The Red Dog VIP Mill Optimization Project A Study in Fast-Track Project Execution and Alliance Contracting (5aae1f12-06e2-4656-a27b-a608072456ab)

"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 ice-free 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.INTRODUCTIONThe Red Dog Mine, which began operations in 1989, is located above the Arctic Circle in Northwest Alaska, approximately 145 km north of Kotzebue (Figure 1). An 80-km road connects the mine site to the DeLong Mountain Transportation System (DMTS) port site. Red Dog is the largest known zinc deposit in the world, with known reserves totalling 94.5M tonnes, and is the largest zinc producer with a concentrate production rate of more than 1.1M t/yr.Open-pit mining is by typical drill, blast and load operation using moderately sized mining equipment. Ore is processed through conventional crushing, grinding, and flotation to produce separate lead and zinc concentrates. Filtered zinc and lead concentrates are trucked year-round to the DMTS port site, where they are stored in two A-frame buildings, 330 and 440 m long. A lightering barge system is used to transfer concentrate from the shallow water load-out to deep-sea vessels anchored approximately two miles offshore. Shipping is limited to a 100-day, ice-free window beginning in early July."