ass<strong>is</strong>tance<br />

and comm<strong>is</strong>sioning of both the process<br />

plant and the communication systems.<br />

The Right Hon. Stephen Harper, Prime<br />

Min<strong>is</strong>ter of Canada was among the guests<br />

at the opening, along with The Hon.<br />

Paul Okalik, Premier of Nunavut Territory.<br />

<strong>Hatch</strong> <strong>is</strong> helping client Rio Tinto<br />

develop the US$585 million mineral<br />

sands mine and port in Madagascar.<br />

At 4,000 metres in the Andes,<br />

<strong>Hatch</strong> completed a prefeasibility study<br />

for El Morro, a major copper-gold<br />

mining project.<br />

10


MINING & MINERAL PROCESSING<br />

El Morro Copper-Gold Mine<br />

Xstrata Copper selected <strong>Hatch</strong> to produce<br />

a Prefeasibility Study for the El Morro<br />

copper-gold mine project in north-central<br />

Chile as part of the staged program to<br />

complete the evaluation of the property.<br />

The deposit <strong>is</strong> located east of the<br />

coastal town of Vallenar in the Andes<br />

Mountains at an elevation of 4,200<br />

meters. The El Morro property encompasses<br />

three separate mineralized<br />

zones known as El Morro, La Fortuna<br />

and El Negro. The study focused on the<br />

porphyry-style La Fortuna deposit.<br />

The Prefeasibility Study was completed<br />

in January <strong>2007</strong>. <strong>Hatch</strong> completed prefeasibility<br />

level engineering for the core<br />

process facilities, as well as coordinated<br />

the work of special<strong>is</strong>t consultants and<br />

incorporated their work into the final<br />

study report.<br />

<strong>Hatch</strong> Develops Infrastructure<br />

for Canadian Mine<br />

<strong>Hatch</strong> and a project partner have been<br />

retained by Aur Resources to provide<br />

engineering, procurement and construction<br />

management for the development of the<br />

infrastructure and mill facility at Duck Pond<br />

copper-zinc mine and mill project in central<br />

Newfoundland.<br />

<strong>Hatch</strong> <strong>is</strong> responsible for construction<br />

management and inspection services for<br />

the mill and infrastructure, and engineering<br />

for the site infrastructure: roads, water<br />

supply, campsites, office buildings,<br />

a warehouse and maintenance shops.<br />

The mine produced its first concentrate<br />

in January <strong>2007</strong>.<br />

<strong>Hatch</strong> <strong>is</strong> providing EPCM services for<br />

Newfoundland’s Duck Pond copper-zinc<br />

mine and processing plant.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

11


We are sensitive to the<br />

communities in which<br />

we live, work and<br />

provide our services.<br />

<strong>Hatch</strong> Quality Policy


ENERGY<br />

OIL & GAS<br />

HYDRO & WIND POWER<br />

THERMAL/NUCLEAR/T&D<br />

INDUSTRIAL PROJECTS


ENERGY<br />

OIL & GAS<br />

Albian Sands Energy<br />

The Oil & Gas business unit of <strong>Hatch</strong><br />

Energy has signed an engineering-services<br />

contract for Operations Support with Albian<br />

Sands Energy. The services will be provided<br />

to Albian from March 2006 to the end<br />

of February 2009. All engineering will be<br />

carried out in our Calgary offices.<br />

Apache Midale CO 2 Phase 2<br />

<strong>Hatch</strong> Energy was awarded the engineering,<br />

procurement and construction management<br />

of Phase 2 of the Midale CO 2 M<strong>is</strong>cible<br />

Flood Project by Apache Canada Ltd.<br />

The initial scope of work cons<strong>is</strong>ts of<br />

the development of an additional seven<br />

patterns and subsequent satellite and<br />

plant facility upgrades.<br />

Gorgon LNG Facility<br />

<strong>Hatch</strong> <strong>is</strong> working on the prefeasibility<br />

study for the next phase of the Shell<br />

ChevronTexaco Gorgon liquefied natural<br />

gas facility in Australia.<br />

Surmont Oil Sands Development<br />

The ConocoPhillips development southeast<br />

of Fort McMurray will use steam-ass<strong>is</strong>ted<br />

gravity drainage (SAGD) to recover heavy<br />

oil from oil sands where the pay zone <strong>is</strong><br />

too deep for other extraction methods.<br />

Weyburn Compressor Expansion<br />

<strong>Hatch</strong> Energy <strong>is</strong> providing project<br />

management, engineering and procurement<br />

for the EnCana Weyburn recyclecompressor<br />

expansion.<br />

The Weyburn, Saskatchewan oil and gas<br />

field has been on waterflood since 1964<br />

and has been on CO 2 m<strong>is</strong>cible flood since<br />

2000. CO 2 m<strong>is</strong>cible flood will target<br />

recovering another 15-20 percent of the<br />

original oil in place.<br />

ConocoPhillips will use steam-ass<strong>is</strong>ted<br />

gravity drainage to recover oil from<br />

the oil sands in Alberta, Canada.<br />

<strong>Hatch</strong> Energy provided the fast-track<br />

design and construction management<br />

for the award-winning Shikwamkwa<br />

Dam in Ontario, Canada.<br />

14


HYDRO & WIND POWER<br />

Shikwamkwa Dam<br />

<strong>Hatch</strong> Energy used advanced modeling and<br />

proprietary reservoir-mapping technology<br />

to determine that seepage problems at the<br />

48-year-old Shikwamkwa Dam in northern<br />

Ontario were beyond remediation and<br />

began the fast-track design and construction<br />

of a new dam. More than a million<br />

cubic metres of fill were needed for the<br />

35-metre high, 874-metre long dam.<br />

A 65-metre concrete cut-off wall was<br />

used to seal the foundation.<br />

<strong>Hatch</strong> Energy was responsible for engineering<br />

design and construction quality<br />

monitoring. The new dam has reduced<br />

seepage flows and improved both safety<br />

and the generation of electricity.<br />

Shikwamkwa Dam, for client Brookfield<br />

Power, was completed on budget, ahead<br />

of schedule and with the excellent safety<br />

record of no lost time due to injuries.<br />

Floodway Expansion, Manitoba<br />

Following the ‘Flood of the Century’ in<br />

1997, the Manitoba Floodway Authority<br />

was establ<strong>is</strong>hed to oversee an expansion<br />

of Winnipeg’s flood protection.<br />

<strong>Hatch</strong> Energy and a consortium<br />

are responsible for detailed design and<br />

construction management to more than<br />

double the Red River channel capacity.<br />

The original Floodway <strong>is</strong> estimated to<br />

have saved Manitoba more than $8 billion<br />

in flood damage. But the Flood of the<br />

Century, a decade ago, came close to the<br />

floodway’s capacity.<br />

The upgrade project will extend and ra<strong>is</strong>e<br />

the 40-mile west dyke; widen the channel,<br />

modify the inlet; reconstruct the aqueduct;<br />

expand the outlet structure; and improve<br />

downstream erosion protection. The project<br />

<strong>is</strong> scheduled for completion in 2009.<br />

<strong>Hatch</strong> Energy <strong>is</strong> participating in the Red<br />

River floodway expansion project that will<br />

involve widening the channel by 60 percent.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

