Anglo Request For Information Questionnaire

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Request for Information -

Supplier Questionnaire
Tender Submission:
The “One Anglo” Supply Chain Project
E/P/C/M Services

Proposal no.: 126340-08

30 January 2009
Request for Information - Global EPCM Services

Table of Contents

Section Title

Letter of Transmittal
Executive Summary
1 General Questions
2 Safety
3 Engineering and Technical Staff Qualifications
4 Project Management Performance
5 Supplier Profile
6 Systems
7 Procurement Performance
8 Procurement Quality Assurance Scorecard
9 Construction Management Performance
10 Regional Presence Capabilities
11 Financial Scorecard
12 Sustainable Development
13 Project Reference List
14 Attachments

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Request for Information - Global EPCM Services

Section 1
General Questions
Request for Information - Global EPCM Services

Section 1 General Questions

Question 1.1

International suppliers - Do you currently have local representation/agents


within the following countries that can provide Engineering and Project
Management Services for the required market?

If yes, please provide details of your local representative / agent.

f Local Australian Representative?

f Local Brazilian Representative?

f Local Chilean Representative?

f Local South African Representative?

f Other?

Local Australian Representative:

WorleyParsons has substantial Minerals and Metals capability across


Australia. We have Minerals and Metals offices throughout the country, with
major hub offices located in Perth, Newcastle, Brisbane, and Adelaide.

Contact: Mark Southey (Global Managing Director Minerals and Metals)

Office Address: Level 12, 141 Walker Street


North Sydney NSW, Australia 2060

Local Brazilian Representative:

WorleyParsons are very focussed on developing our Minerals and Metals and
Offshore Hydrocarbon capabilities in Brazil. Currently we have two in-country
offices and will significantly increase our presence here over the next few
years.

Contact: William Hadden (Director Projects Development, Brazil)

WorleyParsons Brazil Office Address:

Rua Ministro Nelson Hungria, Conj. Suite 1 and 2


Morumbi, Sao Paulo, Brazil - CEP 05690-050

WorleyParsons INTECSEA Office Address:

Praca Floriano, 19 - 4 andar, Centro, Rio de Janeiro,


Brasil - CEP 20031-924

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Section 1 General Questions

Local Chilean Representative:

Contact: Andrew Roy (Location Manager)

Office Address: Av. Jose Pedro Alessandri 1495 Nuñoa, CP


Santiago, Chile CP 778-0125

Local South African Representative:

Contact: Mark Hall (Customer Sector Group Manager – Minerals and Metals)

Office Address: Suite 201 & 203 Monument Park, Pretoria South Africa
Pretoria Tshwane, South Africa 0181

Local Europe Representative:

Miles Larsen (Customer Sector Group Director – Minerals and Metals)

Office Address: Parkview, Great West Road, Brentford, Middlesex


London, England TW8 9AZ

Local Canadian Representative:

Contact: Lou Bruno (Business Development Director – Minerals and Metals)

Office Address: 2645 Skymark Avenue


Toronto, Canada ON L4W 4H2

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Section 1 General Questions

Question 1.2

Please provide the following information for one global contact that will co-
ordinate the RFI responses for the differing regions

f Contact Name?

f Phone Number?

f Fax Number?

f Email?

f Web Site?

Contact Name: Miles Larsen

Phone Number: +44 (0) 20 8326 5293

Fax Number: +44 (0) 20 8758 2293

Email: miles.larsen@worleyparsons.com

Web Site: www.worleyparsons.com

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Request for Information - Global EPCM Services

Section 1 General Questions

Question 1.3

When was the company established?

Year established?

Brief History of WorleyParsons

Worley Heritage

Wholohan Grill and Partners, an Australian structural engineering consultancy,


was formed in Sydney in 1971 with John Grill as the CEO. Worley was
established in the USA in the 1960s and expanded to the Asia Pacific region in
the 1970s. In 1987, Wholohan Grill and Partners purchased Worley
Engineering (Australia) Pty Ltd, and the company changed its name to Worley.

From that point, Worley grew steadily both geographically and in terms of
industry sectors serviced. Geographic coverage extended first into South East
Asia, then to North America, and later to the Middle East. When listed on the
Australian Stock Exchange (ASX) in November 2002, Worley had operating
offices in 14 countries. By July 2004, this had increased to 18 countries. A
policy of diversification saw Worley grow from providing services in the Oil &
Gas sector into Industrial & Infrastructure, Minerals Metals & Chemicals, and
Power & Water.

Worley’s business has been characterized by the successful long-term


partnerships formed with both clients and other project services providers. In
the Australian region, Worley is considered a leader in the set up and
execution of alliance-style contracts that have been benchmarked as world
class within the industries in which they operate.

Worley also setup partnerships and joint ventures with other project service
providers in order to present clients with a complete solution for projects or in
supporting facility operations. Such partnerships have been with some of the
global leaders such as Fluor, Bechtel, Kvaerner and KBR. Worley also formed
two successful partnerships with Parsons E&C, the Parsons Worley Team that
was formed to provide services to the US Army Corps of Engineers for the
restoration of Iraqi Oil Infrastructure, and WorleyParsons Energy Services,
which combined the US based Upstream Hydrocarbons capabilities of Worley
and Parsons E&C. In 2004, building on the track record of these
partnerships, Worley acquired Parsons E&C Corporation.

Parsons Heritage

In 1944, Ralph M. Parsons started what is now the Parsons Corporation in Los
Angeles. Parsons E&C operated as a wholly owned subsidiary of Parsons
Corp. providing engineering, procurement, construction, construction
management, and program management services to clients in the energy
sector. At the beginning of 2002, Parsons Corporation separated Parsons E&C

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Section 1 General Questions

from the other business units by transferring its ownership from Parsons
Corporation directly to the Parsons Employee Stock Ownership Program
(ESOP), thereby establishing Parsons E&C as an independent entity and a
sister company to, rather than subsidiary of, Parsons Corporation. This was in
recognition that the kind of projects executed by Parsons E&C for its energy
sector clients operated under different business conditions than the consulting
and general services provided by the other Parsons global business units. This
separation also acknowledged the fact that the size and resources of Parsons
E&C allowed it to function on its own. Parsons E&C is widely recognized for its
provision of high-quality project services to the Oil & Gas, Refining,
Petrochemicals & Chemicals, and Power sectors globally, with excess of 5,400
personnel operating in 16 countries. In its 60 year history, Parsons E&C has
designed, constructed, or managed the construction of more than 250 gas
processing plants, 600 chemical and petrochemical facilities, and 370 power
plants worldwide.

On 15 November 2004, at the scheduled Annual General Meeting (AGM),


Worley shareholders voted and passed a special resolution to change the
name of the company to “WorleyParsons Limited”.

Other Key Acquisitions

Further acquisitions including Astron and Komex for environmental services,


DRPL in the power sector, TMG and Watkins & Godwin in the infrastructure
sector and HG Engineering, Gas Cleaning Technologies and Jones & Jones in
the mineral and metals sector, have continued to deepen and broaden
WorleyParsons’ capability and geographic presence.

In 2006 WorleyParsons entered the South American market through a joint


venture with Santiago based ARA, a leading base metals and infrastructure
engineering firm, while Colt Companies, Canada’s largest engineering and
project services firm, became part of the WorleyParsons family in 2007. Later
that year, the companies Patterson Britton and Partners, and John Wilson and
Partners were acquired, both regarded as leading consultants in the water and
environmental services market in Australia with specific capabilities in the
coastal and marine, water resources and wastewater, environmental, civil and
structural and power markets.

This provided a significant step up in the organization’s ability to support their


customers across all industry sectors in the areas of water and environmental
services. In November 2007, WorleyParsons’ capability in the nuclear
consulting and analysis segment of the international nuclear industry was
complemented with the acquisition of Polestar as well as UniField Engineering
with the aim to expand the power business in the USA further.

WorleyParsons has a strong commitment to developing its business in Africa,


namely by the establishment of offices in Egypt and Libya and by the
acquisition at the beginning of 2008 of a 50% share in Pangaea - a Pretoria,

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Section 1 General Questions

South African based project services company, now renamed


PangeaWorleyParsons.

The acquisitions of SEA Engineering in 2007 and INTEC in April 2008, leading
international offshore deepwater Hydrocarbons engineering and project
services companies, completed the missing link in WorleyParsons’
hydrocarbons business and strategically positioned the company to provide
comprehensive solutions for large scale integrated deepwater facilities, subsea
and marine systems projects.

The acquisition of Westmar, a leading Canadian based marine and port facility,
resource and mining infrastructure, bulk material handling and transportation
specialist, is an important step in further extending the Infrastructure and
Minerals & Metals capabilities in both Canada and international markets.

Today, WorleyParsons has over 118 operating offices in more than 38


countries with over 32,200 project services personnel. It is headquartered in
Sydney with John Grill as its CEO. Our strong performance in recent years
has seen us finish 2008 in the top 10 global engineering design firms for the
first time. We are now the second largest international engineering design firm
outside of their home country.

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Section 1 General Questions

Question 1.4

Please list any holding / parent / subsidiary companies and attach company
holding and ownership structure (if applicable):

f Company Registered Name?

f Registration Number?

f Business Address?

f Postal Address (if different)?

f Country of Registration?

f Company Trading Name?

f Parent Company?

f Subsidiaries?

f Ownership Structure (State Owned, Joint Venture, Foreign Owned)?

Please give details.

Company Registered Name: WorleyParsons Limited

Registration Number: ACN 096 090 158

Business Address: Level 12, 141 Walker Street, North Sydney


NSW 2060.

Postal Address (if different): PO Box 1812 North Sydney NSW 2059

Country of Registration: Australia

Company Trading Name: WorleyParsons Limited

Parent Company: N/A

Subsidiaries: WorleyParsons Limited has a significant


number of wholly-owned subsidiaries and
subsidiaries with a controlling interest
throughout the world. A full list of Investments
in Controlled Entities is contained in pages 47-
49 of the Company’s 2007/08 Year Annual
Report, as provided in Appendix 14.2.

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Section 1 General Questions

Ownership Structure (State Owned, Joint Venture, Foreign Owned):

WorleyParsons Limited is a public company


whose shares are traded on the Australian
Stock Exchange (symbol: WOR). Full
financial statements for 2006, 2007 and 2008
are appended as Attachment 14.2.

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Section 1 General Questions

Question 1.5

How many employees are employed by the company?

2008 2007 2006

Safety Dept? 439 325 195

Engineering? 16,007 11,857 7,142

Quality? 339 251 154

Finance? 777 575 346

Mining and Minerals? 3363 2491 1501

Other? 32,200 23,800 14,310

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Request for Information - Global EPCM Services

Section 1 General Questions

Question 1.6

For companies operating in South Africa, please provide your Black Economic
Empowerment (BEE) Status. (If applicable please provide BEE Scorecard)

BEE?

Please refer to Attachment 14.1 for copies of our BEE Status Certificate and
Scorecard.

Commitment to Black Economic Empowerment

WorleyParsons South Africa is proudly BEE and it is our intention to maximise


both BEE and local content through utilisation of resources available within
South Africa. Regardless of the minimum BEE requirements and specifications
we confirm our commitment to the fundamental policy underlying this
requirement. WorleyParsons South Africa is fully committed to Broad-Based
Black Economic Empowerment (BBBEE) and our corporate investment
strategy aims to invest in communities local to its head-office and regional
offices with particular emphasis placed on education and skills development.

It is worth noting that WorleyParsons' business model of developing local


execution capability with local resources, underpinned by robust recruitment,
training and development programs, is entirely consistent with the BBBEE
initiative and in fact is one of the key attractions and synergies for the
WorleyParsons businesses.

The company is committed to a process of transformation. Transformation is


seen as a strategic imperative and will be driven within the business based on
the principles of BBBEE.

Strategy to Support Participation

It is imperative for the company to identify black professional services


companies with whom strategic partnerships and/or alliances will be formed to
complement core competencies/operations i.e. from whom WorleyParsons SA
will procure services. WorleyParsons SA implement the following strategies in
support of BBBEE.

BBBEE contribution is an element necessary to accomplish a balancing role


and sustain a competitive advantage in open market conditions within both
local and export environments, while meeting the highest global standards of
product quality and environmental responsibility. Studies have revealed that
the following gaps still exist within South African companies which make it
difficult for the local companies to play successfully in the global arena:

f Competitiveness

f Capacity and

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f Capabilities

This BBBEE consideration in the framework agreement is an initiative that will


compliment Accelerated Shared Growth Initiative of South Africa (ASGISA).
WorleyParsons SA as an Engineering Contractor providing professional
services within various project phases i.e. pre-feasibility, feasibility, FEED and
EPCM. Our contribution to the BBBEE to Anglo will be guided by the following
principles:

f Through the above phases to ascertain project delivery through alliances


and collaborations with companies approved by Anglo.

f Identify and collaborate with engineering companies within the local areas,
identified by WorleyParsons SA, recommended or identified by Anglo
Development Foundational or those within Anglo supplier database.

f Form alliances and collaboration with Black Women Owned companies.

Skills Development

Since skills development and transfer of knowledge are the most significant
issues, the options that WorleyParsons SA has as a member of a global
company are:

Through funding engineering students’ tuition and offering the new graduate
employment opportunities. Implement our graduate training and development
programme and where possible partner with Anglo on skills transfer, by
seconding graduates to Anglo project for inter-skill transfer

Investing in international exchange programmes and deploys personnel to our


international offices conducting workshare on any project.

The intensity and duration of these initiatives, investment in the attraction of


key capabilities as well as skills in supplier industries shall be dictated to by the
volume of work assigned to WorleyParsons SA. WorleyParsons SA
contribution to BBBEE is as follows:

Procurement from other BBBEE, EME and SQE

Increased global demand provides scope for South African suppliers to


increase their capacity, capability and to compete successfully in both local
and global markets. Hence, there is an opportunity to leverage Anglo
expenditure to develop competitive national supplier industries.

Most of procurement spend should be related to our core services e.g.


engineering conceptual designs, feasibility studies, detailed design, and a
smaller portion to non-business related services and products. Procurement
spend score will improve based on the following;

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Section 1 General Questions

f With additional database of or established supplier framework on BBBEE,


QSE and EME from Anglo, engineering companies in these categories
shall be subcontracted. To optimize on composition, black women owned
companies and black women indirect (suppliers) contractors should be
considered.

f WorleyParsons SA will identify local EME and SQE companies within the
vicinity of Anglo operations, which they can subcontract for complementary
engineering services. This will promote creation of local capacity. Identify
and develop EME and SQE supplier. This programme shall essentially
promote EME and SQE for preferential procurement and assist them to
meet project requirements.

f Where feasible and viable WorleyParsons SA will form Joint ventures with
a BBBEE companies. This process in intended to complement core
competence within the WorleyParsons SA and develop future alliances,
through active participation in projects and development of black emerging
engineering companies.

f WorleyParsons SA shall endeavour to collaborate with other agencies


such as SASDA in identifying emerging companies within the hydrocarbon
business who lack the capacity but have the capability to augment
engineering services.

f Through WorleyParsons SA preferential procurement process, Black


women owned engineering companies will be included. This contingent
will constitute at least 30% of contract work allocated to WorleyParsons SA
sub-consultants and subcontractors.

Employment and Development of BBBEE candidates

To maintain and develop skill and competence, WorleyParsons SA will


implement the internship and a mentorship programme for new engineering
graduates that will be deployed to our offices to service the various projects in
South Africa. The programme will address professional development through a
combination of on-the-job training, in-house and external training courses and
leveraging on expert personnel across the global WorleyParsons organization
and local institutions. Graduates in training will be assigned mentors to
maximize the benefit of-on-the-job training through support systems to ensure
development.

Graduate engineers and technicians will form the majority of candidates within
the training programme due to a shortage of such skills in that field. Through
the WorleyParsons SA graduate training programme and international
alliances, candidates will be seconded to assignments that may be conducted
both locally and internationally.

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Section 1 General Questions

Direct Employment

WorleyParsons SA will offer additional employment equitably to all South


Africans. This will be achieved through employing permanent employment and
contracting individual personnel. This should lead to the local content has
requisite engineering and project management competence.

Enterprise Development

WorleyParsons SA in conjunction with WorleyParsons will subcontract sub-


consultants, particularly Small Qualifying Entities (SQE) and Black Women
Owned (BWO). This model will not only contribute to economic empowerment
but will give an opportunity to small companies to grow capacity and to develop
competence in industry that has been monopolized by international
companies. During the project WorleyParsons SA can offer grants and
training, in support Anglo may suggest emerging BWO/BBBEE/SQE
companies in the quest to improve their skills and competencies.

There are fragmented emerging engineering companies who in isolation do not


have the skill, expertise and financial support to participate and assume risk
associated with such a project, who will therefore miss the opportunities
presented by the project. Anglo shall be requested to provide profiles of
emerging engineering companies on their vendor database, whose service
offering is similar to ours. WorleyParsons SA could adopt such companies and
train them in areas of mutual and economic interest towards improved and
sustainable services in the services that are required by Anglo.

Training and development will focus on:

f Deployment of personnel from emerging companies to WorleyParsons SA


centers to form part of the capacity assigned to various phases of the
project.

f With the assistance of Anglo and SASDA identify Engineering/Cost and


Value Engineering/Project QSE and BWO whose core joint capability is
determined to be more effective than individual or isolated capability may
be guided and assisted to form joint ventures or alliances in order to
complement their core offerings.

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Section 1 General Questions

Question 1.7

Please provide some general financial information: (in USD)

f Financial year-end (e.g. 30 June)

f Current Year Turnover (2008 - projected)

f 2007 Year Turnover & Profit Margin (%)

f 2006 Year Turnover & Profit Margin (%)

f Total Capital (in USD)

Kindly attach three years' financial information for your company, as well as for
your group of companies

Annual Reports for 2006, 2007 and 2008 are appended as Attachment 14.2.

Financial year-end (e.g. 30 June):

WorleyParsons Financial year-end is 30 June.

Current Year Turnover (2008 - projected):

The Company does not disclose expected revenue for the current financial
year as this is commercially sensitive information.

However, please see extract below from the Chairman’s address at the AGM
held on 28 October 2008 which is published on the WorleyParsons website
within the investor relations menu:

‘Outlook - We have had a solid start to the 2009 financial year and would
expect to achieve good growth in the first half of the year as compared to the
corresponding period last year.

Looking further ahead for the remainder of this year in these uncertain times is
somewhat difficult. However despite some projects affected by the global
market situation our business model continues to serve us well with strong
activity in all customer sectors. We are also benefiting from the lower
Australian dollar compared to other currencies. Currently, we expect the
second half of this financial year to be better than the first half and to report
good growth for the full 2009 financial year.’

2006 / 2007 Year Turnover & Profit Margin (%)

For many companies profit margin is struck before overheads (eg excluding
head office costs). WP disclosed profit after all expenses, hence the figures
relating to EBIT (earnings before interest and tax) are used in the profit
margins, as disclosed in the accounts. As our accounts are in AUD the

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Section 1 General Questions

turnover has been converted into USD based on the average corporate
exchange rates used by the group

2008 2007 2006


Turnover - AUD 4,900.7m 3,534.6m 2,464.4m
AUD:USD fx rate 1.1181 1.2778 1.3115
Turnover – USD (approx) 4,400m 2,800m 1,900m
EBIT – AUD 520.0m 319.1m 199.5m
Profit margin 10.6% 9.0% 8.1%

Total Capital (in USD):

Issued Capital = AUD 1.132m = approx USD 1.086m, using year end fx rate of
1.0422.

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Section 1 General Questions

Question 1.8

Please complete the following questions in terms of total sales percentages.

f What is the percentage of your total revenue (all products and services) to
the mining industry?

f What percentage of your total revenue is Engineering and Project


Management Services?

f What is the percentage of your total revenue (of all products) to Anglo
American?

f What percentage of your total revenue is Engineering and Project


Management Services to the mining industry?

f What is the percentage of your total revenue is Engineering and Project


Management Services to Anglo American?

f Please provide the percentage of your total revenue of Engineering and


Project Management Services per country – Australia, Brazil, Chile, South
Africa, Other.

What is the percentage of your total revenue (all products and services)
to the mining industry?

As detailed in figure 1.8-1 below, WorleyParsons total percentage of revenue


for the Minerals and Metals Customer Sector Group was 9.61% in FY2008.

Figure 1.8-1 Revenue Distribution – 2008

Minerals &
Metals 9.61% Infrastructure
& Environment
7.00%
Power 9.57%

Hydrocarbons Page 16 of 35
73.71%
Request for Information - Global EPCM Services

Section 1 General Questions

What percentage of your total revenue is Engineering and Project


Management Services?

90% of WorleyParsons global revenue is E or EPCM services.

What is the percentage of your total revenue (of all products) to Anglo
American?

ARA WorleyParsons is currently undertaking 2 small projects for Anglo


American in South America and we are working with Anglo Coal in Australia –
please refer Question 4.1.

What percentage of your total revenue is Engineering and Project


Management Services to the mining industry?

WorleyParsons forecast total revenue for EPCM Services in the Minerals and
Metals Customer Sector Group for FY08 is 30% as shown in figure 1.8-2
below.

Figure 1.8-2 Minerals and Metals Global Revenue by Project Type

Minerals and Metals Forecast Global Revenue by


Project Type - FY08
Base Load
19%
Engineering
Projects
32%

EPCM/PMC
Improve 30%
19%

Note: Improve is WorleyParsons brand name for our Asset and Business
Performance Improvement service.

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Section 1 General Questions

What is the percentage of your total revenue is Engineering and Project


Management Services to Anglo American?

Presently less than 1%. ARA WorleyParsons is currently undertaking small


projects for Anglo American in South America and we are working with Anglo
Coal in Australia – please refer Question 4.1.

Please provide the percentage of your total revenue of Engineering and


Project Management Services per country – Australia, Brazil, Chile,
South Africa, Other.

f Australia 27%

f Brazil 1%

f Chile 5%

f South Africa 3%

f Other 64%

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Section 1 General Questions

Question 1.9

What is you current order book and backlog over the next 3 to 5 years?

Please provide details.

WorleyParsons is a listed company on the Australian Securities Exchange


(ASX). To avoid prejudicial share trading the company is required by ASX
guidelines to only release information that is available to all shareholders.
Providing details about WorleyParsons’ order book and backlog outside these
guidelines, has the potential for the company to contravene ASX guidelines.

We acknowledge the underlying principle behind Anglo American’s request is


reasonable and we are willing to provide some indicative information that may
be helpful in the evaluation of WorleyParsons capacity to meet your
contractual needs.

Macro Position I

WorleyParsons has grown significantly over the past five years – refer figure
1.9-1.

Figure 1.9-1 WorleyParsons Growth 2004-2008

2008 2007 2006 2005 2004


AUD $’M AUD $’M AUD $’M AUD $’M AUD $’M
Agg. Rev. 4,900.7 3,534.6 2,464.4 1,379.5 514.8
Staff 32,200 23,800 14,310 12,000 4,500

Today it is one of the top fifty listed companies in Australia with a unique global
reach across 32 countries.

A key to growth has been the ability to create offices in remote locations and
attract high quality personnel to build strong local capability to be
supplemented by larger “hub” offices. This has been a proven methodology in
Angola, Nigeria, Kazakhstan, Ukraine, Russia, Alaska etc.

The growth of the firm has been both organic and through acquisition.
Seventeen firms have been acquired in the past five years and successfully
migrated into the global enterprise. These companies have provided valuable
capability (pyrometalurgy, gas cleaning, environmental consulting, heavy haul
rail, ports, bulk material handling systems etc) and geographic positioning.

Engineering News Record (ENR) annually compiles a ranking system for


global engineering and project delivery firm contractors within the resource and
energy market. WorleyParsons’ ENR ranking indicates a firm that is
recognised globally as a world leader in the provision of services to the mining,
metals, power, hydrocarbons markets.

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Figure 1.9-2 WorleyParsons ENR Rankings

Major List Category 2008

Top 200 International Design Firms 2

Top 150 Global Design Firms 7

Submarket Category 2008 Submarket Category 2008


Pipelines 1 Middle East 8

Industrial/Petroleum 2 Asia 3

Chemical Plants 8 U.S. 2

Steel and Nonferrous Metal Plants 4 Africa 7 (2007)

Power 3 Canada 1

Fossil Fuels 1

Environmental Firms Working 19


Globally

Air Pollution Control/Efficient Energy 5

Construction Mang’t/Project Mang’tt 7

It has been a major focus of the firm to build strong capability in engineering,
procurement, construction and project management so full service delivery can
be provided to customers around the world. Over A$50M has been invested
over recent years in systems to support project delivery and ensure accuracy,
transparency and accountability.

Macro Position II

The financial crisis that has influenced many of the resource businesses
around the world will have an impact on engineering and project service
contractors. It is anticipated that some projects will be delayed or cancelled.
This will release a number of personnel to be redirected at projects that are
proceeding or to be placed within a number of the long term contracts held
around the world. While some adjustments will need to be made in the current
market, these long-term arrangements ensure this process is likely to have
minor impact.

This “softening” of the market will enable WorleyParsons to redirect high


quality personnel toward the proposed Anglo American contract.
WorleyParsons commitment to long term contracting is at the core of its
business model. Current and potential WorleyParsons’ employees find this
commitment attractive as it increases the likelihood of long term workloads and
stability in their livelihoods.

Order Book and Backlog

Twelve months ago the aggregate workload proposed by resource owners


over the next three years would have been impossible for the contracting
market to deliver. Contractors were experiencing significant delays in

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Section 1 General Questions

materials, cost escalation and shortage of experienced personnel. Today the


story is very different with the abandonment / deferment of many development
projects and the scaling back of a number of expansions.

On a global level WorleyParsons has seen a shift in the willingness of mining


and minerals customers to maintain their proposed investment levels. This
has varied from region to region and there has been a significant difference in
the response to the financial markets by owners in tier one of each sector
versus lower tier groups.

WorleyParsons has a broad cross section of customers from each tier in the
resource and energy market and expects to see increasing availability of
personnel to maintain and expand services to the tier one companies in each
sector. It is important to note that >50% of our global revenue is from contracts
that have a term of greater than 3 years.

WorleyParsons is confident it can meet any proposed Anglo American


personnel requirements to provide EPCM services to its operations across the
world.

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Section 1 General Questions

Question 1.10

Does your company have a formal process improvement and cost reduction
program? Yes/ No (If Yes, please expand and give details.

Yes, WorleyParsons employs a formal process improvement procedure and


cost reduction program.

Process Improvement

WorleyParsons Process Improvement procedure provides the basis for


identifying and managing the development of business improvement initiatives
within our Enterprise Management System (EMS). EMS is the global intranet
tool used by WorleyParsons to deliver management system documentation to
our global community; it is a repository of standard workflows, procedures and
templates.

Process Improvement may be triggered by adhoc improvement proposals,


organisational changes, preventative actions or by audit, review or lessons
learnt corrective actions as explained below. The Process Improvement
Register and Procedure manage the initiation, review, development and
implementation of changes including:

f Improvement proposals raised by process owners or system users.

f Organisational changes resulting in addition of or changes to EMS entities


and associated metadata.

f Corrective actions agreed on the basis of analysis of; management review


outputs, audit or review findings, product non-conformance, customer
feedback or lessons learnt.

f Preventive actions agreed on the basis of risk assessments, analysis of


process performance/capability or customer, legislative or community
requirements or initiatives.

Proposed EMS content changes may necessitate:

f Introduction of new processes and the addition of associated documents


and potentially changes to existing documentation.

f Process changes and amendment/addition of associated documentation.

f Correction of documentation errors typically involving typographical, cross


referencing, linking logos etc.

f Addition/amendment of entities and associated corporate base amended


and supplementary documentation.

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Section 1 General Questions

Prior to raising a Process Improvement originators are required to review their


proposal against current content and discuss the need for a Process
Improvement with functional representative and stakeholders. Process
Improvement statistics are reported on and measured on a monthly basis to
determine open action items.

Cost Reduction Program

WorleyParsons operates structured Cost Reduction Programs / Value


Improving Practices (VIPs), that are activities or techniques which are focused
on improving the overall effectiveness of the use of capital on projects – both
large (>US$5 million reimbursable or >US$2 million lump sum) and small. This
improved effectiveness would be reflected by an improvement in the Return on
Investment.

The Front End Loading (FEL) / Feasibility process is one that ensures that a
proposed project is defined sufficiently prior to funds approval and
commencement of execution, such that:

f The project has a sound business case and objectives to ensure the
highest possible return on investment;

f The project scope is fully understood and costed properly;

f The strategy for execution is agreed to by all key stakeholders;

f The project schedule is realistic.

The appropriate use of a Cost Reduction techniques / VIPs is an integral part


of achieving the required amount of Front End Loading / Feasibility work. The
list of generally recognized VIPs which WorleyParsons routinely follows
includes:

f Technology Selection

f Project Value Objectives

f Process Simplification

f Design to Capacity

f Minimum / Customized Standards and Specifications

f Value Engineering

f Constructability Review

f Plant Reliability, Availability and Maintainability (RAM) Modeling (Life Cycle


Costing)

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f Predictive Maintenance (Reliability Centered Maintenance)

f Waste Minimization

f Energy Optimization

Risk Management is also an essential process for value addition on a project.


Risks to the project scheduling and delivery are identified; planning during
these early stages identifies additional potential risks and provides actions to
mitigate their affects.

It is not necessary or appropriate to apply all the above Cost Reduction


techniques on every project. The size and type of project is very relevant in
deciding the applicability of each. If applied “blindly” some Cost Reduction
techniques / VIPs can be marginal or even negative in their effects (in that the
cost of executing them can outweigh the benefits).

WorleyParsons is committed to delivering savings and value-add to our


customers by focussing on continuous improvement initiatives. An example of
WorleyParsons delivering significant improvements to our customers is shown
in our Improve Alliance work with Onesteel. WorleyParsons contract with
OneSteel has delivered significant benefits since commencement in 2004.
Cycle times have been reduced by 200 days, leading to an AUD $20 million
increase in Net Present Value. Capital spend has also increased 50 percent
and resources employed have been reduced by 40 percent. There has been a
significant increase in successful projects and in FY2005/2006 over 30 of the
38 completed projects met business needs.

A further example of WorleyParsons focusing on continuous improvement to


deliver value is our CoSyn contract in Canada with Syncrude. We have in
place a Continuous Improvement Program called I3 (pronounced I Cubed)
which stands for Ideas, Improvements and Innovations. Through the I3 initiative, the
CoSyn team submitted CAD 60 million worth of ideas to Syncrude in 2007 of which,
CAD 135 million have been accepted and signed off by the customer. Savings have
included:

f Interrogating and challenging designs, which delivered total savings of


CAD 25 million;

f Rescheduling and reprioritizing the works program, which delivered a


saving of CAD 164,000;

f Various initiatives for base plant projects in 2007 resulted in savings of


CAD 27.4 million;

f On strategic projects for 2007, WorleyParsons delivered savings of CAD


107.8 million.

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Section 1 General Questions

Question 1.11

Have you previously partnered with your customers to execute portfolios of


projects on behalf of the customer? Please describe the projects briefly.

f Opportunity 1

f Opportunity 2

f Opportunity 3

f Availability?

Opportunity Description
Current Alliance / Performance WorleyParsons is a world leader in the development of
Based contracts “alliance” or “performance based” contracts. In the vast
majority of these contracts the owner and WorleyParsons
work collaboratively to achieve a set of agreed business
goals. The development of integrated teams and shared
KPIs is inherent within these teams and a key to their
success.
Hydro Aluminium – Newcastle, In the Hydro Aluminium and One Steel alliance contracts,
Australia both based in Newcastle Australia, WorleyParsons is
One Steel – Newcastle, Australia actively involved in the capital planning process and the
creation of the capital budgets. WorleyParsons is a member
of the Capital Planning Committee. Our intimacy with the
assets has proven to be invaluable when prioritising work
and the assessment of risk associated with the work.
Tomago Aluminium, Newcastle In the Tomago alliance there have been numerous projects
Australia that have been identified and executed by WorleyParsons
that have been recognised by the customer to add value to
the bottom line of the business. WorleyParsons is
incentivised to identify opportunities to operate the plant
more cost effectively and safely.
CoSyn Alliance – Syncrude – In the CoSyn and TVA alliances WorleyParsons operates as
Alberta, Canada a defined entity to provide service to the owners. They are
Tennessee Valley Authority, East actively involved in all the planning activities and have a
Coast USA proven track record in identifying energy efficiencies that
create surplus that drive the capital plans.
Saudi Aramco - Maintain Both the Saudi Arabia and Kazakhstan contracts have
Potential Program (MPP) required WorleyParsons to work closely with the owners to
Al Khobar, Saudi Arabia develop a strong local capability base to meet the ongoing
Agip KCO – Full Field needs of the world class facilities. Building a local talent
Development Program - Almaty, pool in remote locations relies on alignment and a
Kazakhstan comprehensive understanding of the business goals of both
the owner and the contractor.

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Section 1 General Questions

Question 1.12

Please specify what other services your company could supply to Anglo
American? Please indicate the value of the services supplied?

f Service 1

f Service 2

f Service 3

f Service 4

f Service 5

Each year, WorleyParsons helps its customers take thousands of projects from
their formative front-end phase through to successful handover and operation.
Our ability to safely deliver projects large and small, across a range of
industries and environments, in line with customer expectations, is testament
to our project delivery and the tailored services we offer. WorleyParsons’
specialist services Select, Improve and EcoNomics™ are aimed at enhancing
and maximising our customer’s business outcomes.

Please see below for a brief description of each of these specialist services
that WorleyParsons can offer Anglo American:

Service 1 – Select

Select is the specialist front-end (feasibility) division of WorleyParsons,


focused on project viability assessment and selection. It is well recognised
that the decisions made during the initial stages of a projects have the greatest
impact on the ultimate business outcome. Select is an integral part of the
WorleyParsons global project delivery capability and provides pre-FEED
(Phase 1 and 2) services to asset owners, operators, and investors. Through
its focus on the critical early phases of projects, Select:

f Adds technical definition, thus reducing risk;

f Optimizes the opportunity and maximizes the inherent value;

f Creates the business case and assesses the probable costs;

f Secures the necessary approvals and prepares for the Deliver phase.

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Service 2 – Improve

Improve is WorleyParsons Asset Management Service delivering a full portfolio


of projects for Brownfield operations:

f Sustaining capital program management;

f Engineering and specialist consulting;

f Construction (in teaming, JV or subcontractor management of construction


partners);

f Integrity Projects (Compliance, Safety, Environment, Certification/Permits)


and;

f Business Improvement Projects (Cost Saving, Revenue Increasing).

Characteristics of an Improve services relationship:

f Incentivised and performance based management process;

f Delivery of a portfolio of projects for existing assets;

f Small-to-medium sized projects;

f Long term contract (explicit or implicit) – successful Improve contracts are


based on strong long term relationships;

f Integrated team of WorleyParsons’ and customers personnel responsible


for delivery and;

f Team can be site-based, office-based, or both as required by the site


business need.

WorleyParsons’ Improve draws on the experience and capabilities of our


global resources, and the knowledge accumulated from a large number of
Improve alliances and long term contracts.

Service 3 – EcoNomics™

EcoNomics™ is WorleyParsons’ range of services and technologies that


profitably embeds environmental, social, and financial sustainability into all
aspects of the project lifecycle. It turns our customers’ sustainability objectives
into project reality:

f An integrated, embedded approach;

f Expands risk analysis to include the “big picture”;

f Quantifies sustainability in hard monetary terms;

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Section 1 General Questions

f Builds on what we already do – bringing together and coordinating a wide


range of sustainability-oriented capabilities;

f Includes integrated project teams mandated to achieve profitable


sustainability;

f Supports the existing business, CSGs, and customers

f Provides an optional service enhancement to customers; and

f Responds to our staff’s and customers’ desire to make a real difference


and to the environmental challenges facing customers and society.

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Section 1 General Questions

Question 1.13

Does your company monitor the following key performance indicators? If YES,
please explain:

f Customer Satisfaction

f Labour Efficiencies

f Cost Efficiencies

f Health and Safety

f Fulfilment of contractual obligations

f On-time delivery

f Quality

f Utilisation

f Environmental Management

f Other (Please Specify)

Background

Consistent with the Process Approach required as part of compliance to ISO


9001:2000, WorleyParsons defines and deploys management and project
delivery practices via a comprehensive suite of systems and associated
procedures and instructions collectively known as our Enterprise Management
System (EMS). Whilst the system is administered by the Quality Group, each
business system has a Business Process Owner responsible for the
management of the content for that process and for implementing
improvements to the system arising from management reviews.

