8/9/2019 1.1.- Conga Capex Final Reconciliation.stage 2-3.RevC
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Project N° A3CO
Cost Estimate Review 2008: Rev. C / Cost Estimate Baseline 2007: Newmont Revision
May 2007 CAPEX
(Newmont Rev)2008 - 2007 Last change: 18-Oct-2008
Total Cost - Stage 2 Total Cost - Stage 3 Variance Observations of Escalation, Scope Changes +/- Estimated
INITIAL CAPITAL COSTS
Direct Cost
A Mining Equipment 85,172,700 271,887,297 186,714,597
2006 Amec Study considered 30 units of mine equipment. The 2008 study consider 78 equipment items.Revise Mine Plan in 2008Haul truck unit price increased by US$MM 2.78 to 4.81. market condition and escalation factors.
2008 Capex included spare and tools for mining equipments.One pit stage 2 versus open two pits simultaneous on stage 3.
B Pre-Strip Development 15,400,000 53,601,716 38,201,7162006 Bog Removal was estimated in Golder Scope. Unit prices and quantities increases for pre/stripping and haulroads.
C Dispatch & Magazine 2,124,424 17,053,003 14,928,579Steaming & emulsion plant add t o 2008 scope.2007 scope for explosive & nitrate storage was platform only with out buildings. Bigger platforms f or Stage 3 design.
D Mine Inpit Power 1,400,000 1,764,866 364,866 Same scope: mining power and mobile substations.
Z
Capex Variance Fluor Stage 2
Rev (Feb 2007) - Newmont Stage
2 Rev (May 2007)
11,782,645 0 -11,782,645 Undocumented changes from Feb 2007 to May 2007.
Total Mine 115,879,769 344,306,882 228,427,113
1 Civil and Earthworks 34,515,388 56,341,590 21,826,202
Mto Qty: 2007: 5,791,000 m3 / 2008: 4,888,000 m3 (cut and fill).
Unit Price: 2007: 5.96 US$/m3 (3% rock excavation) / 2008: 10.96 US$/m3 (35% rock excavation & 5 Km haul
borrow material area due to revised lay out).Different location for the Process Plant in Stage 3.
2 In-Plant Roads 17,527,516 26,865,214 9,337,698
Mto Qty: 2007: 3,580,000 m3 (14 Roads) / 2008: 2,096,000 m3 (22 Roads).
Unit Price: 2007: 4.89 US$/m3 (3.5% rock excavation) / 2008: 11.68 US$/m3 (38% rock excavation & 5 Km haul
borrow material area due to revised lay out).
3 Concrete 28,449,729 70,450,160 42,000,431
Mto Qty: 2007: 45,419 m3 / 2008: 95,085 m3.
Obs: 2007 non-process building were estimated by m2. Not concrete quantities f or these buildings. Additional scopedue to plant capacity increased from 85,000 to 92,000. Major equipment size increased.
Unit Price: 2007: 626.3 US$/m3 / 2008: 740.9 US$/m3 (rebar and concrete price increase).
4 Structural Steel 18,879,158 42,070,160 23,191,002
Mto Qty: 2007: 4,800 Ton / 2008: 9,036 Ton.
Obs: 2007 non-process building were estimated by m2. Not structural steel quantities for these buildings wereconsidered. Additional scope due to plant capacity increased from 85,000 to 92,000. Major equipment sizeincreased.
Unit Price: 2007: 3,933 US$/Ton / 2008: 4,655 US$/Ton (steel price increase).
5 Architectural 56,776,228 51,258,761 -5,517,467
Mto Qty: 2007: 46,700 m2 / 2008: 47,900 m2.
Obs: 2007 truck shop and other mine facilities were estimated by m2. Concrete and steel prices were included inthese account for May 2007. Non process building significally increased in Stage 3 (the Stage 2 included truck shop
and mine facilities). A bu ild ing lis t rec onc ili atio n wi ll b e devel oped .
Unit Price: 2007: 1,215 US$/m2 / 2008: 1,070 US$/m2.
6 Mechanical 214,981,899 339,375,031 124,393,132Great increase in equipment prices (quotation). Some prices increased due to equipment specification & capacitychanges. Ref. equipment list reconciliation.
7 Piping 40,382,096 50,135,717 9,753,621
Mto Qty: 2007: 128,700 m / 2008: 85,900 m. Additional water pipe for Flotation circuit. Piping in concentrator area
changed, due to revised lay out.
Unit Price: 2007: 313.7 US$/m / 2008: 583.6 US$/m (increase price of steel)
8 Electrical 65,430,102 84,317,308 18,887,206
Mto Qty: 2007: 223,000 m / 2008: 498,000 m (Includes lighting, power & control cable to junction boxes).Verify if
total qty of control cable was included in Stage 2 estimate and separate power & control cables for Stage 3
estimate. Also verif y the power increase from 80 MW to 140 MW.