15


ENERGY<br />

Synexus Asset Optimization<br />

Synexus Global (SGI) specializes in the<br />

optimization of power and water resources.<br />

SGI develops and implements customized<br />

computerized tools for hydropower<br />

operations and maintenance. Synexus <strong>is</strong><br />

now supplying Southern California Ed<strong>is</strong>on’s<br />

1,000 MW Big Creek facilities with SGI’s<br />

V<strong>is</strong>ta Dec<strong>is</strong>ion Support System to provide<br />

long-term water management guidance<br />

and short-term scheduling of generating<br />

units on an hourly bas<strong>is</strong>.<br />

Wind Power<br />

<strong>Hatch</strong> Energy <strong>is</strong> planning and developing<br />

wind farms across Canada for several clients.<br />

Several of the farms continue to develop<br />

new turbines that will generate<br />

enough electricity to supply tens of thousands<br />

of Canadian homes.<br />

<strong>Hatch</strong> Energy’s most recent project was<br />

the Chin Chute wind farm southwest of<br />

Taber, Alberta. The $60-million project <strong>is</strong> a<br />

joint venture of Enbridge, Suncor Energy<br />

and Acciona Wind Energy Canada.<br />

Chin Chute’s 20 turbines each produce<br />

1.5 MW of electricity.<br />

In Ontario, <strong>Hatch</strong> Energy <strong>is</strong> owner’s<br />

engineer and maintains a full-time<br />

presence at the site of the Prince Wind<br />

Farm to coordinate environmental and<br />

other approvals for the project. When<br />

complete, Prince Wind Farm will have<br />

126 turbines on 80-metre towers.<br />

For EPCOR Power Development Corp.<br />

<strong>Hatch</strong> Energy was appointed owner’s<br />

engineer to provide advice on civil/<br />

geotechnical and electrical interconnection<br />

<strong>is</strong>sues for the Kingsbridge Wind<br />

Power Project.<br />

The Kingsbridge project <strong>is</strong> a 39-MW<br />

generation project of 22 wind turbines<br />

and towers. The wind farm will be<br />

<strong>Hatch</strong> Energy has installed or<br />

developed more than half of the<br />

wind projects in Canada.<br />

Bruce A Aerial View<br />

The Bruce Nuclear generating station<br />

<strong>is</strong> the largest nuclear facility in<br />

Canada. Reactors Bruce A 1 and 2<br />

are being refurb<strong>is</strong>hed by a <strong>Hatch</strong><br />

Energy consortium.<br />

16


emotely operated and monitored. There<br />

will be scheduled v<strong>is</strong>its by operations and<br />

maintenance technicians.<br />

<strong>Hatch</strong> Energy <strong>is</strong> also providing owner’s<br />

engineer support to Suncor Energy and<br />

Acciona Wind Energy at the 76-MW<br />

Ripley wind farm in Ontario.<br />

THERMAL/NUCLEAR/T&D<br />

Bruce A Restart of 1 and 2<br />

<strong>Hatch</strong> Energy <strong>is</strong> a proud member of an<br />

integrated team that will restart Units 1<br />

and 2 at the Bruce A nuclear generating<br />

station near Kincardine, Ontario. The<br />

restarts are part of Bruce’s $4.25-billion<br />

investment program. Unit 1 <strong>is</strong> expected<br />

to restart in 2009.<br />

The team, known as the Acres-Sargent<br />

& Lundy-Fox Joint Venture (JV), won the<br />

2004 Schreyer Award for the $700-million<br />

restart of Bruce A Units 3 and 4.<br />

In the initial startups, the JV’s awardwinning<br />

work included engineering,<br />

procurement of materials and equipment,<br />

and construction of 45 different modification<br />

projects.<br />

Individual assignments ranged from<br />

the maintenance and overhaul of ex<strong>is</strong>ting<br />

equipment to the prov<strong>is</strong>ion of two key<br />

safety systems: a Secondary Control Area<br />

and a Qualified Power Supply.<br />

In the latest program, the JV will make<br />

numerous upgrades to the fire-protection<br />

systems, including the fire suppression<br />

system for the turbine generators and<br />

smoke-detection systems in electrical<br />

equipment rooms.<br />

Halton Hills Generating Station<br />

<strong>Hatch</strong> Energy was awarded an engineering<br />

services contract to support the<br />

$500-million Burns & McDonnell’s project<br />

to build a new gas-fired power plant in<br />

Halton Hills near Toronto.<br />

Photo courtesy of Bruce Power<br />

Bruce A Turbine Hall<br />

Bruce Power <strong>is</strong> investing $4.25 billion<br />

in their generating station in Ontario.<br />

<strong>Hatch</strong> Energy has a significant role<br />

in th<strong>is</strong> restart project.<br />

17


ENERGY<br />

Transm<strong>is</strong>sion Health Index<br />

Hydro One’s transm<strong>is</strong>sion and d<strong>is</strong>tribution<br />

assets were recently subjected to the<br />

<strong>Hatch</strong> Energy ‘Asset Health Index,’ to help<br />

one of the largest electricity transm<strong>is</strong>sion<br />

and d<strong>is</strong>tribution systems in North America<br />

to assess near-term <strong>is</strong>sues with each asset.<br />

Assets assessed include circuit breakers,<br />

transformers, transm<strong>is</strong>sion towers,<br />

wooden poles and control equipment.<br />

The asset assessments are completed<br />

in order to help develop system management<br />

plans and to ensure that adequate<br />

funding through electricity rates <strong>is</strong><br />

secured.<br />

The ‘Health Index’ methodology can be<br />

applied to industrial and power-generation<br />

facilities. The methodology <strong>is</strong> very<br />

helpful in making cases for regulatory<br />

subm<strong>is</strong>sions, investors, operators and<br />

r<strong>is</strong>k managers.<br />

INDUSTRIAL PROJECTS<br />

Irving Oil Readies for Ultra-low-sulfur<br />

Diesel Rules<br />

Irving Oil chose <strong>Hatch</strong> staff to ensure<br />

a safe and successful project that would<br />

create needed Terminal Segregation as<br />

part of Irving Oil’s overall preparation for<br />

the joint Canada/US leg<strong>is</strong>lation that<br />

requires all diesel products to contain less<br />

than 15 parts-per-million-by-weight sulfur<br />

content at the pumps.<br />

Of 40 refinery sites reviewed, 19 Irving<br />

Marine and Inland Storage and D<strong>is</strong>tribution<br />

facilities had to be modified.<br />

More than 35,000 work-hours were<br />

performed without a lost-time incident.<br />

Engineering, design, procurement and<br />

construction-management services were<br />

completed by <strong>Hatch</strong> staff in Sydney, Nova<br />

Scotia and Saint John, New Brunswick.<br />

Despite the diversity and widespread<br />

locations of the facilities, all infrastructure<br />

modifications were completed on schedule.<br />

Hydro One’s energy transm<strong>is</strong>sion and<br />

d<strong>is</strong>tribution assets were reviewed using<br />

a <strong>Hatch</strong> Energy methodology.<br />

Irving Oil’s terminal segregation project<br />

was supported by <strong>Hatch</strong>’s industrial<br />

group in the Atlantic Provinces.<br />

18


Biosolids Processing Facility<br />

<strong>Hatch</strong> <strong>is</strong> completing a $12.2-million designbuild<br />

contract of a Biosolids Processing<br />

Facility (BPF) for Halifax Regional<br />

Municipality.<br />

The BPF will use a patented process<br />

that destroys the pathogens and converts<br />

sludge to treated biosolids. The end product<br />

will be a biologically stable, low-odour,<br />

safe, soil-like material that will have a<br />

solids content of approximately 62% and<br />

will be an acceptable soil amendment<br />

under the Fertilizer Act.<br />

The building compr<strong>is</strong>es a process area<br />

and a storage area sized to meet the seasonal<br />

application needs of local agriculture.<br />

The overall process <strong>is</strong> controlled by<br />

a computer-based Superv<strong>is</strong>ory Control<br />

And Data Acqu<strong>is</strong>ition system.<br />

Truck-Loading-Rack Facility<br />

<strong>Hatch</strong> was selected by North Atlantic<br />

Refining to provide engineering design<br />

and construction management services<br />

for its new Truck-Loading-Rack Facility<br />

in Come-by-Chance, Newfoundland<br />

and Labrador.<br />

The project cons<strong>is</strong>ted of the construction<br />

of a two-<strong>is</strong>land rack serving four loading<br />

lanes with five loading arms per lane,<br />

plus a new 15,000-barrel gasoline<br />

storage tank and secondary containment<br />

system, along with an automation and<br />

instrumentation system for the control<br />

of all rack functions.<br />

<strong>Hatch</strong> was awarded a design-build<br />

contract for th<strong>is</strong> biosolids processing<br />

facility in Halifax, Nova Scotia.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