Business Performance

Business Performance utilising EMS is monitored and measured using KPIs


designed against our differentiators. The differentiators comprise seven
strategic drivers aligned to our vision provide a major differentiation from our
competition. They provide tangible levers that are implemented at a local and
global level and are as follows:

f Committed, empowered and technically capable people


f Industry leadership in health, safety and environmental performance
f EcoNomics™ – delivering profitable sustainability
f Outstanding operational and corporate performance

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f Focus on long term contracts and asset-based services


f Success in project delivery - large and small
f Comprehensive geographic presence
WorleyParsons monitors its key performance indicators using the procedures,
guidelines, forms, and task sheets which reside within EMS. For example,
Form PMF-1056 in EMS is a Project Review Template for Major Projects which
ensures that the various KPIs (eg safety, quality, schedule etc) are recorded
and monitored for all major projects on a monthly basis. To ensure that such
procedures are followed on each project, and that the associated performance
is measured, WorleyParsons Project Management Process (WPMP) has an
“overarching” Project Management Critical Controls Analysis procedure which
ensures that:

f key project personnel are trained in EMS/WPMP;


f projects are initiated in accordance with the Project Start-up Checklist;
f PEPs and risk execution plans are compiled in a timely manner;
f Monthly project reviews are conducted; and

f Projects are closed out in line with corporate guidelines.

Specific examples of monitoring KPIs are provided below.

Customer Satisfaction

WorleyParsons monitors customer satisfaction following project completion.


The activity is recorded in WorleyParsons EMS system in Task Sheet No:
PMP-9021 (Project Close-Out) which outlines the process of obtaining
Customer feedback and reporting on the project performance. A Close-out
report is produced which records the customers feedback, in addition to
recording project performance, key statistical data, lessons learned etc.

Customer satisfaction is also sought throughout the execution of the project


and is considered as one useful method of measuring quality performance
(described further below).

Labour Efficiencies

WorleyParsons measures labour efficiencies in the form of productivity factors


which take into account: location, weather conditions, project size, working
week & shift patterns, manpower density, labour experience, live plant working
industrial relations, working elevations, past historical performance against the
work norms etc.

The norms are benchmarked against past projects, and productivity factors
adjusted where necessary.

Strengths of this approach include:

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Section 1 General Questions

f It provides a consistent approach for all project execution offices

f It offers an established method of preparing detailed estimate of


construction

f It provides measurable quantifiable data for progress measurement

f It provides detailed planning resources to assist in planning.

WorleyParsons General Project Control Guideline in EMS describes KPIs for


manhour performance (ie labour efficiencies). This can be applied to both in-
house engineering manhours in addition to site based construction manhours.

A Manhour Performance Index (MPI) is used as a measure for labour


efficiencies, which is a direct measure of productivity and is a comparison of
what was done to the manhours incurred. To do this earned manhours are
compared to actual spent manhours. The Calculation Rule is as follows:

MPI (ie Productivity) = Earned Value/Manhour Incurred To Date

Manhour Variance (MV) = Earned Value – Manhours to Date

Cost Efficiencies

WorleyParsons General Project Control Guideline in EMS describes KPIs for


cost performance (ie efficiency).

This is measured using a Cost Performance Index (CPI) which is another


measure of productivity and is a comparison of what was done to the cost
incurred. To do this, earned units are compared to actual spend units. If the
cost incurred was greater than what was done, the project has overrun its
budget. The Calculation Rule is as follows:

CPI = Earned Value / Expenditure to Date

Cost Variance (CV) = Earned Value – Expenditure to Date

Utilisation

WorleyParsons has Global corporate standards on the definition of utilisation


as it applies both on a geographic location and project specific basis.

WorleyParsons uses two measures for utilisation which serve as key


performance indicators:

f Chargeability - which is a measure of the hours booked to a billable project


(billable and non-billable time) divided by the total hours available (less
leave time). This is used specifically within WorleyParsons Europe Ltd to
monitor overall manpower usage on a location basis. Typically the
Location Manager is accountable for this metric.

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f Billability - which is a measure of the billable hours booked to a billable


project divided by the total billable and non-billable time on that project.
This is used within by WorleyParsons Europe Ltd to monitor Project
performance. Typically the Project Manager is accountable for this metric.

WorleyParsons’ Global Business System (GBS) monitors and reports this


information on a regular basis (weekly / monthly). As an example, in week 4
(Jan '09) the billability % for the London Office overall was 93% and
chargeability 69% (the latter is generally expected to be circa 70% since this
includes Overhead / Support staff).

Health and Safety

WorleyParsons Core Value for HSE is the concept of Zero Harm to the Health
and Safety of personnel as well as to the Environment. WorleyParsons’ vision
of Zero Harm is a living process which encourages all employees to contribute
towards achieving this goal. Those who make significant contributions are
given recognition within the organisation.

WorleyParsons’ “OneWay™” system is an enterprise wide integrity


management framework which establishes corporate expectations for
progressing towards the Zero Harm vision, and in turn provides links to the
policies, standards, guidelines and procedures that WorleyParsons aims to
follow in daily operations to meet these expectations.

In striving to achieve Zero Harm to people and assets, and zero environmental
incidents, the scope of OneWay™ encompasses much more than a
conventional health, safety and environment (HSE) program. It includes
matters such as risk management, technical integrity, competency,
management of change and incident management across all sectors of
WorleyParsons’ business. In addition it provides guidance on how
WorleyParsons interacts with its joint venture partners, customers, vendors
and contractors to engage them in working towards the same vision.

The OneWay™ system (which is documented in WorleyParsons’ EMS) has 12


elements, namely the twelve business areas within which specific activities
need to take place in order to attain the zero harm vision. KPIs for Health,
Safety, and Environmental performance are measured using the principles
described in elements 11 and 12 (Incident and Behaviour Analysis, and
Assessment and Improvement).

The intent of Element 11 of the OneWay™ system (Incident and Behaviour


Analysis) is to ensure that incidents and near misses are reported and
investigated, and corrective actions are implemented to prevent recurrence.
“At risk” behaviours and their drivers are identified and addressed. Incident and
other data is utilised for improving performance.

The intent of Element 12 (Assessment and Improvement) is the


implementation and effectiveness of OneWay™ in meeting our vision,

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Section 1 General Questions

customer expectations and regulatory obligations is continuously assessed


and actions taken as needed to ensure continuous improvement.

Furthermore, a safety in design culture is cultivated by WorleyParsons which is


evidenced in Element 6 of the OneWay™ System (Engineering), the intent of
which is to ensure that risks to people, the environment and assets during
procurement, construction, commissioning and operations are minimised by
incorporating health, safety and environmental considerations into engineering
design and planning.

Please refer to Section 2 for more information on our OneWay™ system.

Fulfilment of contractual obligations

WorleyParsons has a suite of negotiation, award, and handover procedures in


EMS to ensure that contract scope, rates, prices and terms and conditions are
fully agreed and documented between both parties, and then communicated to
the project team in order to fulfil contractual obligations.

Once the project execution is underway, it is ensured that contractual


obligations are met during regular project reviews right through to the project
completion, at which stage the Project Close-out Procedure is followed, and
technical and commercial obligations are reviewed against a checklist in the
Project Close-Out Task Sheet.

On-time delivery

WorleyParsons General Project Control Guideline describes KPIs for schedule


performance.

This is measured using a Schedule Performance Index (SPI) which is a


comparison of what was planned to what was done. In other words, units were
budgeted and earned. If the budgeted units are less than the earned units, it
means more was done than planned, and the project is ahead of schedule.
The reverse would place the project behind schedule. The Calculation Rule is
as follows:

Calculation Rule, SPI = Earned Value/Planned Value.

Schedule Variance (SV) = Earned Value – Planned Value

Quality

WorleyParsons monitors a number of KPIs related to Quality Management. On


a corporate basis, WorleyParsons key Quality Management KPI is measured
by customer feedback and customer satisfaction, which is conducted through a
standard questionnaire. A score of 8 out of 10 is considered satisfactory for the
purpose of this KPI.

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On a project level, various Quality Management KPIs are considered based on


the results of audits and the preferences of the customer. These include:

f The number of corrective actions open as a percentage of the number of


corrective actions closed (10% is considered acceptable on one of
WorleyParsons current projects)

f The performance of quality audits (and corrective actions) to schedule

Environmental Management

The measurement of Environmental Management performance within


WorleyParsons is detailed in WorleyParsons OneWay System, as described
above under “Health and Safety” and in more detail Section 2.

In addition to the separate measurement of environmental and cost


performance described previously, WorleyParsons has a unique service, called
EcoNomics™. As explained in Question 1.12, EcoNomics™ seeks to
profitably embed environmental, social and financial sustainability within all
parts of the project life-cycle, to deliver profitable sustainability to client’s
projects. No one else in the world can provide this balance of sustainability and
profitability. WorleyParsons uses economic constructs to optimize
environmental spend on the facilities that we are designing and the options
that we are evaluating. We believe that we can actually define what ‘Best’
actually means in ‘Best Available Techniques’.

EcoNomics™ is a global project assessment and delivery model that is


underpinned by our comprehensive capability and experience, embedded
project management systems, and a suite of analysis tools that allow
sustainability to be quantified in hard, monetary terms, to significantly improve
sustainability-oriented decision making. Using EcoNomics™, our NPV
calculations can optionally include environmental costs and benefits (critical in
understanding liabilities, particularly in the longer term), and allow for the ‘Best’
overall options to be chosen. Moreover, our embedding of environmental and
social considerations from the outset, through our engineering planning and
design can, in many cases, expedite any environmental permitting processes,
including regulator sign off of any Environmental Statements.

The process begins with an assessment of project risk and opportunity,


undertaken as part of the overall preliminary project risk assessment and other
client technical meetings (HAZID, HAZOP, Peer Reviews), as appropriate.
Working together, WorleyParsons’ in-house engineers and environmental
specialists bring to the project an integrated view of project-orientated risk.
This EcoNomics™ Risk Assessment technique has the objective of reducing,
at an early stage, internal risks (i.e. project related) and external risks (e.g.
impacts to the environment and wider society). In addition, it enables
opportunities to be identified and maximized, again for the project and
externalities.

WorleyParsons EcoNomics™ approach is then to couple the risk assessment

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Section 1 General Questions

output with whole life-cycle economic analysis (Cost Benefit Analysis), placing
dollar-values on external environmental and social impacts and risks, providing
a far broader view of project sustainability, in hard financial and economic
terms, than ever before. This allows various project sustainability options and
objectives to be compared using a common unit of measure (money).

Overall, we believe that EcoNomics™ is a major differentiator for


WorleyParsons. It is an integrated, embedded approach which seeks to
achieve project sustainability goals by design, rather than as an afterthought.

Further information on EcoNomics™ and profitable sustainability is given in


Section 12.

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Section 2
Safety
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Section 2 Safety

Question 2.1

Do you have a safety vision such as “Zero Harm” formulated and established
in your organisation?

Give description of your organisations safety vision and organisation.

WorleyParsons Vision:

WorleyParsons has a vision of zero harm to people and assets. We aspire to


zero environmental incidents. In these regards we aim to be recognised as an
industry leader.

Achieving such a vision requires a comprehensive and systematic approach to


all aspects of our business activities. The expectations we set are vital and are
embedded into our supporting management systems, standards and
processes to influence everything we do.

We expect everyone who works for WorleyParsons will exhibit the leadership
and commitment required to meet the expectations.

We align and continuously improve our systems, standards and processes,


such that all staff and stakeholders engaged to support our activities
demonstrate the WorleyParsons culture for achieving zero harm to people and
assets, and zero environmental incidents. WorleyParsons’ OneWay
Management System is our means of achieving this.

At WorleyParsons, there is a firm belief that all tasks, regardless of complexity,


can, and will, be conducted in a safe manner, with the minimum disruption to
the environment whilst promoting sustainability within the local communities.

WorleyParsons’ vision has been created to empower our leaders to preserve


our strengths and create new opportunities at both a local and global level.

We share our vision with clients, partners and shareholders and use them
internally to measure our performance at a corporate, business and individual
level. The WorleyParsons brand is the promise, the experience, and
expectations that reside in each client’s mind about our company.

WorleyParsons concept of Zero Harm to the Health and Safety of personnel


as well as to the Environment is described in more detail in the WorleyParsons
HSE Policy which is appended in response to question 2.8 below.

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Section 2 Safety

Question 2.2

Is safety of own and contracted employees part of your mission statement? Is


your mission statement compliant with U.S. Occupational Health and Safety
Administration (OSHA) standard 18001?

Short description and Mission statement as separate document.

The safety of all staff and contracted employees is WorleyParsons’ highest


priority, and the Company does not differentiate between staff or contractor
employee in the reporting, investigation and management of near misses or
incidents.

Our mission statement is clearly defined in our HSE policy and the OneWay™
- WorleyParsons’ Enterprise wide integrity management system. (References
section 2.1, 2.3 and 2.8).

WorleyParsons has developed policies, procedures and a quality system that


ensures that all aspects of our service are compliant with OHSAS 18001
expectations and we are currently working toward obtaining OHSAS 18001
accreditation.

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Section 2 Safety

Question 2.3

Please describe your overall safety management framework which should


include schedules for safety inductions of staff, training plans, and
safety/training plan evaluations?

Introduction to OneWay™

The OneWay™ HSE Management System is integrated with the overall


management system, namely WorleyParsons Enterprise Management System
(EMS).

OneWay™ is the WorleyParsons enterprise wide integrity management


framework which establishes corporate expectations for how we will progress
towards our vision of zero harm. It provides links between the expectations
and the relevant supporting policies, standards, guidelines and procedures
which can be found within the WorleyParsons’ Enterprise Management System
(EMS).

In addition to a conventional health, safety and environment (HSE) program,


OneWay™ addresses aspects such as risk management, engineering in
design, technical integrity, competency, management of change and
emergency response across all sectors of our business.

The system consists of HSE management framework that integrates and


aligns systems, defines accountabilities and sets behavioural expectations that
reflect a commitment to the OneWay™ values across the entire organisation.
The framework consists of 12 process steps (elements), each of which
includes an underlying intent statement and a set of activities for the effective
management within WorleyParsons globally.

Ownership and accountability rests with the entire organisation to ensure the
long term success and sustainability of the OneWay™ Management System.
The implementation of OneWay™ is not a standalone effort. It is driven by line
management and will be integrated into every aspect of business planning and
operations.

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Section 2 Safety

Figure 2.3-1 Scope of OneWay™

Scope of OneWay™

OneWay™ is an enterprise wide integrity management framework which lays


down corporate expectations for achieving the Zero Harm vision, and in turn
provides links to the policies, standards and processes that WorleyParsons
aims to follow in daily operations to meet the expectations.

In striving to achieve zero harm to people, the environment and assets, the
scope of OneWay™ covers much more than a conventional HSE program. It
also addresses matters such as leadership and governance, risk management,
technical integrity, competency, management of change and emergency
response across all sectors of WorleyParsons’ business. In addition it provides
guidance on how WorleyParsons works with its joint venture partners,
customers, vendors and contractors to engage them in working towards the
same vision.

OneWay™ provides a transparent framework to our stakeholders on how we


as a company manage health, safety and environmental outcomes via our
policies, standards, guidelines and procedures.

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Section 2 Safety

Figure 2.3-2 OneWay™ Framework

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Section 2 Safety

OneWay™ is one of several distinct management programs employed by


WorleyParsons to deliver superior business outcomes. These programs
involve different ways of viewing the business and at times may interact or
overlap. Consistency of these programs is assured in that they all work from a
common suite of underlying policies, standards and processes residing within
the WorleyParsons Enterprise Management System (EMS).

Intent of OneWay

WorleyParsons aspires to continuously improve its operating practices and


progressively move towards the ideal OneWay model over time. This involves
rollout to new parts of the business, assessment of compliance and an
improvement feedback loop. A high internal standard has been set,
recognizing that while we will strive to achieve these standards, it is not
intended that this program or the statements herein either take precedence
over the contractual obligations and limits of liability in our contracts or create
any representations or warranties that may be relied upon by any third parties.

There are 12 elements within the OneWay framework. Within each element
corporate expectations are set and minimum standards are defined in
procedures and guidelines. The 12 elements are listed below and described in
detail, with organisational expectation in the following tables.

1. Leadership and Governance


2. Risk Management
3. Caring for our People and the Environment
4. Selection & Competency
5. Working with Customers
6. Engineering
7. Working with Vendors and Contractors
8. Field Execution
9. Management of Change
10. Crisis and Emergency Management
11. Incident and Behaviour Analysis
12. Assessment and Improvement

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Section 2 Safety

1. Leadership and Governance

Intent Expectations

Management at all levels commit to 1.1 Management allocates resources and assigns responsibilities for the implementation,
and communicate the OneWay operation and improvement of OneWay.
vision, expectations and goals,
allocate resources, assign roles and 1.2 Specific OneWay responsibilities, goals, objectives, expected behaviors and performance
accountabilities, and steward results. measures are defined, agreed, communicated and stewarded.
The pace and extent of OneWay 1.3 Managers engage in clear, two way conversations with staff, customers, vendors,
implementation is prioritized by contractors and regulators on OneWay expectations and how they are met.
management to meet regulatory
requirements and respond 1.4 Staff understand and are engaged in meeting OneWay expectations.
appropriately to risk exposure.
When working with others, 1.5 Staff are aware of and demonstrate leadership behaviors appropriate to their role and task.
management influences their
adoption of programs and practices 1.6 A team based work environment exists which leverages the expertise and knowledge of
consistent with OneWay team members and nurtures a climate of care and trust.
expectations.
1.7 OneWay behaviors, actions and outcomes are recognized and rewarded where positive.

1.8 Standards and procedures appropriate to the complexity and risks of business are
documented, implemented and maintained to meet OneWay expectations.

1.9 Controlled documentation and records are maintained to support effective OneWay
implementation.

1.10 Applicable legislation, codes, regulations and standards are identified and communicated.
Compliance is regularly assessed.

1.11 Management influences joint ventures operated by others to adopt OneWay expectations
and standards, or equivalent, commensurate with the level of risk.

2. Risk Management

Intent Expectations

Effective risk management principles 2.1 Risk management processes are applied to identify, assess and mitigate risks to people the
and processes are employed to environment and assets for all existing and planned activities.
enhance decision making and assist
in reducing risk to people, the 2.2 Relevant stakeholders are involved in risk assessments and the risk management process.
environment and assets.
2.3 People who lead or carry out risk management activities are appropriately competent.
A risk management process is
applied to identify, prioritize, 2.4 Risk assessment methodologies are endorsed prior to use.
appropriately prevent, minimize,
mitigate, communicate and manage 2.5 Assessed risks and associated risk prevention & mitigation plans are reviewed by the level
risks throughout a project or asset life of management appropriate to the nature and magnitude of the risk.
cycle.
2.6 Identified risks and risk prevention & mitigation plans are documented and communicated to
stakeholders.

2.7 Identified risks and risk prevention & mitigation measures are periodically reviewed.

2.8 Risk management processes are periodically reviewed for effectiveness and improved.

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Section 2 Safety

3. Caring for our People and the Environment

Intent Expectations

Our people are visibly and actively 3.1 Workplaces, work activities and work arrangements are reviewed to identify, assess and
committed to healthy & safe manage physical, chemical, biological and other health related hazards. Relevant people
workplaces and activities. are involved, consulted and contribute.
We understand the potential impact 3.2 Health, safety and environmental plans are developed for all workplaces. These are
of facilities & activities on the reviewed and where necessary amended, in light of changing circumstances.
environment and then implement
controls and programs to minimize 3.3 Environmental plans include the management of impacts on the environment associated
the impact. with work activities or work sites managed by us. Plans also include management of
Safety, health and environmental recovery from environmental incidents.
programs are implemented to
promote awareness and positive 3.4 Work hazards and associated controls are communicated.
behaviors when not at work.
3.5 Where there is the potential for staff to become exposed to a specific health hazard, health
surveillance is provided.

3.6 Processes are in place to effectively manage workplace illnesses or injuries and achieve
best possible recovery.

3.7 Processes are in place to confirm that staff working for or on behalf of the company are fit
for work and not compromised by external influences such as drugs or alcohol.

3.8 Staff considered to have personal issues that may impact performance are assisted by the
company to address the issue.

3.9 Programs are implemented which promote a safe, healthy and environmentally friendly
lifestyle that extends beyond time at work.

3.10 Our company will influence, participate in and contribute to health, safety and environmental
programs that are in place at workplaces not managed by us.

4. Selection and Competency

Intent Expectations

We select people who share our 4.1 Our commitment to developing a culture that reflects the OneWay vision is communicated
values, beliefs and commitment to during the recruitment process.
the OneWay vision and who
demonstrate the expected behaviors, 4.2 Candidates are recruited and engaged, relative to their skills, experience, competence and
competencies and performance ability to demonstrate expected performance results and behaviors.
associated with their role or task. 4.3 Recruitment and selection criteria include a specific evaluation of the candidate’s alignment
Staff performance results and to the OneWay vision and expectations.
behavior are assessed and 4.4 Job specifications which describe the required skills, experience, knowledge, training &
recognized. performance expectations are documented and communicated in job descriptions, and are
Managers actively improve the reviewed periodically.
performance of staff using relevant 4.5 Development plans are documented which describe any gaps identified in an individual’s
company resources. skills, knowledge or experience. Plans are periodically reviewed and updated.
4.6 People will only commence work after confirmation that required training has been
completed and competencies are held, or appropriate controls are in place to address any
identified shortfalls.
4.7 Work related induction programs are developed and conducted prior to accessing any site
or executing work on the company’s behalf.
4.8 Staff are aware of their specific roles and responsibilities, including their contribution to
achieving the OneWay vision. Individual contributions to this performance are assessed and
recognized.
4.9 Training courses are documented and include a competency assessment of participants.
Materials are periodically reviewed and updated, including confirmation that training is
suitable to the intended audience and commensurate with the level of risk associated with
an activity.

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Section 2 Safety

5. Working with Customers

Intent Expectations

We meet or exceed Customer health, 5.1 Bridging documentation is prepared via a gap analysis which demonstrates alignment with
safety and environmental customers & customer nominated suppliers, in relation to our health, safety & environmental
expectations. expectations, standards, processes and procedures. The bridging documentation also
addresses how any differences are to be addressed.
We recognize the value in utilizing a
Customer’s proven standards and 5.2 Opportunities for integration of our processes and procedures with those of the customer
processes where they are consistent are identified and implemented.
with our expectations.
5.3 Plans are developed which specify and effectively manage the interfaces with our
customers.

5.4 Performance against standards and expectations agreed with our customers is monitored
and reviewed regularly.

5.5 Performance deficiencies are identified, communicated and corrected.

5.6 Customers are encouraged to embrace or align with our programs and activities.

5.7 There is alignment between our customers’ sustainability goals and project delivery scope.

6. Engineering

Intent Expectations

Risks to people, the environment and 6.1 New plant, equipment and processes are designed or selected with consideration of known
assets during procurement, and projected health, safety and environmental requirements, including provision for
construction, commissioning and decommissioning and disposal.
operations are minimized by
incorporating health, safety and 6.2 Technical stewardship responsibilities covering technical integrity, safety in design and
environmental considerations into environmental sustainability in design, are defined, communicated and implemented.
engineering design and planning.
6.3 Technical standards of design, construction & commissioning are compliant with company
& customer requirements, regulation and relevant industry codes & standards, and utilize
sound engineering practices & risk management principles.

6.4 Design reviews are carried out for constructability, operability & maintainability of plant,
equipment & systems designed by us, to ensure that health, safety and environmental risks
are effectively identified and addressed.

6.5 Health, safety and environment related documentation is maintained and managed for all
phases of the design process.

6.6 Knowledge and learning are shared to enable continuous improvement.

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Section 2 Safety

7. Working with Vendors and Contractors

Intent Expectations

Goods and services provided to us or 7.1 Vendors and contractors are evaluated during selection to verify they have the necessary
our customers meet appropriate competence, experience and capability to undertake the required activities.
health, safety and environmental 7.2 Selection and evaluation criteria include an assessment of company health, safety &
standards. environment values, commitment and performance, as well as processes used for incident
Health, safety and environmental reporting, risk management, change management and assessment and improvement.
aspects are addressed as part of the 7.3 Our commitment to developing a culture that reflects the OneWay vision is communicated
prequalification, bid evaluation and during the selection and evaluation process.
order performance processes. 7.4 Bridging documentation is in place via a gap analysis to demonstrate alignment of
standards, processes and procedures between us and our contractors and, where the need
is identified, our vendors.
7.5 Processes and procedures are in place to ensure all work (including short term and one-off)
activities are effectively managed.
7.6 Clear performance standards, including expected behaviours are developed, agreed and
stewarded. Deficiencies are identified, communicated and corrected.
7.7 Contractors and vendors participate in our programs and activities specific to their scope of
work.
7.8 Performance is assessed and documented following completion of work.

8. Field Execution

Intent Expectations

Field work is executed using effective 8.1 Methods for field work are documented, risk assessed, utilized and maintained through
methods that prevent injury, illness periodic review. Tasks and activities with potentially higher risks are identified and
and incidents. managed.
Work teams are familiar with their 8.2 Processes are in place to identify, assess, monitor and control the environmental impact of
worksites, responsibilities and field work.
activities, and the associated risks.
Effective risk control measures are 8.3 A suitable work authorization and control system (e.g. permit to work) is in place, which
developed and maintained. incorporates checks and authorizations that are consistent with the field execution risks.
Plant and equipment is maintained
and operated to an appropriate 8.4 People receive site induction training prior to commencing work.
standard to minimize risk during
operation. 8.5 Prior to work commencing identified work teams have the responsibility to assess and
mitigate risks associated with the work to be performed.

8.6 Pre-start orientation / reviews are performed to familiarize work teams with the work site,
review work plans and procedures to assess their suitability for the planned task(s) and
ensure required resources and tooling are available, suitable and certified (when necessary)
for use.

8.7 Work teams confirm that risk prevention and mitigation measures or controls are in place
and effective throughout work activities. This confirmation includes field level risk
assessment.

8.8 Plant and equipment operated and maintained on behalf of others, or provided by us, has
documented operating methods and procedures which are implemented and maintained.

8.9 The mechanical and technical integrity of facilities (plant or equipment) operated or provided
by us is assured by implementation of a documented maintenance, inspection and testing
regime to applicable standards.

8.10 The reliability and availability of critical devices associated with facilities (plant or
equipment) operated or provided by us, is assured by maintenance, inspection and testing,
and the control of temporary disarming or deactivation.

8.11 For equipment newly installed or modified by us, prestart-up reviews are carried out to
confirm compliance with the design. Formal acceptance of design compliance includes
verification and testing.

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Section 2 Safety

9. Management of Change

Intent Expectations

Risks introduced through change are 9.1 Processes are in place to identify, assess and manage risks associated with temporary and
identified, assessed and managed to permanent change.
an acceptable level.
9.2 Scope of change includes design, standards, regulations, work methods, procedures,
Changes to design, construction, buildings & plant, equipment, materials, organization and personnel.
commissioning, operations,
processes, procedures, equipment, 9.3 People who initiate, review or approve change are appropriately qualified and use the
systems, services and personnel are applicable management of change process.
assessed and approved by
stakeholders. 9.4 Key people impacted by a change are identified and consulted prior to approval and
initiation of the change.

9.5 Changes are tracked, documented and communicated to those who may be affected.

9.6 Training or retraining of people will be implemented as required in the implementation of the
change.

9.7 The original scope and duration of changes are not exceeded without review and re-
approval.

9.8 Changes include those originating from, or impacting a customer, vendor or contractor are
identified, assessed, approved and managed.

10. Crisis and Emergency Management

Intent Expectations

Plans and resources are ready to 10.1 Potential crisis and emergency events are identified and management plans are in place to
effectively respond to crises and mitigate impacts to people, the environment, assets and reputation.
emergencies and manage recovery.
10.2 Crisis and emergency plans for managing identified and unforeseen events are
documented, easily accessible, clearly communicated and maintained.

10.3 Suitable tools, equipment and resources are identified, provided and maintained to
adequately respond to, and recover from emergency crisis and emergency events.

10.4 Staff and support services are trained in specific crisis and emergency plans, their roles
and responsibilities and the use of emergency response equipment and resources.

10.5 Regular exercises and drills are conducted to increase readiness for crises and
emergencies. Results are documented and lessons learned are communicated.

10.6 Periodic reviews and updates of plans and training are conducted to incorporate lessons
learned from previous crises and emergencies and exercises.

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Section 2 Safety

11. Incident and Behaviour Analysis

Intent Expectations

Incidents and near misses are 11.1 Processes are in place for the timely reporting, classifying, investigation, recording and
reported and investigated, and closing out of incidents, near misses and ‘at risk’ behaviors.
corrective actions are implemented to
prevent recurrence. 11.2 A communication protocol is established to ensure incidents and near misses are reported
to the level of management and regulatory authorities, and in a timeframe, based on
“At risk” behaviors and their drivers severity or potential consequence of the incident.
are identified and addressed.
Incident and other data is utilized for 11.3 Investigations are conducted by multi-disciplinary teams who identify and document
improving performance. contributing factors, root causes (including behavioral) and systemic failures that
contributed to the incident.

11.4 Investigations are reported to the level of management appropriate to the severity or
potential consequence of the incident.

11.5 Once corrective and preventive actions are identified, responsibility & timeframes are
assigned and the implementation of the actions is tracked through to completion. The
effectiveness of actions is verified.

11.6 Lessons learned from incidents, near misses and investigations are shared internally and
with relevant third parties and will consider application of the lessons learned to other
locations.

11.7 Trends from incidents and near misses are regularly communicated to management &
stakeholders and analyzed to determine improvement opportunities, including updating
standards, processes and procedures.

11.8 External incident and near miss data, investigation reports and lessons learned are
communicated internally and assessed for improvement opportunities.

12. Assessment and Improvement

Intent Expectations

The implementation and 12.1 Company operations are assessed for implementation and effectiveness of OneWay
effectiveness of OneWay in meeting expectations and objectives, and for meeting applicable regulatory requirements.
our vision, customer expectations
and regulatory obligations is 12.2 The frequency and scope of assessments reflect the complexity of the operation, level of
continuously assessed and actions risk and performance history.
taken as needed to ensure
continuous improvement. 12.3 Assessments are conducted by multi-disciplinary teams, including an appropriate mix of
external and independent expertise.

12.4 Staff behaviors and perceptions in relation to our company’s commitment to health, safety
and the environment are periodically evaluated.

12.5 Inspections are conducted to identify workplace hazards and assure controls are
effectively implemented in accordance with company, customer and applicable regulatory
obligations.

12.6 Preventive and where necessary, corrective action is taken to eliminate potential and
existing causes of non-compliance with OneWay expectations, including applicable
customer and regulatory obligations.

12.7 Management reviews are conducted to assess the continuing suitability, adequacy and
effectiveness of our management systems to support the ongoing achievement of our
vision through OneWay.

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Section 2 Safety

WorleyParsons’ HSE Procedures

To execute the Global Anglo American EPCM Services Contracts,


WorleyParsons will utilise its Enterprise Management System (EMS) V3, in
conjunction with WorleyParsons Project Management Process (WPMP) V3.

The Enterprise Management System (EMS) V3 is a global software platform


providing a management framework for working consistently and efficiently
throughout the project life cycle and across all execution offices.

WorleyParsons Project Management Process (WPMP) V3 provides a


common, scalable framework for project execution centred on a risk-based
process for developing (and supporting) a Project Execution Plan tailored to
the needs of the individual project.

WorleyParsons uses EMSv3 for all projects. EMSv3 contains all Operations
procedures, including all procedures, forms and processes that will be required
to manage HS&E activities associated with any Anglo American project.

Copies of these WorleyParsons Operations and HSE procedures are


considered too voluminous for the purpose of this submission, however a
complete WorleyParsons HSE Manual is available on request.

This would include:

f General HSE procedures

f HSE in Design Procedures

f Construction HSE procedures

f Occupational HSE Procedures

f Office HSE Procedures

Figure 2.3-2 overleaf is a sample of the many WorleyParsons HSE


procedures; although not all of these may be applicable to Anglo American
projects. Please note that the screenshot overleaf records some procedures
as ‘new’, this is owing to a loading procedure and restructure of the workflow
due to OneWay™ implementation. Most documents have been in place for
sometime.

A full list of HSE procedures is available on request.

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Section 2 Safety

Figure 2.3-3 Sample List of WorleyParsons HSE Procedures

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Section 2 Safety

Safety Training Plans and Programs

WorleyParsons OneWay™’ system places a series of expectations against the


organisation in the area of selection and competency of personnel and an
assurance that the training provided is adequate. This applies to both
employees and contractors. To ensure that the organisation meets the training
needs of the project, a training needs analysis will be carried out that includes
definition of the training programmes to be used during different stages of the
project. This will be carried over into a training plan that ensures all personnel
are trained as appropriate in the systems and programmes to be used for the
delivery of the Project in a consistent and uniform fashion.

HSE Training is essential to ensuring all services provided are done so in


a safe and productive manner; therefore general training will be provided as
part of the normal process of employment through inductions and project
orientations and an overall familiarisation of the office HSE plans and
emergency protocols. Inductions are given to newly joining employees to
ensure their alignment with the Company’s HSE Policies, Procedures and
ways of working.

Training Requirements

WorleyParsons provide the training resources necessary to equip employees


with the HSE knowledge and skills required to accomplish their assigned task
in compliance with company HSE requirements. Training will include lectures,
audiovisuals, computer based, and hands-on demonstrations. Tasks will only
be assigned to employees who have successfully completed the HSE training
for the specific task.

All trainings conducted in accordance with WorleyParsons, client, and


applicable regulatory requirements and best industry practices. All formal
training delivery includes a written test to verify understanding of the
information presented.

HSE Orientation

New employees are greatly influenced by initial impressions. The initial


instructions and personal contracts contribute measurably to worker attitude
toward work assignments. Consequently, all new employees are scheduled for
a formal presentation of the HSE Program.

Due to constantly changing environments, operations, and conditions, all


rehired employees are also scheduled for a formal orientation.

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Section 2 Safety

The orientation provides newly hired and rehired employees with site specific
HSE Program, a detailed explanation of their responsibilities under the
program, and a discussion of key safety rules in effect and enforced at the site.

The discussion of the HSE Orientation Guide, in conjunction with applicable


visual aids, shall ensure a well planned, well conducted, and well received
orientation.

Program Requirements

Each newly hired and rehired employees attend the HSE orientation prior to
work assignment. HSE orientation is also a requirement for the Manager/
Supervisor of each subcontractor prior to the start of onsite work activity.

HSE Orientation – Supervisors

A key person for maintaining effective safety performance is the supervisor.


The term supervisor includes forepersons on construction sites. Previous
experience does not qualify supervisors to perform the safety functions of
his/her responsibilities. All supervisors receive appropriate safety training
relative to their duties and responsibilities as a supervisor.

Orientation Description

The HSE Orientation for newly hired or newly appointed supervisors is a


specific familiarization with supervisory safety responsibilities. The orientation
is a supplement to the general Employee HSE Orientation and provide newly
hired or newly appointed supervisors detailed information on such subjects as
required personal protective equipment, work permits, conducting weekly
safety meetings, handling employee safety complaints, disciplinary action for
violation of safety rules, injury management, and task safety planning.

Orientation Requirements

Each newly hired or newly appointed supervisor attend the appropriate HSE
Orientation within the first week of appointment. HSE Orientation conducted by
the Site HSE Representative or by a qualified instructor.

The following is a sample of an Orientation Guide

Figure 2.3-4 overleaf is a sample of an HSE Orientation Guide.

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Section 2 Safety

Figure 2.3-4 HSE Orientation Guide

Introduction • Policy
• Safety Department
HSE Program • Development and Philosophy of Program
• Supervisor’s Role in Safety
o Program Involvement
o Recognition of Hazards (Unsafe Conditions and Unsafe Acts)
o Proper Job Instructions
o Work Planning
o Accident Prevention
• Employee’s Role in Safety
o Recognize hazards in the work area
o Correct hazards in the work area
o Report hazards which you cannot correct to supervisor
o Know and use good safe work practices
o Comply with all safety rules, directives, and procedures
• Employee’s Safety Handbook
o Review and explain the Employee Safety Handbook
o Know and comply with the rules contained in the Employees Safety
Handbook
• Hazard Communication Program Handbook
o Review and explain the Hazard Communication Program and
Handbook
o Know and comply with the contents of the Hazard Communication
Handbook
• Subcontractor Role in Safety
• Safety Committees
• Safety Meeting
• Emergency Rescue Team
• Fire Brigade
Reporting of accident and fires • Accidents and Near Misses
• Injuries
• Report all injuries to foreman as soon as possible to ensure the proper medical
attention is received – no matter how minor
• Do not move an individual who has been injured – call for help
• Fire
• Report fires immediately
• Attempt to put out the fire only if you have been trained in the use of available
equipment, and without danger to yourself
Emergency telephone number • First Aid
• Fire
• Security
First aid facility • Location
• Personnel
• Hours of Operation
Emergency evacuation • Procedures
• Signals

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Section 2 Safety

Figure 2.3-4 HSE Orientation Guide

Site specific material • Prohibited Items


• Dress Code
• Personnel Protective Equipment
• Respiratory Protection
• Fall Protection
• Safety Equipment Issue
• Gaitronics/Intercom/Telephone System
• Fire Extinguishers
• Water Coolers (Drinking)
• Safety Cans
• Inspection of Equipment
• Scaffolds and Scaffold Tag Procedure
• Material Handling
• Confined Space Entry Permit and Procedure
• Radiation Procedure
• Caution and Danger Signs
• Speed Limits and Carrying Personnel (Pick-up Trucks)
• Using Tag Lines and Moving Equipment with Cherry Picker
• Orderliness
• Walkways

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Section 2 Safety

Question 2.4

Do you have a fully integrated Safety, Health, Environmental and Risk


program, if so, please provide a description of the integration methodology.