Obs: Variance explanation: US$MM 10 equipment escalation, US$MM 5 additional elec. equipment and US$MM
4 additional quantities of cable.
9 Instrumentation 13,027,521 20,363,681 7,336,160
Mto Qty: 2007: 1,300 ea / 2008: 960 ea (instruments). May 2007 quantities i ncluded 242 pull cords, rip switches
and becon and horns.
Obs: mayor equipment increased its quotation. Previous study did not included mine slope detection system and
early storm detection system.
9A Insulation & Painting 2,514,073 0 -2,514,073No insulation is included in the scope. Painting is considered in field fabricated tanks, structural steel and piping
accounts.
ZCapex Variance Baseline Feb
2007 to Apr 2007-39,830,620 0 39,830,620 Undocumented changes from Feb 2007 to May 2007.
Total Concentrator Plant 452,653,090 741,177,622 288,524,532
10 Mill Sands Process / Distribution 20,243,205 37,043,522 16,800,317Thickening mechanism, structural and civil price increased due to escalation.One more thickener was added in stage 3.
11Mill Sands Storage Facility / Stage1
80,578,876 100,332,108 19,753,232
Dams Fill Placement (Initial)
Qty: 2007: 3,970,000 m3 / 2008: 4,878,000 m3.
Unit Price: 2006: 11.99 US$/m3 / 2008: 11.86 US$/m3.
Obs: The 2007 study was a conceptual design, in the 2008 study the Earthwork embankment volume increase due
to better geotechnical interpretation, also the unit pricing for the liners was under estimated in May 2007 study.
12Perol Waste Dump Preparation &Bog Removal
20,474,050 58,686,579 38,212,529Dump foundation redesign including membrane liner over karst, contouring to support lining requirements andcomplete under drain system.
12A Mine Unsuitable Material Dump 512,800 1,675,236 1,162,436 Scope change occasioned by change in the Bog disposal methodology.
13Perol - Waste Rock Storage
Preparation6 ,659 ,787 Included (I tem 12) -6,659,787 2008 cost now included in Perol waste dump preparation (see I tem 12 and 12A).
14 Chailhuagon Dump P reparation 2,106,832 3,538,301 1,431,469 Design cri teri a change for Chailhuagon Dump resulti ng in increased quantiti es in base preparat ion.
15 Surface Water Management 17,691,006 33,364,320 15,673,314Water management changed from a concept to a design and included additional diversion channels in interimlocations.
16 Sedimentation Ponds 894,900 3,806,146 2,911,246Under estimated the size and complexity of the required dams. Chailhuagon sediment control was necessitated bythe addition of Chailhuagon reservoir in the stage 3 study
16D Topsoil S torage 0 4,911,508 4,911,508 S tage 2 cost esti mate did not include topsoil st orage.
16F Chailhuagon Water Reservoir 0 1,343,323 1,343,323Stage 2 cost estimate did not include Chailhuagon water reservoir. Addition information gather from the communityafter the stage 2 study identified social needs for a reservoir and sediment control structures a Chailhuagon.
17 Main Access Road 16,665,500 16,152,967 -512,533 Similar access road for both studies. 17A Ani llo V ia l 0 28,589,233 28,589 ,233 Stage 2 d id not consider this r ing road as part o f the s tudy scope .
18 Perol Water Reservoir 20,302,881 14,623,353 -5,679,528 Reservoir capacity reduced from 2008 this is now a small dam at reduced cost.
19 Port Marine Structure 20,000,000 43,559,874 23,559,874 The stage 2 study was a conceptual ROM estimate and did not include dredging costs of approx 30.0 million dollars.
19A Port Faciliti es - Fluor / Westmar 26,219,440 25,036,124 -1,183,316The scope of the Port facilities are similar for both studies. The 2008 estimate for shore facilities are likely
understated a trend is being initiated to re evaluate the port facilities scope and estimates.
22 Concentrate Transport Trucks 6,669,000 11,389,997 4,720,997The truck fleet increased in quantity by 39,under estimated in stage 2, the current f leet has been increased to 71trucks. In addition the 2008 estimate includes service facilities for drivers.
21 Mine Pit Dewatering - WMC 2,385,000 0 -2,385,000 No Initial capital cost is reported in this line item. All costs are reported as sustaining capital.
22B Sediment Control & Reseeding 0 8,050,344 8,050,344 Sediment control & reseeding were not considered on Stage 2.
Z
Capex Variance Fluor Stage 2
Rev (Feb 2007) - Newmont Stage
2 Rev (May 2007)
7,419,986 0 -7,419,986 Undocumented changes from Feb 2007 to May 2007.
