PROJECT IMPLEMENTATION PLAN

A project implementation plan has been developed as part of the Study. An Owners team will be formed to deliver the project through the engagement of an EPCM contractor and specialist engineering consultants, suppliers and Peruvian construction contractors. The Owners team will consist of specialist delivery personnel sourced locally and using expatriate resources where appropriate. The Owners team will develop policy and ensure its implementation and compliance through the consultancy, supplier and contractors’ systems in areas such as safety, environment, human and industrial relations and security.

The EPCM contractor will be responsible for the delivery of the process plant and associated infrastructure area. The EPCM contractor will provide the underlying framework for systems and procedures for the Owner’s team.

The Peruvian construction industry has sufficient capability and capacity to carry out the construction works. Foreign contractors would only be used in either high risk or specialist work areas, for example mill and drive construction, lining etc.

Fixed price contracts are preferred; reimbursable contracts, where used, will be structured with incentive clauses to encourage performance. Both practices support a reduced level of performance management by the Owner’s team and the EPCM contractor.

The Owners team will deliver the mining development work, and ultimately the mine operations.

Tailings, waste rock, topsoil and water management facilities will be engineered by a single consultant to minimise interface management. Bulk earthworks across the site will be delivered by a civil construction fleet purchased and managed by the Owner’s team. This fleet will commence construction early in the project, with the majority of the fleet retained through to operations to continue with subsequent construction stages of the tailings management facilities. Construction of the balance of the tailings, waste, topsoil and water management works will be contracted to local specialist contractors.

The access road, power supply and accommodation camp will be completed by specialist Peruvian construction contractors.

1.11.2 Quality assurance

A project Quality Plan will be developed for the Project. This Plan will form an integral part of the overall Project Execution Plan and detail how quality assurance will be achieved during engineering, procurement, construction and commissioning.

1.11.3 Project implementation schedule

A project implementation schedule is summarised in Figure 1.9. The schedule shows total project duration of approximately 39 months, including detailed design, procurement, construction and commissioning.

Figure 1.9

Project Implementation Schedule

Year

Quarter

APROVALS

MINE

CIVIL CONST. FLEET

PLANT TAILINGS STORAGE ACCESS ROAD ACCOMMODATION Complete 1000 rooms X Complete 1500 rooms _X Complete 1800 rooms X POWER SUPPLY 2009 2010 2011 2012 Q4 Q4 Q1 Q2 Q3 Construction Permit ESIA Finance Approval Fleet Supply Tender and Award Planning

Q2

Q3 Q4 Q1 Q2 Q3 Q1

Tender and Award Planning Strip and First Ore Assembly /Training

Construction

Long Lead Procurement Design

Fleet Supply

Process Plant Pad

Mine Access Road and Camp Design

Commissioning

Tailing Management Facility – Embankment Tailing Management Facility – Reservoir Fill Tailing Management Facility – Initial Stage Mine Area Pad

Tender and Award Detailed Design Waste Rock Dump Other Operational Facilities

Q3 Q4

Construction

Long Lead Procurement Tender and Award Design

Complete 500 rooms Procurement Design and Tender Construction

Key dates for the project are as follows:

 Project Execution commencement – Q4 2009  Environmental approval – Q4 2010

 Construction permit and commencement of construction – Q4 2010  Completion of Process Plant commissioning – Q4 2012.

Critical activities that need to commence upon Norsement Board approval are:  Commence negotiations to secure a power supply agreement or option

 Commence detailed design for the access road upgrade and investigate acceleration of its delivery  Commence the Front End Engineering Design which includes process design, flowsheet

verification and optimisation, plant layout, and long lead item procurement

 Commence detailed design and planning for bulk earthworks and purchase of Owners civil construction fleet

 Commence recruitment of key Owners team members

 Commence development of the accommodation camp contract and investigate availability of second hand camps

 Investigate availability of long lead equipment, i.e. cancelled orders etc

 Commence development of project systems. This includes OHS&E requirements and standards, equipment numbering, asset numbering, document numbering, cost control and reporting systems, document control, permit plan development and implementation, and procurement

documentation and systems. 1.11.4 Civil construction fleet

A civil construction fleet, owned by Norsemont, will be utilised to construct bulk earthworks associated with the TMF, PAG WRF, water management structures and internal access roads. The basis of the fleet is conventional diesel-powered hydraulic excavators and off-road haul/dump trucks, together with supporting equipment such as FELs, dozers, graders, compactors, water trucks, service trucks, and the like (Table 1.11). Many of these items will be pre-purchased by Norsemont and will service both the mine and construction fleets.

Pre-construction earthworks will take place over an approximate two year period with the TMF embankment construction continuing for an additional fourteen years. Most of the construction fleet will be sold after three years with the remaining equipment used on the construction of the TMF embankment and for plant field maintenance operations. The mine truck fleet will be used to provide the embankment material after the construction fleet has been demobilised. A separate contractor will be responsible for constructing the underdrains, geosynthetics, pipework, and small peripheral construction activities during the first three years, as well as the smaller earthworks in the latter years of the mine life.

Aggregate material will be provided for the TMF and PAG WRF, and possibly surfacing rock for mine haul roads. This material will be obtained from quarries using drilling and blasting procedures.

Table 1.11 Civil Construction Fleet

Type Equipment Class Fleet Units Operating Hours Operating Costs Unit Purchase Price (Hrs/yr) ($/hr) ($M) Hydraulic Excavator 382 kW 1 5304 149.61 0.827 Wheel Loader with Rock Bucket 597 kW 1 5304 135.18 1.952 LPG Dozer with VR Blade and Ripper 192 kW 1 5304 47.16 0.478 Dozer with CU Blade and Ripper 482 kW 1 5304 92.23 1.227 Soil Compactor 299 kW 2 5304 43.86 0.644 Vibratory Soil Compactor 130 kW 1 5304 43.86 0.113 Articulated Truck 30 T 1 5304 30.85 0.413

Dump Truck 60 T 8 5304 149.02 1.004

Light Duty Dump Truck 19T 1 2652 73.01 0.070 Fuel and Lubrication Truck 43 T 1 1326 8.12 0.585

Water Truck 60 T 2 5304 149.02 1.166

Service Truck 1 1326 8.72 0.175

Tire Truck 1 1326 10.77 0.175

Motor Grader 397 kW 1 5304 87.79 2.083 Utility Backhoe – 4WD 102 kW 1 1856 50.50 0.156 ¾ ton Pickup Truck, 4WD 6 5304 5.27 0.027

Onan Light Plant 6 2122 1.68 0.027

Hydraulic Excavator 200 kW 2 5304 131.40 0.445 Carry Dozer with Ripper 698 kW 2 5304 118.85 1.753 Wheel Loader 260 kW 1 5304 39.02 0.395 Motor Grader 221 kW 1 5304 37.72 0.706