Risk Management

WorleyParsons’ HSE Risk Management Process/Program is based on the


Australian and New Zealand Standard for Risk Management AS/NZS
4360:1999.

Different sectors within WorleyParsons require their risk assessments to focus


on different activities and personnel. Furthermore, as a leading provider of
professional services to the various sectors of the energy, resource and
complex process industries, WorleyParsons’ range of business activities
extends to numerous diverse operations through a series of partnerships, joint
ventures, alliances, subsidiaries, contract and direct employee relationships, all
of which require risk management. The risk of all of these activities are divided
into three areas of operation, namely the risks associated with WorleyParsons
operated sites, WorleyParsons non-operated sites and business travel risks.

Operated Sites

These are sites where WorleyParsons has a significant personnel involvement,


either through employed or contracted personnel. This includes
WorleyParsons offices, WorleyParsons plant operations and sites where
WorleyParsons is providing construction services.

Non-Operated Sites

Non-operated sites are those where WorleyParsons has a role or an interest,


but WorleyParsons personnel or contractors only have a minimal involvement.
This includes Joint Ventures, Subsidiaries, Alliances and plant operated by
others. It is expected that, as a minimum, these operations also conform to the
requirements of the WorleyParsons risk management standards, and it is the
responsibility of the WorleyParsons Joint Venture / Partner / Alliance Manager
to ensure that it is implemented and regularly reviewed to ensure its ongoing
effectiveness.

Travel

Travel ranges from local site visits to international secondments.


WorleyParsons corporate have implemented throughout the Company journey
management and business travel procedures which include a country and
business risk assessment to be conducted prior to embarking on travel for
WorleyParsons business purposes

The management of risks to personnel, environment and assets follow the


standard risk assessment program / mitigation process outlined below:

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Section 2 Safety

Figure 2.4-1 Risk Mitigation Process

The Risk Management for a site will begin by the convening of


a Hazard Identification Workshop. The attendees of the
workshop will represent the spectrum of personnel involved
with Risk Management.
Compile Risk Management Team
The HAZIDs Workshop shall be facilitated by an experienced
facilitator. It is also advantageous if a representative from a
similar operation elsewhere within WorleyParsons could be
present, to add some independence and relevant knowledge.
A written statement is agreed by the team members on the
precise purpose of the session. The context includes the
Establish the Context scope of operations, personnel, timing and methodology /
agenda of the risk assessment
A discussion workshop in which all possible risks are identified
Identify Hazards and logged, without reference to any evaluation criteria - an
“anything goes” forum.
For each hazard identified, the existing controls are also
identified. It is important that these are referenced specifically
Identify Controls to the hazards. Mitigation measures, which do not stop the
hazard occurring, but can lessen the consequence effects, are
also listed.
Assign each hazard a risk category based on the combination
of Probability and Severity of the potential harm from the
Rank Risks hazard.
The risks can then be ranked.
For Risks ranked in the Risk Assessment Matrix as Extreme,
High and Moderate risks, a Risk Mitigation Plan is established
in order to control or mitigate the risk. For these risks, further
risk mitigation measures shall be implemented until the risk is
reduced to a level that is As Low as Reasonably Practicable.
Treat Risks As an outcome of the Risk Treatment Plan, a Risk Action Plan
is required to list all the outstanding actions that are to be
implemented to treat the risk. The Risk Action Plan shall be
agreed to by the workshop members and shall describe the
required action, action parties and schedule for action
completion.
The Risk Management Plan is communicated to the relevant
Communicate and Consult personnel, to get agreement.
The Risk Mitigation Plan becomes an on-going safety tool that
is kept alive throughout the life of the operation.
Control measures shall be reviewed to ensure they remain
Monitor and Review effective. This may be achieved through inspections, audits or
other suitable methods. All reviews shall be documented and
maintained in a central, accessible location.
The key deliverable from the Risk Management Process is a
Risk Mitigation Plan, which includes the following documents:

Risk Mitigation Plan − Hazard & Risk Register


− Risk Treatment Plan
− Risk Action Plan

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Section 2 Safety

Question 2.5

Please describe the lead safety indicators used by your organisation during a
project.

The lead safety indicators used by WorleyParsons during a project are


highlighted below in figure 2.5-1:

Figure 2.5-1 Lead Safety Indicators

Focus Area
Leading Indicator Performance Indicator
(Element)
Offices and Sites
Communication • Communication protocols embedded in HSE strategy.
• HSE agenda item at internal management meetings.
• HSE agenda item at major client meetings.
• Commence major non HSE meeting with a safety
moment.
• Corporate HSE Policy displayed.
Leadership Active involvement & Manager and direct reports:
leadership activities • Involved in office inspections.
by Management
• Attend committee meetings.
• Conduct group / office HSE meeting.
• Conduct Serious About Zero Audit (SAZ) (minimum 1
per month).
• Compliance to personnel HSE charter.
Training Inductions • All employees inducted.
• Refresher conducted each year.
Planning • Training needs analysis undertaken and plan developed
and implemented.
System and SMP Review • SMP in place & reviewed annually as per plan
Processes requirements.
OneWay • Rollout plan developed and implemented and schedule
Implementation maintained.
• HSE Management System formally communicated to all
employees.
HSE Management • HSE reports completed monthly.
System Compliance
Reporting

Auditing • HSE audits conducted as per schedule.


Incidents • All incidents investigated and closed out in accordance
with procedures.
• Involved in all LTC, MTC & High Potential incident
investigations.
• HSE alerts issued.
Risk Management Risk Assessment • Country risk assessment conducted and reviewed
annually.
• Register developed, key hazards included in safety
management system.
Risk Register • Communicated to all personnel.

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Section 2 Safety

Focus Area
Leading Indicator Performance Indicator
(Element)
Environment Paper Reduction • Formal i-Wrap implementation.

Initiatives HSE Promotion • HSE recognition and promotion programs in place


(posters, prizes).
R3 Emergency / Crisis / • R3 plans developed and implemented at all locations
Journey Management covering all personnel.
Emergency • Journey management metrics identified and monitored.
Response • Trial R3 exercises conducted at least bi-annually.
Site Specific
Communication • Communication protocols embedded in HSE plan.
• HSE agenda item at internal management meetings.
• HSE agenda item at major client meetings.
• Commence each meeting with a safety moment.
• Attend workforce HSE meetings such as daily pre-start,
toolbox, site HSE committee on a periodic basis when
on site.
Leadership Active involvement & • Conduct periodic HSE alignment sessions with
leadership activities employees, contractors and line management.
by site management • Lead and motivate senior managers and contractor
management through positive discussions relating to
HSE.
• With management team regularly review HSE
performance to ensure compatibility and continued
effectiveness with the HSE policy and HSE objectives.
• Participate in various audits when on site and or around
the project office as per the HSE inspection & auditing
schedule.
• Engage senior managers to ensure they are actively
demonstrating HSE leadership to their personnel.
• Conduct behavioural based safety observations (SAZ).
Risk Management Risk Assessment • Project risk assessment conducted and reviewed
annually.
• Register developed, key hazards included in SMS.
• Communicated to all project personnel.
• Review performance against risks.
R3 Emergency / Crisis • R3 plans developed and implemented on site covering
Management al personnel including contractors.
• Trial R3 exercises conducted at least bi-annually.
Contractor Selection • Contractor selection procedures established and
Management Performance formally audited for compliance.
• Contractor performance formally reviewed monthly.
HSE Systems & Safety Management • SMS reviewed bi-annually as per plan.
Strategy System Review

OneWay • Rollout plan developed and implemented schedule


Implementation HSE maintained.
Strategy • HSE strategy formally communicated to all employees.
• Review undertaken quarterly.
Reporting • HSE reports completed monthly.
Design

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Section 2 Safety

Focus Area
Leading Indicator Performance Indicator
(Element)
Design Systems • The design is executed in accordance with the relevant
design philosophy (BoD) specifications, standards i.e.
design, HAZOP’s, HAZIDs SIL constructability reviews.
• Appropriate engineering software used.
Procedures • Appropriate engineering procedures and standards are
developed and implemented.
• Equipment and materials are specified to minimise HSE
hazards and requisitioned.
Training / • TBA.
Competence
Audit / Review • Audit/review schedule developed. Random audits of
projects conducted.
Lessons Learned • Lessons learned form reviews and non conformances
communicated to all.
Innovation Recognition • Employees acknowledged for innovation in design.

Responsible person for achievement of leading indicators are:

f Location General Managers and key direct reports i.e.

− Engineering Manager
− CSG Managers
− Projects Manager
− PMC General Manager
− EPC/M Project Managers
Measurement Methodology

Responsible manager to complete a leading indicator report demonstrating


achievement.

The report must be accompanied by supporting evidence.

HSE Leading Indicator Report

Achieved How Was This Achieved


Performance Indicator
Yes No (supporting evidence to be provided)

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Section 2 Safety

Question 2.6

Do you have any safety awareness programmes installed?

Description of safety programmes in place.

WorleyParsons uses a combination of safety awareness programs to promote


workforce HSE engagement and improve behavioral safety performance
throughout our Global operations.

Serious about Zero (SAZ) – HSE Observation and Conversation Training


Program

SAZ is WorleyParsons HSE Observation and Conversation Tool developed to


help employees to conduct safety observations and conversations on site and
empower all staff to stop work when necessary and reinforce safely practices.

The purpose of the introduction of SAZ is to increase reporting and action


taken towards Unsafe Acts and Conditions before they become incidents and
to further promote safe behaviour of the entire workforce

Stress Awareness programs

Stress management training is installed at 2 levels:

Managerial: program is designed to equip managers and supervisors with


fundamental knowledge about stress and its possible impact on employee’s
health. The program is aimed at everyone with responsibility for tackling work-
related stress in WorleyParsons.

Workforce: program is designed to educate workforce about symptoms and


impact of stress and how to minimise those impacts by early intervention.

Safety information available on Intranet

The HSE Function has dedicated web space available that provides every
employee and contractor with access the global and regional HSE Intranet
sites. These sites contain a vast amount of HSE related information including
access to corporate HSE procedures and standards, incident investigation
reports and findings, HSE knowledge SharePoint facilities, HSE bulletins etc...

Access to the OneWay HSE Behavioral Management System is also provided


via the intranet links.

Computer Based Training (CBT)

The Modularized HSE CBT is a series of 25 courses covering a variety of HSE


topics varying from Written Systems of Work, Lockout/Tagout and Hazard
Identification to Defensive Driving, Use of Power Tools and Stairway Safety.
Although every WorleyParsons employee receives the basic HSE training

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Section 2 Safety

package, further training requirements are identified to meet the HSE


awareness levels required by the individual’s role or appointment.

Training to ensure that employees have the required competency to perform


activities with specific hazards is conducted. Examples include, but not limited
to, are:

f Electrical equipment in hazardous areas

f Acid gas injection

f Rigging and crane operation

f Forklift driver training

f Scaffolding

f Defensive driver training

f Confined space awareness

f Helicopter Underwater Escape Training (HUET)

All Hands Briefings

Whilst electronic communication is a quick method of disseminating HSE


information, WorleyParsons firmly believe that face to face communication with
the employees and contract staff is essential to demonstrate commitment to
HSE at all levels by senior management within our organization.

All Hands Briefings occur 3 - 4 times per year and are presented by the
Managing Director of each location. These meetings start with a safety
moment and then followed by HSE updates against KPIs goals and initiatives.
The Managing Director further provides an overview of WorleyParsons’ long
and short term HSE strategic plans and objectives.

Tool Box Talks

Although Toolbox talks will be individually related to the task being undertaken
WorleyParsons use a number of pre-written toolbox talk prompt sheets that
may be used as visual aids or hand-outs during the toolbox talk process. A
large database of toolbox talks is available to all WorleyParsons employees
worldwide. The following is a selective list extracted from the database,
examples are available on request.

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Section 2 Safety

Figure 2.6-1 Sample Tool Box Topics

• Angle Grinders • Fire Extinguishers • Metal Machining


• Asbestos Awareness • Gas Cutting • Overhead Cranes
• Back Injury • Motorized Handling • Pneumatic Tools
• Barricading • Noise and Hearing • Portable Electrical
• Compressed Air • Gas Cylinders Equipment
• Confined Space • Hand Safety • Respiratory Protection
• Control of Bleeding – • Hand Tools • Risk Management
Injury Management • Hazard Identification • Safety Signs
• Diet and Fitness • Heat Stress • Scaffold Tag
• Drugs and Alcohol • Housekeeping • Skin Disease
• Emergency Response • Incident Reporting • Smoking
• Excavations • Ladders • Step Back 5×5
• Eye Damage • Lifting • Welding
• Eye Protection • Lifting and Slinging – • Working at height
• Fall Arrestors Working with Slings • Fatigue – Work
• Manual Handling

HSE Bulletins

Should an incident or a near miss occur that has lessons to be learnt on a


local, regional or global basis, the Regional HSE Director / HSE Manager is
accountable for the issue of a HSE Bulletin or Flyer. These bulletins and / or
Flyers are released either by e-mail or via the Company intranet notification
system

Where such incidents or near misses result in the need for wider
communication within industry, WorleyParsons co-ordinate such releases with
industry representatives or regulatory bodies

HSE Newsletters

The HSE Newsletter are produced monthly and distributed electronically to all
offices, sites and locations within WorleyParsons operations.

Each month the HSE Newsletter includes sections on:

f Performance against HSE goals and objectives

f Environmental health and well being

f Topical safety articles (cold weather, flu and cold issues, BBQ safety,
manual handling etc.)

f Safety bulletins and flyers

f Safety quiz

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Section 2 Safety

Safety Moments

WorleyParsons require that every meeting with 5 or more attendees shall start
with an appropriate safety moment. Similar to the Toolbox Talk structure,
these safety moments will be relevant to the routine, task or working
environment. To support safety moments, WorleyParsons possess a large
and diverse database of Safety Moments covering all aspects of our work in
both the office and site workplaces. The following is a selective list of Safety
Moments, examples are available on request.

Figure 2.6-2 Sample Safety Moment Topics

• Accident • Compressors • First Aid


• Accident Prevention • Confined Space • First Aid Illness
• Aerosol • Contamination • First Aid Injury
• Allergy • Corrosives • Food
• Asbestos • Cranes • Fork Lift
• Attitude • Driving • Guards
• Backs • Drug Free • Hand Tools
• Back safety • Electrical Safety • Hearing
• BBP • Emergencies • Home
• Benzene • Ergonomics • Housekeeping
• Boating • Exercise • Ladder
• Burns • Extinguishers • Labels
• Carcinogens • Fall Protection • Lifting
• Cell Phones • Fires
• Chemical Handling • Fire Alarms

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Section 2 Safety

Question 2.7

Is safety part of your management targets, i.e., a portion of the variable salary
depends on the safety improvement?

Information on safety as management target.

HSE KPIs are applied to all management staff and forms part of the annual
performance contract. Performance against the HSE KPIs is monitored on a
regular basis and the end of year results determines what proportion of the
variable salary is awarded. Additional awards are available for those
Managers and Supervisors who exhibit exceptional HSE excellence.

Examples of HSE management targets are:

f Achieve and sustain an agreed incident total recordable frequency rate

f Zero high potential incidents

f Zero environmental Incidents

f Implementation of the behavioural safety training programme by an agreed


date and promotion of near miss

f HSE observations and unsafe acts reporting

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Section 2 Safety

Question 2.8

Do you have a corporate safety policy, i.e. policy at min. describing the safety
vision, mission, organisation, rules, measures & sanctions for misconduct?

Provide a short description.

Safety Policy as a separate document.

As described above in 2.1, WorleyParsons embraces an HSE Policy based on


a philosophy of zero harm to people and the environment. A copy of this Policy
is enclosed under this section.

In addition to the HSE Policy, WorleyParsons has developed and implemented


a number of policies, standards, procedures and guidelines that describe rules
exercises and measures that ensure all Company staff work in an ethical and
professional manner. Should a Company employee breach such policies or
standards, additional procedures are in place that allows appropriate action to
be taken. Appropriate processes will also be required in any Joint Venture or
Partnership agreement that ensures the same level of ethical compliance and
sanction.

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Section 2 Safety

Figure 2.8-1 HSE Policy

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Section 2 Safety

Question 2.9

Do you record "Total recordable case frequency"? If yes please provide the
numbers for the past five years, please indicate which staff is included (own,
sub-contractor employees).

Total recordable case frequency and clear definition of base hours, included
staff, time periods used.

Total recordable case frequency is calculated using the formula below and the
numbers for the last four years are provided in the following table (figure 2.9-
1). Because of the merger of Worley and Parsons E&C in 2004, the business
only has four years of combined Safety Statistics.

Figure 2.9-1 Four Year Total Recordable Case Frequency

2005 2006 2007 2008

Total working hours 80, 000,000 84,000,000 122,000,000 144,000,000

Fatality 2 1 1 1

Lost Work Cases 21 19 30 24

Restricted Workday Case 29 18 52 34

Medical Treatment Case 104 84 125 138

Total Recordable Cases 156 122 208 197


Total Recordable Cases
0.39 0.29 0.34 0.27
Frequency *1

The numbers include WorleyParsons own staff, contractors, subcontractors


and Joint Venture /Partners staff.

Total Recordable Case Frequency Rate (TRCFR) is the sum of: Fatalities +
LWC + RWC + MTC multiplied by 200,000 and divided by the number of hours
worked.

( Fatalities + LWC + RWC + MTC ) × 200 ,000


TRCFR =
hours worked ( for the period )

1. Although OSHA Standards not adopted until 2007, Total Recordable


Frequency Rates (TRFR) have been recalculated per 200,000 man-hours
(previously per 1MM man-hours).

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Section 2 Safety

Question 2.10

Do you record "lost time incidents frequency (LTIF)"? If yes, please provide
numbers on LTIF for own employees and contractors for the years 2003 -
2008.

Lost time incidents frequency & clear definition of base hours, included staff,
time periods used.

Frequency rates are a normalized measure of performance; they are a


WorleyParsons reporting requirement.

The numbers are shown in the following table (figure 2.10-1).

Figure 2.10-1 2005 - 2008 Frequency Rates

2005 2006 2007 2008


84,000,00 144,000,00
Total working hours 80,000,000 122,000,000
0 0
Lost Work Cases 21 19 30 24
Total Recordable Cases
0.05 0.04 0.05 0.03
Frequency

Lost Workday Case Frequency Rate (LWCFR) is the number of lost workday
cases multiplied by 200,000 and divided by the number of hours worked over a
12 month period. i.e.

No. of LWC × 200,000


LWCFR =
hours worked ( for the period )

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Section 2 Safety

Question 2.11

Did you have incidents in any of the projects you were involved in with multiple
fatalities in the past five years? If yes, please describe the incidents and the
actions you have taken to avoid recurrence.

Information on incidents with multiple fatalities, actions taken to avoid


recurrence.

WorleyParsons has no incidents, on any of our projects, involving multiple


fatalities.

Page 33 of 34
Request for Information - Global EPCM Services

Section 2 Safety

Question 2.12

Please provide the fatality rates (FR) for own employees and contractors for
the years 2003 to 2008.

Fatal injuries per million work hours.

Figure 2.12-1 2005 - 2008 Year Fatality Rates

2005 2006 2007 2008


84,000,00 122,000,00 144,000,00
Total working hours 80,000,000
0 0 0
Fatality 2 1 1 1

Frequency rate 0.025 0.012 0.008 0.007

Page 34 of 34
Request for Information - Global EPCM Services

Section 3
Engineering and
Technical Staff
Qualification
Request for Information - Global EPCM Services

Section 3 Engineering and Technical Staff Qualifications

Technical Competence in key strategic disciplines

Question 3.1

Please indicate your field of expertise & experiences:

Please indicate your field of Yes /


Additional comments
expertise & experiences: No

Mine planning & development Regularly subcontract to SRK, AMC


Yes
(surface) and other consultants.

Mine planning & development Regularly subcontract to SRK, AMC


Yes
(underground) and other consultants.

Regularly subcontract to SRK, AMC


Block caving mining method Yes
and other consultants.

Expertise in beneficiation and flotation,


Mineral Processing Yes particularly in Bases Metals and Iron
Ore processing.

Recognised internationally in base


Pyrometallurgy Yes
metals smelters / gas cleaning.

Growing capability in base metals


Hydrometallurgy Yes
concentrators and SX/EW.

Civil structures Yes

Major capability within WorleyParsons


Water handling/treatment Yes Infrastructure and Environmental
Customer Sector Group.

Power generation / Major Customer Sector Group within


Yes
transmission WorleyParsons

Capability resides in Infrastructure and


Tailings Yes Environmental Customer Sector
Group.

Largest pipeline engineering and


Slurry pumping/pipelines Yes
design team in the world.

Significant portion of our infrastructure


Port facilities Yes and Environmental Customer Sector
Group.

Other (pls. expand):

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Section 3 Engineering and Technical Staff Qualifications

Question 3.2

Which disciplines are present in your staff?

Project Management TOTAL 6,697


Engineering AAG/Rail Engineer 27
Architectural Engineer 48
Civil Engineer 1,028
Electrical Engineer 1,290
Environmental Engineer 269
Geomatics Engineer 61
Instrumentation & Controls
1,426
Engineer
Mechanical Engineer 2,030
Pipeline & Facilities Integrity
92
Engineer
Piping Engineer 654
Process Engineer 1,745
Safety Engineer 7
Structural Engineer 897
Engineering TOTAL 10,030
Engineering Design AAG/Rail Design 34
Architectural Design 53
Civil Design 742
Electrical Design 1,036
Environmental Design 17
Geomatics Design 57
Instrumentation & Controls Design 627
Mechanical Design 496
Pipeline & Facilities Integrity
49
Design
Piping Design 2,037
Process Design 129
Structural Design 572
Engineering Design TOTAL 5,977
Construction TOTAL 2,912
Procurement TOTAL 1,077
Commissioning & Start
91
Up Ops TOTAL
Management Services Governance and Risk 43
HSE Management 439
Quality Management 339

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Section 3 Engineering and Technical Staff Qualifications

Question 3.3

Can you cover the following core disciplines?

Yes, please see table below.

Can you cover the following core Number of FTE


disciplines? per discipline

Geological modelling 20
Drilling (geological) 15
Mining 15
Rock & Geotechnical 50
Mechanical – Eng. & Des. 2,526
Structural– Eng. & Des. 1, 469
Electrical– Eng. & Des. 2,326
Instrumentation– Eng. & Des. 2,053
Ventilation, dust collection 0
Processing 1874
Tailings 15
Civil (Water) 234
Civil (Power) 427
Civil (Structures) 483
Civil (Infrastructure) 286
Architectural 101
Environmental 286
HSE 439
Other (please give detail)
Materials Handling 284
Metallurgical 27
Rail 43
Geomatics / GIS 57
Hydrology 14
Corrosion and Integrity Management 71
Project Management & Services 6,697
Procurement and contracts 1, 077
Construction Management & Services 2,912
Project Controls 1,314
Management 1,545

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Section 3 Engineering and Technical Staff Qualifications

Question 3.4

Is your organization centralised or decentralized, if centralised, where is the


core of your competence based?

Provide details on organisation.

WorleyParsons is organised into 4 Customer Sector Groups (CSGs) –


Minerals and Metals, Hydrocarbons, Power and Infrastructure and operate
across 5 operating regions as shown below:

f Asia and Middle East – 7,697 personnel;

f Australia & New Zealand – 7,189 personnel;

f Americas – 6,215 personnel;

f Canada – 8,197 personnel;

f Europe and Africa – 3,064 personnel.

Our decentralized organisational structure allows us to have a close working


relationship with customers’ operations enabling alignment of business cases,
systems, and processes to maximise value enhancement opportunities. At a
time of increasing pressure on the operational performance of complex
processing facilities, we recognise our customers need for immediate access
to strong local technical expertise. We therefore have established 118 local
and hub offices in 38 countries.

WorleyParsons comprehensive geographic presence highlighted in Figure 3.4-


1 below enables us to provide our customers with a unique combination of
extensive global resources, world recognised technical expertise and deep
local knowledge. We are therefore able to enhance our offering to Anglo
American in terms of capabilities, capacity and value by opting if necessary to
utilise the services of this global resource pool.

Figure 3.4-1 WorleyParsons Global Reach

118 offices | 38 countries | 32,200 project services personnel


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Section 3 Engineering and Technical Staff Qualifications

Question 3.5

Please provide a high level organizational structure from a functional


perspective for your entire organization (Locally and Internationally).

Additional document reflecting organisational structure.

The WorleyParsons corporate organisation is shown below in Figure 3.5-1,


showing the main geographic regions and four Customer Sector Groups. Each
region has a Managing Director who reports directly to the Chief Executive
Officer John Grill. WorleyParsons also recognises the increasing importance
of both Mega Projects (projects with capital cost in excess of US$1 billion) and
EcoNomics™ by allocating separate executive responsibility for these
initiatives.

Figure 3.5-1 WorleyParsons Corporate Organisation

Company Secretary &


WorleyParsons Board Corporate Legal Counsel
Peter Janu
Mega Projects
Bill Hall
Chief Executive Officer Chief Financial Officer

EcoNomics™ John Grill David Housego


Peter Meurs

Australia & New Zealand M&A, Strategy & CSG HS&E

Andrew Wood Iain Ross Marian McLean

Middle East, China


Hydrocarbons Corporate Services
& South East Asia
David Steele Brian Evans Craig Reeves

Canada Power Risk Management

Larry Benke Mark Trueman Greg Clinnick

Europe & Africa Minerals & Metals

Stuart Bradie Mark Southey

Infrastructure
US & Latin America
& Environment
Robert Edwardes Doris Galvin

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Section 3 Engineering and Technical Staff Qualifications

Question 3.6

Please describe the approach, efforts, and actions you take to retain qualified
staff and to ensure continuity?

Description of staff.

WorleyParsons, through its various offices, promotes an organizational culture


conducive to the attraction, recruitment and long term retention of high calibre
staff. Having invested in selecting and recruiting the most qualified and
experienced personnel, followed by an investment in their training and
development, it is critical for our long term sustainability to protect our
investment by retaining these personnel. Our studies indicate one of the most
effective mechanisms through which staff retention can be enhanced is
through our organizational culture.

Key organizational culture elements include:

f Training & professional development

f Annual appraisals and performance reviews

f Promotion based on merit

f Reward based on performance

f Transparency and objective feedback

f Sense of job security

f Sense of identity and belonging

f Pluralist and multi-cultural mindset

In view of the current global economic conditions, retention strategy is a key


focus area for WorleyParsons’ line management and Human Resources
personnel. Inherent within our organizational culture are numerous human
resources policies/strategies that are designed to reinforce the above
elements. WorleyParsons’ retention strategy is developed, monitored through
monthly reporting and managed at corporate, regional, local and project levels;
any improvements are then incorporated based on our experiences.

Our comprehensive strategy encompasses more than monetary incentives to


mitigate poaching risk. Our terms and conditions of employment are flexible to
appeal to various employee / contractor groups. Our excellence in
management, teamwork and leadership has established us as an employer of
choice, and our company culture makes WorleyParsons a ‘fun place to work’.
Specific elements of retention strategies include:

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Section 3 Engineering and Technical Staff Qualifications

f Competitive remuneration – WorleyParsons maintains benchmarking


programs that ensure our employees and contractors are paid at a
competitive market rate. These programs include the Mercer Engineering
and Construction survey, Hay evaluation process, and local peer market
surveys.

f Project Completion Bonuses - where relevant, and as agreed with


clients, WorleyParsons can offer Project Completion Bonuses or time-
based bonus payments to ensure key employees stay on the project
during business-critical time periods.

f Short Term Incentive Program – WorleyParsons offers an annual short


term incentive bonus based on the achievement of KPIs to key employees.

f Permanent employment as the preferred option – new hires for critical


and / or labor areas in short supply are offered permanent employment
with the company as the preferred option. This has the effect of increasing
retention in competitive periods.

f Flexible working hours – WorleyParsons applies flexibility in working


hours subject to client and work requirements.

f Career Development / Training – the company is committed to


supporting the development of our personnel. Our current graduate
program, with 318 graduate staff, is testimony to this commitment. We are
implementing a national learning and development program that includes
the WorleyParsons Project Management Program and the Improve
Contract Managers Professional Development Program. Additionally, our
technical training program is robust and continually expanding. The global
nature of our company also enables us to provide challenging career
opportunities for our people across a wide range of disciplines and
geographic areas.

f Recognition of Performance – WorleyParsons has a Performance


Management process conducted at least annually to recognize
performance and identify learning and development needs. Additionally,
there are several high profile global award schemes that acknowledge
outstanding performance and local programs that recognize exceptional
company contribution by individuals.

f Leadership and Teamwork – WorleyParsons has a formal leadership


program that focuses on team building and leadership development.
Additionally, at the local level, managers conduct regular team building
events.

f Access to Technology and Systems – WorleyParsons’ engineering


focused workforce is motivated by access to good technical tools and
systems. We therefore provide all staff with access to high quality
Business Systems and ICT work units.

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Section 3 Engineering and Technical Staff Qualifications

Key Personnel Retention – Project Specific

Retention of all personnel working on Anglo American Projects would be in the


best interests of both WorleyParsons and Anglo, and some of the training and
professional development initiatives mentioned previously will play a vital role
in retaining personnel across all levels of a project.

For example, our Mentoring Schemes coupled with strong departmental


management oversight ensures less senior project staff can identify
opportunities and progress throughout the project by moving into more varied
or challenging positions, or by being promoted into more senior positions as
opportunities arise.

More generally, retention of all project personnel will also be reflected in the
terms of competitive salary, benefits and, where applicable, rest & relaxation
(R&R) policies that we are able to provide.

Project Incentive Schemes

WorleyParsons has extensive experience in applying incentive/retention


schemes to projects (not just in terms of key personnel retention schemes, but
also schemes related to safety performance, environmental performance,
quality performance, schedule performance, manhour expenditure, and total
installed cost).

To assist with personnel retention and to help guarantee the success of our
projects, it is our responsibility to ensure that the compensation package for
both agency and staff employees reflects current market conditions and that
there are mechanisms within an agreed contract to facilitate this, at appropriate
moments.

In this current market, retention of personnel can be aided by administration of


an incentive or bonus scheme whereby length of service on the project is
rewarded. WorleyParsons has experience in conducting numerous types of
these retention incentivization schemes that create a win/win situation for both
parties benefit.

Personnel Retention - Summary

Our proven program of selection, recruitment, training, and retention, along


with offering our staff a competitive package, in terms of salary, benefits,
favourable working hours, and where applicable, rest & relaxation (R&R),
naturally cultivates a team that will wish to remain with WorleyParsons for the
long term.

We believe our philosophy creates an environment that meets all the long term
goals of the WorleyParsons stakeholders, employees as well as meeting our
Clients needs.

Page 8 of 14
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Section 3 Engineering and Technical Staff Qualifications

Question 3.7

How experienced is your engineering and technical staff in the mining


industry?

Please give
number (#) of Additional comments
staff
# of staff less than 5
1,394 -
years
# of staff between 5
1,119 -
and 15 years
# of staff over 15
850 -
years

Total # of staff 3,363 -

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Section 3 Engineering and Technical Staff Qualifications

Question 3.8

Do you have qualification and training programs in place? How do you ensure
systematic qualification (in-house/external) of engineering staff/technical staff?

Description of qualification/training efforts and guidelines.

One of the most important methods of personnel retention is continuous


internal training and professional development. Our objective in the
development of personnel is to assist them to achieve a level of skill and
competence that meet our business objectives as well as their own. This is
achieved in the following ways.

A key to the longevity of employment of a number of our long-term employees


has been the Graduate Training Programs integral to each WorleyParsons
Office. Our graduate training programs are geared to rotational training through
different disciplines, with specialization in the chosen discipline to achieve
chartered status.

Additionally our Mentoring Programs which start through the Graduate Training
Schemes and continue well into each employee’s professional career, help
leverage the company's most valuable resources: our people. We pair a
promising employee with an experienced one. The mentor instructs by
example, conveys the company's values, demonstrates how to perform
specific functions and serves as the mentee's advocate. Mentoring builds
confidence, shortens learning curves, clarifies expectations and boosts
employee retention rates. It is also a valuable succession planning tool that is
utilised to promote employees into new positions.

We also have Improve specific training programs for our senior Improve
managers. This program is focused on the key processes that surround the
delivery of a portfolio of capital projects and the critical areas of client focus,
team management and leadership.

All employees are also regularly provided internal and external training courses
such as computer and software training, presentation skills, time management
classes, technical writing and communication courses, project risk
management workshops, and project and contract management courses.
These courses are all provided in addition to courses specific to the
employee’s discipline.

All of our offices also administer “High-Potential Schemes” which help ensure
the retention of “high potential” personnel. The High-Potential Schemes ensure
that staff showing high potential are first identified, and then ensures that they
are given advice and career direction by senior corporate management.

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Section 3 Engineering and Technical Staff Qualifications

Question 3.9

How do you guarantee complete and consistent documentation of your


engineering work?

Description of documentation process.

Certificates and/ or Quality management handbook.

WorleyParsons is able to guarantee complete and consistent documentation of


our work by following our procedures and guidelines set out in our Enterprise
Management System (EMS). EMS has over 200 engineering procedures /
documents relating to Project execution and is the ‘global system’ employed by
all operating entities. All staff have access to and are trained in the use of
EMS and must comply with all Policy Statements and Executive Directives.

Joint Venture management systems shall, as a minimum, comply with the


intent of WorleyParsons’ policies and directives as agreed between
WorleyParsons and the Joint Venture partner. WorleyParsons' entities and Joint
Venture management systems shall comply with the intent of IS09001-2000
"Quality Management Systems -Requirements".

Quality Responsibilities

Responsibility for the achievement of our quality objective rests with line
management. To ensure achievement of our quality objective the quality team
shall:

f Engage and coach our people and stakeholders;

f Maintain an effective and flexible Enterprise Management System;

f Independently verify the quality of our services;

f Analyse performance and encourage improvement.

Technical Verification

Quality representatives shall ensure that products and services are subject to
verification during design, supply and construction consistent with the
assessed risk and related contractual and legislative requirements. Personnel
undertaking verification activities shall have relevant competencies.

The Quality Team is responsible for providing independent inspection and


verification services for material supply and construction. The extent of
independent (third party) verification and/or validation shall be agreed with the
responsible Quality Manager.

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Section 3 Engineering and Technical Staff Qualifications

Measurement Analysis and Improvement

Quality representatives shall ensure the effectiveness and continuous


improvement of the management systems through the establishment of
programs for:

f Preventive Action (Risk management)

f Control of nonconforming products and services

f Analysis of business performance data

f System audits

f Corrective Action

f Management Review

For more information on EMS and Quality Assurance please refer to Section 8.
A Quality Manual and Executive Directive is appended as attachment 14.8

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Section 3 Engineering and Technical Staff Qualifications

Other technical competencies in Engineering disciplines

Question 3.10

Can you cover all steps in the engineering supply chain?

Yes/No Additional comments

Concept Yes
Please refer to comments and figure 3.10.1 below
Pre-Feasibility Yes outlining WorleyParsons approach to the Engineering
supply chain and asset lifecycle.

Feasibility Yes

Execution Yes

WorleyParsons can cover all steps involved in the engineering supply chain as
required by Anglo American. Our customised service experience covers all
five phases of the asset lifecycle – as seen in figure 3.10.1 below.

Our project lifecycle model has a progressive ‘gated’ assessment and approval
approach, which builds successive levels of confidence and quality assurance
throughout any project. In each of the phases we understand the critical
issues and tailor our services to enable customers to Select and Deliver their
projects and Improve their assets for optimal long term performance. This
phased approach enables consistent project delivery worldwide.

Figure 3.10-1

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Request for Information - Global EPCM Services

Section 3 Engineering and Technical Staff Qualifications

Question 3.11

Which additional services, such as engineering audits, reviews and support do


you offer?

List of offered services.

Alternatively checkboxes, if “wish list of Anglo” is available.

WorleyParsons is able to offer the following additional services:

f Geomatics – an overall information management system that links into


mine planning and whole of life support

f Integrity Management Services

f Site Remediation and Planning

f Environmental and Water Management Services

f Due Diligence

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Section 4
Project Management
Performance
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Section 4 Project Management Performance

Track record (references) historical performance in complex projects

Question 4.1

Are you currently providing project management services to the Anglo


American group, if so please give references incl. contact details of your Anglo
American partner?

Example projects in reference list.

Please fill out sheet “Project references list”

Current Projects:

ARA WorleyParsons in Santiago Chile is currently undertaking two small


projects for Anglo American as follows:

Project Title: Detail Engineering for Expansion of PLACA Building in


Los Bronces

Contract Value: US$110,000

Description: Involved in designing two additional floors of PLACA Building,


approximate area is 1300 m2.

