Nickel Rim South - Xstrata Nickel's first new mine in Sudbury in 20 years

CIM Toronto 2009
Mike Welch, Rick Collins,
Abstract The Feasibility Study for the Nickel Rim South Project in Sudbury was completed in 2003 and approval to proceed into execution was granted by Xstrata Nickel on March 8, 2004. The 7 year execution program was split into 2 phases; a 58 month Deposit Definition phase followed by a 24 month Full Mine Ramp-Up phase; subject to approval based on results of the Deposit Definition. As of October 2008 the first phase of the project is 95% complete with initial production from the $1Bn new mine on-track for 2009. From the onset of the work, safety has remained the project's #1 priority and, with 4 years and 4 million hours worked without a lost time incident, results are considerably ahead of construction and mining industry norms. The period from 2004 to present has seen significant escalation in commodity and construction costs along with markedly increased labour costs in the Sudbury mining camp. EPCM was provided by a joint-venture of Hatch-McIntosh; and through careful project management and cost control the first phase of this project will be delivered some 4% below budget and on schedule.
The presentation will illustrate and describe some of the principal elements of the work along with methods for new mine project management that have been successfully applied at Nickel Rim South.
Keywords: Nickel Rim South, Feasibility Study, deposit definition, industry norms, below budget, Full Mine, Project management, lost time incident, Hatch-McIntosh, Cost control
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