Total Infrastructure 248,823,263 392,102,935 143,279,672
TOTAL DIRECT COST 817,356,122 1,477,587,439 660,231,317
Mining
Concentrator Plant & Mine Facilities
Mill Sands/Dumps/Port - Consultant
2008 CAPEX - Stage 3
(Fluor Rev. C)
CONGA PROJECT - STAGE 3
Reconciliation Summ ary Cost Estimate May 2007 - October 2008
All Pro jec t Scope - In iti al & Sustai ning Capit al Cos t Est imate
Cost Analysis (US$)
Fluor Confidential 27-10-2008 Page 1
8/9/2019 1.1.- Conga Capex Final Reconciliation.stage 2-3.RevC
http://slidepdf.com/reader/full/11-conga-capex-final-reconciliationstage-2-3revc 2/2
Project N° A3CO
Cost Estimate Review 2008: Rev. C / Cost Estimate Baseline 2007: Newmont Revision
May 2007 CAPEX
(Newmont Rev)2008 - 2007 Last change: 18-Oct-2008
Total Cost - Stage 2 Total Cost - Stage 3 Variance Observations of Escalation, Scope Changes +/- Estimated
2008 CAPEX - Stage 3
(Fluor Rev. C)
CONGA PROJECT - STAGE 3
Reconciliation Summ ary Cost Estimate May 2007 - October 2008
All Pro jec t Scope - In iti al & Sustai ning Capit al Cos t Est imate
Cost Analysis (US$)
Indirect, Owner, Escalation & Contingency Cost
27 EP Services 34,527,379 152,411,444 117,884,065
Original estimate (Stage 2) significantly under stated. Stage 3 estimate includes two bridge periods (4 months
Stage 3/4 and 7 months S tage 4/5). Longer engineering schedule from (15 to 24 months for the Optimizedschedule). May 2007 cost was factored compare to detailed calculation Sept. 2008.
27A CM Services 79,784,300 92,752,769 12,968,469Man-Hours for both studies are similar (1,295,000 aprox) but US$/MH is higher on Stage 3. Original estimate (Stage
2) significantly under stated. May 2007 cost was factored compare t o detailed calculation Sept. 2008.27B CM Gross Up 0 12,996,506 12,996,506 Cost not considered on Stage 2 study. Original estimate (Stage 2) significantly under stated.
23 Temporary Facilities 25,854,620 78,139,775 52,285,155Part of Third Party Construction Facilities were moved to this account. Original estimate (Stage 2) significantlyunder stated.
23A Construction Camp 23,137,693 52,023,232 28,885,539
Requirement: 2007: 23,600 m2; 3,600 p. cap. / 2008: 40,686 m2; 5,936 p. cap.
Unit Price: 2007: 936 US$/m2 / 2008: 1,270 US$/m2.
Obs: Direct man-hours increased from 10,860,000 to 18,800,000.25 Catering 35,107,101 62,975,207 27,868,106 Increased direct and indirect total hours.
26.0 Freight 60,757,403 54,180,270 -6,577,133 Less foreign materials and equipment considered in this study.
26.1 Duties 5,299,117 110,245,007 104,945,890Duties in Stage 2 Study were calculated at 12%. Now for Stage 3 study duties are 19% for all CIF imported goodfrom other country. Original estimate calculation (Stage 2) significantly under stated.
26A Third Part y Const ruction Facilities 14,790,504 2,105,756 -12,684,748 Most of third party construction facilities were moved t o temporary facilities.
27A Capital Spare Parts 11,368,417 35,567,488 24,199,071Increase in the value of mechanical and electrical equipment. Original estimate calculation (Stage 2) significantlyunder stated.
27A.1 Spare & Tool - Mine Equipment 0 37,404,993 37,404,993 Stage 2: considered in mine equipment cost.27C Initial Fill 16,869,591 5,273,656 -11,595,935 Liners for Sag mill, Ball mills and Verti Mills transfer to operating cost in Stage 3.
27B Vendor Representative 10,239,579 19,379,020 9,139,441Increase the value of mechanical and electrical equipment. Added Vendor Reps. Cost for wet commissioning, Rampup and mine equipment assemblies.
27DInsurance, Bonds, Permits &Licenses
0 5,125,872 5,125,872 Stage 2 not considered this cost.
26B
Pre-Commissioning,
Commissioning, Ramp Up &Operation Manual
4,000,000 6,855,759 2,855,759 Stage 2 was an allowance. Stage 3 was calculated in detail us ing staff ing plan and ramp up duration was added.
27E Consultants Indirect 33,274,759 33,150,000 -124,759 Similar total cost.
34 Training Cost 0 6,998,151 6,998,151 Cost not considered on Stage 2.
Z
Capex Variance Fluor Stage 2
Rev (Feb 2007) - Newmont Stage
2 Rev (May 2007)
-7,603,071 0 7,603,071 Undocumented changes from Feb 2007 to May 2007.