Project Title: Anglo American Open Engineering Contract

Contract Value: Up to a maximum value of $315 million Chilean Dollars,


(approximately $USD 0.5Million.

Description: Contract is for Engineering Services with established rates for


different professional categories and is valid until the 30 of
May 2010. Engineering services (all disciplines, including
project control, programming and estimating) undertaken for
small projects including operational problem solving.

WorleyParsons are also doing some work for Anglo Coal in Australia.

Previous Projects:

Project Title: Anglo American Quellaveco S.A. Study for the


Transportation and Loading of Concentrate

Contract Value: USD$258,000

Description: Westmar Consultants Inc. (Westmar) was retained by Anglo


American Quellaveco S.A. to undertake a concentrate
transportation study to define a preferred transportation route

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and deep sea port for the export of Copper concentrate from
the Quellaveco mine northeast of Moquegua.

The study which took 4 months was broken into two stages, an
initial screening study reviewing a number of routes and ports
followed by a period of refinement of the alternatives carried
forward for increased definition.

Two alternative transportation systems were considered during


the second stage of the study as follows:

f Alternative 1: Port of Matarani by Road and Rail

f Alternative 2: EnerSur Facility at Ilo by Road

The scope of the study included the infrastructure required at


the concentrator to facilitate the loading of trucks, the
transportation of concentrate between the concentrator and
port either by truck or a combination of truck and rail, and the
infrastructure required at the port to receive, store and load
concentrates into ships.

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Question 4.2

Please relate some of the project successes and project failures your company
has experienced over the past 5 years, with reasons for both.

Please provide details on past project failures and successes.

Project Success Stories

Ma’aden Development

Ma’aden Phosphate Company, a joint venture between two of Saudi Arabia’s


largest firms – Ma’aden and Sabic, is the owner and operator of the most
significant industrial developments in the Middle East since the petrochemicals
expansion in the 1980s. Ma’aden’s developments follow on from its successful
gold mines in the west of the Kingdom; with new mega projects valued in
excess of US$15 billion for the commercialization of the bauxite, phosphate,
magnesite and industrial minerals deposits. The objective of the program,
managed by WorleyParsons, is to economically mine the Al Jalamid phosphate
deposit in the north of the Kingdom. The phosphate deposit will be mined by
open cut mining and the ore processed in a beneficiation plant at Al Jalamid.
The five million tonnes per annum of phosphate concentrate will then be railed
approximately 1,400 kilometres from Al Jalamid to the fertilizer production
facilities located at Ras Az Zawr.

The fertilizer complex at Ras Az Zawr consists of three sulphuric acid plants,
three phosphoric acid plants, one ammonia plant and four diammonium
phosphate (DAP) plants and their related infrastructure

WorleyParsons has two major contributions to this development; first through


the management of the $4.5 billion (direct capital cost) Phosphate Project and
second through the management of development of the minerals complex
infrastructure including a bachelor housing village, common utilities such as
cooling water, and oversight of the deepwater port being developed by the
Saudi Seaport Authority. The Phosphate Project being managed by
WorleyParsons is focused on the economic development of the major
phosphate rock resource located at Al Jalamid. The fertilizer complex at Ras
Az Zawr, which is also being managed by WorleyParsons, will produce three
million tonnes of DAP each year, which represents over 10% of the world
production of DAP.

There are a number of reasons this project is relevant to Anglo:

1. Magnitude of the Development

The full development project involves the design and construction of some of
the largest facilities of their type ever built, particularly the three sulphuric acid
plants and the three phosphoric acid plants.

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The upgraded plan for the ammonia plant will result in it too being the biggest
in the world.

2. Global Talent Focused on Single Mega Project

While projects are increasing in size and complexity around the world, they are
rarely executed from a single location. WorleyParsons’ approach to the
Ma’aden development highlights the requirement of appropriate global
expertise working in a synchronized manner to deliver a diverse and detailed
range of EPC packages to the international contracting market. Collectively
over 350 personnel, including 180 in Al Khobar, in five global offices, were
devoted to successfully ensuring all the packages were released to the market
and that control of the execution strategy was maintained.

3. Successful Engagement of World Class Contractors

WorleyParsons’ Project Management Consultancy (PMC) role involves the


creation and development of work packages to ensure comprehensive and
timely development of the proposed facilities and then support services for the
selection of the best international contractors to execute the packages. Major
components of the development program are being executed in Seoul, Korea;
Beijing, China; Gwiwang, China; Milan, Italy; Madrid, Spain; Frankfurt,
Germany; Chicago, USA; and Melbourne, Australia. The challenge of ensuring
exemplary quality performance by all the EPC contractors working in multiple
languages and time zones has been embraced by the Al Khobar team.

4. Training and Development Commitment

Since WorleyParsons first commenced operations in Saudi Arabia in the


1970s, it has been committed to the “Saudisation” of the workforce, where
Saudi nationals are trained and developed to undertake senior roles within the
business. A number of Saudi nationals have been relocated to Pasadena,
Frankfurt, Milan, Madrid, Gwiwang, Melbourne, Singapore and Seoul to further
their international expertise.

5. Sustainability

All project facilities have been engineered to meet or exceed global


environmental standards. The facility at Ras Az Zawr will be self sufficient for
power and water.

6. HSE Commitment

At it’s the peak the construction site at Ras Az Zawr will host over 12,500
workers from more than 15 contractors. The coordination of these teams to
ensure safe performance is a constant focus for the WorleyParsons team and
new standards are being set within the country for HSE management.
Significant programs are in place to overcome communication and cultural
barriers, job hazard analysis and risk analysis programs have been

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implemented and a reward program approved by the owners and chief


contractors.

EMAL – The World’s Largest Single Site Aluminium Smelter

EMAL, a joint venture between Dubal and Mubadala, is building the world’s
largest single site aluminium smelter at Al Taweelah in the UAE. With an
ultimate capacity of 1.4 million tonnes per annum, the facility will showcase the
Dubal developed DX smelting technology, providing a highly competitive
smelter to position EMAL in the top echelon of aluminium producers.

WorleyParsons, in joint venture with SNC Lavalin, is providing the engineering,


procurement and construction management services for this multi billion
dollar project, which also includes a 2,000 MW gas fired power plant and
associated facilities on a 500 hectare site. The project schedule is fast, with
first metal planned for 2010. To deliver this challenging project,
WorleyParsons has drawn on its global Minerals & Metals, Infrastructure &
Environment and Power groups to establish a multi-disciplined project
management office at Al Taweelah, which is anticipated to peak at around 500
personnel. This team is further supported by our extensive workshare
capability, with the cast house, carbon plant and port engineering being
completed in Melbourne and Geelong, and additional detailed engineering
services provided by our Beijing High Value Engineering centre.

Currently, the project remains on schedule with an on-site workforce of 2,800


personnel, and 2.7 million man-hours have been achieved without a lost time
incident. On-site manning is forecast to peak at around 10,000 personnel in
2009. Throughout the project a number of value improvement programs have
been successfully implemented and substantial cost savings have been
achieved in all areas of the plant.

Supporting the Development of Nigeria’s Engineering and Construction


Capability

To fulfil the Nigerian Government’s desire to maximize work executed in


Nigeria and develop local Nigerian engineering and construction capability,
Mobil Producing Nigeria awarded an Engineering, Procurement and
Construction Management (EPCM) contract to DeltaAfrik, a joint venture
between WorleyParsons and DeltaTek for completion of several facilities
upgrade and replacement projects offshore Nigeria.

The EPCM contracting strategy enables the work to be broken down into
smaller components, thereby increasing the ability of Nigerian contractors to
bid and execute the work and hence build up local Nigerian capability. The
portfolio of projects includes the repair and/or replacement of several subsea
pipelines, three production platforms, three living quarters’ platforms and
miscellaneous modifications to existing production platforms. DeltaAfrik
undertakes all engineering, procurement and construction management of
locally awarded contracts wholly in Nigeria. In the first 18 months, DeltaAfrik

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has mobilized approximately 320 personnel, of whom 60% are Nigerians.


Plans and procedures for project delivery have been developed and the full
suite of WorleyParsons EPCM delivery and management systems established.
This will assist in the ongoing training and development of DeltaAfrik’s
personnel as well as development of other Nigerian contractors as the project
progresses.

Pilbara Iron Ore and Infrastructure Project

In May 2008, the ambitions of Fortescue Metals Group to establish a new iron
ore operation were realised when the first shipment of iron ore departed Port
Hedland headed for China. This milestone marked the culmination of more
than three and a half years of services provided by WorleyParsons.

Following its successful execution of the definitive feasibility study and front-
end engineering design, WorleyParsons was appointed to take the project from
design through construction, and ultimately practical completion. Construction
began in February 2006 and was completed in May 2008 with practical
completion being achieved in July 2008. Support to the project was provided
through the Minerals & Metals and Infrastructure & Environment customer
sector groups, including specialist technical services such as rail car design,
expediting services (provided by MaisonWorleyParsons) and power generation
and distribution engineering.

WorleyParsons enabled Fortescue to meet its ambitious construction


timeframe despite the remote project sites, challenging project environment
and fierce competition for physical and human resources in a boom economy.
The delivery of the project on time enabled Fortescue to meet its sales
commitments to Chinese steel mills. WorleyParsons has now been appointed
to prepare the FEED to expand Fortescue’s operations to 160 million tonnes
per annum by developing a new mine, and expanding existing, and
constructing new, infrastructure.

One Steel Alliance

WorleyParsons has delivered significant improvements to OneSteel through


our Improve contract. By initiating regular senior management reviews,
improving the measurement and visibility of KPIs and redefining and clarifying
roles and responsibilities of the Improve implementation team, we have
delivered to OneSteel:

1. Safe designs and project delivery – increased safety observations in


number and quality from 50 to more than 175/month

2. Improved capital planning, project selection and execution – by


developing and deploying alliance processes to ensure only good projects
proceed; we deferred or cancelled 35 poor projects, avoiding AUD$35
million capital expenditure.

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3. High return on investment – AUD 22.4 million Net Present Value was
added for an AUD 5.03 million investment in 16 projects

4. Easy access to best practice and benchmarking information – through


reliability audit questions completed by auditors and Business Unit
customers as well as accessing benchmarking information from our Best
Practice Forum

5. Optimization of resources – the same amount of work is done by 20%


fewer people, equivalent to a saving of AUD 1.8 million/year

6. Reduced cycle time – the 200 days reduction achieved is equivalent to


AUD 20 million Net Present Value

Project Challenges

WorleyParsons, like all contractors, has experienced project challenges over


the past five years. A common theme amongst the challenges we have faced
over the past 2 years has been access to qualified experienced personnel.
The subsequent downturn in the mining market will mean this issue will
become significantly less of a challenge.

Anglo will have noticed throughout the submission that we are very reluctant to
ever speak publicly about our customers and our work. We have remained the
“quiet” player within the contracting industry and aimed for our execution to
speak on our behalf. We are reluctant to record our customers’ names to the
following examples – we respect our customers’ privilege of not having their
projects displayed in formal documentation without their permission.

We are proud that every Minerals and Metals alliance has been renewed on
each occasion. We are able to offer some examples where the outcomes
being sought by the customer were not being achieved and we needed to
collectively address the issue – problems in alliances are rarely ever the sole
concern of the contractor or the owner, but a shared issue.

In every alliance there comes a point where the “traditional” approach that has
been delivering a less than optimal outcome. Often the alliance has been
created to address this “traditional” malaise but the appointment on an alliance
services provider is not enough to overcome the challenge. A classic example
is internal resistance from people not wishing to act in a disciplined manner.
Collectively we need to confront these issues and get the whole integrated
team aligned. So we undertake health checks, workshops, business planning
with customer to drive toward alignment and shared goals. A key for us is to
identify a champion on the customers’ side who will act as an advocate and
strong supporter to get the message into their jargon/language.

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A major development for us has been the created on an Improve Operating


Platform (IOP) that is designed specifically for the alliance customers. This
platform will further increase our ability to meet common challenges such as
mobilisation and the establishment of a portfolio of projects. We intend to use
IOP in our role supporting Anglo across the world.

Securing the appropriate people to site in a timely manner has caused


difficulties in the past so we developed a training program for Improve
managers and a succession planning process to ensure timeliness. This
process will be utilized in an Anglo contract.

Example 1:

Three years ago our oversight of one contract was not strong enough and
resulted under performance and misalignment of objectives during the middle
of an alliance contract. Rather than continue “the Blame Game” we undertook
the drastic step of changing out most of the senior management team,
established a 90 day recovery plans which had very specific targets,
established an alliance improvement team with a core of senior managers from
both organizations, including a recovery manager, and put at risk all of our
profit.

The improvement team introduced a range of specific KPIs to address


shortcomings and worked with senior managers on both sides of the contract
to understand the aims and objectives of the contract.

Today this alliance would be considered by many as the flag bearer of


WorleyParsons Improve contracts around the world.

Example 2:

One of longest held alliances was critical of our cost performance and wanted
to benchmark our efforts against similar contracts in the other hemisphere and
against companies outside of their industry. This is a common problem –
justifying the value that the alliance is bringing to the operation. Historically
this was because alliances were seen as just inputs to the process of projects.
Our vision has always been to design the alliances on outcome focused
performance contracting.

External benchmarking confirmed the value that was being generated by the
alliance and individual performance measures indicated top quintile outcomes.
To address the second issue WorleyParsons created the Best Practice Forum.
This event was held over ten years and drew a broad range of alliance
contractors from different sectors to table to discuss common problems. Over
800 people from 65 companies attended the most recent session.

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Example 3

Ten years ago WorleyParsons was growing aggressively through the support
of a number of key customers. As their confidence grew in our engineering
ability we were offered more and more conceptual work and were able to excel
at this activity – small teams of high end technical specialists. Additionally we
were requested to undertake EPCM and reimbursable EPC roles for
customers. A natural extension of our services we thought – couldn’t be too
hard.

We soon learnt that we didn’t know what we didn’t know. We discovered our
systems were not designed for EPCM responsibilities and our project
managers of engineering scopes were not necessarily ideal leaders for these
new tasks.

We have invested $10M in developing a comprehensive suite of EPCM


systems and tools and crafted a complete accreditation and training program
to support the systems. In designing the system we created a level flexibility
that is unique to the contracting industry. The scalable project management
systems are based around risk and enable for the appropriate level of front end
loading and gate keeping to ensure success.

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Question 4.3

Regarding the projects managed by you (Anglo American and non-Anglo


American), please describe the level of complexity and include the overall
project budget (range suffices).

Provide description of complexity please refer to example projects in reference


list.

Complex Projects

In determining which projects to illustrate WorleyParsons complexity of project


execution we have chose three that involved an extensive construction
component.

Tengizchevroil’s (TCO) Second Generation / Sour Gas Injection Project in


Kazakhstan

The TCO Asset Development Program consists of three distinct Projects:

f SGP - Second Generation Project

f SGI-1 - Sour Gas Injection Phase 1 (Sweet Gas Trials)

f SGI-2 - Sour Gas Injection Phase 2 (Conversion to Sour


Gas)

f The objective of SGP is to expand oil and gas handling


facilities located on the Caspian Sea in Kazakhstan from
13.5 to above 25 million metric tonnes per year (MMTPY),
including:

f Field Gathering System & Meter Stations

f Processing (crude stabilization, gas sweetening and


sulphur recovery)

f Power Generation, Utilities and associated infrastructure

f New product Export Systems for Gas, NGLs, Sulphur and


Crude

The SGI-1 Project is the first step in developing sour gas injection technology
using existing sweet gas supplies to test the injection compressor and
reservoir injectivity/heterogeneity. Sweet gas will be transferred by means of a
12km pipeline to the compressor island in the field where it will be compressed
to about 620 bar prior to injection.

The SGI-2 Project will provide an opportunity for additional production from the
synergy of SGP and SGI-1. Approximately 3 MMTPY of additional production

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capacity will be realized by converting the SGI-1 Injection Compression system


to accommodate the sour gas feed from SGP, thus increasing the facility
output to about 22 MMTPY.

Our role in the TCO Asset Development Program began in 1998 with the
conceptual engineering phase. This early phase of the project operated under
a rigid methodology of creating innovative ideas, developing those ideas,
determining the value and probability of moving the ideas forward, and finally
reporting on the disposition of each innovation. The project was rated against
IPA's Project Development Rating Index (PDRI) receiving a maximum score
and contract incentive award. The selected conceptual design progressed to
front-end loading (FEL) in 2001, which was again successfully concluded by
being awarded “Best Practical Front End Loading” by IPA.

One of the biggest challenges the project faced was the delivery of over 100
out-of-gauge items of equipment from around the world. These items were too
large to be transported using conventional methods, with sizes reaching up to
eight metres diameter and sixty metres long.

Extensive modifications to the existing rail transport infrastructure in


Kazakhstan were required. A new static crane was installed at the Aktau Port,
with strengthening works and a 20,000 sq.m concrete lay-down area
constructed. Over 700Km of track was refurbished, with pipe-bridges,
overhead cables, signal and other gantries requiring replacement. Buildings
were even knocked down and replaced. Shallow draft vessels and barges
were used to transport the OOG Cargo to Aktau via the Volga Don River and
canal system during the open weather window from April to November 2004.

The project utilised multiple workshares. During the peak of engineering the
engineering services were split vertically (by unit) between London
(Camberley) Atyrau and Houston. Procurement was worldwide with a
percentage in Kazakhstan to meet TCO driven Kazakh content requirements.

Tengiz is considered an extremely harsh climate location with temperatures


varying from -40°C to +40°C. The remote location of Tengiz necessitated the
construction of a 6,500 man camp to house the construction workers and
management team. The phased construction was completed at the end of
2004 and is now successfully operating at capacity providing the team with
dining and recreational facilities, as well as a high standard of accommodation.

Tengiz field personnel peaked at around 10,000 people, including a


percentage of rotational personnel that work 28 days on and 28 days off. Some
existing facilities are also used to house peak onsite staffing that is just over
8,000.

Piling commenced in Tengiz in August 2003 and was concluded with over
27,000 piles being driven. A total of 170,000 cubic meters of concrete has
been poured (as much as it took to construct the 452 meter high Petronas

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Tower in Kuala Lumpur). The largest pours were for the turbine foundations at
750 cubic metres each.

40,000 tonnes of steelwork have been fabricated and erected. 960,000 metres
of pipe will be installed, and over 5,000,000 metres of cable will be pulled,
(which is about the same distance as London to New York).

Saudi Chevron Phillips JCP Petrochemical Complex in Saudi Arabia

The Chevron Phillips Petrochemical Complex at Al-Jubail, Saudi Arabia, is


adjacent to its existing SCP petrochemical complex. The project is based on
Saudi Aramco natural gasoline as feedstock. The complex produces styrene,
propylene, and ethylbenzene as its final products. The complex also produces
a by-product suitable for sale as motor gasoline blend stock.

Contract 1 - Front End Engineering Design (FEED)

WorleyParsons FEED scope includes:

f Performing the front-end loading process including front-end engineering


design for the facility and providing the FEED package deliverables and
EPC contractor bid package contents.

f Preparing all designs and developing all documents, preparing and issuing
bid documents, obtaining and analyzing bids, and recommending award of
lump sum contracts for the design, procurement, and construction of the
ethylbenzene/styrene ISBL and all OSBL facilities, and a second contract
for the ethylene unit.

f Preparing a Class III cost estimate and schedule.

f Preparing the Phase 4 project execution plan.

f Preparing FEED Data Books with all of the above documents,


correspondence records, vendor proposals, calculations, cost estimates,
and schedules at the completion of the work.

Contract 2 - Ex-Kingdom Program Management

WorleyParsons is performing program management as part of an Integrated


Program Management Team. The work is being performed in Houston and in
other locations outside Saudi Arabia as required to support the project. This
includes:

f Managing engineering work at lump sum engineering, procurement and


construction contractor’s (LSEPC’s) office(s).

f Managing design and procurement of Offplot facilities being done under


separate contract.

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f Procurement and materials management including procurement of certain


materials, temporary facilities, supplies, and tools to support Offplot
facilities procurement, and conducting certain expediting, inspection,
shipping, and ware-housing operations.

Contract 3 - In-Kingdom Program Management

WorleyParsons is performing program management In-Kingdom as part of an


Integrated Program Management Team. This includes:

f All project management and control functions;

f Construction management;

f Job closeout.

Contract 4 - Offplot

WorleyParsons' Offplot scope includes:

f Providing support for completion of front-end engineering in Houston and


program management.

f Preparing all designs, drawings, specifications, and other documents


necessary for the procurement and construction of the Offplot facilities.

f Developing and recommending a design, procurement, and contracting


plan for Offplot facilities and preparing all designs and developing all
documents, issuing bid documents, obtaining and analyzing bids, and
recommending award of contracts for the design, procurement, and
construction of all Offplot facilities.

f Obtaining competitive quotations, analyzing bids, awarding and


administering purchase orders and purchase order contracts for materials
required for the Offplot facilities.

The schematic below shows the scope of work:

Location 1
Ethylene Contractor
(LS – EPC)

• Ethylbenzene
ISBL Construction
• Styrene Location 2
OSBL Offplot Management
• ISBL
at Site
• OSBL
FEED FEED in Al-Jubail
(LS – EPC) Contractor

Location 3
Offplot Contractor*

* Contracting Strategy TBD along with Location

Contract 1 Front End Engineering Contract 3 In-Kingdom Program Management (C)


Contract 2 Ex-Kingdom Program Management (EP) Contract 4 Offplot

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Al-Jubail Petrochemical Company’s Kemya Petrochemical Complex in


Saudi Arabia

The Kemya Petrochemical Complex Project was awarded to WorleyParsons in


August 1997 as Managing Contractor for two fundamental components of the
project. The first component dealt with Program Management Services in
which WorleyParsons provided overall leadership, management, monitoring,
and control of the lump sum contractors.

Worley Parsons provided a peak of 50 key people for the Kemya Program
Management Team. These people were located in Pasadena, California; The
Hague, the Netherlands; and Manchester, UK. The WorleyParsons people
were completely integrated with ExxonMobil and Kemya people to form the
Program Management Team. The Pasadena group managed the LLDPE
expansion, Offsites and the Computer Control System. The Hague team
managed the Ethylene project and the Manchester team managed the LDPE
portion of the project. The Program Management Team helped to bring the
project to a very safe, on schedule and under budget conclusion.

The second component dealt with the FEED and EPCM execution of the
expansion of the existing LLDPE plant and OSBL facilities.

The Kemya Major Projects Program facilities included the following:

f A grass root 215 kTA Low Density Polyethylene (LDPE) plant – Exxon
High Pressure technology.

f A grass root 700 kTA gas (propane) feed ethylene plant (KOP).

f Expansion of the existing Linear Low Density Polyethylene (LLDPE)


facilities (Union Carbide technology) from 615 to 850 kTA. This is the
Phase VI Expansion Project and includes "stretching" the reactors,
increasing reactor cooling, adding catalyst preparation facilities, replacing
two extruders, increasing granule and pellet transfer and bagging facilities.

f Addition to, and expansion of, the existing infrastructure facilities, offsites,
and utilities systems, outside of the battery limits (OSBL), as required to
support the above facilities. The work includes a new 230KV electrical
distribution system, a new compressed air system, increased capacity for
the seawater cooling and firewater systems.

f Installation of an Advanced Computer Control System in the existing Plant


Control Centre and the new Ethylene Plant Control Centre.

The Kemya Controls Project scope of work was to design, purchase, perform
soft-ware and hardware configuration, and wire the Control Room Equipment
for all Kemya Projects including Phase VI/OSBL, LDPE and KOP. This
included three Distributed Control Systems (DCS), Emergency Shutdown
Systems (ESD), a Plant Information Network and a Training Simulator. A team

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of WorleyParsons, Kemya and Exxon engineers worked together as one team


to achieve this task.

The Phase VI/OSBL Plant DCS/ESD was approximately 3500 I/O. The LDPE
Plant DCS/ESD is approximately 2200 I/O, and the KOP Plant is approximately
5100 I/O. Honeywell TPS was selected for the DCS, and Triconex for the
Emergency Shutdown Systems.

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Project Management Methodology

Question 4.4

Could you please outline you project management methodology/system for the
different project phases including the key elements in the project execution
plan?

Description methodology as separate document, if available.

f Concept

f Pre-feasibility

f Feasibility

f Execution

f Key Elements in the project execution plan

WorleyParsons Project Management Process (WPMP) is a stage-gated, risk-


based process for developing (and supporting) Project Execution Plans
tailored to the needs of each project, and Customer. WPMP is deployed
globally to all of our offices. Our project delivery capability spans all five project
phases, from Identify to Operate.

Principles of WorleyParsons Project Management Process (WPMP):

f Based on a phased and gated project development process.

f Project Value Objectives clearly documented, and Maximum Value then


identified and realised.

f Decision support package requirements are fundamental to what is


planned for and delivered in each phase.

f Value Improving Practices (VIPs) and Cost Reduction techniques used as


appropriate.

f Process is scalable for small and large projects.

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f Project risk classification and services type determine “project category”


and associated system requirements (either mandatory or recommended
for consideration).

The attached flowchart (Figure 4.4-1) depicts the process for initiating a project
and determining applicable WPMP requirements, for the two types of contracts
- Standalone and Portfolio Management. A list of project execution
deliverables per phase per project risk category is generated and stipulates the
mandatory and recommended requirements of each phase of the contract
(figure 4.4-2).

Figure 4.1-1 Project Initiation Process


Determine Contract
Type

Standalone Portfolio Management


IBI
Complete Risk Complete Risk
Classification Classification
CRF-0008-01
CRF-0008-01 CRF-0008-02
CRF-0008-02

Select Project Phase Select


SelectRisk
Risk
Classification/
Classification/ Delivery
1 2 3 4 5 Delivery
ModelModel
11 22 33 44

Select Services
Category Select Project
Phase
E EEP/EPC/EPCM/PMC
EP/EPC/EPCM/PMC

Select Risk
Classification

A+
A+ AA BB CC

Review Mandatory Review Mandatory


and Recommended and Recommended
for Consideration for Consideration
Tasks Tasks

Determine Determine
Deliverables and Deliverables and
issue Project issue Project
Execution Plan Execution Plan
(PEP) (PEP)

Select EMS Project Select EMS Project


Management Workflow Management Workflow
Diagram. Use Procedures, Diagram. Use Procedures,
Guidelines, Forms and Guidelines, Forms and
Templates that support Templates that support Page 17 of 34
generic PM processes generic PM processes
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Section 4 Project Management Performance

Figure 4.4-2 Example of Execute Phase – Mandatory & Recommended Requirements for Consideration

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Section 4 Project Management Performance

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Section 4 Project Management Performance

Question 4.5

What standard forums do you, as a company believe, should be implemented


when undertaking large mining projects?

Please provide details of standard forums to be implemented when


undertaking large mining projects.

In delivering large mining projects, WorleyParsons applies all mandatory and


many recommended review processes as prescribed by the WPMP project
development process. Significantly as a risk-based, gated system we apply the
WPMP’s requirements for Risk Assessment Workshops at various phases of
the project’s development depending on the project’s requirements. These
Workshops apply a very well-developed, rigorous Project Risk methodology for
the identification, quantification and mitigation of the full range project risks
(including whole of project risk). Through feasibility phases, particularly the
definitive phase as more information becomes available and key risks become
better understood and mitigating strategies developed, these forums the
progressive development of a Risk Management Plan is as part of the Project
implementation Plan for delivery phase of the project. More information on the
Company’s Risk Management System is provided in Section 4.10.

From a safety perspective a number of robust safety reviews/forums are


applied across all major projects implemented by WorleyParsons. These are
prescribed in the Company’s HSE Risk Management Process/Program which
is based on the Australian and New Zealand Standard for Risk Management
AS/NZS 4360:1999. As explained in Section 2.4, the risk management of a
project site commences with the convening of a Hazard Identification
Workshop. The attendees at the workshop will represent the spectrum of
stakeholders involved in the site’s risk management. The methodology applied
at the HAZID’s Workshop results in the identification and ranking of risks. For
risks ranked as Extreme, High or Moderate risks, a Risk Mitigation Plan is
established in order to control or mitigate the risk. This process culminates in
the development of the Safety Management Plan, which is monitored and
reviewed throughout the life of the project.

Value Improving Practises (VIPs) are activities or techniques which are


focussed on improving the overall effectiveness of the use of capital,
particularly on major projects. Depending on the size, complexity and location
of a project, the respective Project Manager will decide the applicability of
individual VIP’s under guidelines provided in the EMS framework. On a major
mining project all the listed VIP’s would be applied.

VIP’s covered by these EMS guidelines are:

f Project Value Objectives – establishes what quality facility is needed to


meet investment and business goals;

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Section 4 Project Management Performance

f Technology Selection – implementation of new technology is essential to


remaining competitive and being a low cost producer;

f Process Simplification – high level review of the overall process or concept


to ensure it does not include unnecessary steps, components or features;

f Design to Capacity – eliminates excess capacity from the design;

f Minimum / Customised Standards and Specifications – ensures the


application of codes, standards and specifications do not exceed the
needs of the actual facility to be designed;

f Value engineering – defines non-value adding investment that it is non-


income producing;

f Constructability – ensures optimum use of construction knowledge and


experience in planning, design, procurement and field operation to achieve
overall project objectives.

Over and above the mandatory WPMP requirements for project reviews,
WorleyParsons applies a suite of Peer (“Cold Eyes”) Reviews across the
various phases of a major project. These Peer reviews are held regularly but
particularly towards the definitive feasibility phase to determine “the readiness”
of the project to move into implementation.

These reviews demonstrate the strength of the Company’s matrix structure at


work, as they are driven by Region’s operations management in which the
project is being delivered. Their effectiveness is strengthened by participation
in the reviews of a number of senior corporate project management specialists
and where appropriate, the Houston – based Mega Projects Group.

A Peer Review is always held a few months after project commencement to


determine whether the project is resourced and structured correctly, and
whether the ramp-up process is proceeding smoothly. Whilst essentially a
proactive process, it can be a reactive process, if it is determined by operations
management in the Region that a project is developing problems. An early
warning process is in place through Regional Monthly Project Reviews, where
all major projects are reviewed and performance scrutinised.

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Section 4 Project Management Performance

Question 4.6

What is you company strategy regarding the use of internal resources vs the
use of sub consultants for design and other work?

Please provide details of strategy regarding use of internal resources vs. sub-
contractor resources.

While WorleyParsons has available across the globe substantial resources to


deliver all phases of the project development process; it recognises that the
specific scope of work may dictate the need for specialist technical skills (e.g.
geotechnical, specific process technology, logistics); or local content
knowledge requirements dictate the need for supporting sub-consultants.

In this regard, WorleyParsons applies the same strategy / approach as applied


to all forms of partnering. The Company applies adaptability and flexibility to
all forms of partnering including sub-consultant / sub-contractor arrangements.
WorleyParsons practises a policy of the best person for the job regardless of
company heritage. The Company’s focus on delivering client requirements
combined with its culture, create a receptive internal environment in which
partnerships are valued and therefore, translate to client value.

For example in South Africa WorleyParsons has developed close relationships


with two South African-based companies for the provision of minerals
processing support. Over the past year WorleyParsons has developed a close
relationship with both ProMet Engineers Africa based in Cape Town for iron
ore, coal and diamond projects; and GRD Minproc Africa based in
Johannesburg for potential base metals and platinum projects.

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Question 4.7

Please describe from your perspective how you balance the focus on cost and
bringing forward technological advancement.

Through its structured, gated project development process, WorleyParsons


believes it has a rigorous process to balance the focus on cost and bringing
forward technological advancement. Captured in our Select front-end service
are the key feasibility stages of project identification (conceptual) and
evaluation. As highlighted in our response to Question 1.12, it is well–
recognised that the decisions made during the early phases of project
development have the greatest impact on the ultimate business outcome.

Through focus on these critical early stages, the Select phase progressively
adds definition, at the same time reducing risk; and maximizes the inherent
value and assesses probable costs. Each of these stages involve robust
assessment of technological advancement against cost
advantages/disadvantages. Typically the Identify stage (Scoping) will identify
potential application of technological advancement and determine at a
conceptual level, whether this option warrants more robust investigation in the
Evaluate stage (Pre-feasibility).

The Evaluate stage is where options involving technological advancement are


finessed for their relative technical and cost advantages (both Capex and
Opex), through implementation of appropriate test work, engineering and
costing activities.

Importantly, at the end of each stage of Select, increasingly rigorous technical


reviews are applied as a “gated” process. This ensures appropriate balance of
focus on cost against any new technology developments is achieved through a
thorough assessment of risk.

The Define stage which immediately follows Select, should fully define any
technical advancements through any required detailed test work programs and
advancement of basic engineering. However, in the Define stage we believe it
is vital to have capacity in the schedule to revisit technology advancements,
particularly if confirmatory test work results identify ongoing technical issues,
which have the capacity to have significant impact on the engineering and
equipment selection processes. Early structuring of test work programs in the
Define stage is vital.

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Section 4 Project Management Performance

Question 4.8

Do you have a consistent project management methodology across


geographies?

Yes, all WorleyParsons offices utilise common project management systems,


procedures and methodologies and embrace a similar working ethic and
culture. Employing globally consistent systems and processes eases the
transfer of work, improves efficiency, and encourages best practice sharing.

The success of our global project delivery capabilities and project management
methodologies is underpinned by the WorleyParsons Project Management
Process (WPMP). The WPMP is a key feature of our Enterprise Management
System (EMS V3), which along with sophisticated communication
infrastructure and industry leading design software, is deployed globally across
all offices. This provides alignment required for WorleyParsons to achieve its
goal of efficient global collaboration on projects large and small.

The WPMP is a stage-gated risk-based process for developing (and


supporting) project Execution Plans tailored to the needs of each project.

Using WPMP and EMS WorleyParsons will produce the quality of engineering
and procurement deliverables required to develop facilities that are: safe, start-
up according to plan, and have superior technical integrity and operating
efficiency regardless of the project team’s location.

Please refer to Sections 6 and 8.3 which outline our systems and
methodologies for executing projects in more detail.

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Section 4 Project Management Performance

Question 4.9

Please describe the process you are using to track project's progress and
performance?

Attach additional document if necessary.

Our globally consistent WorleyParsons Project Management Process (WPMP)


and Enterprise Management System (EMS) allow for efficient progress
measurement and tracking of a projects performance. We understand that
accurate progress tracking and reporting is essential to ensure that project
stakeholders have a thorough understanding of where a project currently
stands and where it will finish (in terms of schedule and cost).

A fundamental of ‘successful project execution’ is defining the Work


Breakdown Structure (WBS). This provides the framework from which the
project management system will be set-up to facilitate the tracking and
reporting of the project status and cost.

The Progress Measurement Engineering Guideline and Task Sheet contained


within our EMS (refer Attachment 14.3) outlines the process WorleyParsons
offices use to track a projects progress / performance.

The key elements of this process are discussed below:

f Progress shall be monitored / tracked by the comparison of actual physical


progress against planned. The plan will be based on the Contract
Program and Control Budget.

f Productivity will be tracked by comparing physical progress (earned)


against expanded man-hours / costs.

f The WBS/CTR owners will report physical progress on a regular basis at


CTR/deliverable level. Progress will be assessed against an agreed gate
or progress guideline system and specified at individual deliverable level.
Each deliverable or task will have a component budget weighting.

f Progress is measured as a portion of the current budget, termed the


Earned Value.

f Expended man-hours will be reported on a weekly basis via the electronic


time-writing system and non-labour costs from the finance system.

f The Control (or Baseline) Schedule will be monitored on a regular basis


and will be used as the baseline against which progress is reported as part
of the Project reporting requirements.

f The planning team will liaise with the activity or CTR/WBS owners to
review any area of specific progress variances. The planning team will

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Section 4 Project Management Performance

liaise as necessary to highlight any potential slippage to the overall


schedule and to recommend any corrective actions required.

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Section 4 Project Management Performance

Question 4.10

Please describe the risk management process & approach you are taking to
identify and handle project risks?

Attach additional document if necessary.

WorleyParsons Project Risk Management Procedure describes our approach


for managing risks on projects. The requirements of the projects are directly
related to the level of risk associated with the project and are determined
through the Risk Classification Form.

A number of documents have been developed and reside in our global


Enterprise Management System (EMS) to support project personnel in meeting
the WorleyParsons Risk Management requirements, including the Risk
Management Policy, Risk Management Framework, Project Risk Management
Procedure and Risk Classification Form (refer Attachments 14.4).

Benefits of Project Risk Management

The project risk management process enables the project team to collectively
brainstorm threats and opportunities that may impact on project success. This
enables the team to understand the broader picture, the overall priorities and
how they can participate in managing these risks. Using this process assists in
team building and captures experience and lessons learned from recent and
similar projects. It also facilitates early identification and management of risks
in a proactive manner.

Project Risk Management Process

WorleyParsons’ Project Risk Management Process is based on the Australian


and New Zealand Standard for Risk Management AS/NZS 4360:2004, an
international benchmark standard in risk management.

