Annual Review - This is Hatch 2006 [pdf, 1.88 MB]

This is Hatch 2006

Table of Contents
Table of Contents
Chairman’s message 1
The Hatch Advantage 2
President’s message 3
Metals 4
Energy 6
Infrastructure 8
Hatch Structure/Services 10
Safety 10
Manifesto 11
Map of current projects 12

Chairman’s Message
Chairman’s message
The past decade for Hatch has been one of rapid, yet deliberate, expansion that has sent us
permanently into new services, new technologies, new geographies, and new market sectors.
All of which have enriched our ability to serve our long-standing clients on every continent.
The metals sector continues to see strong demand for most commodities, which has kept
pressure on materials and labour costs just as our clients are preparing to expand and
upgrade their facilities. We have assured our clients that we will endeavour to provide
our experience, skills and innovation on their projects to help reduce the risks they face in
today’s overheated marketplace.
In 2004 we added Hatch Acres to our service capabilities in hydro, thermal, nuclear, wind
power, and water management, and this year we added Hatch Optima for their extensive
experience in oil and gas in Western Canada.
We will work closely with our Hatch Optima colleagues and focus on the further development
of Hatch’s oil & gas services and oil-sands technologies based in Canada. It is clear
that our natural resources, modern technologies, stable society, and attractiveness to engineering
professionals allows Hatch to develop of a high level of expertise for the oil & gas
sector for deployment around the world.
Our infrastructure activities through Connell Hatch in Australia and Hatch Mott
MacDonald in North America included such exciting projects as the Dalrymple Bay and
Hay Point coal terminals in Australia, the Santa Clara Valley Transportation Authority
expansions in California, and the Sea-to-Sky highway upgrade in British Columbia, which
will be finished in time for the Winter Olympics being hosted by British Columbia in 2010.
The year 2005 was our 50th Anniversary, and we celebrated it by asking our clients and colleagues
to join us for special events in Africa, Asia, Australia, North and South America
and Europe. We also produced a 10-minute video and a 160-page, hard-cover history of
Hatch, which we distributed to each of our employees and their families.
We look forward with confidence to 2006—the first year of our next 50 years.
Ron Nolan
Chairman

The Hatch Advantage
The Hatch Advantage
We work safely.
Nothing is more important to us than the safety and health
of our employees, our clients’ employees, our families, our
visitors and those contractors whom we manage on projects.
We’re always looking for ways to raise our safety and
environmental standards, and achieve sustainable social and
community development.
We work in teams.
Our experience proves that excellence and quality are delivered
most consistently by well-led teams of experts with
ranges of experience and skills who are assembled from
different engineering and business disciplines. This strategy
allows us to work well with client and integrated teams.
We fight for lower costs and better quality.
We work with the most successful companies in the world,
and they expect to be, through discipline and innovation,
the lowest-cost providers of high-quality products.
We plan carefully for fast startups.
Every project that is commissioned and producing at design
capacity ahead of schedule delivers two enormous benefits
to our clients: an earlier than expected end to major spending,
and an earlier than expected delivery of cash flow.
We design, build and operate for smooth
performance and years of reliability.
Our prime business objective is to ensure that we deliver to
our clients safe, modern and low-cost production facilities
that can be profitably operated for decades.
For our clients The Hatch Advantage is “the creation of
substantial value...at the earliest stages of capital projects”
– Kurt Strobele

President’s Message
President’s message
Each of our industry sectors, metals, energy and infrastructure is poised for continued
growth and expansion to meet the surging demands of Brazil, Russia, India, China and
other rapidly developing and expanding industrial nations.
To help our clients better meet the demands of their own customers’ for better quality,
attention to safety and costs, and reliability of delivery, we’ve been very busy keeping pace
with our clients’ needs to develop new facilities; upgrade technologies and operational processes;
and expand the production capacity of established plants across the globe.
In a busy year, we’ve consistently been able to demonstrate The Hatch Advantage through
the creation of substantial value for our clients at the earliest stages of capital projects. We
ensure that all planning and preliminary engineering are well-executed before commitments
are made for major capital expense of detailed engineering and construction.
We have improved our ability to serve our clients through the development of new delivery
systems, such as the creation of our new Global Project Offices in South Africa and Chile.
They are organized and equipped to undertake assignments on behalf of other Hatch offices
around the world.
Our data and knowledge-management systems were also further upgraded to provide timely
and comprehensive analysis and reporting to our project teams and their clients. Those
improvements have allowed us to streamline our operational and capital-projects procedures
and maintain aggressive schedules and budgets. For our senior managers there was also the
test of finding the best people for the technical, business and leadership requirements of our
clients’ projects, no matter where in the world they are.
In this publication, This is Hatch 2006, you will find some details of a number of representative
projects that we have completed or are working on in each of the metals, energy and
infrastructure sectors around the world. We have also reported on our principal services,
methodologies and technologies, which continue to earn the confidence of our clients.
I would like to take this opportunity to thank our clients and staff for their continued confidence
and support.
Kurt Strobele
President and Chief Executive Officer