19


We recognize the importance<br />

of protecting the health and<br />

safety of our employees,<br />

clients and contractors.<br />

<strong>Hatch</strong> Quality Policy


INFRASTRUCTURE<br />

NORTH AMERICA<br />

SOUTH AFRICA<br />

ASIA-PACIFIC<br />

SPATIAL INFORMATION


INFRASTRUCTURE | NORTH AMERICA<br />

<strong>Hatch</strong> Develops De-icing Facility<br />

<strong>Hatch</strong> and <strong>Hatch</strong> Mott MacDonald were<br />

assigned by the St. John’s International<br />

Airport Authority to provide planning and<br />

engineering services for a new central<br />

de-icing facility.<br />

The project scope included a site-selection<br />

study, conceptual and detailed design<br />

and construction management for the<br />

$10-million facility. De-icing had previously<br />

been conducted at three separate<br />

locations at the airport.<br />

The facility <strong>is</strong> designed to handle two<br />

aircraft simultaneously: a Boeing 767<br />

and an Airbus A320; or three smaller<br />

commercial aircraft.<br />

During construction, <strong>Hatch</strong> coordinated<br />

the complex <strong>is</strong>sues of ensuring the airport<br />

continued to function. Rigorous safety<br />

and security measures were maintained<br />

and monitored for all airside activities.<br />

Niagara Falls Tunnel for<br />

Added Electricity<br />

Ontario Power Generation (OPG) has<br />

retained <strong>Hatch</strong> Mott MacDonald and <strong>Hatch</strong><br />

Energy to manage the implementation of<br />

a 10.4 kilometre tunnel under the City of<br />

Niagara Falls to feed more water to the Sir<br />

Adam Beck Electric Generating Complex.<br />

OPG intends to increase power generation<br />

at the ex<strong>is</strong>ting Sir Adam Beck facility<br />

in Niagara Falls by building a tunnel<br />

to divert water from the Niagara River<br />

immediately upstream of the falls.<br />

The tunnel <strong>is</strong> being constructed with the<br />

world’s largest hard-rock boring machine<br />

(see photo on page 23). The boring machine<br />

cuts a hole 14.4 metres in diameter (three<br />

times larger in cross-sectional area than the<br />

machines used to dig the Engl<strong>is</strong>h Channel<br />

Tunnel), and will excavate 1.6 million cubic<br />

metres of rock before it’s through.<br />

The Niagara Tunnel project <strong>is</strong> the most<br />

recent in a series of improvements to the<br />

<strong>Hatch</strong> and <strong>Hatch</strong> Mott MacDonald<br />

are providing planning and engineering<br />

services for a new de-icing facility<br />

at St. John’s Airport in Newfoundland.<br />

The Niagara River <strong>is</strong> peaceful where<br />

the new tunnel <strong>is</strong> being readied to<br />

provide water power for the Sir Adam<br />

Beck generating station in Ontario.<br />

22


Sir Adam Beck generating complex. <strong>Th<strong>is</strong></strong><br />

additional hydro power will serve the<br />

equivalent of 160,000 homes.<br />

The tunnel <strong>is</strong> expected to be operational<br />

by late 2009.<br />

Santa Clara Valley Transportation<br />

Authority Program<br />

<strong>Hatch</strong> Mott MacDonald <strong>is</strong> working with the<br />

Santa Clara Valley Transportation Authority<br />

on several major expansion and upgrade<br />

projects including both highway and transit<br />

elements. <strong>Th<strong>is</strong></strong> multi-billion dollar program,<br />

funded primarily from special local sales<br />

tax, includes a 22-mile extension of the<br />

San Franc<strong>is</strong>co Bay Area Rapid Transit<br />

(BART), a 3.5 mile extension of light rail<br />

running along Capitol Avenue, a subsequent<br />

extension of th<strong>is</strong> line to the central<br />

business d<strong>is</strong>trict and continued upgrades<br />

to the county’s portion of Caltrain –<br />

one of the region’s highly successful<br />

commuter/intercity rail services.<br />

The HMM team <strong>is</strong> fully integrated with<br />

the VTA team providing design and<br />

engineering oversight services as well as<br />

program control and construction management<br />

services. Over the past several<br />

years th<strong>is</strong> combined team has been<br />

responsible for doubling the size of VTA’s<br />

light rail system, several major improvements<br />

to Caltrain (including extensive<br />

double track and station improvements),<br />

and significant highway expansion<br />

projects and interchanges. HMM was<br />

recently awarded a multi-year projectmanagement<br />

and construction-management<br />

contract for additional rail and<br />

highway projects.<br />

The world’s largest hard-rock tunnel-boring<br />

machine will create a tunnel more than<br />

10 kilometres long for the OPG Niagara<br />

Tunnel project.<br />

<strong>Hatch</strong> Mott MacDonald <strong>is</strong> providing design<br />

and engineering oversight services to<br />

the Santa Clara Valley Transportation Authority<br />

for several major expansions and upgrades<br />

in the San Franc<strong>is</strong>co Bay Area.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

23


INFRASTRUCTURE | NORTH AMERICA<br />

Union Station Rail Corridor<br />

Systems Upgrade<br />

<strong>Hatch</strong> Mott MacDonald <strong>is</strong> a key member<br />

of the joint venture retained by GO Transit<br />

to be responsible for overall program<br />

management of the Union Station Rail<br />

Corridor Infrastructure Improvement<br />

Program in Toronto, Ontario. An upgrade<br />

of the communications, electrical and<br />

signalling systems <strong>is</strong> a fundamental<br />

component of the project.<br />

The current signalling and control system<br />

operates a network of more than 260<br />

switches and 180 signals, providing more<br />

than 4,000 signalled routes over 25 miles<br />

of track within a geographic area of 3 1 / 2<br />

miles. The network currently handles more<br />

than 300 trains per day and 40 million<br />

passengers per year.<br />

The new signals, electrical and communications<br />

integrated system will provide<br />

the capacity and enhanced functionality<br />

to accommodate the anticipated doubling<br />

of traffic within the next 25 years.<br />

The new system must be installed<br />

and comm<strong>is</strong>sioned into service without<br />

interruption to daily GO Transit, VIA and<br />

freight operations. The upgrade will<br />

follow a staged implementation program,<br />

progressively comm<strong>is</strong>sioning each portion<br />

of the new system and decomm<strong>is</strong>sioning<br />

the redundant portion of the old system.<br />

Final comm<strong>is</strong>sioning <strong>is</strong> scheduled for 2013.<br />