A formal workshop/brainstorming session is used to identify, quantify and treat


the risks. The workshop attendees should include, as appropriate, key
stakeholders and personnel who can provide valuable insight into the range of
issues associated with the workshop topic.

The process concentrates on a qualitative assessment of the project risks and


the development of a Risk Management Plan to manage and control these
risks. The process involves the following steps:

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Figure 4.10-1 Risk Management Process

Preparation Prior to Workshop

Select appropriate Participants and a Risk Facilitator. Provide background


reading for workshop attendees.

Risk Workshop

Step 1 – Establish the Context

f Understand project scope and boundaries

f Identify project stakeholders

f Define project success factors (Key Performance Measures)

f Agree on criteria for assessing likelihood and consequence

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Step 2 – Identify the Risks

f Brainstorm both threats and opportunities that may impact on the project
achieving the agreed success factors.

f Use brainstorming keywords to identify additional risks.

f Reflect on past experience and knowledge of participants

Some of the possible sources of risk include:

− Occupational health and safety

− Environment

− Security

− Project execution / operational

− Commercial / contractual

− Financial / market

− Management activities and controls

− Property / assets

− Socio-economic

− Technology / technical

− Political / legal / environmental

− Natural events

− Personnel / human behaviour

− Business interruption

− Public / professional / product liability

− Custody of information

Step 3 – Analyze the Risks

Considering existing controls, identified risks are now categorized according to


an agreed consequence and likelihood matrix. Ranges are used for both the
potential consequence of a risk occurring and the likelihood of those potential
consequence occurring.

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Step 4 – Evaluate the Risks

The consequence and likelihood provide a risk rating to each risk. Ratings are
as follows:

Priority 1 – Extreme Risk (red)


Priority 2 – High Risk (purple)
Priority 3 – Moderate Risk (yellow)
Priority 4 – Low Risk (green)

Step 5 – Treat the Risks

Action plans are developed by the team to effectively manage the identified
risks. Priority 1 risks are dealt with first, then priority 2, 3 and 4 (if time permits).
This step is often assigned to personnel to develop action plans outside the
risk workshop as further information and detail is required to determine the
most appropriate treatment method.

Throughout the Project

Step 6 – Communicate and Consult

Discuss the actions and priorities with the broader project team to ensure they
are incorporated into the project scope. Obtain feedback from project team on
emerging risks and effectiveness of actions during project.

Step 7 – Monitor and Review

Monitor risks and action plans to ensure effectiveness throughout project.


Identify emerging risks at each project phase or where there is a major change
to scope or project environment. Adjust risk management plan as necessary.

Track action close out progress regularly to ensure they are completed.

Deliverables

The project risk management process will deliver a Risk Management Plan
(RMP) that is a live document containing:

f Risk assessment context

f Stakeholders

f Success factors

f Risks (both threats and opportunities)

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Section 4 Project Management Performance

f Consequence and likelihood

f Risk ratings (priorities)

f Action plans with assigned responsible person, due date and status

f Risk map that demonstrates risk profile both before and after treatment

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Section 4 Project Management Performance

Question 4.11

Please provide us with the company’s position on a risk/reward model for


project delivery.

WorleyParsons regularly works under a risk/reward model in project delivery.


Below are some guiding principles that WorleyParsons applies to such models:

Risk / Reward Principles:

f Open book Incentive Model development

f Risk should be balanced against tangible prospect of reward

f Basic Fee structure for setting reference TIC (or other KPI value)

f Risk transferred to the Contractor under the EPCM Contract and priced
into the Target Fee and Target TIC (or other KPI value)

f Contractor must have responsibility and control of the delivery of the work

f Addition or removal of work scope in Incentive Model by the Owner must


be through a structured/agreed process

f KPIs and gain-share ideally aligned to actual project value impacts

f Key project team members should be incentivised for major Greenfield


Project to strengthen continuity across phases

f The Contractor should not be required to have any of it costs at risk

f Incentive Model gain-share awards should not be included as a project


cost for the purpose of gain-share calculation

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Question 4.12

What are your normal guarantee / liability limits?

Please provide detail on limits.

Whilst our standard contractual limits are 10% of the phase or contract price
we would be happy to discuss this further with Anglo American.

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Question 4.13

In case a process fails its completion test, your company would...

Yes/No Additional comments

Yes, subject to the following – we will correct


…re-do (free of cost) the any deficiency in our work (engineering services
design only or procurement services) at our cost excluding
the cost of any construction modification.

Yes, subject to the following – we will re-perform


…re-do complete design /
deficient design/engineering services and
procurement and construction
procurement services (excluding construction
modification
modifications and related costs).
Yes, provide assistance to the client in
…take other actions? enforcing his rights against equipment/materials
suppliers

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Section 5
Supplier Profile
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Section 5 Supplier Profile

Question 5.1

List of Top 5 Customers.

Outline Customers and work currently performed.

WorleyParsons Top 10 Minerals and Metals customers are shown in figure


5.1-1 below:

Figure 5.1-1 WorleyParsons Top 10 Customers 2003-2007

Top 10 Clients FY03 - FY07


Tomago Aluminium Onesteel
FMG
Company Pty. Ltd 4% Orica Limited
Worley Maunsel JV 5%
5%
6% 3%
Zinifex
BHP Billiton/WMC 3%
7%
CEG Joint Venture
3%

Aughinish Alumina Ltd


3%

Worsley Alumina Pty


Ltd
15%
Other
46%

The work currently being performed by WorleyParsons Minerals and Metals for
our Top 5 Customers is outlined below:

Worsley Alumina Pty Ltd

Currently undertaking the following work at Worsley Alumina Refinery:

f Alliance Consultancy Services – WorleyParsons and Worsley formed an


integrated Project team in 2002 to cover all phases of the project. With the
responsibility for sustaining and cost reduction / process improvement
capital programs, the Alliance is executing projects valued at AUD$10 to
AUD$15 million a year with future projections increasing that total each
year.

f Efficiency and Growth Project – WorleyParsons (in JV with Bechtel) have


also been engaged to provide FEED, EPCM and CM services.

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Section 5 Supplier Profile

BHP Billiton / WMC

Various work being undertaken on the Smelter 2 Furnace Upgrade:

f Providing FEED and Detailed Design services as a part of the Furnace


Concentrate Burner Air / Oxy Supply design Project which is aimed at
increasing the furnace oxygen demand.

f WorleyParsons has also been engaged to provide process assessment,


feasibility, FEED and detailed design as a part of the review of the jacket
cooling water system.

Worley Maunsel JV

Several projects are being undertaken by WorleyParsons most notably the


BHP Billiton Olympic Dam Alliance. The Alliance has been operating since
2003 and is an integrated team of WorleyParsons, Maunsel and BHP Billiton
personnel who undertake the EPCM minor capital project work for BHP
Billiton’s Olympic Dam operations.

Fortescue Metals Group

Work currently being carried out on the FMG Pilbara Iron Ore and
Infrastructure Project by WorleyParsons includes:

f FEED and EPCM project delivery of pit to port solution, including design
and procurement of all rolling stock for the contract via Chinese fabricators.

f WorleyParsons is also involved in the 80mtp expansion project – Heng


Shen.

Tomago Aluminium Company PTY Ltd

Current Tomago WorleyParsons Alliance work includes:

f Provision of project services including value adding, project management


and implementation at the Tomago Aluminium Smelter. The Alliance
commenced in 2003 and is ongoing. The integrated team is responsible
for managing a capital and upgrade program of around AUD$20 million pa.

f Other Alliance work includes the implementation of numerous ‘Value Add’


Projects notably the Nano Project Delivery Process. This process was
developed to optimise delivery of small capital projects.

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Section 5 Supplier Profile

Question 5.2

List top 5 countries in terms of sales that you supply to.

f Australia

f Canada

f Middle East

f Europe / FSU

f China

Figure 5.2-1 WorleyParsons M&M Forecast Global Revenue by Region

Minerals and Metals Forecast Global Revenue by


Region - FY08
ANZ
58%

Africa
0%

Asia
2%

US & Latin Canada


America 14%
3%
Middle East Europe China
10% 7% 6%

Figure 5.2-2 WorleyParsons Global Revenue Distribution by Region

Australia/
New
Zealand
US & Latin
27%
America
18%

Canada
Europe 11% 29%

Asia,
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Middle East
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Section 5 Supplier Profile

Question 5.3

Do you have Engineering and Project Management services/facilities in Low


Cost Countries?

Workshare / High Value Engineering

Yes, WorleyParsons supplements manpower, if required, through its


established global execution centres and High Value Engineering Centres
(HVECs). WorleyParsons routinely utilises a Workshare approach to its global
offices and in the execution of projects we undertake

By operating a globally consistent system of work processes and web based


knowledge management systems that facilitate efficient Workshare between
appropriate Centres of Excellence; WorleyParsons can provide Anglo
American with access to our extensive global pool of skilled resources. In
addition, the consistency across regions and offices with respect to systems,
processes, procedures and qualifications requirements ensure quality is not
sidelined when sourcing supplementary manpower.

The WorleyParsons HVE centres are used by many customers seeking the
overall cost and schedule efficiencies made available via workshare with the
following locations:

China Thailand

• Operating in Beijing • Operating in Bangkok and Srirachia


• 1,600+ personnel • 300 personnel
• Largest international E&C Contractor in • AutoPlant Specialist
China • Industry Sectors
• Leaders in localization (98% of staff is local – Minerals & Metals
and bilingual) – Industrial & Infrastructure
• Full service capabilities across all project – Power & Water
delivery phases – Select to Improve – Oil & Gas:- Fixed Offshore
• 75% projects from repeat clients facilities, Floating Production
• Industry Sectors Systems, Offshore & Onshore
– Minerals and Metals Pipelines, Onshore Gas Plants,
– Chemical Production Facilities and
– Industrial Terminals, Sub-sea, Pipelines &
– Hydrocarbons Terminals
• Leaders in 3D and Intelligent Systems – Refining & Petrochemicals
• Services centered on detail engineering: – Developments
– Process • Services centered on detail engineering:
– Piping & Layout – Process
– Mechanical – Piping & Layout
– Civil / Structural – Mechanical
– Instrument & Control – Civil / Structural
– Electrical – Instrument & Control
– Electrical

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Section 5 Supplier Profile

Malaysia Chile

• Operating in Kuala Lumpur, Kerteh and Miri • Operating in Santiago


• 1,812 personnel • 550+ personnel
• PDMS Center of Excellence • Full service capabilities across all project
• Full Service Capabilities delivery phases – Select to Improve
– Conceptual • Industry Sectors
– FEED – Minerals and Metals
– EPCM – Infrastructure and Environment
• International Client Base • Areas of Strengths
– Copper Mining
– Pulp and Paper
– Bulk material handling
– Seismic and structural engineering
– Thermal generation plants
– Ports
– High rise buildings
• Large Client base

WorleyParsons has extensive experience in managing and executing projects


in which multiple engineering and/or site offices have participated, and also
projects executed by joint-ventures or subcontractors using diverse systems.
Regular and effective interaction and communication between project team
members and locations is an essential component of WorleyParsons’
Workshare strategy.

High Value Project Delivery (HVPD)

WorleyParsons has made significant investment in the development of a High


Value Project Delivery (HVPD) offering to customers. This initiative is an
execution strategy for delivering projects within the committed schedule and
cost targets. HVPD would provide Anglo with an effective execution solution
that maintains quality standards and mitigates risks associated with:

f Large projects

f Remote locations and harsh environments

f Site safety and security risks

f Environmental permitting restrictions

f Onsite commissioning and start-up scope

By leveraging our Chinese and global design, procurement and construction


management capability and our extensive modularization experience. Our aim
is to reduce onsite construction workscope and manhours thereby reducing the
labour, HSE, environmental and quality risks.

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Section 5 Supplier Profile

Capability documents for MaisonWorleyParsons (Beijing, China) and ARA


WorleyParsons (Santiago, Chile) are appended, refer Attachment 14.5

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Section 6
Systems
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Section 6 Systems

All WorleyParsons offices utilise common systems and procedures and


embrace a similar working ethic and culture.

Question 6.1

Does your company have experience in using E-procurement software?

Yes/No – Provide details on software used.

Procurement Systems

Yes, WorleyParsons uses the SmartPlant Materials procurement and materials


control system. SmartPlant Materials is a fully integrated modular system
developed by Intergraph covering all aspects of Engineering, Procurement and
Construction.

SmartPlant Materials handles the complete procurement lifecycle on a project,


from initial definition of materials through to specifications, bills of materials,
requisitions, procurement functions, as well as warehouse and site functions.

Specifically, SmartPlant Materials covers the following areas of the


procurement process: -

f Procurement Plan development and maintenance

f Material Stock Code catalogue maintenance (feeds codes to 3D CAD


packages)

f Bulk Requisitions (using imported bill of material files from CAD systems)

f Equipment and Services Requisitioning

f Requests for Quotation (RFQs)

f Bid Evaluation

f Purchase Order (and amendment) creation

f Expediting

f Stores Management (receipt, issue and surplus management)

f Invoice reconciliation (verification of invoices prior to payment).

A full set of system User Guides, Procedure Manuals and Training programs
developed by WorleyParsons are available on request.

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Section 6 Systems

Question 6.2

Does your company use Engineering / Project Management software?

Yes/No – Provide details on software used.

Project Management Systems / Software

Yes, all WorleyParsons offices utilise the same Project Management and ICT
systems, which allows for consistency in Project delivery across various
locations. Project Management Systems are used to control and/or manage
engineering design projects, but do not directly contribute to engineering
design. The Project Management Systems WorleyParsons employs is our
WorleyParsons Project Management Process (WPMP) and the Enterprise
Management System (EMS). WPMP defines the way projects are to be
planned and provides a common framework for project execution. EMS
provides project team members with the procedures, guidelines, forms and
templates to successfully deliver the project. WPMP and EMS are explained in
more detail in Section 8.3 Quality Management.

WorleyParsons’ Project Control Systems are covered separately in Question


6.4.

Engineering and Process Systems / Software

A wide range of engineering specific programs are used by WorleyParsons.


These include applications such as Hysis, Hysis dynamics, Pipesim, Caesar II,
Flarenet, PDS, Microstation, SmartPlant P&ID, SmartPlant Electrical and
SmartPlant Instrumentation.

WorleyParsons has extensive experience in using these tools on numerous


projects and realises the additional benefits that can be achieved when they
are used in conjunction with a data warehousing solution such as SmartPlant
Foundation.

WorleyParsons has used SmartPlant Foundation to provide a complete data


and document handover package on a recent project executed in London.

Computer Aided Design (CAD)

WorleyParsons has extensive 2D and 3D Computer Aided Design (CAD)


facilities as indicated on the Systems Diagram above. Our preferred 3D CAD
application is Intergraph’s Plant Design System (PDS).

Central to WorleyParsons’ approach to engineering project data management,


is the use of SmartPlant Foundation as the information management solution.
WorleyParsons recognises that engineering data is key to the overall plant
information life cycle.

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Section 6 Systems

PDS provides an interactive design environment with multi-discipline


capabilities for modelling, space management, clash detection, drawing
extraction and material take-off. WorleyParsons has developed an extensive
library of 3D objects that can quickly and efficiently be placed to create Front
End Engineering Design models.

SmartPlant Review is used for design and constructability reviews. From the
earliest stages of the development of the 3D model, WorleyParsons will
schedule regular reviews. Participants will include WorleyParsons’ safety,
design and construction teams, client personnel and sub-contractors (as
applicable). Construction, Operations and Maintenance input during the early
design stages of the project results in efficient and economical plant design.
SmartPlant Review sessions can be made available to clients, thus providing
them with a high degree of visibility during the engineering development, and
assisting the functionality of integrated design teams.

An Interface exists between PDS and WorleyParsons’ material control system


SmartPlant Materials.

SmartPlant Materials powered by MARIAN is WorleyParsons’ preferred


Material Management system for material specification, quantification and
procurement.

Intelligent P&IDs are produced using Intergraph SmartPlant software. We have


optimised the 2D and 3D PDS environments to ensure seamless integration
between the two products.

The SmartPlant Instrumentation application is used as the core instrumentation


engineering and design tool. Again, this product has been optimised and is
fully integrated with other related systems.

WorleyParsons’ core 2D CAD facility is Bentley Systems’ Microstation


software. This application will be used by all disciplines for the production of all
2D deliverables.

WorleyParsons’ CAD systems have also been configured to ensure maximum


integration with desktop applications, such as the Microsoft suite of products.
This enhances the work processes, eliminates duplicate effort and maximises
efficiency.

WorleyParsons has extensive experience in producing CAD and other


documentation in dual language format using specialist in-house translation
teams. WorleyParsons has a comprehensive Project glossary which assists in
the translation process. These teams can be used to liaise with in-country
design institutes and to produce the TPD submissions.

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Section 6 Systems

Question 6.3

Are you using online collaboration tools to document the project's progress and
do they allow the "link-in" of subcontractors? If yes, please name the tools
used and briefly describe their functions and requirements on your clients'
side.

List and description of tools.

WorleyParsons recognises that the ready availability of accurate, complete and


timely information is crucial for effective project execution and management.
To achieve this goal, WorleyParsons takes a holistic approach to the
management of its Information and Communications Technology (ICT) and
systems. Please refer to Attachment 14.6 which shows a schematic overview
of various modules of the WorleyParsons systems and the flow of data
between them during project execution.

WorleyParsons utilises several online collaborative and data management


systems that allow for the “link-in” of Clients and Subcontractors enabling
project information to be securely shared both internally and externally. We
recognize the importance and advantages of having this integrated system
delivering live data to all project participants with the right levels of authority
and access (design office(s), customers, subcontractors/suppliers),

Collaborative Systems

Collaborative Systems are used by project team members for internal day-to-
day project communication and knowledge sharing with provision for external
access for clients and business partners

Intranets

WorleyParsons provide their employees with a centralised source of


information that can be used to conduct company business through common
work processes. They are the primary means by which information is
disseminated to employees and provide access to a range of browser-based
systems.

Two significant resources hosted on the WorleyParsons intranet are the


Enterprise Management System (EMS) and the WorleyParsons Project
Management Systems (WPMP). The EMS provides a comprehensive range of
resources to enable consistent project execution using standard procedures
and best practice. Procedures, templates and go-bys are available with
guidelines on how they should be implemented on specific types of project.
The WPMP provides a similar resource specifically for the management and
control of project execution.

Intranet access is available to all employees through both our internal


corporate network and externally via the internet.

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Section 6 Systems

Figure 6.3-1 - WPMP screenshot

Messaging/Email

The WorleyParsons project team use the WorleyParsons-hosted Microsoft


Exchange 2003 electronic messaging platform with Outlook 2003 as the client
software. WorleyParsons have dedicated clustered Exchange servers located
in all major operating centres. Users are encouraged to fully utilise the
centralised functions available within Outlook, such as shared contact lists,
calendar and group scheduling, etc.

For remote or travelling users, the Webmail facility provides secure access to a
user’s inbox from any PC with web access. In remote offices where the
installation of an Exchange server is not practicable or cost-effective, Internet
email is specified. A new method of remote email access (RPC over HTTPS) is
currently being implemented which will allow access to users’ mailboxes
directly from Outlook via the internet.

Desktop Applications

All PCs provided to WorleyParsons personnel, either desktop or laptop, are


configured with a standard software suite (currently Microsoft Windows XP,
Office 2003, Trend Micro OfficeScan anti-virus software, Adobe Acrobat
Reader 6.0, WinZip, etc.). PCs are built using proven corporate standard
software images and these standards are continually reviewed to ensure the
software is current and compatible, and all current software service packs and
security patches are included.

Standard engineering software will be provided as required for individual


engineering disciplines. WorleyParsons maintains many corporate software
licensing agreements with major software vendors (e.g. Microsoft, Intergraph,
Bentley, Aspen Technology, etc.)

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Section 6 Systems

Knowledge Sharing

WorleyParsons uses the generic Microsoft SharePoint application extensively.


This scalable server-based software is deeply integrated with Microsoft Office
and allows simple access to shared documents and files through highly-
configurable web portals. Authorised users can access SharePoint documents
using their web browser, either internally via the WorleyParsons LAN/WAN or
externally via the internet.

A project SharePoint portal will be set up so that documents can be seamlessly


accessed by all project participants (main offices, remote offices, clients, sub-
contractors, vendors, etc.) with appropriate authorisation. This allows individual
project team members to leverage relevant information across the various
entities and locations to help them to work more efficiently.

File Transfer Protocol (FTP)

FTP services provide a basic, but convenient and robust means whereby
authorised parties can transfer data to and from a central depository. It is
particularly useful for the transfer of large data files such as CAD drawings.
Projects can be allocated their own file space on the central WorleyParsons
FTP server. Users can access the FTP site either through a web browser or
other specific FTP programs. Files on the server are secure as the data is
administered, stored and backed-up as a central company service.

The SureSync utility program is used in conjunction with FTP to transfer data
files from their origin to a remote location via the WorleyParsons WAN.
WorleyParsons uses SureSync in conjunction with the Encompass document
management system. To make the best use of available bandwidth to remote
sites, transfer of data files can be scheduled to occur during the non-working
hours.

Audio Conferencing

WorleyParsons use the Genesys conferencing system to provide as a fast,


easy method for different locations to communicate economically and with high
functionality. This web-based service provides a virtual meeting room where
documents can now be viewed, discussed and modified during the conference
in real-time. Genesys allows users to attend conferences from their desks
rather than gathering in conference rooms, thereby reducing project costs in
lost time and travel expenses. Where appropriate, the service can be
configured to remotely call participants in remote locations, thereby avoiding
excessive call charges (e.g. hotels).

The service also provides a convenient means to remotely deliver


presentation-based training to small groups.

A convenient feature of the Genesys service is the freely available add-in


software that provides the ability to schedule an audio conference from within
Microsoft Outlook's Calendar application.

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Section 6 Systems

Video Conferencing

Videoconferencing facilities are available for use by WorleyParsons project


personnel in major hub offices. For example, a fully-featured Picturetel system
using the H.320 interface standard is permanently located in many of our hub
offices. This facility has been successfully used for several years to host
meetings between project participants.

Electronic Document Management System - ENCOMPASS

WorleyParsons will use WorleyParsons proprietary EDMS solution Encompass


for the management of all project documentation. This will provide the project
with a structured approach to engineering design based upon a process of
accessing, managing, controlling, and integrating engineering data, also
providing a foundation for detailed project progress measurement.

EDMS Document Control functions: -

f WorleyParsons Originated Deliverables – Provides a structured


approach to storing and issuing documents and drawings. It also controls
distribution and statusing, and provides the tools to track documents within
review cycles. Documents and drawings can be viewed directly from within
the application or via Microsoft SharePoint.

f Vendor Drawings – Controls the receipt, distribution, comment cycle,


statusing, and return of vendor drawings to the project. This tool manages
all current and historical data associated with the vendor drawings.
Documents can be viewed directly from within the application or via
Microsoft SharePoint.

f Correspondence – Provides a process to control incoming and outgoing


project correspondence. Provides the correspondence log as well as the
ability to directly download log data to create the electronic file for the
outgoing document as well as management of the file location.

Electronic Document Transfer

Project document distribution is handled via the automatic electronic


distribution system. When documents are issued through the EDMS, an
electronic transmittal is generated and issued to project team members based
on the agreed project document distribution matrix. Upon issue, team
members are automatically sent an email message.

Standard office tools such as MS Office Professional and Adobe Acrobat


Viewer are used as the supporting applications.

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Section 6 Systems

Citrix

WorleyParsons’ EDMS will be accessible using Citrix for document control in


remote offices and sites, Citrix will deliver the full functionality of the EDMS
from one central location.

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Section 6 Systems

Question 6.4

Please name in general the tools which will be used for planning, tracking, cost
control, reporting in general.

List of tools.

Project Control Systems

WorleyParsons use Project Control systems based on both proprietary and in-
house developed software.

Planning

Primavera P5

Primavera v5.0 (P5) is an industry standard software package used to develop


all Project Milestone and Critical Path Method (CPM) control schedules.
Primavera P5 is SQL server-based with full multi-user access.

Primavera P5 produces schedules in a bar chart, logic diagram and tabular


format and is used for all levels of planning from summary to detailed level.
The calendar unit for an individual project may be as small as hourly for turn-
arounds. Project schedules are base-lined to track progress and resource
loaded to facilitate resource management. Reports are output in various types
of format, both graphical and tabular.

With a local implementation of SQL server on the user’s PC, P5 can also be
used on a standalone basis for planning work done outside the home office.

Note: at the time of writing, Primavera has released an updated version of the
application, Primavera P6. We are currently developing a migration plan to
move to P6.

Pertmaster

Pertmaster Risk Expert uses a full qualitative and quantitative project risk
register to qualitatively represent each risk, and to track and analyze project
risks and their impacts on Primavera schedules. It can be used to compare
current, target and custom risk plans, and allows mitigation planning and
alternate scenario modelling.

Progress Measurement – Scorecard

Scorecard is an in-house developed application for measuring home office


engineering design progress. It is used to track progress on project
deliverables using consistent rules of credit. By establishing a consistent
methodology, Scorecard consolidates the information that an engineering
discipline head is required to report on, and generates clear and consistent
progress reports.

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Section 6 Systems

Scorecard Interfaces with Primavera for the import of planned and actual dates
and with the EDMS for design document progress.

The Scorecard application uses MS Access as its supporting database.

Figure 6.4-1 - Scorecard screenshot

Cost Control / Reporting

Engineering Services Cost Control System - InControl

InControl is a comprehensive, externally-developed Cost/Time/Resource


(CTR)-based cost reporting package for engineering services. It is a network
based application that controls man-hours and man-hour costs by tracking
man-hour expenditure against budgets and allows the project management
team to assess productivity in order to predict total man-hour forecasts.
InControl provides breakdowns at many levels including overall project, work
breakdown structure (WBS), discipline and CTR. InControl also has a change
control module for tracking changes on the project and a cost module for
reporting labour costs. InControl is integrated with the accounting and
timesheet systems to enable the download of expenditures.

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Section 6 Systems

Figure 6.4-2 - InControl screenshot

Kildrummy Cost Manager

Cost Manager is industry standard software used universally within


WorleyParsons for managing costs on a project. It is network based and
provides a structured environment to collect, catalogue, analyse and present
cost information. Such information includes key quantities, man-hours and
currency amounts structured in budgets, forecasts, commitments and
expenditures. Cost Manager provides an authentic audit trail for all numerical
changes from the original budget to the current forecast using the change
management module. Cost Manager collects period and inception-to-date
expended amounts from the accounting system, expended man-hours from the
timesheets system and commitments from the procurement system. Cost
Manager has excellent graphical output for analysing data for Management.

Estimating

(Kbase)

Aspen Kbase is Aspen Technology's flagship estimating tool. It is designed for


use throughout the estimating lifecycle to generate both conceptual and
detailed estimates. Kbase can be used in a variety of work processes, such as:

• To support the generation of project proposals and to evaluate


projected cash flow.

• To develop accurate estimates from conceptual process definitions.

• To model and analyse project execution strategies to determine the


most effective combinations

• To control cost during project execution with trending estimates.

• To evaluate the impact of change orders during all project phases.

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Section 6 Systems

In addition to Kbase, specialist add-in software is available for use with MS


Excel to perform cost estimate risk analysis.

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Section 6 Systems

Question 6.5

Please indicate whether you would be willing to take the effort and the cost to
harmonise your tools with Anglo American's preferences

WorleyParsons would be willing to work together with Anglo American to


harmonise our systems/software if this is required.

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Request for Information - Global EPCM Services

Section 7
Procurement
Performance
Request for Information - Global EPCM Services

Section 7 Procurement Performance

Procurement Capabilities / Process

Question 7.1

Please describe the procurement structure you are usually applying in projects,
indicate whether you are following a centralised buying approach and what in
general are your centralised procurement capabilities. Do you have a
procurement and sourcing procedure (hand book) in place?

Description structure or handbook as separate document.

Our approach to the deployment of Procurement resource is dependant on a


number of factors that are aligned to client and project specific criteria. Where
projects are of significant value and or complexity we assign dedicated
procurement management and personnel from the various procurement
disciplines to complete the project scope of work. In hubs such as London,
Beijing and Perth we also have a Central Procurement Group which has a
team of procurement specialists who are able to manage work scopes of
projects whilst they are in Pre Feed or Feed phases. This ensures we are able
to deploy readily available, WorleyParsons trained personnel, to comply with
project start up requirements and manage the man-hour expenditure to offer
the most economical solution to our clients.

All procurement activity is governed by WorleyParsons procedures and


process that define the standard compliance criteria for completing the
procurement process in the disciplines of sub contracts, purchasing,
expediting, QC coordination, logistics, site material control and project close
out. The standard procedures and processes reside in the Enterprise
Management System (EMS) which is available to all personnel for reference.
One of the initial activities at the commencement of a project is the
development of the Procurement and Contracts Plan. Within this document the
specific requirements of a project will be included to identify modification
requirements to WorleyParsons standard operations procedures that address
client requirements and project deliverable criteria. This results in a set of
project specific procedures that are rolled out to all members of the project
procurement team.

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Section 7 Procurement Performance

Question 7.2

Do you cooperate with a network or single suppliers from "low cost countries"
(LCC)? If yes please describe the extent of your network and which material,
equipment, and services you are sourcing from LCCs. If possible please
provide the sub contracted $ budget managed in LCC vs total $ budget
managed.

Description of network % of LCC budget.

WorleyParsons are able to access the China low cost centres via
MaisonWorleyParsons who have their main procurement hubs in Beijing and
Shanghai. Within the organisation they have a dedicated Procurement staff of
approximately 128 personnel which includes qualified inspectors.

Logistics Coordinators Project Procurement


Inspectors 3 Management
23 16

Database Administrator
1

Warehousing
4 Global Sourcing
Specialists
20

Subcontract
Buyers / Expeditors Administrators
48 15

WorleyParsons is one of the largest and most experienced procurement


organisations in China and have completed a number of projects for major
international clients either directly or via our global work-share structure.

Key factors:

f In house fully prequalified vendor data base of approximately 3700


vendors;

f Long term agreement with professional inspection agencies;

f Strong engineering support (approx. 1,600 staff);

f Long term agreement with transportation companies, like COSCO, BDP


etc;

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Section 7 Procurement Performance

f Integrated Materials Management System (SPM) aligned with other


WorleyParsons global offices;

f Extensive knowledge of the Chinese market - 9 years purchasing


experiences;

f Supplier risk management and control process.

The use of China supply sources can offer significant savings against global
pricing and lead time trends. Our procedures and process minimise the risk of
dealing with the Chinese supply base and we are able to demonstrate the
success of supply from these sources from actual projects that have been
successfully completed over the last 9 years. Expenditure on materials during
this time frame is in the region of USD 2.56 billion.

Materials that have been procured include:

f Ball Mills

f Conveyors

f Reclaimers

f Structural Steelwork

f Fabricated Equipment

f Bulk Piping and Valves

f E&I equipment and material.

In addition to securing the sources of supply from technically competent


manufacturers we are also able to provide the full support necessary to
complete the logistics and export documentation where supply is for
international based projects.

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Section 7 Procurement Performance

Question 7.3

Would you be willing to consider Anglo's preferred suppliers and to incorporate


harmonized specs in your design work (where applicable)? Do you have your
own supplier management in place?

Provide description.

WorleyParsons often use client prepared suppliers lists as the basis of a


projects Bid List development process. However during the initial phase of a
project we would expect to review the client supplier list and offer comments
based on our global market knowledge and supplier performance management
requirements. Additional bidders may be aligned to the following:

f Material specification compliance

f Knowledge of client preconditioning and operational requirements.

f The geographical location of the project – this could impact Bidder


selection significantly if for example local content compliance is a
requirement.

We would also offer comment on the current performance of vendors who


appear on the client preferred supplier list and where applicable make
recommendations of areas where specific supplier management criteria should
be applied to ensure maximum performance and alignment to client or project
KPIs.

WorleyParsons are able to apply a full prequalification process to identify new


suppliers or update information on existing supply sources to ensure
compliance with general or project specific criteria.

Supplier management is completed within WorleyParsons materials


management system, SmartPlant Materials (SPM). An element of this cradle to
grave, integrated supply chain management systems relates to the
performance of suppliers which can be accessed in a real time environment via
web based performance reports.

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Section 7 Procurement Performance

Access / Experience in sourcing mining related materials and equipment

Question 7.4

Please describe your project experience in sourcing mining/processing related


equipment and materials?

Example projects in reference list.

The following gives an example of the high value mining projects that we are
currently involved with:

Gindalbie Metals – Karara Iron Ore Project

Karara Iron Ore Project highlights (Gindalbie Metals):


f CAPEX AUD 1.8 billion;

f Port / Rail / Mine development;

f Procurement workshare with Beijing office;

f Approx 50% of equipment packages will be sourced in China;

f Full procurement team in Beijing supports overall project Procurement


Manager and his team in Perth;

f Beijing team comprises – Procurement Manager, Buyers, Expeditors,


Logistics Coordinators and Inspectors.

API (Australian Premium Iron) West Pilbara Project

f CAPEX AUD 3.9 billion (Status – DFS).

FMG (Fortescue Metals) Pilbara Iron Ore and Infrastructure


Project

f CAPEX AUD 3.6 billion (Status – commissioning).

These projects include both Procurement and Contracts services. FMG and
Karara projects as mentioned include Chinese Procurement involving
MaisonWorleyParsons. Please refer Attachment 14.7 which gives an example
of the materials we have experience of procuring that directly relate to mining
projects.

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Section 7 Procurement Performance

Question 7.5

What is your view on sharing scale advantages due to cross-customer


sourcing bundling potential in materials and equipments?

Since most of our projects are procured on client paper or on behalf of our
clients the opportunity to maximise leverage and bundling potential is governed
by the schedule, status and specification of materials for individual projects. To
progress a true bundling strategy we would need to develop a cross-customer
alignment principle which would be dependent upon similar projects running
concurrently.

However we have successfully used our position across multiple mining


projects to negotiate with some of the major suppliers of common mining
equipment due to our market knowledge of price trends and lead time
expectations. We have also negotiated agreement on certain T & C’s with
major suppliers where concessions on similar clauses were granted and then
applied to other projects and customers. We are also able to monitor global
pricing trends not only for the main equipment but also spare parts. Whilst this
is not “bundling” of equipment it does demonstrate how we can bring some
leverage to bear because of our spread of projects and global position within
the supply base.

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Section 7 Procurement Performance

Question 7.6

Do you have long term relationships/ contracts with major suppliers in the
mining industry? Do you re-bid on regular basis to stay within market prices?

List of relationships and typical bid cycle.

WorleyParsons does not have formal long term contracts with major suppliers
because our projects and selected vendors tend to be specific to the client and
or project. We do have extensive experience with the procurement of
equipment and materials for mining projects, including supply from China
where we have been successful in providing clients with significant cost
benefit. The global supply base of the major components for mining projects is
limited and our position as one of the major EPCM contractors in this sector
ensures that we are able to monitor performance and pricing trends of key
vendors. Since we are continually in contact with these vendors we have
developed long term relationships with senior management and are therefore
able to influence performance at varying levels on behalf of our clients.

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Section 8
Procurement /
Quality Assurance
Scorecard
Request for Information - Global EPCM Services

Section 8 Procurement / Quality Assurance Scorecard

Question 8.1

Which quality certifications do you hold?

List of certificates.

WorleyParsons and its associated entities operate a Quality Management


System (QMS) independently certified by accredited bodies as compliant with
BS EN ISO 9001:2008 – Quality Management Systems – Requirements. The
certificate of approval for WorleyParsons Limited is appended as Attachment
14.8.

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Section 8 Procurement / Quality Assurance Scorecard

Question 8.2

Does your company have a corporate quality policy and/ quality manuals?

Provide description of quality policy and manuals

Corporate Quality Policy

WorleyParsons Corporate Quality Policy is shown on the following page.

The management principles and practices employed by WorleyParsons and


that conform with the intent of ISO 9001-2008 place considerable emphasis on
the following quality management principles:

f Leadership;

f Involvement of people;

f Process approach;

f System approach to management;

f Continual improvement;

f Factual approach to decision making;

f Mutually beneficial relationships.

The principles are reflected in the company’s quality policy and team mission
statement to lead improvement in customer satisfaction and business
performance by:

f Engaging and coaching our people and stakeholders;

f Maintaining an effective and flexible enterprise management system;

f Independently verifying the quality of our services;

f Analyzing performance and encouraging improvement.

Quality Manuals

WorleyParsons Quality Manual provides an overview of the quality


management principles and practices employed by our company and its
associated entities and projects. Please refer Attachment 14.8 for a copy of
this document.

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Section 8 Procurement / Quality Assurance Scorecard

Figure 8.2-1 Quality Policy

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Section 8 Procurement / Quality Assurance Scorecard

Question 8.3

Do you have dedicated quality management resources and transparent


process to ensure quality in procured materials & equipment?

Provide description of quality management process and list of dedicated


resources.

Quality Management Resources

Quality Management services are globally integrated and delivered via a 400 +
strong team of quality managers and representatives reporting functionally to
the executive via the Quality Director - Corporate. Our Corporate Quality
Management Organisational Chart is shown below in figure 8.3-1.