Mining and Metals
We work safely.
voisey’s bay nickel
demonstration plant
Largest aluminum smelter
in north america
Aluminerie Alouette at Sept-Iles,
Québec is the largest aluminum
smelter in North America, and the
fifth-largest in the world.
The recent expansion from 245,000
tonnes a year to 550,000 tonnes
was a $1.5-billion project that was
completed on budget and three
months ahead of schedule.
Metals
The Aluminerie Alouette expansion from 245,000 tonnes a year to 550,000 tonnes was a
$1.5-billion project that was completed three months ahead of schedule.
Hatch and a JV partner provided engineering,
procurement, and project and construction
management to the project.
Alcoa announced that it will spend US$1.6
billion to expand its upstream operations
in Brazil, including an added 2.1 million
tonnes of alumina for the Alumar alumina
refinery in Sao Luis, Brazil. Hatch has been
assisting Alcoa with the feasibility study
and basic engineering.
“The Brazilian operations are among the
lowest cost in our system, as well as in the
world,” said Alain J.P. Belda, Alcoa’s chairman
and chief executive officer. Hatch
recently opened an office in Sao Paulo,
Brazil to serve clients in that region.
BlueScope Steel last year invested more than
$600 million in capital projects in Asia,
Australia and North America. Hatch played
key roles in most of those projects.
In China, the Suzhou metal coating and
painting lines are on schedule for start up
later in 2006. And in Guangzhou construction
is under way for the Butler Pre-
Engineered Building and Lysaght facility,
which will also be completed in late 2006.
In Australia, the Hot Strip Mill expansion
is under way and also set for completion in
late 2006.
Hatch is also providing engineering and
project services for BlueScope Steel’s No 5
Blast Furnace Reline Project at Port Kembla
Steelworks in Wollongong, Australia.
Hatch Wollongong provides engineering
personnel, technical advice and design
resources to the client engineering team that
is managing the project.
BlueScope is one of Hatch’s major operations-support
clients. In this case Hatch pro-

Qni’s Yabulu refinery
Ravensthorpe Mine
vides in-house engineering and capital-project
oversight and construction management.
The BHP Billiton Ravensthorpe Nickel
Project mine development and the expansion
of the Yabulu Nickel Refinery are among the
largest metals projects in Australia.
The first shipment of mixed nickel-cobalt
hydroxide intermediate product is scheduled
to leave the Port of Esperance, Western
Australia, in early 2007.
Hatch is leading a JV team to provide engineering,
procurement, and project and construction
management at both Ravensthorpe
and Yabulu.
In October 2005 Inco started up its hydrometallurgical
demonstration plant in
Argentia, Newfoundland.
The facility will test ground-breaking
hydrometallurgical processing technologies
to treat Voisey’s Bay nickel concentrates.
The demonstration plant is one of four
stages of a US$150-million research and
development program aimed at confirming
the commercial application of the new
hydrometallurgical technology.
Capital and operating costs of hydrometallurgical
facilities are typically more economical
than conventional smelters. They
are also more energy efficient and more
environmentally friendly.
Hatch and Inco shared responsibility for the
engineering, procurement, and project and
construction management of the demonstration
plant.
Queensland Nickel
The combined US$1.4-billion
Ravensthorpe mine and Yabulu
expansion projects include the
mine and an enhanced pressure
acid leach hydrometallurgical
process plant and associated
infrastructure at Ravensthorpe
in Western Australia, and the
expansion of the Queensland
Nickel Yabulu Refinery near
Townsville in Queensland.

ConocoPhillips SAGD
Clean energy at bruce
Bruce Power has announced a
$4.25-billion investment program
that begins with the restart of Bruce
A Units 1 and 2.
Restarting the units will boost Bruce
Power’s output to more than 6,200
MW, making it the source of 25
percent of Ontario’s electricity on a
typical day.
Energy
Hatch Acres, our wholly owned energy group, was part of a team that won the 2004 Schreyer
Award for the most outstanding technical project, the restart of Bruce A Units 3 and 4.
The joint venture of Acres International,
Sargent & Lundy and E.S. Fox (ASLF) will
again participate in the restarts of Bruce A
Units 1 and 2.
Restarting the units will boost Bruce Power’s
output to more than 6,200 MW, making it
the source of 25 percent of Ontario’s electricity
on a typical day. The eight units at
Bruce will supply the annual power needs of
more than four million homes.
The Hatch Acres project team has managed,
designed and supervised construction of
new nuclear power plants around the world
since the early 1970s.
Canadian Natural Resources Limited uses
both open pit mining and in-situ techniques
to extract oil from the Alberta oil sands, but
its $10.8-billion Horizon project, a Hatch
assignment, will use open-pit mining.
Hatch is providing engineering and project
management services to the project.
Significant time and funding has been
invested in the Front End Engineering
and Design of the facilities to substantially
reduce uncertainties.
Hatch Optima is also active on the
ConocoPhillips Steam-Assisted Gravity
Drainage (SAGD) Project southeast of Fort
McMurray in Alberta, Canada’s 300-billion-barrel
oil sands.
The ConocoPhillips project is in a region
known as Surmont. The formation at
Surmont, which has an estimated 20 billion
barrels of oil in place, is too deep to be
mined in the conventional open-pit manner.
SAGD calls for the injection of steam
deep into the oil sands effectively melting
the heavy bitumen, which is then

