The Red Dog VIP Mill Optimization Project - A Study in Fast-Track Project Execution and Alliance Contracting

The Red Dog Mine is both the largest known zinc reserve and the largest zinc producer in the world. The mine started in 1989, and by 1999 had increased production from approximately 300,000 tonnes per year (t/yr) of zinc concentrate to in excess of 900,000 t/yr. The VIP Mill Optimization Project further increased zinc concentrate production to 1.1M t/yr while improving both product quality and zinc recovery. The Mill Optimization project also addressed a number of issues related to risk reduction: power generation capacity, water treatment capacity and concentrate thickening. The project was faced with numerous challenges, the most daunting of which was the schedule. This US$105M project was executed, from conception to completion, inside of two years. Less than nine months elapsed from concept to delivery of materials and equipment to site. The project also faced a 100-day icefree shipping window, the challenges of construction in an Arctic environment, and an extremely tight labour market for qualified craft personnel. These challenges were successfully addressed with several innovative approaches to project execution, including an Alliance contracting arrangement between the owner, engineer and contractor; full integration of the team; construction of modules in Anchorage; and fast-track engineering, procurement and construction. Steve Ciccone, AMEC?s project manager on the Mill Optimization project, works for the Mining & Metals unit of AMEC, a world leader in the provision of engineering and construction services. He obtained his BASc from the University of British Columbia and is currently midway through his MBA program at Simon Fraser University. Steve has 15 years of experience providing engineering and project management services on mining and metals projects, and has been involved in the execution of five capital projects and several studies at Red Dog since 1995. George Hope was responsible for process design and engineering on the Mill Optimization project and has been Manager, Project Development at Teck Cominco since 1995. Prior to this time, he was a project manager and chief metallurgist for Lac Minerals for 14 years and a mill superintendent and metallurgist for Noranda for 5 years. George received his BSc in Mineral Technology from the Royal School of Mines in England.