The new system will use the latest<br />

advances in computer-based signalling and<br />

control technologies.<br />

<strong>Hatch</strong> Mott MacDonald <strong>is</strong> helping<br />

GO Transit manage the Union Station<br />

Rail Corridor systems upgrade<br />

in Toronto, Ontario.<br />

24


INFRASTRUCTURE | SOUTH AFRICA<br />

<strong>Hatch</strong> Plays Key Roles in<br />

Transnet Expansion<br />

<strong>Hatch</strong> has been awarded several projects<br />

in Transnet’s ambitious rail and port<br />

expansion program in South Africa.<br />

Transnet <strong>is</strong> the state-owned enterpr<strong>is</strong>e<br />

responsible for all cargo rail and port infrastructure<br />

operations in South Africa.<br />

Projects to be implemented by Transnet<br />

in the next five years will have capital<br />

costs totalling more than US$12 billion.<br />

The program <strong>is</strong> designed to ensure that<br />

commodity export infrastructure <strong>is</strong> not<br />

constrained by a lack of capacity.<br />

<strong>Hatch</strong> <strong>is</strong> leading a joint venture with<br />

UK-based Mott MacDonald, our infrastructure<br />

partners in North America, and<br />

Goba, a consulting engineering firm based<br />

in South Africa.<br />

The JV has been appointed by Transnet<br />

to perform engineering, procurement,<br />

project management and construction<br />

management.<br />

The projects announced to date include:<br />

• increase the capacity of the iron-ore<br />

heavy rail line from S<strong>is</strong>hen to Saldanha<br />

(800 km) from 37 million tonnes per<br />

annum to 91 million tpa.<br />

• complete the 1A and 1B phases of the<br />

expansion of the Port of Saldanha<br />

• widen the Durban Harbour entrance<br />

• construct the Pier 1 container<br />

terminal in Durban<br />

• construct the Ngqura container terminal<br />

near Port Elizabeth<br />

• expand the Cape Town container terminal<br />

• conduct various feasibility studies for<br />

further rail and port expansions<br />

<strong>Hatch</strong>’s project team <strong>is</strong> based in the<br />

<strong>Hatch</strong> Johannesburg (Woodmead) office.<br />

<strong>Hatch</strong> <strong>is</strong> also providing the JV team with<br />

its project systems, methodologies and<br />

project controls for the efficient execution<br />

of the projects.<br />

In South Africa one of the largest rail and port<br />

infrastructure projects in the world <strong>is</strong> under<br />

way and <strong>is</strong> being served by <strong>Hatch</strong> Africa,<br />

Mott MacDonald and Goba Engineering.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

25


INFRASTRUCTURE | ASIA-PACIFIC<br />

Connell <strong>Hatch</strong> Manages<br />

Terminal Expansion<br />

Connell <strong>Hatch</strong> was appointed EPCM<br />

contractor for the $1.1-billion Dalrymple<br />

Bay Coal Terminal Expansion project<br />

in Queensland, Australia.<br />

Connell <strong>Hatch</strong> has provided similar<br />

services on three other major coal<br />

terminal expansions in Australia.<br />

On Dalrymple Bay, Connell Wagner<br />

and <strong>Hatch</strong> have provided most of the<br />

engineering for the terminal, and significant<br />

expansion work since its construction<br />

in the late 1970s.<br />

The joint venture has been working<br />

on the current expansion project since<br />

November 2004. The expansion will<br />

increase capacity from 54 million tonnes<br />

per annum (mtpa) to 85 mtpa, making<br />

it one of the largest coal terminals in<br />

the world.<br />

The client <strong>is</strong> Babcock & Brown<br />

Infrastructure. The customer base for<br />

the terminal <strong>is</strong> the Bowen Basin coal<br />

mines, including those owned by<br />

the world’s largest mining companies,<br />

who are eager to sat<strong>is</strong>fy intensive<br />

international demand for coal.<br />

The project includes a new rail dump<br />

station and a third inloading conveyor<br />

system; three new stockyard bunds, two<br />

new stackers, two new stacker/reclaimers;<br />

upgrades to five stacker/reclaimers<br />

and two shiploaders; a third outloading<br />

conveyor system; a new berth; and general<br />

upgrades to inloading and outloading<br />

capacity and associated infrastructure.<br />

The project <strong>is</strong> scheduled for completion<br />

in late 2008.<br />

Connell <strong>Hatch</strong> Constructing Coal<br />

Handling and Preparation Plant (CHPP)<br />

The BHP Billiton Mitsub<strong>is</strong>hi Alliance (BMA)<br />

operates seven coal mines in the Bowen<br />

Basin, Queensland. Blackwater <strong>is</strong> one<br />

Connell <strong>Hatch</strong> <strong>is</strong> providing EPCM<br />

services for the $1.1-billion Dalrymple<br />

Bay Coal Terminal Expansion Project.<br />

Material handling equipment at<br />

Dalrymple Bay, one of the largest<br />

coal terminals in the world.<br />

26


of its largest open cut mines, producing<br />

almost 14 million tonnes of coking and<br />

thermal coal a year.<br />

The mine, 24 km south of the town of<br />

Blackwater and 315 km west of the port<br />

of Gladstone, on Australia’s east coast,<br />

began production in 1967.<br />

Coal <strong>is</strong> mined by open-cut methods,<br />

using draglines and truck/shovel fleets<br />

for overburden removal. Coal seams are<br />

mined using front-end loaders and a<br />

hydraulic shovel to load 200-tonne capacity<br />

bottom-dump coal haulers that deliver the<br />

run of mine (ROM) coal to the new Coal<br />

Handling and Preparation Plant, which <strong>is</strong><br />

replacing three ex<strong>is</strong>ting coal preparation<br />

and handling plants.<br />

The Connell <strong>Hatch</strong> joint venture <strong>is</strong><br />

currently at the site providing engineering<br />

and project management services to BMA<br />

for th<strong>is</strong> new CHPP (see photo below).<br />

The new facility compr<strong>is</strong>es dual dump<br />

hoppers each with 600 tonnes capacity.<br />

They receive the ROM coal. The coal <strong>is</strong><br />

processed through the CHPP’s crushing<br />

facilities, an 1,800 t/h coal preparation<br />

plant compr<strong>is</strong>ing dense medium cyclone<br />

circuits, spirals and Microcel flotation<br />

columns to mechanized product coal<br />

stockpiles. Coal <strong>is</strong> automatically loaded,<br />

at rates of up to 5,000 t/h, from 450,000-<br />

tonnes-capacity product stockpiles,<br />

via a bin-and-batch weigh system, into<br />

rail wagons for transport to the Port<br />

of Gladstone.<br />

Blackwater coking and thermal coal <strong>is</strong> sold<br />

to South and East Asia, Europe, the Middle<br />

East, the Americas, India and Australia.<br />

Connell <strong>Hatch</strong> <strong>is</strong> providing engineering<br />

and project management services<br />

to BMA for the new coal handling and<br />

preparation plant.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

27


INFRASTRUCTURE | SPATIAL INFORMATION<br />

AAM<strong>Hatch</strong> <strong>is</strong> a survey, mapping and GIS<br />

services company that captures, measures<br />

and presents spatial information for a<br />

wide range of industries and applications<br />

including mining and minerals exploration,<br />

infrastructure, environmental management<br />

and urban planning. AAM<strong>Hatch</strong>’s<br />

advanced solutions employ the most<br />

soph<strong>is</strong>ticated technologies available, from<br />

digital aerial mapping and satellite<br />

imagery to ground-based laser scanning,<br />

soph<strong>is</strong>ticated 3D modelling and v<strong>is</strong>ualization<br />