Figure 8.3-1 Quality Organisation Chart

Quality Organization – Quality Leadership Team

Procurement Director Quality Director

Greta Ooms Ted Fletcher


Management Systems
Administrator - Corporate
Inspection Services Manager – Wendy Rout
Corporate
Stephen Wittrock Quality Team Facilitator
m
Tania Regan

Regional Quality Manager Regional Quality Manager Regional Quality Manager Regional Quality Manager
USA/LA Europe/Africa ANZ Canada

Bill Beck Alan Roberson James Lim Anthony Seddon

Regional Quality Manager Regional Quality Manager Regional Quality Manager Regional Quality Manager
SEA China ME KSA

Taban Naiyare Ma Zhengren Terry Shields Lindsay Bennier


Revision-Sept08

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Section 8 Procurement / Quality Assurance Scorecard

Introduction to our Quality Systems and Processes

The WorleyParsons Project Management Process (WPMP) and the Enterprise


Management System (EMS) form the two components of WorleyParsons’
systems which work together to deliver quality assured results on projects.

WPMP defines the way projects are to be planned to ensure quality, efficiency
and consistency in delivery. WPMP provides a common framework for project
execution which is applied to all project activities across the WorleyParsons
Group. Once this planning is complete (in all aspects and areas), EMS
provides the project team members with the procedures, guidelines, forms and
templates to deliver the project.

Figure 8.3-2 How WPMP and EMS Interrelate

Policies
Procedures

Forms EMS
Templates
Guidelines

Project Plans
Procedures
Instructions

WorleyParsons Project Management Process (WPMP)

WPMP is a risk-based process for developing (and supporting) a Project


Execution suited to the needs of the project. The key determinants are:

f Project Risk Classification;

f The Phase of the Project (Identify, Evaluate, Define, Execute, Operate);

f Scope of Services.

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WPMP aligns with the Project Pursuit and Project Delivery sections of
Engineering Management System (EMS) and references the procedures,
guidelines, forms and templates contained within EMS.

Enterprise Management System (EMS)

WorleyParsons’ Enterprise Management System Version 3 (EMS V3) contains


the procedures, guidelines, forms and templates used by WorleyParsons to
deliver management system documentation to our global community. The EMS
framework is based on ISO 9000 management system principles and provides
the basis for certification of our management systems to ISO 9001.

A key principle of management systems theory is adoption of the ‘process


approach’ which recognizes that ‘a desired result is achieved more efficiently
when activities and related resources are managed as a process’. Whilst the
system is administered by the Quality Group, each business system has a
Business Process Owner responsible for the management of the content for
that process and for implementing improvements to the system arising from
management reviews.

Our business processes define the way in which we operate and are presented
within the Enterprise Management System in the following key elements:

f Leadership;

f Strategy and Business Planning;

f Business Monitoring, Reporting, and Communication;

f Risk Management;

f Business Continuity;

f Health Safety and Environment;

f Quality Management;

f Human Resources;

f Finance and Administration;

f Information and Communication;

f Document and Data Management;

f Pursuit;

f Integrity and Business Improvement;

f Project Management;

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Section 8 Procurement / Quality Assurance Scorecard

f Project Controls;

f Cost Estimating;

f Engineering;

f Procurement;

f Construction;

f Commissioning;

f Project Assurance.

Documents related to these elements are structured in the following levels:

f Policy statements and directives;

f System Description Manuals;

f Process workflow diagrams, task sheets, procedures, guidelines, work


instructions and forms including any entity or project specific documents;

f Project specific execution plans, associated procedures/instructions,


schedules, deliverables;

f Records as specified by corporate or project system requirements.

Through our Engineering Management System, WorleyParsons is able to


guarantee quality in the procured materials and equipment we purchase on our
customers’ behalf. We are able to effectively implement supplier evaluation
and selection processes and to plan and undertake risk-based inspection and
testing programs which ensure that products and supporting documentation
conform to specified requirements.

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Section 8 Procurement / Quality Assurance Scorecard

Question 8.4

Do you have experience in contract management? Would you have the


resource to handle additional sub-contracting turnover?

Provide description of contract management experience.

Example projects in reference list.

Estimation of additional turnover.

Contract preparation and implementation management are an integral part of


WorleyParsons Procurement and Contracts activity. Within our global
organisation we have approximately 200 contract management / administration
personnel who are qualified to complete the following contracts activity, which
is generally executed on behalf of our clients:

f Contract strategy development

f Contractor quantified pre qualification process

f Bid List development criteria

f Preparation of Tender documents and ITT administration

f Bid evaluation process

f Development and preparation of formal Contract documents

f Contract administration and implementation

f Claims management

Our managed procurement spend is approx. US$15 billion on an annualized


basis which accounts for both materials and contract. Current mega projects
(those in excess of USD 1 billion Total Installed Cost) are being executed in
Saudi Arabia, Latin America, SE Asia, Western Australia, UAE, Africa and
include projects aligned to those that Anglo American may include as part of
your core business.

All contract activity, from contract development through to final close out, would
be managed in our corporate Contracts Management system ‘Upside’. The
WorleyParsons Enterprise Management System (EMS) contains specific
documentation relating to the execution of Contract activity and includes:

f Directives and Policies

f Procedures and Guidelines

f Templates, Forms, Checklists

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Section 8 Procurement / Quality Assurance Scorecard

f Project Contracts Plan development requirements

f Contracts Initiation

f Enquiry preparation to tender

f Tender evaluation to contract

f Contract Post-Award

f Contract Close-out

Each project, where Contracts are included within our scope, will have a
Contract Plan developed which starts from the procurement strategy and
details the overall contracting approach for the project

The Contract Plan development is an integrated process involving


Construction, Engineering, Quality, HSE, Project Management, Tax Advice and
Procurement

For major contracts, a specific package strategy is developed to address the


prequalification requirements, appropriate compensation approach and contract
model that may be used, and consideration of possible incentives based on
agreed ‘key performance indicators’ Each contract is evaluated and aligned
with the overall project Construction requirements.

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Section 8 Procurement / Quality Assurance Scorecard

Question 8.5

What is your experience with 3rd party inspections? Do you have contracts
with 3rd party inspectors?

Provide description of experiences with 3rd party inspection; status on contracts


with 3rd party inspectors.

Quality Control / Inspection services are an integral part of our Quality


Management System and are detailed in our EMS. Our goal of service is
achieved by utilizing our global network of Regional Inspection Managers and
Project Inspection Coordinators. These individuals along with strategically
located inspectors are situated in geographically desirable locations around the
world.

WorleyParsons have a wide range of Global inspection service contracts with a


broad range of inspection bodies. For example, we are currently completing a
Project in London where we have managed third party inspection services in
Europe, the USA, South America, Japan, Korea, Malaysia and Russia for oil
and gas equipment components with a total value exceeding $US3.5 Million.

The WorleyParsons Inspection Team is committed to its Goal of providing


Correct, On-time and Competitive Inspection Services to "Support and
Enhance our Project Execution and Delivery – if it can be made we can
inspect it!”

List of Inspection Services Provided

f Project Inspection Planning

f Project Inspection Coordination

f Document Review (Supplier Data & In-House created)

f Project Pre-Inspection Meetings

f Compliance Inspections to ensure order Compliance and/or advice of Non-


Compliance

f Order Inspection Reporting

f Order Status Reporting

f Order Inspection Releases

Page 10 of 10
Request for Information - Global EPCM Services

Section 9
Construction
Management
Performance
Request for Information - Global EPCM Services

Section 9 Construction Management Performance

Track record / historical references

Question 9.1

Please describe your historical track record of managing construction in mining


or mining-related projects?

Provide short description. Example reference projects.

Construction Management Capability

WorleyParsons is a Global provider of Construction Services and Management


with approximately 3,000 Construction Management professionals worldwide.
We have proven systems, processes and tools that allow us to provide a best
in class safety performance.

Historical Track Record – Mining and Mining Related Projects

Current Projects

Project Title: Shell AOSP-UE EPC (The Albian Sands Muskeg River and
Jackpine River Upstream Expansion)

Customer: Shell

Location: Alberta, Canada

TIC: >Canadian $4 billion

Contract Type: EPCM - 50/50 Joint Venture with AMEC Americas

Scope: The project consists of detailed design, procurement and


construction management of new ore crushing, conveying and
dry storage, ore preparation and rejects removal, oil sand
conditioning by slurry transport, bitumen extraction (LEE
process), tailings treatment and disposal, bitumen froth
treatment (paraffinic process), solvent recovery from diluted
bitumen, solvent and diluted bitumen storage, utilities and
infrastructure to support the processing plants, inter-site
pipelines

Facts: Project completion date of 2010

Project Title: Albian Upstream Oilsands Project

Customer: Shell

Location: Approx 100KM Northwest of Fort McMurray, Alberta, Canada.

TIC: >Canadian $5 billion

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Section 9 Construction Management Performance

Contract Type: EPCM JV with AMEC.

Scope: The project consists of 4 main silos U&O, Conveying and


Crushing, Extraction and Tailings, and Froth Treatment. With
the exception of Froth the other silos are very similar to a
Mining project. This is minable oilsands so it is a cross
between hydrocarbons and mining.

Facts: Currently >4000 personnel on the project. Construction is 55%


complete and a scheduled Pre-Commissioning completion
date of May 2010.

Project Title: Ma’aden Phosphate Project

Customer: Saudi Arabian Mining Company (Ma’aden)

Location: Al-Jalamid in Northern Saudi Arabia

Size: >US $4.5 billion TIC, approx. 400 personnel

Contract type: Engineering and PMC services

Scope: Greenfield development of phosphate mine and beneficiation


plant. Chemicals complex, town site, and related infrastructure
at Raz Az Zawr on the East Coast of the Kingdom.

Facts: When completed, Ma’aden will be the largest integrated


fertilizer plant in the world, producing some 3Mtpa of DAP.

Project Title: Karara Iron Ore Project

Customer: Karara Mining Limited (a 50:50 Joint Venture between


Gindalbie Metals Ltd and Chinese steel producer, Ansteel)

Location: Mid-West region of Western Australia

TIC: AUD $1.8 billion TIC

Contract Type: PMC

Scope: 8 MTpa Magnetite concentrator, overland power transmission


line to the minesite, establishment of water supply borefield
plus overland pipeline and intermediate surge tanks, access
road to minesite, accommodation village at the minesite, rail
line to Port of Geraldton, ore car unloader, ore storage and
reclaim facilities, dolphin berth for Panamax vessels,
telescopic shiploader.

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Section 9 Construction Management Performance

Facts: Project currently in FEED, access to site for commencement of


construction expected 1 July 2009, loadout first cargo of
Magnetite scheduled for 1st quarter 2011.

Past Projects

Project Title: FMG Iron Ore & Infrastructure Project

Customer: Fortescue Metals Group

Location: Western Australia

Size: US $2.3 billion TIC

Contract Type: EPCM project through an IPMT team

Scope: Definitive Feasibility Study (DFS), Front End Engineering


Design (FEED). Construct and commission

Facts: “Fast track” project where design, procurement, and


acquisition of government approvals was concurrent.

Mine Site - Ore receival, crushing and screening, stock piles


stacked via conveyors and a train loading facility.

Rail - A single 256 km track railway system from the mine


facilities to port facilities at Port Hedland, a marshalling yard,
workshop and rolling stock including 8 major bridges, 360
culverts, 816 ore cars.

Port - Facilities to unload trains, crush, screen, stockpile and


shipload iron ore in vessels from 50,000 to 270,000 DWT.

Miscellaneous - Support infrastructure facilities at both mine


and port including workshops, warehouses, laboratories and
administration buildings as well as support infrastructure
including water, electricity supplies, access roads, airport and
permanent accommodation facilities.

Project Title: Worsley Development Capital Projects (DCP)

Customer: Worsley Alumina / BHP Billiton

Location: Western Australia

Size: USD $216 million TIC

Contract Type: EPCM

Scope: Feasibility study in 2003 for the Brownfield upgrade to existing


refinery. 2004, awarded full EPCM which will result in annual

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Section 9 Construction Management Performance

alumina production of 250,000 tonnes at total capacity of 3.5


Mtpa.

Fact: Achieved 1.6 million manhours without a lost-time injury.


WorleyParsons provides ongoing operational support to
Worsley Alumina through a long term Improve contract
relationship.

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Section 9 Construction Management Performance

Question 9.2

Do you have access to a network of experienced (pls. reference) construction


companies?

List of cooperation partners.

The below list gives an indication of the construction companies we use:

Australia

f United Construction (Mechanical, Structural and Piping)

f John Holland Services (Construction Services)

f Thiess (Earthworks and Civils)

f Leighton (Earthworks and Civils)

f Broad Construction (Earthworks and Civils)

f CBI (Tanks)

f Transfield Services (Construction Services)

f Monodelphus Engineering (Mechanical, Structural and Piping)

f Downer (Electrical and Instrumentation)

f GBC (Earthworks and Civils)

Southern Africa

(Through PangaeaWorleyparsons and GRD Minproc Africa)

f Murray & Roberts Construction (Civils)

f Group Five (Structural, Mechanical and Piping)

f Wade Walker (Electrical and Instrumentation)

f WBHO Construction (Earthworks and Civils)

f B & W (Electrical and Instrumentation)

f Steffanutti Stocks

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Section 9 Construction Management Performance

South America

Construction Joint Ventures

f ARA WorleyParsons and Sigdo Koppers (CSKA)

f ARA WorleyParsons and BDS (ARA-BDS)

f ARA WorleyParsons and Mas Errazuriz (CMCA)

f ARA WorleyParsons and Licancabur Mendez Junior

Other Construction Companies Used (Non Joint Ventures)

f COSAPI

f Odebrecht

f Grana Montero

f Duro Felguera

f Skanska

f Besalco

f Echeverria Izquierdo

f Conpax

f Belfi

f Desco

Page 6 of 13
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Section 9 Construction Management Performance

Experiences / references in complex construction projects

Question 9.3

Please describe your experience in managing complex construction projects?

Provide a short description. Example projects in reference list.

Experience in Managing Complex Construction Projects

Construction Management Services

As one of the most respected international EPCM contractors, WorleyParsons’


construction management resume is both broad and extensive, and
underpinning our construction management credentials is global HSE
performance competing with any company in our industry.

Our internationally-experienced management personnel have worked with all


major EPC contractors in fabrication, installation and commissioning and
pipeline installation.

WorleyParsons’ construction management successes are highly leveraged by


integration of CM personnel into our project teams at the outset of each
project. Lessons-learned many years ago indicate the benefit of early and
frequent construction input into the design process is leveraged many times
over in the fabrication yard and the installation sites.

Beyond construction management of the conventional, WorleyParsons also


has an extensive resume reaching into all sectors of the resource industry. Our
personnel at WorleyParsons have actively participated in the fabrication and
installation support across all of our business group sectors.

We have the talent and experience to safely and professionally satisfy Anglo
American’s construction and installation programs.

Our constructability concept identifies two separate processes. The first is the
formal process characterized by a strict work regimen supported by
procedures that ensure constructability and construction input is incorporated
into the design at significant milestones of the project. This is a structured
design review through VIP workshops at intervals stipulated in the
WorleyParsons Project Management Process (WPMP) and is driven by the
Project Manager who identifies the milestones and coordinates constructability
opportunities.

The second, and what we feel is our differentiator in this industry, is our
informal Constructability Program. We have found and encourage the informal
interaction between construction and design personnel which provides a higher
level of ownership by our construction specialists as the project matures into
the Execute Stage. This is an extremely beneficial conduit in the transfer of

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Section 9 Construction Management Performance

knowledge and enabling construction input from material selections to plot


plans and construction phasing. This is enabled by early identification of
Construction Management personnel requirements in the initial phases of the
project and the subsequent mobilization of those resources onto the project
teams.

Discrete construction input is achieved by WorleyParsons via a formalized


Constructability VIP, as well as an ongoing Constructability Program. The
Constructability VIP is performed in a workshop environment, and the
Constructability Program is ongoing throughout the Select and Define Stages,
and into the Execute Stage.

The Constructability VIP is the facilitated and systematic implementation of the


latest engineering, procurement, and construction concepts and lessons-
learned to enhance offshore construction safety, scope, cost, schedule, and
quality. This VIP involves planning, design, and procurement, fabrication, with
experienced personnel to achieve the best overall project safety record, lowest
installed costs, and the shortest reasonable schedule. This effort includes
application of our lessons learned to provide a more complete selection of
constructability and offshore installation options.

WorleyParsons’ Constructability Program is a proactive approach to secure


constructability input to make optimal use of construction knowledge for
development of contracting and subcontracting plans, along with construction
plans and model reviews. The benefits of our Constructability Program, as it
applies to any Anglo American scopes of work, could include:

f An optimal balance between competing factors of cost and schedule, while


complying with BP’s requirements of safety, quality, operability and
maintenance

f Lessons-learned from previous projects, as well as from ongoing parallel


call-offs, are incorporated

Construction Planning and Strategies:

f Early involvement in strategy development -Saves money

f Safety planning

f Site logistics

f Labor studies

f Constructability studies and reviews

f Contract strategies

f Incorporate local knowledge

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Section 9 Construction Management Performance

f Contractor prequalification

f Construction input to develop the project schedule and cost estimate

Execution Phase Construction Management

Site management team, experienced personnel providing assurance:

f HSE

f Quality

f Cost

f Industrial Relations

f Schedule

f Material Management

f Management of contractors

f Progress and quantity measurement

f Field engineering

Modularization

WorleyParsons has provided innovative and world-first modular solutions to


solve the unique challenges associated with our customers’ grassroots mega-
projects in remote locations and harsh environments. Opportunities with
potential contractors and module fabrication yards should be explored as early
as possible to provide as much time for these parties to put together alliances
or other strategic courses of action that may benefit both the project and the
party concerned.

As an integral part of an execution plan, cost saving initiatives to minimise the


capital cost of developing the processing facility are sought. One of these
initiatives will be the objective of securing maximum benefits from the utilisation
of cheaper offshore labour, again within the boundaries of the project’s
objectives. Modularisation, pre-assembly, pre-fabrication and the maximisation
of benefits from vendor supplied items are some of the most effective methods
by which direct and indirect man-hours can be moved from the more expensive
site environment to lower cost centres offshore.

Strategy
An integrated project modularisation strategy will need to comprehensively
cover the following areas:

f Definition of specific module drivers (for and against modularisation);

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Section 9 Construction Management Performance

f Limitations on module size and weight (both physical and economic


limitations);

f Scope of modularisation (the extent to which the plant will be modularised


and hence the number of manhours moved offshore defined in the module
index.

Preferred fabrication shops (defining labour cost and productivity benchmarks,


supplemental management and systems requirements and logistics costs)

f Control of fabricators including contract strategy and responsibilities;

f Scope of work interface between fabricators and job site;

f Work scope to put into each fabrication yard (defining the split of manhours
and risk);

f Module erection methods to be adopted (defining erection costs);

f Module transportation systems to be adopted (defining transport costs);

f Materials Management including material supply to fabrication shops;

f Schedule (interface schedule of fabrication and installation);

f Cost estimate.

Managing Industrial Relations

Coordination of employee relations


The construction management team is responsible for the development of a
Project-specific employee relations management plan and take ownership of
its implementation, and ongoing maintenance. This ensures total project
alignment. The Construction management team have access to experienced
human resources and employee relations professionals to assist them with
strategy development and implementation and will utilise industrial relations
consultants where appropriate. Continuous improvement principles apply
equally to Employee Relations

The culture of continuous improvement will apply to employee relations as with


all other areas of the project. WorleyParsons have a structured process
ensuring regular communication between the construction management team
and other interested parties in the Anglo American management and human
resources teams.

WorleyParsons ensures early input in the planning stages of the Project of


appropriate employee relations and industrial relations expertise to ensure that
all people and labour management issues are accounted for in the

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Section 9 Construction Management Performance

development of options regarding the scope, type and nature of facilities,


maximising local content and fabrication and installation strategies.

Construction Work Processes and Tools

Proven Systems and Procedures:

f Construction Management – EMSv3

f Field HSE Management – EMSv3

f Project Control – Primavera / InControl

f Materials Management – SmartPlant Materials (SPM)

f Document and Data Management – SmartPlant Foundation (SPF)

f Commissioning - Completions Management Tool (CMT)

Construction Completions Services

Planning at earliest stage of project development

f Insures operational readiness

Phased approach

f Construction Verification (Mechanical Completion)

f Functional Testing

f System Commissioning

f Start-up and Ramp-up

f Operational performance testing

f Facilities turnover

Examples of Complex Minerals and Metals Construction


Projects

Base Metals

Key Customers: BHP Billiton, Xstrata, Zinifex, Inco, Intec, Spinfex Ridge, KCM
Enchana, Falconbridge, Noranda, Rio Tinto.

Key Projects:

− Xstrata Copper Slag Cleaning Project

− Olympic Dam Alliance

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Section 9 Construction Management Performance

− Nickel West Alliance

− PT Inco Electric Furnace Offgas Cleaning

− Molly Mines Pre-feasibility

− Hellyer Metals Bankable Feasibility Study

− Zinifex Port Pirie Shutdown

− Zinifex Coal Injection Upgrade

Alumina and Chemicals

Aluminium

Key Customers: BHP Billiton, Comalco / Rio Tinto (Bell Bay & Boyne Smelters
Limited), Hydro Aluminium, Tomago Aluminium.

Key Projects:
− Tomago Aluminium Alliance

− Hydro Aluminium Alliance

− Dubal Upgrade Project

− Hydro Cast house Upgrade

− S230 Large Anode Project

Chemicals

Key Customers:Saudi Arabian Mining Company (Ma’aden), CRISTAL, BHP


Billiton, Orica, AMI, FERTIL.

Key Projects:
− Ma’aden Phosphate

− Orica Yarwun 3

− CRISTAL Expansion Project Alliance

− Southern Cross Fertilisers Alliance

− AMI Melamine Project

− FERTIL Urea Debottlenecking Project

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Section 9 Construction Management Performance

Coal and Iron Ore, Steel

Coal and Iron Ore

Key Customers: BHP Billiton Mitsubishi Alliance (BMA), Fortescue Metals


Group, Rio Tinto, Hazelwood Power, Centennial Coal, Anglo
Coal, Xstrata.

Key Projects:
− Hazelwood Development

− Peak Downs 9Mtpa Upgrades

− Peak Downs Debottlenecking Feasibility Study

− Tahmoor Materials Handling

− Riverside SHECON Conveyor Upgrade

− FMG Iron Ore Infrastructure Project

− Mt Arthur North

Steel

Key Customers: OneSteel, BHP Billiton, Rio Tinto

Key Projects:
− OneSteel Market Mills Alliance

Page 13 of 13
Request for Information - Global EPCM Services

Section 10
Regional Presence /
Capabilities
Request for Information - Global EPCM Services

Section 10 Regional Presence and Capabilities

Geographical presence by region / country

Question 10.1

Which countries can you cover with your organisation (projects and
production)?

List countries.

WorleyParsons employs more than 32,200 personnel in 38 countries,


making us the EPCM provider with the greatest geographic footprint. Figure
10.1-1 below highlights our global Improve Alliance Contracts we have
undertaken. All of our offices offer a single integrated delivery platform
ensuring an efficient and effective utilzation of our global workforce, as well as
being supported by our emerging engineering centres in Beijing, Bangkok,
Kuala Lumpur and Santiago.

Page 1 of 26
Figure 10.1-1 Global Improve Contracts Map

Europe/Africa Improve Customers (3 Contracts) Canada Improve Customers (40 Contracts)


• Agip KCO • GUPCO • Albian Sands (Shell) • Devon Canada Corporation • Innovene • Primewest Energy
• Kazakhmys • BP • Enbridge (2 contracts) • Layton Bros Construction Co • Shell (2 contracts)
• BP Canada Energy • Encana • Nexen Canada • Shell Chemicals
• BPXA • EPCOR • Oilsands Quest Inc • Suncor (3 contracts)
• Chevron • Flint Transfield Services • Ontario Power Generation • Syncrude (2 contracts)
• CH2M Hill Canada Ltd • Great Western Containers • Pengrowth • Talisman
• City of Calgary • Husky • Petro-Canada (4 contracts) • TransCanada
• ConocoPhillips Canada • Imperial Oil (3 contracts)

RUSSIA

CANADA
Asia/Middle East Improve Customers (30 Contracts)
EUROPE • Al Khafji Joint Operations (KJO) • Optimal Chemicals
• ASEAN Bintulu Fertilizer • Oryx GTL
• BASF Patronas Chemicals • Petronas Carigalli UNITED STATES
ASIA • BP Chemicals • Petronas Gas
• Brunei LNG • Petronas Penapisan
• Brunei Shell Petroleum • Petroleum Development Oman (2 contracts)
• Celanese • Polyethylene Malaysia
MIDDLE • CP Kelco • Qatar Gas
EAST • CUEL Limited • RasGas
• Dupont • Sarawak Shell Berhad (2 contracts)
• Ethylene Malaysia • SASREF
• MTBE Malaysia • Saudi Aramco
• Malaysia LNG • Shell Refining Company
• Occidental Petroleum Qatar • Total E&P Borneo

SOUTH AMERICA

AFRICA
AUSTRALIA

Australia/New Zealand Improve Customers (51 Contracts)


• Apache • ExxonMobil Altona • OneSteel Market Mills
• Bell Bay Power • FMG Heavy Rail • OneSteel Whyalla NEW ZEALAND
• BHP Billiton Inland Power • GEMCO • Oz Minerals (Rosebery)
• BHP Billiton Nickel West • Griffin Power • Qenos
• BHP Billiton Olympic Dam • Horizon Energy • Rio Tinto Yarwun US/South America Improve Customers (20 Contracts)
• Bluescope Steel Westernport • Huntsman Chemicals • Shell Todd Oil Services • Arizona Public Service • Progress Energy
• BMA Goonyella Riverside Mine • Hydro Aluminium • Solid Energy • ConocoPhillips • PSEG
• Boyne Smelters Ltd (BSL) • Incitec Pivot Geelong • Sydney Water (3 contracts) • Consumers Energy • Reliant Energy
• BP Refinery Kwinana • Incitec Pivot Phosphate Hill • Tomago Aluminium • ExxonMobil (2 contracts) • Shell
• Caltex Kurnell • Inco Vale Goro • Vector Energy (2 contracts) • Florida Power • Shell Oil Company
• Caltex Lytton • KJO • Vermilion Oil and Gas • Georgia Power • Sterling Chemicals
• Contact Energy • Liquidgas • Verve Energy • Goldman Sacks • Southern Company
• ConocoPhillips Australia • Nystar Port Pirie • Water Corporation of WA • Occidental Petroleum (Oxy) (3 contracts) • Sunbury Generation
• Earth Connect Alliance • New Zealand Refining Company • Westnet Energy • OxyChem • Tesoro Corporation
• Energy Developments • Occidental • Woodside Energy Ltd Page 2 of 26 • PPL • Tennessee Valley Authority
• Epic Energy • Oil Search • Worsley Alumina
Request for Information - Global EPCM Services

Section 10 Regional Presence and Capabilities

Figure 10.1-2 below highlights WorleyParsons Minerals and Metals Global


Capability platform.

Figure 10.1-2 Minerals and Metals Global Capability Platform

Region

USA & LAC


Canada
Europe
AMEA
ANZ

Office/s
Australia

Asia

China

Middle East

South Africa
Hub
London

Russia

Kazakhstan

Ontario

Alberta
Hub
Houston

USA

Unifield

Chile
Alumina
z z
Aluminium
z z

zzzzzz
Base Metals - concentrators
z z z Recognized Global
Leader
Base Metals – SX/EW
z International Capability
Recognition
Base Metals - HPAL
z International Technical
Recognition
Base Metals - smelters
z z z Country Capability
Chemicals - Industrial
z z z Recognition

Country Technical
Chemicals - Fine
z Recognition
Material Handling – Iron Ore
z z z z
Initiation & Growth

Material Handling - Coal


z
Steel
z z
Mining
z
Gas Cleaning
z z z z z
SELECT
z z z z z
Major EPCM
z zz z z zz z
IMPROVE
z zz
Please Note: We are currently building our Minerals and Metals capability in
South Africa and are currently building the business through both organic
growth and through working with specialist partners to provide Iron Ore, Base
Metals and Coal expertise to our customers.

Page 3 of 26
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Section 10 Regional Presence and Capabilities

Question 10.2

Do you have own administrative structures in these countries?

Description of offices/operations in countries.

In our Mineral and Metals business we have hub offices located in a number of
countries around the globe, notably Perth / Brisbane / Newcastle (Australia),
Santiago (Chile), Toronto (Canada), London (United Kingdom), Beijing (China),
Pretoria (South Africa) and Abu Dubai. Secondary level offices are located in
Houston (USA), Secunda (South Africa), Melbourne (Australia), and Calgary
(Canada). The business also has emerging offices in Sao Paulo / Rio de
Janeiro (Brazil) and Almaty (Kazakhstan).

The global hub offices have the capability to provide a full suite of engineering
and project services.

Page 4 of 26
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Section 10 Regional Presence and Capabilities

Question 10.3

Please describe your ability to partner with local companies in regions where
you have a limited or no presence.

Short description. Example projects in reference list.

WorleyParsons have a long history of leading and participating in integrated


project execution teams, alliances, joint ventures, and partnering arrangements
in remote regions where we have limited presence. We are, in some respects,
pioneers of this approach and have enjoyed phenomenal success as a result.

The partnering model WorleyParsons uses is based on mutual respect and the
understanding that local partners provide the essential knowledge to develop
their regional markets. These principles continue to prevail today in the
ongoing growth of the firm and are very much the culture of the organization

Joint Ventures in Remote Regions

WorleyParsons established relationships with local partners combine the core


strengths and capabilities of each company. They deliver the best outcomes
for our customers by providing strength through collaboration. Up until
2006, WorleyParsons had little experience working in Chile; the decision was
thereby taken to merge (50/50 partnership) with Arze, Recine y Asociados
(ARA) who have over 45 years of engineering and projects experience In
South America. In November 2006 ARA became ARA WorleyParsons;
together the companies can provide engineering services and construction
management to all disciplines including mining, iron and steel, pulp and paper,
oil, petrochemical, and construction industries. Examples of Projects carried
out by ARA WorleyParsons are shown in the attached reference list.

WorleyParsons began operating in Nigeria in 2003 with the establishment of


DeltaAfrik, operating as a 50/50 joint venture with a local company DeltaTek.
WorleyParsons made an up front investment and remained committed to the
long term development and profitability of its African business. Through the
establishment of aligned goals, access to WorleyParsons’ preferred global
software license agreements, systems and experienced resources, DeltAfrik is
now a thriving successful part of our global business.

NANA/Colt Engineering LLC was formed in 1997 when NANA Technical


Services joined forces with Colt Engineering of Canada, a WorleyParsons
company. The company was formed to provide a broader range of engineering
capabilities serving Alaska’s mining, petroleum, government and utility
industries. This is yet another example of WorleyParsons partnering with a
local company in a remote region where we previously had little experience.

MaisonWorleyParsons in China and PangaeaWorleyParsons in South Africa


are 2 other examples of WorleyParsons forming relationships with local

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Section 10 Regional Presence and Capabilities

companies in order to broaden and diversify our capability offerings to our


customers.

Project Specific Partnerships

Project "teaming agreements" and joint venture consortiums provide


WorleyParsons and other large engineering firms the advantages of using
resources for mutual business interest. The combined expertise of each
company allows for improved efficiency and cost effectiveness (lower costs
and higher profit for all concerned), increased opportunity for innovation,
empowerment and professional development of team members, and
continuous improvement in the quality of the product delivered by the
partnership.

WorleyParsons regularly partners with other engineering contractors to deliver


the most effective service to meet our customer’s needs. Recently,
WorleyParsons in conjunction with SNC-Lavalin were commissioned to carry
out a Pre-feasibility Study for Olympic Dam Operations for the Greenfields
expansion of the existing Olympic Dam facilities. Design offices in Adelaide,
Santiago and Edmonton were utilised.

We have a number of teaming agreements and other project specific alliances


in harsh climates and culturally diverse locations. These include local alliances
in the Middle-East, the Pacific Rim, China, Canada, North America, Latin
America, Europe and the FSU. WorleyParsons successful industry record in
providing engineering enables us to develop long term relationships and make
use of local resources such as Design Institutes to produce “fit for purpose”
designs. WorleyParsons has used local Design Institutes and specialist
consultants on both the Ferrexpo Poltava Mine Expansion Project in the
Ukraine and the SMR Alliance in Russia. We have furthered strengthened our
in-country presence in the FSU by forming a number of co-operation
agreements with a number of Kazakh / Russian Design Institutes and
contractors including:

f Gipronickel (Russia)

f Yuzhgiproruda (Ukraine)

f Karaganda Design Institute (Kazakhstan)

Through its local partners and contractors, WorleyParsons Infrastructure and


Environment Group can provide relevant local knowledge of environmental
issues and regulatory authority requirements.

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Section 10 Regional Presence and Capabilities

Flexibility to deploy staff to remote areas

Question 10.4

Can you provide the flexibility to deploy qualified staff to on-site assignments in
remote areas in countries/regions where Anglo American is currently or will be
pursuing projects?

Provide view on staff deployment. Example projects in reference list.

WorleyParsons has the flexibility to deploy staff to sites in remote


regions/countries and regularly does so as a part of our day to day business
practise. Many projects WorleyParsons undertakes are executed in harsh
climates that are culturally diverse.

In 2007 WorleyParsons established an Improve contract with SMR (part of the


Basic Element Group) to provide project delivery services for their operations
across Russia. SMR is engaged in the exploration, extraction, enrichment and
metallurgical processing of copper and molybdenum and is the largest
molybdenum supplier in Russia and one of the largest suppliers of
ferromolybdenum in the world. The mobilization was particularly challenging
given the remote location, travel logistics and visa restrictions.

Despite these challenges the new Improve team was fully operational within a
short period of time, with communications and management systems in place
for project development and delivery. As a result SMR now has the capability
to develop and manage a large portfolio of projects throughout Russia utilizing
WorleyParsons’ systems and processes to ensure predictable outcomes for
their capital investments.

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Section 10 Regional Presence and Capabilities

Question 10.5

Do you have an expatriation policy to move people on fast track?

Provide description of policy.

WorleyParsons has a proven streamlined mobilization process which enables


us to tailor the services we provide to customers’ unique needs.
WorleyParsons achieves core consistency and delivers a proven streamlined
process through a standard suite of systems, tools and processes.

Our Improve suite of tools is then tailored to meet each customer’s


requirements. The emphasis we place on achieving seamless and fast
mobilization means we have reduced our average mobilization time to three
months. For example, our mobilization team successfully mobilized the Nyrstar
Port Pirie Alliance in 90 days.

“Nyrstar Port Pirie engaged Worley Parsons as their preferred Engineering


Alliance partner in mid 2006 and the benefits have been significant and
immediate. Mobilisation to site was complete within 90 days, resulting in an
integrated team of dedicated Alliance and Nyrstar seconded professionals.
Highlights for FY2007 included delivery of critical projects around the Slag
Fuming Coal Injection upgrade and Copper Plant Structural Recovery.
Critically, the commitment to on-time and within budget delivery of the capital
plan was fully achieved.” Matt Howell - Nyrstar Port Pirie, General Manager

Another example of WorleyParsons fast track mobilisation process can be


seen in 2003 when WorleyParsons was selected by Tomago Aluminium
Corporation (TAC) at Tomago, NSW, Australia to implement an Improve
contract. TAC is the largest aluminium smelter in Australia and had for several
years operated with an outsourcing arrangement for supply of engineering
services and project delivery. Due to the need to ensure continuity of project
delivery and a smooth transition from the existing engineering contractor, a
mobilization plan was implemented by us to take over project delivery within 60
days of notification by TAC of WorleyParsons selection for the contract. This
target was achieved and within 120 days the new Improve team was fully
operational. The transition from the previous engineering contractor was
completed on plan without significant plant interruption, all key projects were
executed to targets and a smooth transfer of key staff to the new team
occurred.

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Section 10 Regional Presence and Capabilities

Question 10.6

Can you provide the flexibility to deploy qualified staff to on-site assignments in
remote areas in countries/regions where Anglo American is currently or will be
pursuing projects?

View on staff deployment. Example projects in reference list.

This question is the same as 10.4 – please refer to this question for our
response.

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Section 10 Regional Presence and Capabilities

Language

Question 10.7

Can you provide multi-lingual, e.g. Spanish/Portuguese, and English staff?

f % of bi-lingual staff

Yes, all WorleyParsons offices located in non-English speaking countries have


bi/multi lingual staff. For example in our China, Malaysia, Thailand, Chile,
Russia and Kazakhstan offices, approximately 85%-95% of staff are bi-lingual.
The percentage of bi-lingual staff is smaller in English speaking countries -
notionally 20% of staff.