Energy
We work in teams.
Karun River dam is one of the few
remaining sources of hydroelectric
power in the Middle East
recovered and pumped to the surface for
further processing.
ConocoPhillips is expected to produce a
daily oil supply of 400,000 barrels for the
next 30 to 60 years. Construction plans
include a four-phased approach with first
commercial production scheduled for 2006.
Hatch Acres has been providing engineering
for the proposed Karun River hydroelectric
developments that will use the
300-m drop over a river length of about 100
km above the reservoir of an existing dam.
The Karun River is one of the few remaining
sources of hydroelectric power in the
Middle East.
Hydrological and reservoir operation studies,
geological investigations, power demand
forecasts, transmission line routing studies,
and dam and power facility layouts were all
included in the work. The dams will harness
the power potential and provide storage
and river regulation, which will permit the
development of irrigation for more than
100,000 hectares of land.
The project comprises a 205-m high arch
dam and spillway facilities designed to
handle flood flows of 22,350 m3/s. Flows
for power generation are conveyed through
power tunnels, which are about 700 m
long and vary in size from 12.6 m to 5 m
in diameter.
Adjacent to the powerhouse the penstocks
are steel lined. The underground powerhouse
will have a total installed capacity of
3000 MW. However, the initial development
consists of 2000 MW provided by
eight units of 250 MW each. Flows from
the powerhouse are conveyed to the river
through two tailrace tunnels of 14 m maximum
diameter.
Hatch Acres provides wind power
in Canada.

Infrastructure
We fight for lower costs
and better quality.
Rolleston coal mine
The Rolleston coal stacker was
designed by Connell Hatch in
Australia.
Dalrymple Bay
Coal is a key export for Australia.
Dalrymple Bay has been expanded
by 50 percent to meet world
demand.
Infrastructure
Australia is aggressively expanding its coal exporting capacity to meet growing world
demand, and Connell Hatch has been engaged for two high-profile seaboard coal terminal
projects: Dalrymple Bay and Hay Point. Connell Hatch is a joint venture of Hatch and
Connell Wagner of Australia
For each project Connell Hatch is project
manager for engineering, procurement and
construction management.
Connell Hatch provides consulting engineering
services for coal, cement, agriculture,
seaboard bulk materials and heavyhaulage
rail projects.
At Dalrymple Bay Coal Terminal capacity
will be expanded from 54 million tonnes
per annum (mtpa) to 80 mtpa over three
phases. The capital cost will be more than
$800 million.
For Hay Point Coal Terminal, owned by the
BHP Billiton Mitsubishi Alliance (BMA),
the design capacity will increase in the first
stage from 34 mtpa to 40 mtpa.
The plan calls for simultaneous train
unloading and shiploading. BMA at Hay
Point will also add a stacker/reclaimer
and extend and upgrade the stockpile
infrastructure.
The design, which is now complete, places
a high priority on safety and environmental
issues at Hay Point.
Also in Australia, our AAMHatch joint
venture (mapping business), continues to
more than satisfy our client needs, as could
be seen from the substantial increase in
project activity in 2005. The unit plans
to extend its range of services in Western
Australia and expects further significant
growth in 2006 as a result.