to offshore hydrographic and geophysical<br />

surveys.<br />

AAM<strong>Hatch</strong> staff are based all across<br />

Australia and Southeast Asia and routinely<br />

work on projects around the world.<br />

The staff <strong>is</strong> committed to <strong>Hatch</strong>’s values<br />

of Safety, Passion for Excellence,<br />

Innovation and a Total Client Focus.<br />

AAM<strong>Hatch</strong> international operations<br />

continue to expand through the opening<br />

of a permanent AAM<strong>Hatch</strong> office in<br />

Kuala Lumpur, Malaysia. Interest in LiDAR<br />

and digital aerial photography has led<br />

to a steadily increasing client base in th<strong>is</strong><br />

vibrant region. Projects in Vietnam, India,<br />

Hong Kong, Singapore, Indonesia and<br />

Malaysia are benefiting from AAM<strong>Hatch</strong>’s<br />

full service approach to delivering the<br />

highest quality spatial information.<br />

Laser Survey of Hong Kong<br />

In December 2006 AAM<strong>Hatch</strong> became<br />

the first group to conduct an Airborne<br />

Laser terrain survey for Hong Kong Island.<br />

The survey covered the <strong>is</strong>land’s 95 square<br />

kilometres and contained more than<br />

760 million laser measurements.<br />

Ground and non-ground points were<br />

measured with an average point spacing<br />

of 0.3 m and with a vertical accuracy<br />

of +/-0.15 m.<br />

The data set will be used for geotechnical<br />

and flood studies, urban planning<br />

and for general infrastructure engineering<br />

within the Hong Kong Special<br />

Admin<strong>is</strong>trative Region (SAR) of China.<br />

AAM<strong>Hatch</strong>’s oblique imagery over Br<strong>is</strong>bane,<br />

showing the central business-d<strong>is</strong>trict river<br />

precinct and the Story Bridge. Oblique images<br />

are infrastructure planning tools.<br />

<strong>Th<strong>is</strong></strong> model of Melbourne Australia was created using<br />

AAM<strong>Hatch</strong>’s Airborne LiDAR and Digital Aerial Mapping<br />

technologies. AAM<strong>Hatch</strong> won the Asia Pacific<br />

Spatial Excellence Award for the project, which was<br />

comm<strong>is</strong>sioned by Melbourne City Council for the<br />

2006 Commonwealth Games.<br />

28


AAM<strong>Hatch</strong>’s Airborne Laser terrain<br />

survey for Hong Kong Island contained<br />

more than 760 million laser measurements.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

29


We establ<strong>is</strong>h and audit standards<br />

for continuous improvement of<br />

our Quality Management Systems,<br />

and we encourage and reward<br />

ideas and actions that help us<br />

achieve best-in-class performance.<br />

<strong>Hatch</strong> Quality Policy


BUSINESS PRACTICES<br />

OPERATIONS SUPPORT<br />

SYSTEMS & PROCESS CONTROL<br />

TECHNOLOGIES<br />

ENVIRONMENT<br />

CONSULTING


HOW WE DELIVER OUR SERVICES TO OUR CLIENTS<br />

At <strong>Hatch</strong> our<br />

professional<br />

resources<br />

are organized<br />

to provide<br />

quality services<br />

to our clients.<br />

Technical consulting and leadership <strong>is</strong> provided to clients in our market sectors<br />