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Section 10 Regional Presence and Capabilities

Resource Cost

Question 10.8

What are your resource cost by seniority and discipline; please provide
regional differentiation, e.g. South Africa, South America etc

f €/time unit

f Breakdown by discipline

To provide Anglo with an understanding of our rate structure across a selection


of hub offices around the globe, we have prepared the below table (figure 10.8-
1). Indicative rates for a number of standard, generic classifications have
been provided in US Dollars, for our Perth, Brisbane, Pretoria, Beijing and
Santiago offices. Whilst it must be stressed that these rates quoted in US$ are
indicative as at the timing of this submission to Anglo, they provide an
understanding of our regional differentiation across the selected locations, and
the opportunity for Anglo to place work across a range of locations to ensure
quality delivery at an optimised cost.

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Section 10 Regional Presence and Capabilities

Figure 10.8-1 Indicative Resource Cost by Location

Location South Africa Australia Australia China South America


(Pretoria) (Perth) (Brisbane) (Beijing) (Chile)

Classification

Project $90.00 $155.00 $141.00 $48.00 $95.00


Manager

Study $90.00 $155.00 $141.00 $48.00 $95.00


Manager

Engineering $105.00 $155.00 $141.00 $48.00 $95.00


Manager

Senior $82.00 $140.00 $128.00 $48.00 $60.00


Mechanical
Engineer

Senior Civil / $82.00 $140.00 $128.00 $48.00 $60.00


Structural
Engineer

Senior Electrical $82.00 $140.00 $128.00 $48.00 $60.00


/ Instrumentation
Engineer

Senior $82.00 $140.00 $128.00 $48.00 $60.00


Process
Engineer

Mechanical $65.00 $105.00 $100.00 $38.00 $50.00


Engineer

Lead $75.00 $115.00 $112.00 $30.00 $50.00


Designer

US$1.00 = AUD$0.65 = ZAR10.00 = RMB6.84 = CLP623.00 as at 23/01/09.

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Section 10 Regional Presence and Capabilities

Global resource / capability set-up

Question 10.9

What are your resource cost by seniority and discipline; please provide
regional differentiation, e.g. South Africa, South America etc

f €/time unit

f Breakdown by discipline

This question is the same as 10.8 – please refer to this question for our
response.

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Section 10 Regional Presence and Capabilities

Question 10.10

How many Project Management Professionals (PMPs) are employed with your
organisation?

Provide number of PMPs in supplier’s staff.

WorleyParsons employs approximately 6,700 Project Management


Professionals. Please see Question 10.11 overleaf which gives a further
breakdown of this number by region.

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Section 10 Regional Presence and Capabilities

Question 10.11

How is your availability of resources of different skill levels by region?

Resource distribution by region

f % of skill levels.

Figure 10.11-1 Availability of Resources

LATIN
AMERICA/ MIDDLE
Category USA CARIBBEAN CHINA SEA ANZ EAST CANADA AFRICA EUROPE UK
Engineering
& Design

Civil 9 15 136 261 437 178 561 13 46 114

Electrical 428 42 82 229 476 191 728 33 54 63


Instrument
& Control 290 28 88 228 282 268 664 31 44 80

Mechanical 477 59 82 177 712 191 672 41 34 81

Pipelines 15 30 318 286 204 216 845 89 47 92

Process 351 11 116 215 322 144 444 43 39 168

Structural 471 69 72 129 469 62 145 51 1 1

Project
Management 1,186 170 226 568 1,730 625 1,615 184 166 237
Construction
Management 741 23 81 236 523 300 920 22 39 27
Procurement
Services 210 7 120 79 201 80 270 56 20 34
Commissioning
& Start Up 0 0 0 1 68 6 9 5 1 1
Management
- Risk 4 0 0 1 9 13 3 13 0 0

HSE 40 8 16 95 159 24 56 20 8 13
Quality
Management 44 9 8 53 74 50 59 18 7 17
TOTAL #
PERSONNEL
IN REGION 5,629 586 1,631 3,240 7,189 2,826 8,197 946 803 1,315
TOTAL #
MINERALS
PERSONNEL 50 10 80 194 1,774 682 485 15 23 50
Please Note: the Total number of Minerals Personnel in Latin America /
Caribbean does not include for ARA JV resources.

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Section 10 Regional Presence and Capabilities

Question 10.12

Which contracting types do you offer (Engineering Procurement and


Construction Management (EPCM), Engineering, Procurement and
Construction (EPC), target cost, other hybrids)?

Yes/No Additional comments

On reimbursable terms. Procurement


EPCM Yes
to be on client’s paper.

In a consortium or joint venture and


not on lump sum terms for the
EPC Yes
engineering content. Procurement to
be on client’s paper.

Turnkey/Lump sum No

But will accept similar incentive type


Target Price No
schemes.
Other (please expand
Yes Reimbursable terms.
in detail)

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Section 10 Regional Presence and Capabilities

Question 10.13

Which performance incentives do you prefer? What is your related project


experience?

Provide view on performance incentives. Example projects in reference list.

WorleyParsons believes that to enhance performance, effect significant


change in the quality of the service delivered and improve team performance,
a risk-reward payment structure based on performance incentives (KPIs), is
essential for the success and sustainability of Alliances. In this regard
WorleyParsons has extensive experience with the development and
application of KPIs to drive performance and behaviour to meet and exceed
customer expectations. There are two key components of a successful risk-
reward system, the risk-reward payment model and the KPI development, and
the measurement system.

Typically in major Alliance arrangements, WorleyParsons proposes to place


Management Fee at risk based on performance, and in return request the
customer rewards exceptional performance by WorleyParsons by matching the
at risk portion of the Management Fee, as a bonus. This model has worked
very successfully on a number of major Alliances, notably the Zinifex, Tomago
and One Steel Alliances in Australia.

KPIs under a global alliance arrangement across a number of operations and


geographical locations may vary from time to time, from project to project,
influencing performance against desired drivers and incorporating areas of
continuous improvement. WorleyParsons proposes that HSE be maintained at
all times as a KPI.

Further, we believe based on strong experience that for KPIs to generate the
right behaviours they need to be clearly-defined, measurable and
tangible/achievable. There has been an industry trend to make too complex
which does is not conducive to long-term, sustainable arrangements.
Therefore core project performance measures of schedule, cost and HSE, with
an appropriate specific project balance between some or all three, is an
approach which has considerable merit.

In the buoyant market conditions of the past five years, KPIs and the Fee
Model were often struck on major Greenfield projects, in an escalating cost
environment with projects subject to major work scope changes. Overlaying
complex KPIs in this environment, creates unachievable KPIs that add very
little to project behaviours. Fortunately the industry is in a market where KPIs
can be sensibly applied. Please also refer to our guiding principles to risk /
reward model in our response to Question 4.11.

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Section 10 Regional Presence and Capabilities

Question 10.14

Do you use framework agreements for recurring spends (logistics, steel…)

Provide description of agreements.

As mentioned in Section 7 of this document WorleyParsons provide full


procurement services but generally the purchase is made on customer’s
paperwork against their preferred supplier’s lists. For this reason we do not
hold Frame Agreements in our own name. However we are very experienced
in developing the concept of Frame Agreements on a project or customer
specific basis. The development of Frame Agreements has covered the
commercial benefit of reoccurring spend throughout the life of a project but
also aligns the operational requirements of a facility with regard to inventory
management, operator training and HSE issues.

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Section 10 Regional Presence and Capabilities

Question 10.15

Regarding the International terms and conditions for, e.g., "New Engineering
Contract (NEC)" or "International Federation of Consulting Engineers (FIDIC)";
which stated clauses would you modify, qualify or replace?

Provide view on NEC FIDIC

WorleyParsons’ aim is for the Contract terms to be appropriate to the type of


work being undertaken. In any contract be it engineering, consultancy or
construction we would expect to find the following terms:

f The Contractor/Consultant’s liability whether arising for breach of the


contract or in tort (whether or not involving negligence) or for breach of
statutory duty howsoever arising shall be subject to an overall limit at a
mutually agreed percentage of the Contract Price.

f The contract shall include a mutual waiver of liability for any loss of profit,
loss of use, loss of production, loss of contracts or for any financial or
economic loss or for any indirect or consequential loss.

f Payment terms shall not be cash flow negative for the


contractor/consultant.

f Currency/currencies of payment in the contract to be the same as the


currency/currencies of expenditure or currency fluctuation to be at client’s
risk.

f Contractor to have the right to suspend for non payment or other material
breach by the client if, after due notice, the breach is not rectified. If the
breach continues the contractor to have the right to terminate the contract.

f Warranty period to commence from completion of WorleyParsons’


services.

f Warranties for defects to be capped.

f Observance of a United Nations, bilateral Australian, US or European


sanctions, trade restrictions or embargoes.

f Indemnities for personal injury and death to be mutual.

f Indemnities for property damage to be mutual.

f Contracts not to be of a restrictive nature so as to prevent the contractor


from working for other clients.

f We would not expect to enter into collateral warranties.

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Section 10 Regional Presence and Capabilities

f We would expect dispute resolution to be held at a mutually acceptable


neutral venue i.e. one of London, Geneva, Paris, New York, Singapore.

FIDIC terms are preferred over NEC. NEC is written with the UK Construction
Act in mind and is not considered a true international form of contract.

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Section 10 Regional Presence and Capabilities

Question 10.16

What professional indemnification (PI) cover do you provide?

Details of insurance policies in place at corporate level.

WorleyParsons holds world wide Professional Indemnity cover. The level of


cover is sufficient to cover WorleyParsons usual contractual commitments. If
an unusually high level of Professional Indemnity cover is required for a
particular project then WorleyParsons could approach the market for a project
specific policy at the client’s expense.

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Section 10 Regional Presence and Capabilities

Supplier’s Vision

Question 10.17

Please describe your plans for future involvement and business development.

View on future business strategy.

As a Minerals & Metals business, the Company has achieved strong


geographical and market growth over the past five years. Globally as a peak
workforce approaching 3,600 people, it has strengthened its global reach with
a network of hub offices now located in Perth, Brisbane, Newcastle, Santiago,
Toronto, Pretoria, London, Beijing and Abu Dubai. It also has emerging offices
in Sao Paolo and Rio de Janeiro (Brazil) and Almaty (Kazakhstan).

While the business has considerably enhanced its reputation as a recognised


major project delivery contractor, through projects such as the Fortescue
Metals Iron Ore Project, it continues to service the entire project development
process. The origins of the Minerals & Metals business come strongly out of
the recognised delivery of brownfield sustaining capital projects, and this
market segment continues to be vital to delivery of its business model. As
highlighted in earlier responses, much of this segment is captured in long-term
Improve relationships.

WorleyParsons has achieved recognition in the international minerals


processing industry, as a leading contractor servicing the base metals, iron
ore, coal and light metals sectors. Our business initiatives in the Former Soviet
Union and Sub-Saharan Africa have considerably strengthened capability in
precious metals.

Clearly the global downturn and depressed commodity prices will result in
adjustments to future business strategy. In this regard the Company will shortly
commence its global strategic planning process in preparation for the 2009/10
Financial Year. Regardless of any adjustments arising from that process, there
are a number of key elements of the Global Minerals and Metals Strategy that
will continue to be implemented across the current downturn, as unequivocal
long-term commitment to the industry.

The business has been highly successful in the delivery of long-term


partnering arrangements Improve, particularly in Australia. A strong focus
going forward will be applying the Improve model globally. It is for this
compelling reason that WorleyParsons has embraced this major opportunity
with Anglo with such vigorous commitment. The alignment of Anglo’s “One
Anglo” Supply Chain Project and our global industry strategy are viewed as a
very close fit.

While acknowledging the challenge of future market conditions, the business


remains committed to strengthening of its well-developed global reach, through
retention/recruitment of key personnel across the global network, and the

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Section 10 Regional Presence and Capabilities

continued drive for enhancement of systems. The current global roll-out of our
OneWay™ initiative (enterprise wide framework for Zero Harm vision) is clear
demonstration of that ongoing commitment.

WorleyParsons has made considerable progress over the past five years in
developing a suite of high-quality front-end feasibility capabilities Select around
the globe, built around key technologies. While we will see a marked downturn
in Greenfield major project activity in a number of commodities, these “centres
of excellence” will take on key importance to meet a growing pipeline of
feasibility work. By way of example, the Perth office has firmly established itself
as the centre of excellence for iron ore materials handling, and delivery of
major “pit –to-port” projects. Through the ARA Joint Venture in Santiago, this
office has built a centre of excellence around base metals flotation technology
and is rapidly building its SX-EW capability. The Melbourne office has
developed a strong capability in base metals smelting and gas cleaning.
WorleyParsons will remain proactive in the recruitment of key individuals to
further strengthen these Select centres.

Delivery of major projects such as the Fortescue Metals and Karara Iron Ore
Projects has enabled the business to develop a globally recognised capability
in “pit-to-port” mega projects. This capability harnesses the full multi Customer
Sector Group (CSG) offering which includes significant infrastructure and
power capabilities. The significant experience of the major Hydrocarbons CSG
is also applied through their immense procurement, logistics and construction
management knowledge developed on often very remote projects in harsh
environments. This “pit-to-port” capability has been applied from the very early
stages of these projects to achieve clear project definition (both technical and
delivery) and certainty, with the Perth office having been involved in all
feasibility phases of these major projects.

We also believe it is good environment to refine and further build our emerging
High Value Project Delivery (HVPD) Model, as it will be a better market
environment for clients to fully appreciate its value. The model largely built
around the Company’s established and 1,500 person business in Beijing,
offers clients considerable efficiencies in project delivery across engineering,
procurement and construction management. The market response has already
been very positive, and the methodology is being applied to a number of key
projects.

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Section 10 Regional Presence and Capabilities

Question 10.18

Would you be willing to join in a strategic relationship?

Provide view on strategic relationship.

A strong and constant theme contained in many of our responses to Anglo, is


that WorleyParsons has used as its business cornerstone in growth of a global
business, the development of long-term contracts with key clients. The goal
behind this model, which goes back to the very early years of the Company,
was to build relationships that extended beyond the typical “one- off project”
and that would enable continuous improvement upon each subsequent project.

While initially a business model which was very successfully applied in the
Australian market, the model clearly had great application internationally as
ours and our Customers’ business globalised. Market adoption of this model
globally is demonstrated in the Hydrocarbons Customer Sector Group, where
that business has concluded global alliances with both BP and ConocoPhillips
over recent years.

Long-term relationships cannot succeed without alignment and dedication


that underpin the relationship. The culture of WorleyParsons is, and always
has been, one of open, informal communication, mutual respect and an
unwavering focus upon continuous improvement. Successful long-term
relationships require both a focus on business issues and the “softer issues” of
management, that in WorleyParsons’ view are fundamental to an enduring
relationship. Based on our experience, to be successful in long-term
relationships:

f Owner and contractor must ensure their own culture and underlying values
can support a long-term relationship.

f Formalized teambuilding should occur early and regularly, and this is a


cornerstone of our contract start-up process specified in EMS V3. Rapid
alignment enables faster organizational functionality, improved project
deliveries, and higher team morale.

f To reinforce that the team shall function “as one”, WorleyParsons’


leadership will amplify our cultural cornerstone of thinking and acting like
the owner.

Therefore, we regard the development of a major long-term / strategic global


alliance in our Minerals and Metals Customer Sector Group (CSG), as a logical
business outcome at this stage of the Company’s development. Besides this
supporting cultural and systems framework, as outlined in our response to
Question 10.17, WorleyParsons has a clear long-term strategy and
commitment to the global minerals / metals sector. This remains unshaken by
current sector difficulties.

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Section 10 Regional Presence and Capabilities

May we respectfully convey the firm view to Anglo, that WorleyParsons


remains ideally positioned through its global reach and systems and proven
ability to work locally, to achieve a high level of alignment with Anglo’s
business goals for its “One Anglo” Supply Chain Project. This view is
underpinned not only by our learning’s but by our sustainability and ability to
embrace the future.

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Section 10 Regional Presence and Capabilities

Question 10.19

Would you be willing to provide skilled resources and/or improved rates and/or
reduced design cost?

View on possible contributions.

In its long-term customer relationships, WorleyParsons has regularly applied


commercial structures that recognise the long-term and importance to
business sustainability nature of these relationships. Application of reductions
to design cost also need to take into consideration current market conditions,
to ensure retention of key resources. WorleyParsons would be pleased to
discuss such structures with Anglo American as part of the proposed alliancing
arrangement.

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Section 11
Financial Scorecard
Request for Information - Global EPCM Services

Section 11 Financial Scorecard

Question 11.1

Are your companies’ financials being audited on a regular basis? Yes / No.

Provide any additional information.

Yes, the financial results of the WorleyParsons group of companies are


consolidated into the audited financial statements of WorleyParsons Limited.
WorleyParsons Limited is a public company whose shares are traded on the
Australian Stock Exchange (symbol: WOR) and therefore the group’s financial
performance is a matter of public record.

The latest WorleyParsons annual report which includes audited financial


accounts for 2008 is included as Attachment 14.2.

Full copies of WorleyParsons’ previous annual reports are available on


request, or can be accessed via the group’s website www.worleyparsons.com.

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Section 11 Financial Scorecard

Question 11.2

Preferred Payment Terms. - please provide details of payment terms.

Preferred payment terms are reimbursable payment terms on a cash neutral


basis.

If anticipating the next month’s/period’s expenditure at invoicing (with


retrospective adjustment for the previous month/period) then timing should
allow for payment at 30 days. With customers who have systems to support
the arrangement, we have implemented fortnightly billing regimes.

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Section 11 Financial Scorecard

Question 11.3

Upfront Payment Requirements - please describe your upfront payment


requirements.

Up front payments should be sufficient to prevent the contractor/consultant


from negative cash flow. This will usually entail between one and three months
projected revenue depending on the projected cash flow curve for the project
or phase.

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Section 11 Financial Scorecard

Question 11.4

Has your company ever been liquidated (bankrupt) or put under judicial
management (current or previous names)?

Please answer the question and if yes please provide details.

No, WorleyParsons has never been liquidated (bankrupt) or put under judicial
management.

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Section 11 Financial Scorecard

Question 11.5

Has your company traded continuously and without interruption since


registration?

Please answer the question and if no please provide details.

Yes, WorleyParsons has traded continuously and without interruption since


registration.

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Section 11 Financial Scorecard

Question 11.6

Does your company use electronic banking facilities?

Please answer the question and provide details.

Yes, the WorleyParsons group uses its preferred list of bankers (as shown on
page 68 of the 2008 Annual Report – refer Attachment 14.2) but this is not
always possible as often there are no branches in some of the countries we
operate in. Where ever possible electronic banking is used for receipts and
payments but this would need to be clarified for each country (it is certainly
used in United Kingdom, America and Australia).

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Section 11 Financial Scorecard

Question 11.7

Are financial records kept up to date?

Please answer the question and provide details.

Yes, WorleyParsons are regularly audited by Ernst & Young - please refer
answer to Question 11.1. The half year and full year results are issued to the
Australian Stock Exchange and available to the public via our website.

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Section 11 Financial Scorecard

Question 11.8

Are there current outstanding / potential legal claims or judgments against your
company or any of its directors?

Please answer the question and provide details.

As a leading international engineering and construction management services


provider, WorleyParsons and its subsidiaries are periodically involved in claims
that may result in litigation or other forms of dispute resolution. None of these
claims, individually or in the aggregate, is material to the continued operation
of our businesses or our ability to perform our services.

Page 8 of 8
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Section 12
Sustainable
Development
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Section 12 Sustainable Development

Question 12.1

Attach is a preview of Anglo American's policy on Sustainable Development in


the Supply Chain which will be published shortly. Will your company
demonstrate commitment to sustainable development and strive to meet Anglo
American's expectations in this regard?

Commitment to Anglo's Sustainable Development – Compliance? Please give


details.

WorleyParsons has a multi-faceted approach to Sustainable Development. We


have policies and procedures that aim to ensure we inflict zero harm on the
people and environment we work with. Our engineering standards ensure that
we comply with or exceed all national and other applicable laws and
regulations. We promote and enforce world-standard ethical practices within
WorleyParsons and our sub-contractors.

WorleyParsons’ EcoNomics™ brings together and extends our range of


services in environmental, social and financial sustainability. EcoNomics™
ensures damage to the environment is minimized in the most profitable way
through the use of advanced risk management tools and strategies.

WorleyParsons maintains regional and location champions for each of their


sustainability areas to ensure open and transparent communication of ideas
and strategy is aligned though-out the organisation. Additionally,
WorleyParsons’ Enterprise Management System (EMS) provides a central
location for all policies, procedures in these areas and is accessible throughout
WorleyParsons global network of offices.

As outlined above, WorleyParsons’ ethos and practice on Sustainability issues


is well aligned with Anglo Americans’ Sustainable Development Policy.

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Section 12 Sustainable Development

Question 12.2

Any Certifications?

Yes/No Please give details

WorleyParsons Environment
ISO 14001 (Environmental
Yes Division in Europe is ISO14001:
Management) Compliant
2004 accredited.
SA8000 (Social Accountability
No N/A
Certification) Compilant?

Other?

At the corporate level we have a number of relevant environmental


certifications, such as ISO14001:2004 – refer Attachment 14.9 which has been
provided as an addendum. Moreover, we have corporate facilities
management teams that have strong sustainability drivers through
membership of the International Facilities Management Association (IFMA).

At the staff level many of our staff, particularly in our Infrastructure and
Environment Division are certified as members of organisations such as the
UK’s Institute for Environmental Managers and Auditors (IEMA), Institute for
Ecology and Environmental Management (IEEM) or international organisations
such as the International Association of Impact Assessors (IAIA).

WorleyParsons is also an entrant reporter to the Carbon Disclosure Project.

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Section 12 Sustainable Development

Question 12.3

Does your company have any policy or guidelines regarding maintaining and
promoting ethical standards, sound business practices and good governance?

Yes / No? Please give details.

Yes, the success of WorleyParsons depends on the integrity and


professionalism that we demonstrate in our day to day dealings with others. As
a business, WorleyParsons is committed to complying with the law and
conducting all activities with the highest level of integrity and ethical standards.
We uphold this commitment in the global marketplace by conducting ourselves
in a manner that protects the reputation of WorleyParsons, is consistent with
current community and corporate standards, and complies with all applicable
laws.

WorleyParsons has a comprehensive set of standards and policies aimed at


ensuring we maintain our ethical standards, sound business practices, and
good corporate governance. Our policies which are attached as an addendum
(Attachment 14.10) include;

f Corporate Governance Code and Board Charter

f Ethics Committee Charter

f Code of conduct

f Continuous disclosure policy

f Electronic Messaging conditions of use

f Information Protection conditions of use statement

f Securities dealing policy

In addition to these policies each employee undergoes a rigorous on-line


ethical training course to ensure they understand the implementation of these
standards and policies. Moreover there is an entire section of our internal web
site devoted to conduct, supported by an ethics committee of senior managers.

WorleyParsons has also recently published a Corporate Responsibility (CR)


Statement, which is a first step to a fuller and more expansive CR system. In
addition to this we understand the greatest difference we can make is in the
way we deliver projects to our customers. WorleyParsons has a service called
EcoNomics™ that bridges the gap between policy makers and actual CR
benefits that need to happen on the ground. This is our greatest contribution to
CR and is well beyond most CR thinking today.

Page 3 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.4

Does your company conform to internationally recognised labour practices? If


your company has experienced any issues relating to contravening human
rights and unfair labour practices, please give details.

Please give details if you uphold


Yes/No
these policies

Please refer to our Corporate


Prohibit the use of
Yes Responsibility Statement and Code
exploitive child labour
of Conduct – Attachment 14.10.

Please refer to our Corporate


Not tolerate forced, bonded
Yes Responsibility Statement and Code
or involuntary prison labour
of Conduct – Attachment 14.10.

Not tolerate inhuman and


treatment of employees Please refer to our Corporate
including and form of physical, Yes Responsibility Statement and Code
sexual or verbal abuse or any of Conduct – Attachment 14.10.
other forms of intimidation

Recognise and respect the Please refer to our Corporate


right of their employees to Yes Responsibility Statement and Code
freedom of association of Conduct – Attachment 14.10.

Operate fair and appropriate


means for the determination of
Please refer to our Corporate
the terms of conditions of
Yes Responsibility Statement and Code
employment including but not
of Conduct – Attachment 14.10.
limited to working hours and
remuneration.

Please refer to our Corporate


W to eliminate all forms of
Strive
Yes Responsibility Statement and Code
unfair
o discrimination. of Conduct – Attachment 14.10.

WorleyParsons conforms to internationally recognised labour practises and


has not experienced any issues relating to contravening human rights and
unfair labour practises.

Page 4 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.5

Does your company have any policies and/or management systems in the
following areas?

Yes/No Please give details

Safety Yes Refer comments below

Occupational Health
(occupational exposure;
source elimination where
Yes Refer comments below
applicable; wearing of
personal protective equipment
(PPE); Etc)

HIV / AIDS Yes Refer comments below

Environmental Management Yes Refer comments below

Other Risk Management


Yes Refer comments below
Strategies

Safety

Please refer to Section 2 Safety for detailed overview of our Safety policies and
management systems.

Occupational Health

WorleyParsons Occupational Health Standard is covered in our Engineering


Management System (EMS). Please refer Attachment 14.11 for a copy of this
document.

HIV / AIDS

WorleyParsons is concerned about all its employees and wants to ensure a


healthy and productive workforce by committing itself to providing a healthy
and safe environment in accordance with its Health, Safety and Environment
(HSE) Policy and also in compliance with current medical standards and
international requirements as they relate to HIV/AIDS.

WorleyParsons have developed HIV/AIDS standards at the risk based


approach in countries where the Company operates (e.g. Nigeria, South
Africa) and where AIDS is seen as a significant health issue. Please refer
attached HIV/AIDS Policy Document used by our South African Office
(Attachment 14.11).

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Section 12 Sustainable Development

WorleyParsons treats HIV/AIDS the same as other life threatening illnesses


and disabilities based on applicable policies and benefits.

WorleyParsons does not discriminate against a qualified individual with regard


to job application, hiring, advancement, discharge, compensation, training,
other terms, conditions or privileges of employment.

WorleyParsons sustains HIV/AIDS awareness and prevention campaign by


providing necessary information and facilities to employees and their families
on the various aspects of HIV/AIDS from time to time with a view to preventing
the further spread of the virus.

Environmental Management

Environmental management is covered by two distinct areas in


WorleyParsons.

Firstly, there is our OneWay™. In striving to achieve zero harm to people, the
environment and assets, the scope of OneWay™ covers much more than a
conventional HSE program. This system consists of HSE management
framework that integrates and aligns systems, defines accountabilities and
sets behavioural expectations that reflect a commitment to the OneWay™
values across the entire organisation. The framework consists of 12 process
steps (elements), each of which includes an underlying intent statement and a
set of activities for the effective management of HSE within WorleyParsons
globally.

Ownership and accountability rests with the entire organisation to ensure the
long term success and sustainability of the OneWay™ Management System.
The implementation of OneWay™ is not a standalone effort. It is driven by line
management and will be integrated into every aspect of business planning and
operations. The OneWay™ HSE Management System is integrated with the
overall management system, namely WorleyParsons Enterprise Management
System (EMS).

Secondly, there is our Corporate Responsibility statement and EcoNomics™


service. There is no larger benefit that we can make to the environment and
society than making sure that through our project delivery considerations for
environmental management are integrated and of the highest standards. We
do this though our EcoNomics™ service and our global team of environmental
managers that have experience in developing environmental management
systems, either cognisant or compliant with ISO 14001: 2004.

Other Risk Management Strategies

WorleyParsons has a comprehensive approach to risk management. We have


a global Risk Director who is responsible for implementing the full risk
management suite of practices at WorleyParsons. There is a risk champion in

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Request for Information - Global EPCM Services

Section 12 Sustainable Development

each location for WorleyParsons and we have trained risk facilitators who
implement the risk management process.

In addition to these general risk management procedures, WorleyParsons has


specialist capabilities in the area of Non-Financial Risk Management,
incorporated in our EcoNomics™ capabilities as an EcoNomics™ Assessment.
This Assessment helps identify project non-financial risks (to the project and
from the project) and find cost-effective and sustainable solutions to their
management. We use our specialist, proprietary Delta software to complement
EcoNomics™ Assessments and assist in identifying the best option to
minimize risk to a project. This is a world-leading service that we have
delivered for numerous mining and metal companies with significant results in
reducing business risk and bringing the issues around sustainability to the fore.

Page 7 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.6

Does your company conduct any social development initiatives in local


communities? Yes / No.

Please give details.

Yes, all of our communities are important to us, particularly in developing


countries and in times of special need. Our contributions are substantial and
are as diversified as our workforce – which design and implement the local
programs with our corporate support.

While there are no limits on the areas in which commitments can be made, a
deep and abiding dedication to education, as an asset for the community and
its future generations, has emerged – from programs to deliver used
computers to schools from Bangkok to Zanzibar; to contributions to funding of
engineering and environmental schools at universities from London to Lagos.
Scholarships we provide include those to 11 students from tsunami-affected
Banda Aceh who are studying engineering at the University of Siyah Kuala in
Indonesia and those for postgraduate education in Al Khobar, providing the
opportunity to study in Australia.

Our commitment to health, safety and the environment also comes through in
the projects our people choose for them and us to support. In Australia, the
team at Port Hedland organized an inventive program to raise funds for the
Royal Flying Doctor Service; in Nigeria the team created a safety culture in the
M&D Nursery & Primary School in Ogba, Lagos; in Houston we joined the 11th
Annual Cystic Fibrosis Sports Challenge; in the United Kingdom the Brentford
Team actively supported breast cancer research; and across the United States
and Canada funds were raised in support of United Way – to name a few.

In May this year, the earthquake in Sichuan, China caused great sadness to us
all but especially to our Chinese colleagues. Employees from all of our offices
in China donated to those in need and, with the WorleyParsons RMB1 million
donation to the Chinese Red Cross, were able to donate over RMB1.25 million.
Donations also came from our offices in Malaysia, Abu Dhabi, Canada and
Australia.

In addition, MaisonWorleyParsons joined the relieve effort through the


deployment of Mr Xu Yuning, an experienced construction manager, to support
reconstruction work being undertaken by Operation Blessing International
(OBI), a US-based humanitarian organization. Mr Xu Yuning played a leading
site management role in the villages in Yuejin County and Yongming County,
assisting OBI to rebuild damaged water supply systems, latrines and shower
facilities as well as clear extensive rubble and debris.

Please also refer to our Localisation Brochure (Attachment 14.12) which


provides in more detail social development initiatives WorleyParsons
undertakes. It highlights our capability and commitment to Localisation.

Page 8 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.7

Do you have a policy or code outlining your expectations from your suppliers
regarding sustainable development, social and environmental responsible
business practices? Yes / No.

Please give details.

For our sub-contractors, back-to-back contract design will allow for Anglo
American’s sustainable development requirements to flow through our supply
chain. Moreover, we have procedures in place to deal with contractors that can
be adapted to fit Anglo American’s needs.

Page 9 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.8

Are there opportunities for you company and Anglo American to work together
on sustainable development initiatives? (Such as energy efficiency, reducing
carbon emission, etc.). Yes / No.

Provide any additional information.

Yes, WorleyParsons understands that the most significant contribution it can


make in Sustainable Development Initiatives is through the design and delivery
of the projects that it manages for its customers. WorleyParsons’ EcoNomics™
allows sustainability and profitability to concurrently inform and influence the
engineering team’s design. This evolution allows the team to identify, assess
and develop a project design which is as sustainable as it can be from the
outset rather than as an afterthought. This can bring enormous advantages to
the project in terms of cost and time savings eliminating after-the-fact design
changes and the fast-tracking of environmental approvals.

WorleyParsons has a substantial, proven track record of achievement in


providing services and developing technologies to aid energy efficiency and
cleaner asset operation across the complex process industries. Through our
EcoNomics™ initiative, we have brought together all of our capabilities
targeted towards improving sustainability of performance and have developed
fully integrated teams around the world.

Our EcoNomics™ approach provides a service more powerful than the usual
environmental and social add-on to core engineering services. EcoNomics™ is
fully embedded and will not only deal with critical technical issues, but also
integrate the best environmental, social and financial thinking into the
engineering and management of the project to ensure the most sustainable
outcomes. This can help to realise a number of significant benefits in terms of
reducing business risk and unlocking opportunities (now and in the future);
creating long-term business resilience against regulatory, global economic and
regional climate changes, designing a facility that will operate more efficiently
with reduced OPEX, with less energy consumption and emissions; and create
a vital link with stakeholders to provide wider project support.

We welcome the opportunity to work with Anglo American in sustainable


development initiatives and look forward to the opportunity to share expertise
in this area.

Page 10 of 12
Request for Information - Global EPCM Services

Section 12 Sustainable Development

Question 12.9

What is your company's status or involvement in any of the following


initiatives?

Yes/No Please give details

Local Suppliers? Yes Refer comments below.

Minority Owner Business or


Yes Refer comments below.
Enterprise?

Supplier Diversity Program? Yes Refer comments below.

Local Suppliers

Where possible we maximise local content in our projects. A key strategic


intent for WorleyParsons when carrying out projects is the development of
local communities. In support of this we strive to maximise the use of local
goods and services without compromising cost, schedule, safety or quality.

During the life of a project we try to create an environment that will be the
cornerstone for an improvement in quality of life for local communities, support
local industry, encourage work opportunities and economic growth in the
region we are working.

The localisation focus areas for WorleyParsons engineering execution are:

f Engineering and expertising a design that complies with local codes and
standards.

f Engineering a ‘localised’ friendly design that maximises the opportunity for


in-country procurement.

f Assisting Procurement in indentifying equipment and bulk materials that


can be procured in-country. Developing nationalised Goods and Service
Action and Sourcing Plans, with the assistance of Procurement, and
identifying the potential for local currency to remain in-country.

f Subcontracting design work packages to local suppliers / design firms


(where required / possible) to maximise in-country design execution
without compromising cost, schedule, safety and quality of the project

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Section 12 Sustainable Development

Minority Owner Business or Enterprise

As explained in our response to Question 1.3, specifically in the South African


context WorleyParsons acquired 50 percent of Pangaea in 2008, with the
remaining 50 percent ownership remaining in South African ownership. The
majority of this South Africa ownership is owned by the black South African
shareholders. Please also refer to our response to the Question 1.6 requesting
provision of our Black Economic Empowerment (BEE) Status.

Supplier Diversity Program

As part of the Company’s Nationalisation / Localisation policy (refer


Attachment 14.2), WorleyParsons has a clear commitment to the optimisation
of local content through both the engineering and procurement processes both
for major projects and for ongoing in-country operations. For example, for
“Project Rio” which involved the rebuilding of Iraq’s oil and gas infrastructure,
WorleyParsons was able to meet the US Corp of Engineers’ stringent local
content criteria.

In terms of ongoing operations, WorleyParsons has demonstrated commitment


to local content through the development of significant
engineering/procurement offices with a large majority of local personnel. This
approach to local content has been “rolled-out” across the globe with such
offices in diverse places as Atyrau – Kazakhstan (300 people); Lagos – Nigeria
(670 people), and Beijing – China (1300 people). These offices develop
considerable knowledge of local suppliers/vendors/fabricators and contribute
significantly to global supplier diversity and in many cases – cost efficiencies.

The optimisation of supplier diversity through local content needs to be


balanced with the cost advantages of some consolidation with major
suppliers/vendors/fabricators, particularly in the high cost construction
environment of the past five years.

Page 12 of 12
Request for Information - Global EPCM Services

Section 13
Project Reference List
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
1 FMG - Pilbara Iron Ore and WorleyParsons provided the FEED and EPCM project delivery of the Pilbara Andrew Forrest CEO FMG TIC - 2060M Information not Information not retained 2005 - 2008 Iron Ore Design and procurement of all rolling stock for the contract via
Infrastructure Project Iron Ore and Infrastructure project, a pit to port solution for Fortescue Metals PH +61 8 9278 8112 CV - 123M retained in in Information Database. Iron Ore - Materials Handling Chinese fabricators.
Group (FMG). The project included the construction of an open-cut mine, 256 Information Available on request Marine - Ports and Harbours
km single-track railway, airfield, accommodation camps for a construction Peter Thomas Database. from project data. Marine -
workforce and the development of new port facilities at Port Hedland. The pthomas@fmgl.com.au Available on Coastal/Rivers/Estuaries
mine ore processing facilities produce 45 Mtpa of ore feed to the Head of Finance request from Resource Infrastructure -
infrastructure facilities. The infrastructure facilities, designed initially to project data. Minerals/Mining
accomodate this feed, can be expanded in the future to receive, transport, Rail - Infrastructure
store and shipload ore form additional sources. At the mine, ore from the Rail - Rolling Stock
mining operations is received via overland conveyors and crushed and Bridges, Roads and Buildings
screened to produce three product levels. At the port, facilities were installed
to unload trains, stockpile, rescreen and load iron ore product into ships.