Infrasturcture
Santa Clara Valley Transportation Authority is
expanding to serve the San Francisco Bay area
Our infrastructure joint venture in North
America, Hatch Mott MacDonald
(HMM), is expanding its environmental
division operations from the US into
Canada, where the company enjoys an excellent
and long-standing reputation for undertaking
major public and private projects.
HMM’s transportation division has focussed
its attention on several major projects,
including the multi-billion-dollar project
in California for the Santa Clara Valley
Transportation Authority; and a jointventure
project with Hatch Acres for the
Niagara Power Tunnel, which will be the
largest-diameter hard-rock tunnel in the
world. Also in Canada HMM’s transportation
division was awarded British Columbia’s
massive Sea-to-Sky highway-upgrading
project for the 2010 Winter Olympics.
Sea-to-Sky
The British Columbia Sea-to-Sky highway is being modernized before the
arrival of the 2010 Winter Olympics

Hatch provides
key services to our
global clients in
metals, energy and
infrastructure
Safety
At Hatch, safety is a priority – and on site, safety is THE priority issue for our employees
and contractors. We have scores of major projects under way, and each has safety protocols
that have been developed over several years based on our experiences, our lessonslearned
programs and our safety research.
Our lost-time injury frequency rates are
among the lowest in the industry, and
across all sectors.
In our most recent safety report, The 2005
Health and Safety Review, Hatch employees
had just two lost-time injuries in more
than 7.9 million hours worked. For projects
under Hatch control, there were only 13
lost-time injuries in more than 12.4 million
hours worked. The combined lost-timeinjury
frequency rate was 0.15 per 200,000
hours worked.
The goal at all Hatch facilities – offices and
projects – is “no harm” to our people, client
facilities and all related equipment.
Each project has a safety program that
is meant to deal directly with its unique
potential safety hazards.
Beginning with the design concept for any
project or assignment, safety is the topmost
consideration.
The safety training of all personnel begins
before they are allowed access to our project
sites. All project personnel are introduced
to pertinent safety standards, safety
procedures, functional guides and our
safety-audit and reporting programs.
Throughout the life of the project, safety
messages are delivered and repeated so
that the safety focus is understood and
maintained.
As a result of these planning, programming
and communications efforts, Hatch
has shown continuous improvement in its
overall safety performance for more than
four years.
10

Manifesto
Hatch Manifesto
We are an innovative organization committed to helping our clients achieve
unprecedented and sustained business results.
Our clients appreciate our added value, trust and communications, as well as our
ability to transfer our expertise quickly and efficiently on a global basis.
Our Stands:
• Provide a healthy and safe workplace environment
• Create an organization that allows each person to make a difference
• Create and foster client relationships based on trust and respect
• Do the proper homework on every project
• Be unconditionally honest with our clients
• Be innovative in creating and measuring value
• Invest in the development and transfer of technologies and skills
• Provide seamless worldwide communication
• Ensure sustainable-development principles guide us in our work
We plan carefully for
fast startups.
11

Current Major Projects and Offices
We design, build and operate for smoo

Major Projects/Offices
Mining and Metals
Energy
Infrastructure
Principal Offices and
Centres of Excellence
Other offices
th performance and years of reliability.

Principal Offices
Asia
Suite B-C, 6th Floor,
Bao Qing Building
No. 8 Tao Jiang Road
Xuhui District, Shanghai 200031,
P.R. China
Tel: +86 21 6433 5337
Fax: +86 21 6433 6106
Australia
152 Wharf Street
Brisbane, QLD 4000
Australia
Tel: +61 7 3834 7777
Fax: +61 7 3832 3042
144 Stirling Street
Perth, WA 6000
Australia
Tel: +61 8 9428 5000
Fax: +61 8 9428 5555
26 Atchison Street
Wollongong, NSW 2500
Australia
Tel: +61 2 4224 7222
Fax: +61 2 4228 0893
North America
2800 Speakman Drive
Mississauga, Ontario
L5K 2R7
Canada
Tel: +1 905 855 7600
Fax: +1 905 855 8270
5 Place Ville Marie, Bureau 200
Montréal, Québec
H3B 2G2
Canada
Tel: +1 514 861 0583
Fax: +1 514 397 1651
815-8th Avenue S.W., Suite 1000
Calgary, Alberta
T2P 3P2
Tel: +1 403 292 0370
Fax: +1 403 292 0377
Suite 2200, Oceanic Plaza
1066 West Hastings Street
Vancouver, BC
V6E 3X2
Tel: +1 604 689 5767
Fax: +1 604 689 3918
1600 West Carson Street
Gateway View Plaza
Pittsburgh, Pennsylvania
15219 U.S.A.
Tel: +1 412 497 2000
Fax: +1 412 497 2212
Latin America
Avda. El Bosque Norte #500,
Piso 12
Las Condes - Santiago - Chile
Tel: +56 2 430 2600
Fax: +56 2 430 2699
Rua Gomes de Carvalho, 1195
- 3 andar
Vila Olimpia - Sao Paulo - SP
Brasil
CEP: 04547-004
Tel: +55 11 3053 8090
Fax: +55 11 3053 8091
South Africa
Building 14,
Harrowdene Office Park
Western Service Road
Woodmead, 2128
South Africa
Tel: +27 11 239 5300
Fax: +27 11 239 5790
Europe
9 Dartmouth Street
London, England
SW1H 9Bl
Tel: +44 207 906 5100
Fax: +44 207 233 1908