of Mining & Metals; Energy; and Infrastructure.<br />

MINING & METALS<br />

• Industrial Minerals<br />

• Iron & Steel<br />

• Light Metals<br />

• Mining & Mineral Processing<br />

• Non-Ferrous Metals<br />

ENERGY<br />

• Oil & Gas<br />

• Hydro and Wind<br />

• Thermal/Nuclear/T&D<br />

• Industrial/Regional Projects<br />

INFRASTRUCTURE<br />

• <strong>Hatch</strong> Mott MacDonald<br />

• Connell <strong>Hatch</strong><br />

• AAM<strong>Hatch</strong><br />

• <strong>Hatch</strong> Public and Private<br />

• Sustainable Development<br />

PROJECT DELIVERY<br />

• Engineering<br />

• Procurement<br />

• Project Controls<br />

• Project Management<br />

• Construction Management<br />

• Estimating<br />

• R<strong>is</strong>k Management<br />

• Comm<strong>is</strong>sioning & Startup<br />

BUSINESS PRACTICES<br />

• Operations Support<br />

• Systems & Process Control<br />

• Technologies<br />

• Environment & Community<br />

• Technical and Business Consulting<br />

32


BUSINESS PRACTICES<br />

OPERATIONS SUPPORT<br />

Operations support of client facilities<br />

<strong>is</strong> a growing and increasingly important<br />

segment of <strong>Hatch</strong>’s range of services.<br />

The objective on behalf of our clients <strong>is</strong> to<br />

create value from within ex<strong>is</strong>ting assets,<br />

through the optimization of the operation<br />

processes, equipment, and maintenance<br />

functions or through the management<br />

of new or sustaining capital programs.<br />

Today, <strong>Hatch</strong> has 1,000 professionals<br />

permanently located within our client’s<br />

operations around the world, working<br />

seamlessly with client teams in the<br />

pursuit of common operational and business<br />

objectives. Ultimately the objective<br />

<strong>is</strong> the continuous improvement of production<br />

facilities.<br />

The majority of <strong>Hatch</strong>’s operational-support<br />

work <strong>is</strong> associated with the management<br />

of capital development programs<br />

within large integrated operations, where<br />

the skills and resources of a global engineering<br />

and project delivery company can<br />

contribute to the efficient management<br />

of significant annual capital. The resulting<br />

value <strong>is</strong> driven by engineering solutions<br />

measured in throughput and operational<br />

efficiency.<br />

In today’s strained commodity markets<br />

where resource companies are challenged<br />

to find adequate and competent people,<br />

many companies are looking for new<br />

solutions to maintaining and achieving<br />

operational excellence. <strong>Th<strong>is</strong></strong> search for<br />

excellence has created a challenging and<br />

stimulating environment for both <strong>Hatch</strong>’s<br />

and our clients’ operational staff.<br />

Our major Operations Support clients<br />

are Alcoa, Rio Tinto and BlueScope Steel.<br />

SYSTEMS & PROCESS CONTROL<br />

Realizing the convergence of technologies<br />

between Systems and Process Control<br />

in the context of <strong>Hatch</strong>’s deep industry<br />

expert<strong>is</strong>e in metallurgical processes,<br />

energy, chemical, manufacturing, and<br />

infrastructure projects, the S&PC practice<br />

<strong>is</strong> uniquely positioned to meet all industrial<br />

automation & control, operational systems<br />

and optimization needs.<br />

Our global presence of more than 500<br />

professionals with substantial experience<br />

across the entire spectrum from process<br />

control to business systems allows us<br />

to identify and deliver solutions ranging<br />

from basic measurement and control<br />

to plant-wide operational systems<br />

and integration. Capitalizing on <strong>Hatch</strong>’s<br />

process, operational and business<br />

expert<strong>is</strong>e, Systems & Process Control<br />

<strong>is</strong> also focused on providing services<br />

and solutions for operational and<br />

process optimization.<br />

We Serve Our Clients by:<br />

• working with the client to establ<strong>is</strong>h<br />

business requirements and by<br />

designing appropriate automation<br />

and system solutions<br />

• offering a proven approach and<br />

methodologies to identify, develop<br />

and deliver control solutions<br />

• providing the ability to work across the<br />

entire automation/systems<br />

spectrum to provide an optimized and<br />

integrated solution<br />

• being vendor and technology independent<br />

• combining <strong>Hatch</strong>’s industry<br />

and Systems & Process Control expert<strong>is</strong>e<br />

to identify and deliver process<br />

optimization solutions.<br />

Processes are controlled<br />

and optimized by <strong>Hatch</strong><br />

Systems & Process Control.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

33


BUSINESS PRACTICES<br />

TECHNOLOGIES<br />

<strong>Hatch</strong>-developed technologies and<br />

technology-transfer services contribute<br />

significantly to plant reliability,<br />

operability, maintainability and optimum<br />

production. The technologies l<strong>is</strong>ted<br />

here are marketed, installed and<br />

supported by <strong>Hatch</strong>.<br />

The Smart Predictive Line Controller<br />

stabilizes the arc of electric furnaces by<br />

dynamically controlling a series reactor<br />

installed between the Utility and the<br />

Electric Furnace.<br />

Steelmaking & Casting<br />

• Smart Predictive Line Controller (SPLC)<br />

• StelArc Digital Electrode<br />

Controller (StelArc)<br />

• Electrolytic MacroEtcher<br />

& Etch Lab (MacroEtcher)<br />

• SlagTracker<br />

• Hinged Ladle Lid<br />

• Event Driven Optimal<br />

Scheduling System (EDOSS)<br />

• Desulphurization Reagent Control<br />

• Castrip LLC Alliance ®<br />

Steel Rolling & Coating<br />

• Coilbox<br />

• Force Feed Forward Automatic<br />

Gage Control (FFF)<br />

Light Metals<br />

• Aluminum DC Casting<br />

• Bauxite Tube Digestor<br />

Power & Electrotechnology<br />

• Power Quality Analyzer (PQA)<br />

• Smart Predictive Line Controller (SPLC)<br />

• Integrated Electric Furnace<br />

Control System (IFC)<br />

Oil & Gas<br />

• N-Solv Bitumen Extraction Process<br />

Non Ferrous<br />

• Electric Furnaces<br />

• Autoclaves<br />

• Smart Predictive Line Controller<br />

(SPLC)<br />

• Integrated Electric Furnace<br />

Control System (IFC)<br />

• Fluid Beds<br />

• Evaporative Spray Coolers<br />

• Chemical Vapour Metallurgy<br />

Furnace Condition Monitoring<br />

• Non-Destructive Testing<br />

(NDT) Services<br />

Environmental<br />

• Evaporative Spray Coolers<br />

• Basecon & Bauxsol (Virotec)<br />

Systems<br />

• Event Driven Optimal<br />

Scheduling System (EDOSS)<br />

• Production Information<br />

Management System (TagBase)<br />

Hydro<br />

• V<strong>is</strong>ta DSS – Scheduling-dec<strong>is</strong>ion<br />

Support Systems<br />

• HydroVantage – R<strong>is</strong>k-based<br />

maintenance planning software<br />

The Coilbox <strong>is</strong> located<br />

between the roughing mill<br />

and the fin<strong>is</strong>hing stands<br />

in modern hot strip steel mills.<br />

34


ENVIRONMENTAL<br />

The Geo-Environmental Engineering<br />

group applies an understanding of<br />

geology, hydrogeology, and environmental<br />

and geotechnical engineering to proposed<br />

and ex<strong>is</strong>ting sites. A combined staff of<br />

scient<strong>is</strong>ts and engineers provides a range<br />

of services to address environmental<br />

<strong>is</strong>sues for greenfield and brownfield facilities.<br />

Projects encompass all the stages in<br />

a site’s life cycle from site planning,<br />

design and development, to site operations,<br />

to site closure and redevelopment.<br />

<strong>Hatch</strong>’s experience and multid<strong>is</strong>ciplinary<br />

skills enable us to develop cost-effective<br />

solutions to our clients’ needs that sat<strong>is</strong>fy<br />

all applicable environmental regulations.<br />

Geo-Environmental:<br />

• Environmental Site Management<br />

• Environmental Mining Services<br />

• Hydrological and<br />

Hydro-geological Services<br />

• Tailings and Waste Management<br />

Environmental Site Management<br />

• Phase I and II environmental<br />

site assessments<br />

• Remediation technology selection<br />

• Remedial action plan development,<br />

implementation and superv<strong>is</strong>ion<br />

• Remedial/decomm<strong>is</strong>sioning<br />

program verification<br />

Environmental Mining Services<br />

• Site selection and conceptual<br />

site evaluation<br />

• Tailings, slag and waste rock<br />

management<br />

• Acid rock drainage control<br />

• Mine closure planning<br />

• Water supply evaluation and<br />

management<br />

• Environmental impact<br />

assessments<br />

Hydrological and<br />

Hydro-geological Services<br />

• Groundwater and surface<br />

water characterization<br />

• Groundwater and surface water<br />

resource identification<br />

• Contaminant hydrogeology<br />

• Excavation dewatering<br />

• Lagoon and pumping system design<br />

• Landfill and site compliance<br />

monitoring<br />

Tailings and Waste Management<br />

• Tailings dam design<br />

• Stability assessments and<br />

performance monitoring<br />

• Tailings dam rehabilitation<br />

and closure<br />

• Municipal landfill design<br />

• Process solid waste, sludge<br />

and residue characterization<br />

and management<br />

BEFORE<br />

AFTER<br />

The picture on the left shows the<br />

work environment at NorthStar<br />

BlueScope in Ohio, before <strong>Hatch</strong><br />

applied a furnace-em<strong>is</strong>sions control<br />

system. The results can be seen<br />

in the picture on the right.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

35


BUSINESS PRACTICES<br />

Air Quality<br />

<strong>Hatch</strong> has extensive worldwide experience<br />

in the design of gas handling<br />

and cleaning systems for all types<br />

of metallurgical facilities, as well as<br />

other industrial plants.<br />

The unique process-design strengths<br />

and multid<strong>is</strong>ciplinary skills within <strong>Hatch</strong><br />

enable the development of cost-effective<br />

solutions for our worldwide clients.<br />

Em<strong>is</strong>sions Control<br />

• Furnace Off-Gas Systems<br />

• Secondary Em<strong>is</strong>sion Control<br />

• Hood Capture Design<br />

• Materials Handling Dust Control<br />

• System Performance<br />

Evaluation and Optimization<br />

• Industrial Ventilation<br />

• Clean Plant Design<br />

System Design<br />

• Process gas handling<br />

• Gas cooling and conditioning<br />

• Particulate collection (cyclones,<br />

baghouses, scrubbers, electrostatic<br />

precipitators)<br />

• Acid gas scrubbing<br />

• Flare stacks and thermal oxidizers<br />

• Fan systems<br />

Services<br />

• Field survey assessment<br />

• Conceptual design<br />

• Pilot plant design<br />

• Engineering - multid<strong>is</strong>cipline<br />

• Procurement and construction<br />

management<br />

• Start-up and comm<strong>is</strong>sioning<br />

• Operator training<br />

Specialty Skills<br />

• Pollution prevention through<br />

process change<br />

• D<strong>is</strong>persion modelling and air<br />

permitting<br />

• NOx, VOCs and CO 2 reduction<br />

• Computational fluid dynamics (CFD)<br />

• Physical modelling<br />

• Gas-handling-system dynamic<br />

simulation<br />

• Process building ventilation<br />

• Water-cooled ducting<br />

• Refractory lined ducting<br />

• Large ducting design<br />

Climate change and the need in many jur<strong>is</strong>dictions for low-carbon strategies have several clients pursuing<br />

renewable energy solutions. The Chin Chute wind farm in Alberta, a <strong>Hatch</strong> project, <strong>is</strong> a joint venture of Enbridge,<br />