2 Aughinish Alumina WorleyParsons provided EPCM for increasing the processing capacity of the Aughinish Alumina Ltd - Damien CV - 897,000 Information not Information not retained 2003 - 2005 Light Metals - Alumina WorleyParsons provided Engineering, Procurement and
Optimisation Project Aughinish Refinery in Ireland from 1.5Mt/y to 1.8Mt/y. Aughinish Alumina Clancy, AAL Managing Director retained in in Information Database. EPCM Construction Management for increasing the processing
Limited (AAL) operates an alumina refinery situated on Aughinish Island on Information Available on request capacity of the Aughinish Refinery in Ireland from 1.5Mt/y to
the south side of the Shannon estuary in the Republic of Ireland. AAL Database. from project data. 1.8Mt/y.
identified an opportunity to capitalise on the strong worldwide demand for Available on
alumina by increasing the refinery capacity. WorleyParsons teams based in request from
Brisbane and on-site on Aughinish Island spent 18 months implementing the project data.
upgrade work based on the scope of work jointly developed by
WorleyParsons and AAL. During this time a fourth bauxite mill, additional
materials handling conveyors and a new day bin were installed and
commissioned. The reliability of processing units within the plant were
enhanced by the provision of additional equipment and changed process
flows, and alumina quality was enhanced by the provision of additional
filtration units. The work was completed in sufficient time for AAL to achieve
their target of producing more alumina in 2006.

3 Worsley Development Alumina. F/S and EPCM TIC - 165M Information not Information not retained 2004 - 2006 Light Metals - Alumina The engineering and procurement phases were successfully
Capital Projects WorleyParsons worked with Worsley Alumina on the implementation of the retained in in Information Database. Conceptual Engineering/Pre- completed including the implementation of innovative
AUD250 million construction Development Capital Projects (DCP) from Information Available on request FEED contracting strategies which assisted the construction phasing
March 2004. A recent visit by BHP Billiton Vice President Safety indicated Database. from project data. EPCM of works to be systematically completed by a number of
that Worsley Alumina Safety systems are “BHP Billiton Best Practice”. From Available on discipline focused contractors in a Brownfield environment to
an engineering perspective a Design, Environmental Safety Review process request from the Customers satisfaction.
was implemented during Front End Loading which ensured HSE risks were project data.
identified and mitigated as early as possible in the project development
process.
4 Olympic Dam Pre- JV with SNC-Lavalin BHP Billition TIC - 6.5B Information not Information not retained 2006 - 2007 Base Metals - Copper / Mineral Available on request.
feasability As part of the Olympic Dam Expansion Project (ODX), WorleyParsons in join CV - 20M retained in in Information Database. Processing / Refining / Smelting
venture with SNCLavalin (WPSL), was commissioned to carry out a Information Available on request Conceptual Engineering / Pre-
Prefeasibility study of the greenfields expansion of the existing Olympic Dam Database. from project data. FEED
facility. The Prefeasibility Study for the Ore Processing Facility reviewed the Available on
following: • New concentrator facility • New Hydromet and Uranium Extraction request from
facilities • New Smelting facility • New Refinery • A series of utilities are project data.
required for plant operation including air compressors and receivers, oxygen
and nitrogen plants, acid plants and power generation.

5 Olympic Dam Alliance The WMC ODO Alliance (Olympic Dam Alliance – ODA) has been operating BHP Billiton TIC - 20M pa Information not Information not retained 2003 - Ongoing Base Metals - Copper Smetling Available on request.
since April 2003. The Alliance is an integrated team of WorleyParsons, CV - 3.3M retained in in Information Database. Detailed Design & Engineering,
Maunsell and WMC personnel who undertake the EPCM minor capital projec Information Available on request Procurement and Construction
work for WMC’s Olympic Dam Operation. The Alliance team consists of Database. from project data.
engineers, drafters, supervisors and support personnel. The majority of the Available on
team are based in the Adelaide Alliance office and travel to Olympic Dam site request from
on an as required basis. The project work involves preparation of the Capital project data.
Plan, developing concepts, preparing recommendations and executing the
projects with detailed design, procurement, construction and dry
commissioning. The Alliance team works closely with the client’s operations
and maintenance personnel.Nominal project value is AUD2 million, but the
alliance has delivered several projects up to AUD10 million in value. The
Alliance is responsible for projects in all areas of the plant, mine,
concentrator, smelter, refinery and infrastructure modifications. Nominal
capital value of projects managed is AUD30 million a year.

Page 1 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
6 Ma'aden Phosphate Project Ma’aden Phosphate in Saudi Arabia is set to become one of the world’s Hamad AlRashidi TIC - 4000M Information not Information not retained 2006 - 2008 Chemicals - Sulphuric Acid, A multi discipline team completed the detailed design, issued
largest producers of di-ammonium phosphate, a fertilizer for use on grain andISBL Project Manager CV - 21.8M retained in in Information Database. Fertilisers, Ammonia, Construction drawings, issued tender enquiries, tabulated bid
in horticulture. The project involves the development of an industrial city at Saudi Arabian Mining Company Information Available on request Phosphate, Phosphoric Acid analyses, issued purchase requisitions and completed vendor
Ras Az Zawr, large scale fertilizer plant, a town site, port and a 1,400 km Ph: +966 (3) 8659061 Mob: +966 Database. from project data. Front-end Engieering Design data reviews.
railway from Al Jalamid, in the northwest of Saudi Arabia, to Ras Az Zawr. 500886555 Available on and Procurement
The chemical plant facilities to be constructed at Ras Az Zawr will process Email: RashidiH@kh.maaden.com.sa request from
phosphate concentrate transported from Al Jalamid into fertilizer. The project data.
process involves the production of phosphoric acid, ammonia and sulphuric
acid to manufacture an estimated 3 million tonnes of Diammonium Phosphate
annually for export to overseas markets. Some 4.6 million tonnes of
phosphate concentrate is required to be produced annually at the mine and
beneficiation facility at Al Jalamid. Road and rail infrastructure is being
constructed to transport the concentrate to Ras Az Zawr.

7 Karara Iron Ore Project PMC role for the Design & Construction of an 11mtpa magnetite and Peter McBain TIC - 1655M Information not Information not retained 2008 - Ongoing Iron Ore Benification Significant amount of procurement and construction
haematite export project in the Mid-West region of Western Australia. The KML Project Director CV - 55M retained in in Information Database. Front-end Engineering Design, management
project consists of a magnetite concentrator and haematite crushing and T: 61 8 9480 8700 Information Available on request Procurement, Construction
loading facility, 300km of rail, new port storage facilities, shiploader and berth peter.mcbain@gindalbie.com.au Database. from project data. Management, Commissioning
and associated power (mains) and water supply to the plant. WP will take o Available on and Start-up
a significant amount of procurement and construction management request from
project data.
8 Carajas Serrra Sul Iron Ore WorleyParsons has recently entered into a contract with Vale to undertake a Vale TIC - 14-16B Information not Information not retained 2008 - 2012 Available on request.
Project feasibility study to look at Chinese sourcing and prefabrication as a means to retained in in Information Database.
reduce the equipment supply costs and improve the confidence of on-time Information Available on request
equipment/facility delivery. This study will look at the Chinese market, in Database. from project data.
relation to the procurement of major materials handling equipment for their Available on
development of expanded facilities at the Ponta da Madeira marine terminal request from
in Sao Luis. This study also includes an evaluation of implementation using project data.
pre-assembled modules for the port equipment and a Process Plant Module
study for the minesite.

9 Mufulira Smelter Upgrade, Mopani Copper Mines is upgrading its Mufulira Copper Smelter in three Mopani Copper Mines - Lawrie TIC - 70M Information not Information not retained 2006 - 2008 Base Metals - Copper, Mineral Available on request.
Phase 2 - Fire Refining & phases to reduce emissions and increase concentrate treatment capacity Hanschar CV - 7M retained in in Information Database. Processing, Refining, Smelting
Casting from 420,000 tpa to 850,000 tpa. Upon completion Mufulira will be the largest Information Available on request EPCM
copper smelter in Africa. WorleyParsons provided the basic and detail Database. from project data.
engineering, construction management and commissioning assistance for Available on
phase 2 of the smelter upgrade. This phase comprises the installation of a request from
refining and casting plant designed to handle anode copper produced from project data.
the treatment of 850,000 tpa concentrate. The key components of phase 2
are two new 400 tonne anode furnaces, a 100 tonne/hour casting plant and
an aisle extension, including electrical substation and compressor buildings.
Commissioning is underway with the construction management team
comprised of WorleyParsons international staff and locally hired engineers
and technicians.

10 Ferrexpo Poltava Mining To realise its growth opportunities, Ferrexpo Poltava Mining (FPM) is Dave Webster TIC - 1.8B Information not Information not retained 2007 - Ongoing Iron Ore Available on request.
Iron Ore Expansion Project upgrading and developing its iron ore mining and processing facilities in the Chief Projects Officer, Ferrexpo CV - 30M retained in in Information Database. Integrated Project Management
Poltava region of Central Ukraine. The expansion will increase production +41 417 693 664 Information Available on request Team, Program Management
from 9.5 Mpta to 16 Mtpa of pellets and provide an additional 4 Mtpa of Database. from project data. Consultant
export concentrate. FPM has an estimated resource of 18 billion tonnes of Available on
iron ore (predominantly magnetite) in nine deposits with an average iron request from
content of approximately 30%. Mining is currently undertaken at the Gorishne project data.
Plavninskoe and Larrikovskor deposits and development is planned for the
Yeristorskoe deposit located just north from existing operations.
WorleyParsons has entered into a Project Management Alliance with FPM to
provide program management and technical resources in workshare centres
globally to deliver the project. WorleyParsons manages several specialist
technology partners and Ukrainian Design Institutes engaged to assist in the
delivery of the project.

11 SMR Major Project and SMR manages the base metals and precious metals mining and exploration Konstantin Chugunkin SMR Business 9 Projects, Information not Information not retained 2007 - 2010 Base Metals - Copper, Gold, Available on request.
Sustaining Capital Alliance assets of Basic Element, who own 66% of United Company RUSAL, the Development Director +7 495 720 potential total retained in in Information Database. Precious Metals
largest aluminium manufacturer in the world. WorleyParsons has been 5030 (ext. 6024) capex >$5 billion; 4 Information Available on request
selected to develop a Project Delivery Alliance targeted at addressing SMR's Chugunkink@hq.basel.ru operations, Database. from project data.
concerns with current project delivery at existing plant operations. Improving sustaining capex Available on
the capital / major project management process, including the capability to $40-60M per request from
deliver business case outcomes for SMR is also within WorleyParsons annum project data.
scope. Studies for major projects will lead to an integrated EPCM Alliance
for sustaining Capital Budget implementation. Major projects include: Skopin
Upgrade, Molybdenum Upgrade and Magnitny Concentrator / Smelter
Projects.

Page 2 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
12 OneSteel Alliance This multi-site alliance is responsible for the total capital management procesJohn Monaghan TIC - 20M pa Information not Information not retained 2004 - Ongoing Steel Provide capital and major maintenance projects, technical
across all market mills sites. The primary objective of the alliance is to General Manager – Manufacturing CV - 7M pa retained in in Information Database. Conceptual Engineering, Front- support and operations support to OneSteel's Heavy Metal
consistently deliver business case outcomes for OneSteel. The alliance and Engineering Information Available on request end Engineering Design, manufacturing plants (bar, rod, wire, pipe and tube).
successfully integrates resources from the two organisations into a single OneSteel Database. from project data. Detailed Design and
team with a common goal of becoming the most successful steel company in Ph: 02 4935 5596 Available on Engineering, Procurement,
Australia. This significant business partnership encapsulates decades of monaghanj@onesteel.com request from Construction Mangement,
ferrous metals experience. Ingall St project data. Commissioning and Start-up
Mayfield, NSW
13 WorleyParsons Zinifex The Alliance involves developing and executing the capital plan for all Frank Luke – Asset Manager TIC - 17.4M pa Information not Information not retained 2007 - 2009 Base Metals - Copper, Mineral Available on request.
Rosebery Alliance brownfields projects up to AUD$5 million in value for the Rosebery mine. TheOZ Minerals Rosebery Mine CV - 4M pa retained in in Information Database. Processing, Lead, Zinc
Alliance is responsible for working with Oz Minerals (formerly Zinifex) to 03 6473 2297 Information Available on request Conceptual Engineering, Front-
develop concepts, undertake feasibility studies, and detail the engineering Frank.luke@ozminerals.com Database. from project data. end Engineering Design,
requirements, procurement, site construction, fabrication, commissioning and Hospital Road Rosebery TAS 7470 Available on Procurement, Construction
handover. The team is an integrated group of discipline engineers, drafters request from Management, Commissioning
and project engineers. Profit at risk against KPIs of Cost, Schedule & Quality project data.
(including achievement of scope requirements).

14 Expansion of PLACA In 1993 ARA WorleyParsons designed an 8 floor building but for budgetary CV - 0.1M Information not Information not retained 1993 Building infrastructure Available on request.
Building in Los Bronces reasons, only 5 floors were built. We are currently working to design two retained in in Information Database.
additional floors. Approximate area is 1,300 m2. Information Available on request
Database. from project data.
Available on
request from
project data.
15 Anglo American Open This contract is for engineering services including project control, CV - 0.5M Information not Information not retained Ongoing - 2010 Available on request.
Engineering Contract programming and cost estimating. Small brownfield and maintenance retained in in Information Database.
projects. Information Available on request
Database. from project data.
Available on
request from
project data.
16 Dampier Sampling Station WorleyParsons was commissioned to undertake detailed design and Hamersley Iron (Rio Tinto) CV - 0.3M Information not Information not retained 1999 Iron Ore - Materials Handling Available on request.
documentation of a sample station on the 11P Fines Return conveyor at retained in in Information Database.
Hamersley Iron’s Dampier operation. The project replaced an existing Information Available on request
sampler with superior equipment capable of meeting approved standards for Database. from project data.
sample collection and processing. The scope of the contract included Available on
preliminary design and costing of the project, and detailed design of request from
mechanical and structural works. The project included primary and secondary project data.
cutters, sample feeder and chutework to a collection point. Several
prefabricated sample conveyors were installed, combining the efficiency of of
site packaged equipment with the heavy duty standards required for reliable
service in the iron ore industry.

17 Nanshan Alumina Refinery Nanshan Group has developed an extensive diversified manufacturing, Longkou Donghai Alumina Company Information not Information not retained 2006 Light Metals - Alumina Available on request.
agricultural, tourism, and service industry in Nanshan and the refinery (Nanshan Group) retained in in Information Database.
(Longkou Donghai Alumina Company Ltd) is an integral part of their master Information Available on request
plan for the region. Due to soaring commodity prices and a vibrant and Database. from project data.
developing Chinese economy the client decided to develop a refinery based Available on
on imported bauxite to extract alumina and feed its existing smelter at request from
Nanshan in Shandong Province. The high cost of importing bauxite was offse project data.
by the low cost of capital in China. The WorleyParsons team, based in
Brisbane, Australia, undertook process modeling and developed basic
engineering layouts which were then detailed by a local Chinese engineering
firm. Detailed engineering was undertaken by a Chinese design institute with
WorleyParsons’ experts providing support to ensure the concepts and basic
engineering information was correctly interpreted. WorleyParsons delivered
the front-end concept and basic engineering package two months ahead of
schedule enabling the project to be completed in the shortest possible time.

18 Dian Dian Preliminary RUSAL is one of the world’s largest aluminum producers, producing 75% of TIC - 2B Information not Information not retained 2004 - 2005 Available on request.
Feasibility Study Russia’s and 10% of the world’s primary aluminum. As part of its corporate retained in in Information Database.
strategy to secure guaranteed, high quality low cost alumina for its smelters, Information Available on request
RUSAL is evaluating development of the Dian Dian bauxite deposit in Guinea Database. from project data.
West Africa. Guinea has the largest high quality, undeveloped bauxite Available on
reserves in the world. The reserves will support a large world-class refinery request from
and RUSAL selected a 2.8 Mtpa capacity facility. A comprehensive pre- project data.
feasibility study for the USD2 bn project including a mine, alumina refinery,
power station, port, and all associated infrastructure including railroad and
townships was undertaken by WorleyParsons. The study also included the
preparation of a financial model for the project. The work was carried out in
WorleyParsons’ alumina center of excellence in Brisbane with a small team in
St Petersburg, Russia, to liaise with the client’s technical group.

Page 3 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
19 Copperbelt Environmental WorleyParsons role in the Copperbelt Environmental Project was to assist theZambian Ministry of Finance and CV - 1.7M Information not Information not retained 2001 - 2006 Environmental and Social Available on request.
Project Zambian Government and World Bank with the ongoing privatization of the National Planning retained in in Information Database. Impact; Environmental
Zambian mining industry, while also maximizing the social and environmentalNormand Demers Information Available on request Management; Water Resources;
benefits to communities impacted by past mining operations. We were able toPhone: 819-953-5024 Database. from project data. Contaminated Site; Waste
achieve this by developing an integrated decision support matrix - a tool to Industrial Cooperation Program 2Flr, Available on Management; Geosciences
screen pre and post closure land use options against economic, 200 Promenade du Portage Hull, PQ request from
environmental and social criteria. This tool enabled WorleyParsons to engageK1A0G4 project data.
all key stakeholders, including the affected communities, to participate in a
rational planning process that balanced economic, social and environmental
welfare in a transparent and informed manner, bringing the greatest possible
benefit with a limited budget.

20 Double Digestion / Energy WorleyParsons undertook an optimization study to reduce digestion energy Alumina Partners of Jamaica (Alpart) Information not Information not retained 2006 Light Metals - Alumina Available on request.
Efficiency Study consumption at the facility by at least 1 GJ/t. Options considered included retained in in Information Database.
combinations of double digestion (both counter-current and parallel), single Information Available on request
stream slurry heating and pressure decantation. A systematic approach was Database. from project data.
used to generate 64 potential technology combinations and to screen these t Available on
a short-list of six realistic contenders. request from
project data.
21 Mbalam Iron Ore Project The WorleyParsons' scope for the Mbalam Iron Ore project is to undertake a Don Lewis, Chief Executive Officer, TIC - 3B Information not Information not retained 2007 - 2008 Iron Ore; Iron Ore - Materials Available on request.
concept study for the project development, preliminary engineering and Sundance Resources Ltd, Ph: 08 CV - 2M retained in in Information Database. Handling
design of a 35Mtpa mine site, export facility capable of loading up to 9220 2300, Fax: 08 9220 2311 Information Available on request
250,000DWT vessels, connecting railway (517km) and all associated supportUinfo@sundanceresources.com.au Database. from project data.
facilities and infrastructure required to successfully construct, commission and Available on
operate the project. WorleyParsons' deliverables from this will be the request from
Mbalam Iron Ore Project - Study Report, including all supporting reports and project data.
sketches necessary to adequately substantiate the Class 1 estimate and
enable the client to assess the conceptual feasibility of the project.

22 BHPB - Sandgaredi Guinea Alumina Corporation Ltd, an incorporated company, between BHP Tony Cau TIC - 3.5B Information not Information not retained 2007 - 2010 Light Metals - Alumina Available on request.
Alumina Project Billiton, Dubai Aluminium, Mubadala Development and Global Alumina, Project Director CV - 26.7M retained in in Information Database.
engaged WorleyParsons to build an alumina refinery with a nominal capacity BHP Billiton Information Available on request
of 3.0 million tonnes per annum (Mtpa) of metallurgical grade alumina within Database. from project data.
the Republic of Guinea. The whole concept of this project is based upon Available on
taking advantage of the large quantities of previously un-mined bauxite request from
available within the region which is of a lower grade than is typically exported project data.
The design is based upon two process trains, each of 1.5Mtpa capacity (the
largest practical size), giving a total output of 3.0Mtpa. Sufficient space has
been allowed in the refinery layout to permit a further expansion to 4.5Mtpa.
The proposed site for the refinery is well served by transportation links to the
Port of Kamsar on the Atlantic coast of Guinea, and is adjacent to the existing
industrial operation of CBG Mining. When operating at its full production
capacity of 3.0Mtpa of alumina, the refinery will consume approximately
7.4Mtpa of dry bauxite initially mined in the immediate vicinity of the Refinery.
23 Mt Arthur North Coal The WorleyParsons team was responsible for all feasibility work from initial Coal Operations Ausralia Ltd (COAL) TIC - 0.3M Information not Information not retained 2001 Coal - Materials Handling Available on request.
Handling and Processing conceptual design to definitive design for board approval of the Mt Arthur retained in in Information Database.
Plant North 15 Mtpa open cut greenfields coal mine. WorleyParsons’ responsibility Information Available on request
covered the entire plant including processing plant, power supply, control Database. from project data.
system, bulk earthworks, haul roads, access roads, a total of 21 conveyors, Available on
an overland conveyor with horizontal and vertical curves, sampling systems, request from
bins, bunkers, workshops, amenities, coal washery, three stackers and one project data.
reclaimer, stockpiles and tunnel reclaim systems, site drainage, water
systems, fire protection, offices and all other requirements for this
development.
24 Port Pirie 2006 Shutdown The Zinifex (now Oz Minerals) Port Pirie Smelter (ZPPS) is located 240km Raymond Bentley-Comins TIC - 22.1M Information not Information not retained 2005 - 2006 Base Metals - Lead - Smelting; Available on request.
Works north of Adelaide and is the world’s largest lead smelter producing 240,000 Manager - Asset Management CV - 4M retained in in Information Database. Base Metals - Zinc - Refining
tpa together with other associated products such as Zinc, Copper, Silver and Oz Minerals Port Pirie Smelter Information Available on request
Gold. WorleyParsons scope was to provide FEED and EPCM services for 08 8638 1500 Database. from project data.
the 1 in 20 year shutdown lasting 46 days at a cost of $33M using an Allianceraymond.bentleycomins@zinifex.com Available on
model for executing the work. The work involved the redesign and request from
reconstruction of a Continuous Drossing Furnace and an upgrade to the Site project data.
Salt Water Pumping System. Also included was the design and execution of
various minor capital works, the provision of site engineering resources,
procurement and contracts support, planning and scheduling support and
overall project controls and reporting for the entire shutdown works.

25 Peak Downs 9 Mtpa WorleyParsons has developed a close working relationship with BMA’s Peak BMA Peak Downs Mine, Queensland TIC - 14M Information not Information not retained 2005 Coal Available on request.
Upgrades Downs coal mine while providing engineering, construction management and CV - 2.3M retained in in Information Database.
technical procurement services to upgrading the coal processing facility to a Information Available on request
9Mtpa production rate. The upgrade works that were taken through from Database. from project data.
conceptual through to detailed design and project execution, including Available on
provision of control estimates, include tailings dewatering circuit upgrade, request from
vacuum pump replacements, DMC circuit upgrade and coarse coal centrifuge project data.
replacements.

Page 4 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
26 TVA Project WorleyParsons has maintained a commitment to TVA for more than 20 Robert A. Summers, VP Fossil TIC - 3.26B Information not Information not retained 1991 - Ongoing Coal-fired Plant; Flue Gas Available on request.
years, providing engineering, design, and construction management services Projects, TVA-Fossil Group. CV - 1.5B retained in in Information Database. Desulfurization (FGD); Selective
at coal-fired projects and hydro locations and selective catalytic/noncatalytic 1101 Market Street Information Available on request Catalytic Reduction (SCR)
reduction (removal of nitrogen oxide from the flue gas) projects at various Chattanooga, TN 37402 Database. from project data.
TVA coal-fired units. WorleyParsons performs modifications, maintenance 423-751-2491 Available on
and capital improvements on six solid Fuel Power Generation Stations, 30 rasummers@tva.gov request from
individual boiler plants totalling 7,900 MWe. We also perform modification, project data.
maintenance and capital improvement work on 29 hydroelectric power Janet Herrin, VP River Systems
generation stations, 1 pumped storage power generation station totalling 113 Operations and Environment, TVA-
generation units with a capacity of 5170 MWe, over a seven state region. WeHydro Group
also provide the same services for 31 river level control and Navigation Dam 400 West Summit Hill Drive
facilities. The majority of this work is self performed with organized labour Knoxville, TN 37902
forces hired by and directed by GUBMK, under the PMMA between the 865-632-6770
Tennessee Valley Authority and all of the Building Trade International Unions.jcherrin@tva.gov

27 SHECON Upgrade Goonyella Riverside is one of the largest open cut coal mines in Australia, BMA - Goonyella Riverside TIC - 10.7M Information not Information not retained 2002 - 2005 Coal Available on request.
producing over 14 million tons of coking coal a year and selling to South and CV - 1.3M retained in in Information Database.
East Asia, Europe, the Middle East, the Americas, and India. The owners, Information Available on request
BHP Billiton Mitsubishi Alliance, recognized the existing high capacity (9,000 Database. from project data.
tons per hour) overburden conveying and disposal system was not performin Available on
to specification. A detailed system analysis showed that availability was the request from
main contributor to the lack of performance. BMA also desired additional project data.
functionality and operability from the system. After conducting a number of
investigations and considering a range of capacities, conveyor configurations,
drive, and control system upgrades, WorleyParsons secured the role of
EPCM contractor for the upgrade of drives, the stacking control system and
the drive control system.

28 JCP Project - The Chevron Phillips Petrochemical Complex at Al-Jubail, Saudi Arabia, is Nigel Carling TIC - 1.4B Information not Information not retained 2002 - 2007 Chemical & Petrochemical Procurement and materials management including
Petrochemical Complex adjacent to its existing SCP petrochemical complex. The project is based on Principal Project Manager CV - 85M retained in in Information Database. Plant; Greenfield/Grassroots; procurement of certain materials, temporary facilities, supplies,
(Saudi Chevron Phillips) Saudi Aramco natural gasoline as feedstock. The complex produces styrene Chevron Phillips Information Available on request Brownfield/Upgrade and tools to support Offplot facilities procurement, and
propylene, and ethylbenzene as its final products. The complex also Phone: 713-407-7233 Database. from project data. conducting certain expediting, inspection, shipping, and ware-
produces a by-product suitable for sale as motor gasoline blend stock. e-mail:carlin@cpchem.com Available on housing operations for the Ex-Kingdom Program Management
WorleyParsons’ scope involved four separate contracts, FEED, Ex-Kingdom request from contract. Obtaining competitive quotations, analyzing bids,
program management, In-Kingdom program management and Offplot. project data. awarding and administering purchase orders and purchase
order contracts for materials required for the Offplot facilities.

29 Kemya Petrochemical The Kemya Petrochemical Complex Project was awarded to WorleyParsons Abdulkarim S. Al-Othman TIC - 1,010M 2 Information not retained 1997 - 2000 Chemical & Petrochemical The Kemya Controls Project scope of work was to design,
Complex (Al-Jubail in August 1997 as Managing Contractor for two fundamental components of Vice President CV - 38M in Information Database. Plant; Greenfield/Grassroots; purchase, perform soft-ware and hardware configuration, and
Petrochemical Company the project. The first component dealt with Program Management Services in966-3-340-1666 Available on request Brownfield/Upgrade wire the Control Room Equipment for all Kemya Projects
(Kemya)) which WorleyParsons provided overall leadership, management, monitoring from project data. including Phase VI/OSBL, LDPE and KOP. This included
and control of the Lump Sum Contractors. The second component dealt with three Distributed Control Systems (DCS), Emergency
the EPCM execution of the expansion of the existing LLDPE plant and OSBL Shutdown Systems (ESD), a Plant Information Network and a
facilities. Training Simulator. A team of WorleyParsons, Kemya and
Exxon engineers worked together as one team to achieve this
task.
The Phase VI/OSBL Plant DCS/ESD is approximately 3500
I/O. The LDPE Plant DCS/ESD is approximately 2200 I/O,
and the KOP Plant is approximately 5100 I/O.
Honeywell TPS has been selected for the DCS, and Triconex
for the Emergency Shutdown Systems.
30 Shell AOSP-UE EPCM Colt was responsible in a 50/50 Joint Venture with AMEC Americas for Bob Nicoll TIC - 3.25B Information not Information not retained 2008 Greenfield/Grassroots Available on request.
detailed design, procurement and construction management of the Albian retained in in Information Database.
Sands Muskeg River and Jackpine River Upstream Expansion. The scope of Information Available on request
work includes: ore crushing, conveying and dry storage; ore preparation and Database. from project data.
rejects removal; oil sand conditioning by slurry transport; bitumen extraction Available on
(LEE process); tailings treatment and disposal; bitumen froth treatment request from
(paraffinic process); solvent recovery from diluted bitumen; solvent and dilute project data.
bitumen storage; utilities and infrastructure to support the processing plants;
inter-site pipelines.
31 Albian Sands Expansion 2 EPCM JV with AMEC. The project consists of 4 main silos, U&O, conveying Ian Silk TIC - 4.1B Information not Information not retained 2008 Greenfield/Grassroots Available on request.
Project - FED2 (Shell) and crushing, extraction and tailings, and froth treatment. With the exception retained in in Information Database.
of Froth the other silos are very similar to a Mining project. This is minable oil Information Available on request
sands so involves hydrocarbons and mining. Database. from project data.
Available on
request from
project data.

Page 5 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
32 Second Generation / Sour The Sour Gas Injection and Second Generation Projects (SGI and SGP) will Bharat Gael - General Manager TCO TIC - 6.8B Information not Information not retained 1998 - 2008 Onshore Production Facility; GasAvailable on request.
Gas Injection Project enable Tengizchevroil to expand their oil and gas facilities on the Caspian SeProjects CV - 1.2B retained in in Information Database. Processing Plant; Onshore
in Kazakhstan from 13.5 million to above 25 million tonnes per annum. The Telephone No.: +7 312 302 6000 Information Available on request Pipeline; Sulphur Management;
new facilities include field gathering system, meter stations, crude Facsimile No.: +7 312 302 6752 Database. from project data. Greenfield/Grassroots; Gas; Oil
stabilization, gas sweetening and fractionation, sulphur recovery, power Email Address: Available on
generation, utilities and associated infrastructure, and new product export btga@tengizchevroil.com request from
systems for gas, natural gas liquids, sulphur and crude. WorleyParsons and project data.
its joint venture partner provided EPCM services to this vast development
program, completing in excess of 125 million manhours and 192,000
engineering documents.
33 Spinifex Ridge Molybdenum WorleyParsons has been awarded the EPCM contract for overall delivery of Collis Thorp TIC - 950M Information not Information not retained 2007 - 2010 Base Metals - Copper - Mineral Available on request.
Project the Spinifex Ridge project, which is a 20Mtpa ore processing and General manager, COO CV - 87M retained in in Information Database. Processing; Base Metals - Other
Molybdenum concentrator facility and associated infrastructure. The Moly Mines Limited Information Available on request
scheduled completion for the Construction phase is Q1 2010. The Spinifex Phone: +61 8 9429 3308 Database. from project data.
Ridge Mo/Cu Deposit is located 50 km northeast of Marble Bar in the Available on
northeast Pilbara of Western Australia. A Pre-Feasibility Study (PFS) was request from
completed in February 2006 and was predicated on a 10 year, 15 million project data.
tonne per annum mining operation which is expected to have a mine life of 20
years plus. The ore processing rate target for the project was raised to
20Mtpa in the latter stage of the PFS development. After successfully
completing the Prefeasibility phase of the work, WorleyParsons was invited to
undertake both the overall management of the Bankable Feasibility Study
(BFS) and the Engineering and Project Services associated with the
Processing Plant for the BFS. The BFS was completed in October 2007,
followed by further engineering development (FEED) during the project
funding phase.
34 CoSyn Technology Alliance Co-Syn, an Improve contract between Colt WorleyParsons and Syncrude, TIC - Projects Information not Information not retained 1991 - 2009 Refinery; Sulphur Management; Available on request.
provides engineering and project services to Syncrude. Syncrude is the ranging from 82K retained in in Information Database. Brownfield/Upgrade; Oil; Heavy
world’s largest producer of synthetic oil from oilsands. Our services include all to 164M Information Available on request Oil
phases of project execution including engineering and procurement. In CV - 288M for five Database. from project data.
addition, we provide specification and standards support, as built drawing years Available on
support, record information management and site secondments. The facilities request from
include everything from the mine face, the extraction process through to the project data.
refining processes. It also includes facilities, utilities, mine water management
and tailings management.

35 Anglo American Quellaveco Westmar Consultants Inc. (Westmar) was retained by Anglo American Patricio Risso, Anglo American CV - 258,000 1 - Buenaventura Engineering 4 months Road and Rail Transportation Westmar consulted with Peruvian contractors and vendors to
S.A. - Study for the Quellaveco S.A. to undertake a concentrate transportation study to define a Quellaveco S.A. Ingenieros S.A. Inspections Concentrate Shiploading obtain quotes for major equipment and components.
Transportation and Loading preferred transportation route and deep sea port for the export of Copper (BISA) Estimating (capital and Ports and Terminals
of Concentrate concentrate from the Quellaveco mine northeast of Moquegua. The study wa John Bertoia, Fluor Chile operations costs) Bulk Materials Handling, Coastal Labour rates and requirements used for estimating were
broken into two stages, an initial screening study reviewing a number of Conceptual Design Engineering based on local values.
routes and ports followed by a period of refinement of the alternatives carried Site Visit Electrical and Controls
forward for increased definition. Two alternative transportation systems were Modelling Safety Engineering
considered during the second stage of the study - Alternative 1: Port of Project Management Civil Engineering
Matarani by Road & Rail and Alternative 2: EnerSur Facility at Ilo by Road. and Controls Road, Bridges and Traffic
The scope of the study included the infrastructure required at the concentrato Procurement Engineering
to facilitate the loading of trucks, the transportation of concentrate between Geotechnical
the concentrator and port either by truck or a combination of truck and rail, Hydraulic/Hydrology
and the infrastructure required at the port to receive, store and load Socio Environmental
concentrates into ships. Assessment

36 Zinc Casting Plant Upgrade- HBM&S installed a new 2400 kW induction-melting furnace as part of a Hudson Bay Mining & Smelting TIC - 25M Information not Information not retained 2003 Civil/Structural, mechanical & Work to complete the installation of a building extension to the
Phase II program to improve the reliability and production capability of the Zinc Castin retained in in Information Database. Electr./Inst. Services. casting plant, housing a new 2400 kW induction furnace and
Plant. A feasibility study and cost estimate were completed for the project. Information Available on request all.
The study included the installation of a new 2400 kW cathode melting furnace Database. from project data.
with semi-automatic cathode bundle lowering system and new launders to Available on
feed the existing casting lines. The project included provision for installation of request from
new casting equipment in the future. The new furnace required upgrading of project data.
existing cooling systems, electrical circuits and ventilation systems. This will
also accommodate the future installation of an alloy mixing furnace and
automatic in-line casting machine. The basement and the existing casting
plant building were extended to accommodate the new equipment.

Page 6 of 7
Request for Information - Global EPCM Services

WorleyParsons Project Reference List

Complexity
Contact or references person Project Area of expertise/ key
No. Name Description No. of sub- No. of services Description of sourcing activities
(suppler & client) budget [US$] Duration aspects
contactors needed
37 Smelter Spill Gas Handling The smelter spill gas project at Hudson Bay Mining and Smelting in Flin Flon, Hudson Bay Mining and Smelting $2.1M Information not Information not retained 18 months Base Metals - Copper; Base Detail engineering for the off-gas handling system for
Manitoba has cleaned up the smelter fugitive SO2 emissions and reduced the retained in in Information Database. Metals - Copper - Smelting converters #1, #2 & #3 c/w spray chambers, off-gas ducting,
number of “incidences” in the town and surrounding area by over 90%. Gas Information Available on request water-cooled hoods, dampers and electrostatic precipitator.
conditions in and around the converter aisle are much improved and the Database. from project data.
smelter no longer has to cut back production to keep control of spill gas Available on
emissions. WorleyParsons carried out feasibility studies for various options request from
before completing the basic and detailed engineering. Implementation of the project data.
project was a major challenge. Fitting new water-cooled converter hoods,
evaporative cooling chambers, ducting and a new electrostatic precipitator
into a very limited space, and doing it without interfering with the smelter
operation required a lot of creative engineering. Access to the site was limited
to a 10 feet wide aisle between the converter building and the powerhouse.
All of the hot gas ducting spray chambers and the electrostatic precipitator
had to be lifted over the converter aisle using a 300 tonne mobile crane with a
300 feet boom.
38 Various minor projects for WorleyParsons completed various minor studies for HBMS in Canada Hudson Bay Mining and Smelting CV - ranging from Information not Information not retained 1997 - 2007 Available on request.
Hudson Bay Mining and including off-gas handlling, smelter gas handling, zinc refinery circuits, flux 2-560K retained in in Information Database.
Smelting (HBMS) feed, dust handling, dust slurry, copper cottrell demolition, zinc casting, Information Available on request
smelter emissions upgrade, SO2 capture technology review and more Database. from project data.
Available on
request from
project data.
39 Various minor projects for WorleyParsons completed various minor studies for Konkola Copper Mines On request Available on Information not Information not retained 2001 - 2006 Available on request.
Konkola Copper Mines plc including water cooled hood for Teniente converter, smelter optimiztion request retained in in Information Database.
assitance, reactor off-gas handling system, Teniente converter review & Information Available on request
mouth cooling, PS converter hoods and anode furnaces engineering Database. from project data.
assistance. Available on
request from
project data.

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