Total Indirect Cost 347,407,392 767,584,905 420,177,513
28 Owners Cost 188,032,122 563,463,321 375,431,199
Z
Capex Variance Fluor Stage 2
Rev (Feb 2007) - Newmont Stage
2 Rev (May 2007)
-8,306,016 0 8,306,016 Undocumented changes from Feb 2007 to May 2007.
29 Newmont Contingency P50 268,798,970 429,221,465 160,422,495Original estimate calculation (Stage 2) significantly under stated. (Note, Stage 2 Estimate includes 84 millions in
undocumented adjustment between Feb and May 2007.)
29 Newmont Schedule P50 0 56,172,713 56,172,713Schedule risk analysis identified P50 schedule as having 3 additional month. The cost adjustment reflects 3 monthof additional time based cost.
30 Escalation 361,900,000 337,036,278 -24,863,722 Cost change due to other variables than escalation and scope changes.
30 EPCM Fee - Fluor 0 53,367,444 53,367,444 Stage 2 EPCM cost were factored and included Fee. Addition Fee increased are due to total EPCM cost increased.
Total Contingency & Esc. 630,698,970 875,797,900 245,098,930
TOTAL INDIRECT, OWNER &
OTHER COSTS1,157,832,468 2,206,846,126 1,049,013,658
Capitalized Interest & Pre-Production Net Income
32 Capitalized Interest 0 552,665,033 552,665,033
50 Pre-Production Cost 0 0 051 Pre-Production Revenue 0 0 052 Pre-Production Net Income 0 -72,000,000 -72,000,000
Total Pre-Production 0 -72,000,000 -72,000,000
CAPITALIZED INTEREST & PRE-
PROD.0 480,665,033 480,665,033
TOTAL INITIAL CAPITALCOST 1,975,188,590 4,165,098,598 2,189,910,008
SUSTAINING CAPITAL COSTS
21 Mine Pit Dewatering - WMC 15,649,000 13,199,700 -2,449,300 Life of mine for 2007 study was 22 Years an 2008 is 13 years. Shorter mine life implies reduced sustaining costs.
A Mining Equipment 130,469,960 224,070,083 93,600,123Increase in the mine fleet based on the revised mine plan, plus price increases for equipments due to escalation(2007 to 2008).
B Pre-Str ip Development 1,500,000 61,500,790 60,000,790 Pre Str ipping and Haul road Sustaining capital and maintenance costs. Mark Jordan
D Mine Inpit Power 2,000,000 0 -2,000,000 Stage 3: no deferred items considered for that inpit power. This is included in item D of initial capital cost.
10Mill Sands Process / Distribution -Fluor
0 12,914,288 12,914,288 New pipeli ne for future taili ng displacement (steel and hdpe).
13Perol Waste Rock Storage
Preparation19 ,979,362 43,005,635 23,026 ,273 Change is related to the hau lage o f the d ra inage b lanke t. Mark Jo rdan
14 Chailhuagon Dump Preparation 4,195,941 8,888,971 4,693,030 Scope change. Mark Jordan
11 Mill Sands Storage Facility 159,262,542 132,872,138 -26,390,404
Tailings dam and tailings storage facility increase in capacity added labor and material costs. A
comparison of cost must consi der the sum of items 10 and 11 from initial capital with this line item to
determine the variance over the total life of mine.
Qty: 2007: 9,934,000 m3 / 2008: 3,743,000 m3.
Unit Price: 2007: 13.58 US$/m3 / 2008: 12.45.86 US$/m3. 16D Topsoil Storage 0 8,094,444 8,094,444 More topsoil storage this study. Mark Jordan27A.1 Spare & Tool - Mine Equipment 0 32,793,045 32,793,045 This item was included in the Mine Equipment initial capital cost. M ark Jordan Double dip to initial Spares27E Consultants Indirect 29,475,492 0 -29,475,492 Cost not considered in stage 3. this may be a double dip.29 Contingency P50 48,361,808 55,723,149 7,361,341
22Light Fleet and Concentrate
Transport Trucks Replacement33,646,000 19,892,390 -13,753,610 Considered light vehicle fleet in Stage 2 study.
Z
Capex Variance Fluor Stage 2
Rev (Feb 2007) - Newmont Stage
2 Rev (May 2007)
-213,687,873 0 213,687,873 Undocumented changes from Feb 2007 to May 2007.
TOTAL SUSTAINING
CAPITAL COST230,852,232 612,954,633 382,102,401
TOTAL PROJECT COST 2,206,040,822 4,778,053,231 2,572,012,409
Sustaining Capital Cost
Owner Cost
Other Indirect Cost
Indirect Cost
Capitalized Interest
Pre-Production
Fluor Confidential 27-10-2008 Page 2