Suncor Energy and Acciona Wind Energy Canada.<br />

36


CONSULTING<br />

<strong>Hatch</strong> Consulting <strong>is</strong> a leading international<br />

management consultancy meeting the<br />

needs of managers in the mining & metals;<br />

energy; and infrastructure sectors.<br />

<strong>Hatch</strong> offers a comprehensive range<br />

of business and technical expert<strong>is</strong>e<br />

to our industrial clients, and strategy and<br />

due-diligence services to lenders and<br />

investors in targeted industries.<br />

On a regular bas<strong>is</strong>, <strong>Hatch</strong> acts as<br />

• Expert adv<strong>is</strong>ors to boards of directors,<br />

works managers, investors, banks<br />

and governments<br />

• Researchers and analysts providing<br />

authoritative answers to specific<br />

questions about businesses and<br />

their operations<br />

• Consultants who provide hands-on<br />

ass<strong>is</strong>tance in achieving new objectives<br />

from assignments that are longterm<br />

and strategic to those that are<br />

immediate and operations-oriented<br />

• Adv<strong>is</strong>ors to the world’s top resource<br />

and energy companies and more than<br />

50 major financial institutions.<br />

PEOPLE<br />

Quality Work Begins with<br />

Quality People<br />

In 2006 <strong>Hatch</strong> was pleased to welcome<br />

more than 300 young engineers and<br />

scient<strong>is</strong>ts to its ranks from universities<br />

and colleges all over the world.<br />

When graduates arrive at <strong>Hatch</strong> they<br />

are immediately enrolled in our global<br />

Graduate Professional Development<br />

Program, which helps the careers<br />

of our engineers and technicians off<br />

to a quick start.<br />

Last year <strong>Hatch</strong> provided more than<br />

130,000 hours of training to our employees<br />

in technical d<strong>is</strong>ciplines, health and safety<br />

programs, communication and business<br />

admin<strong>is</strong>tration.<br />

Educational Support<br />

<strong>Hatch</strong> <strong>is</strong> pleased to be able to invest<br />

in talented youth through scholarships,<br />

bursaries, and summer-employment<br />

programs. We also support chairs,<br />

research grants and other professional<br />

and technical university programs.<br />

Three members of <strong>Hatch</strong>’s Graduate Professional Development<br />

Program work as a team to climb a wall in a project delivery simulation.<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

37


RECENT EPCM PROJECTS<br />

(Millions of Canadian ’97 Dollars) ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07<br />

Transnet Rail and Ports 7-year Program, South Africa - $12,000+<br />

$12,000<br />

Santa Clara VTA San Franc<strong>is</strong>co Bay Area Rapid Transit (BART) Program, California - $5,000<br />

BHP Ravensthorpe Nickel and QNI Yabulu Refinery Project, Australia - $2,500<br />

CVRD Inco VBNC Commercial Plant Feasibility, Newfoundland and Labrador - $2,000<br />

Alumar Refinery, Brazil - $1,800<br />

2,000<br />

Aluminerie Alouette Smelter Expansion, Quebec - $1,500<br />

CVRD Inco Onça Puma Nickel Smelter, Brazil - $1,500<br />

GTAA Toronto Pearson International<br />

Airport Upgrades, Ontario - $850 (’98)<br />

BBI Dalrymple Bay Coal Terminal 7X Project, Australia - $1,100<br />

OPG Niagara Tunnel Project, Ontario - $985<br />

Xstrata Nickel Rim South Mine, Ontario - $900<br />

QIT Madagascar Minerals (QMM) Ilmenite Project, Madagascar - $700<br />

Skye Resources Fenix Nickel Project Basic Engineering, Guatemala - $750<br />

1,000<br />

Peter Kiewit Sons Co. Sea-to-Sky Highway Improvement Program, Brit<strong>is</strong>h Columbia - $600<br />

Xstrata Kidd Creek Mine D, Ontario - $600<br />

BlueScope Steel - Coating Line Projects, East Asia - $500<br />

LionOre Tati Activox Project, Botswana - $500<br />

Katanga Mining Kamoto Refinery Refurb<strong>is</strong>hment, Democratic Republic of Congo - $430<br />

500<br />

QIT Expansion Program, Quebec - $400<br />

CNRL Horizon Oil Sands, Alberta - $350<br />

Yamana Gold Chapada Project, Brazil - $300<br />

Impala Platinum 11C Shaft Project, South Africa - $300<br />

Anglo Platinum Waterval Concentrator, South Africa - $250<br />

BHPB Escondida Norte Mine Project, Chile - $225<br />

Xstrata Perseverance Zinc Mine, Quebec - $160<br />

200<br />

Alcoa Jamalco 125 Expansion, Jamaica - $160<br />

Canadian Pacific Railway Western Capacity Expansion, Alberta - $160<br />

Apache Midale CO 2 Program, Saskatchewan-$140<br />

Anglo Platinum ACP Phase 2, South Africa - $125<br />

QIT UGS Plant Capacity Expansion to 325 ktpa, Quebec - $110<br />

CVRD Inco VBNC Demo Plant, Newfoundland and Labrador - $105<br />

K<strong>is</strong>ladaq Gold Mine, Turkey - $100<br />

POSCO Nickel Furnace Technology, South Korea - $100<br />

Alcoa Suralco Refinery Expansion, Suriname - $92<br />

N-Solv Technology Demonstration Plant, Alberta - $35<br />

’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07<br />

38


GLOBAL OPERATIONS<br />

CANADA<br />

CALGARY, ALBERTA<br />

MONTRÉAL, QUÉBEC<br />

NIAGARA FALLS, ONTARIO<br />

OAKVILLE, ONTARIO<br />

ST. JOHN’S, NEWFOUNDLAND AND LABRADOR<br />

SOREL-TRACY, QUÉBEC<br />

SUDBURY, ONTARIO<br />

TORONTO, ONTARIO<br />

VANCOUVER, BRITISH COLU<strong>MB</strong>IA<br />

EUROPE<br />

LONDON, ENGLAND<br />

MOSCOW, RUSSIA<br />

INDIA<br />

NEW DELHI<br />

CHINA<br />

BEIJING<br />

SHANGHAI<br />

WINNIPEG, MANITOBA<br />

USA<br />

SOUTH AMERICA<br />

SOUTH AFRICA<br />

AUSTRALIA<br />

BOSTON, MASSACHUSETTS<br />

ANTOFAGASTA, CHILE<br />

JOHANNESBURG<br />

BRISBANE<br />

BUFFALO, NEW YORK<br />

BELO HORIZONTE, BRAZIL<br />

GLADSTONE<br />

HOUSTON, TEXAS<br />

LIMA, PERU<br />

MACKAY<br />

NEW YORK, NEW YORK<br />

SANTIAGO, CHILE<br />

MELBOURNE<br />

MILLBURN, NEW JERSEY<br />

SÃO PAULO, BRAZIL<br />

NEWCASTLE<br />

PENSACOLA, FLORIDA<br />

PERTH<br />

PITTSBURGH, PENNSYLVANIA<br />

SYDNEY<br />

SAN FRANCISCO, CALIFORNIA<br />

TOWNSVILLE<br />

SEATTLE, WASHINGTON<br />

WHYALLA<br />

WOLLONGONG<br />

YELLOW INDICATES REGIONAL HUB<br />

THIS IS HATCH <strong>2007</strong> | ABSOLUTE QUALITY: OUR GOAL ALWAYS<br />

39


Escondida Norte and E3<br />

The world’s largest<br />

copper mine produces<br />

eight percent of the<br />

world’s output of copper.


ANATOMY OF A PROJECT | ESCONDIDA NORTE AND E3<br />

The US$194.5-million Escondida Norte<br />

and E3 copper-mine project in Chile’s<br />

Atacama Desert <strong>is</strong> an excellent example<br />

of a quality project from the standpoint<br />

of safety, design, equipment procurement,<br />

and project and construction management.<br />

Escondida <strong>is</strong> the largest copper mine<br />

in the world, producing eight percent of<br />

the world’s output of copper.<br />

The Escondida Norte and E3 project<br />

teams were made up of professionals<br />

from the client, BHP Billiton, and from the<br />

<strong>Hatch</strong> offices in Santiago and Antofagasta.<br />

The objective was to supplement<br />

the ex<strong>is</strong>ting Escondida facilities with<br />

a new primary crusher station, overland<br />

and d<strong>is</strong>tribution conveyors and surge<br />

and d<strong>is</strong>tribution silos.<br />

The new Materials Handling System <strong>is</strong><br />

designed to deliver a maximum of 8,800<br />

tonnes per hour to the ex<strong>is</strong>ting Escondida<br />

process facilities. The ramp up to optimum<br />

production (both design yields and tonnages)<br />

was achieved within one month<br />

of startup.<br />

Besides the principal facilities there were<br />

ancillaries that had to be designed and<br />

constructed, including an electrical substation,<br />

expansion of the heavy-equipment<br />

workshop, a wash bay, a b<strong>is</strong>chofita plant,<br />

roads and offices.<br />

The E3 conveyor project included the<br />

construction of two new parallel 1.2-kmlong<br />

conveyors, the extension of ex<strong>is</strong>ting<br />

conveyors and two 10-day long tie-ins.<br />

Design yields were achieved.<br />

Of the purchase orders that had to be<br />

executed to ensure a successful project,<br />

92 percent were placed locally. Only<br />

11 pieces of equipment had to be sourced<br />

from outside the country.<br />

Cost control, the process of gathering,<br />

analyzing, forecasting, reporting and<br />

managing the costs was undertaken in<br />

the site and Santiago offices. iPAS, <strong>Hatch</strong>’s<br />

integrated project admin<strong>is</strong>tration system,<br />

was the primary tool supporting the<br />

cost-control function.<br />

More than 80,000 hours of safety<br />

training were spent at the site, in keeping<br />

with BHP Billiton’s Safety Management<br />

Standards and audit processes, and<br />

<strong>Hatch</strong>’s Safety Policies.<br />

Giant conveyor serves Escondida<br />

Norte mine, a <strong>Hatch</strong> EPCM project.<br />

41


PRINCIPAL OFFICES<br />

ASIA<br />

805-6, Tower A, Full Link<br />

18 Chao Yang Men Wai Avenue<br />

Chaoyang D<strong>is</strong>trict, Beijing 100020<br />

P.R.China<br />

Tel: +86 10 6588 7622<br />

Fax: +86 10 6588 7623<br />

Suite B-C, 6th Floor<br />

Bao Qing Building<br />

8 Tao Jiang Road<br />

Xuhui D<strong>is</strong>trict, Shanghai 200031<br />

P.R. China<br />

Tel: +86 21 6119 5900<br />

Fax: +86 21 6119 5999<br />

AUSTRALIA<br />

152 Wharf Street<br />

Br<strong>is</strong>bane, Queensland<br />

4000 Australia<br />

Tel: +61 7 3834 7777<br />

Fax: +61 7 3832 3042<br />

144 Stirling Street<br />

Perth, Western Australia<br />

6000 Australia<br />

Tel: +61 8 9428 5000<br />

Fax: +61 8 9428 5555<br />

26 Atch<strong>is</strong>on Street<br />

Wollongong, New South Wales<br />

2500 Australia<br />

Tel: +61 2 4224 7222<br />

Fax: +61 2 228 0893<br />

15 Help Street<br />

Chatswood (Sydney)<br />

New South Wales<br />

2067 Australia<br />

Tel: +61 2 8668 2300<br />

Fax: +61 2 8668 2323<br />

CANADA<br />

2800 Speakman Drive<br />

M<strong>is</strong>s<strong>is</strong>sauga, Ontario L5K 2R7<br />

Tel: +1 905 855 7600<br />

Fax: +1 905 855 8270<br />

5 Place Ville Marie, Bureau 200<br />

Montréal, Québec H3B 2G2<br />

Tel: +1 514 861 0583<br />

Fax: +1 514 397 1651<br />

Notre Dame Business Complex<br />

40 Elm St, Unit ND 255<br />

Sudbury, Ontario P3C 1S8<br />

Tel: +1 705 688 0250<br />

Fax: +1 705 688 0244<br />

1235 North Service Road West<br />

Oakville, Ontario L6M 2W2<br />

Tel: +1 905 469 3400<br />

Fax: +1 905 469 3404<br />

840-7th Avenue S.W., Suite 700<br />

Calgary, Alberta T2P 3G2<br />

Tel: +1 403 269 9555<br />

Fax: +1 403 266 5736<br />

4342 Queen Street<br />

P.O. Box 1001<br />

Niagara Falls, Ontario L2E 6W1<br />

Tel: +1 905 374 5200<br />

Fax: +1 905 374 1157<br />

Suite E200, Bally Rou Place<br />

280 Torbay Rd.<br />

St. John’s, Newfoundland A1A 3W8<br />

Tel: +1 709 576 7376<br />

Fax: +1 709 754 2717<br />

Suite 400, Oceanic Plaza<br />

1066 West Hastings Street<br />

Vancouver, Brit<strong>is</strong>h Columbia V6E 3X2<br />

Tel: +1 604 689 5767<br />

Fax: +1 604 689 3918<br />

EUROPE<br />

9th Floor, Portland House<br />

Bressenden Place, London SW1E 5BH<br />

England<br />

Tel: +44 020 7906 5100<br />

Fax: +44 020 7963 0972<br />

Olympic Plaza<br />

bld-33-k1, Prospect Mira<br />

129110, Moscow<br />

Russia<br />

Tel: +7 495 721 9040<br />

Fax: +7 495 721 9041<br />

LATIN AMERICA<br />

Rua Gomes de Carvalho<br />

1195 – 3 andar<br />

Vila Olimpia – Sao Paulo – SP<br />

Brazil<br />

CEP: 04547-004<br />

Tel: +55 11 3053 8090<br />

Fax: +55 11 3053 8091<br />

Avda. El Bosque Norte #500, P<strong>is</strong>o 12<br />

Las Condes – Santiago – Chile<br />

Tel: +56 2 430 2600<br />

Fax: +56 2 430 2699<br />

SOUTH AFRICA<br />

Building 14<br />

Harrowdene Office Park<br />

Western Service Road<br />

Woodmead, South Africa<br />

Tel: +27 11 239 5300<br />

Fax: +27 11 239 5790<br />

USA<br />

27 Bleeker Street<br />

Millburn, New Jersey 07041-1008<br />

Tel: +1 973 379 3400<br />

Fax: +1 973 912 2593<br />

1600 West Carson Street<br />

Gateway View Plaza<br />

Pittsburgh, Pennsylvania 15219<br />

Tel: +1 412 497 2000<br />

Fax: +1 412 497 2212<br />

3825 Hopyard Rd, Suite 240<br />

Pleasanton, California, 94588<br />

Tel: +1 925 469 8010<br />

Fax: +1 925 469 8011<br />

www.hatch.ca<br />

<strong>Th<strong>is</strong></strong> <strong>is</strong> <strong>Hatch</strong> <strong>2007</strong> <strong>is</strong> printed on Euro Art Plus Silk. <strong>Th<strong>is</strong></strong> paper <strong>is</strong><br />

certified in accordance with PEFC (Promoting Sustainable Forest<br />

Management). It contains 70% certified wood and <strong>is</strong> fully recyclable.

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