Case Study

Working with Bechtel to administer major mining

Coal mine

In a resource-constrained contracting environment, with tight deadlines, Bechtel needed high-quality experienced support and commercial acumen to assist with contract administration, including strategic commercial and contract advice.

The Situation

The BHP Billiton Mitsubishi Alliance (BMA) owns and operates several Bowen Basin mines including Goonyella Riverside, Broadmeadow, Peak Downs, Saraji, Gregory Crinum, and Blackwater – and the Hay Point terminal near Mackay. These mines are located in the coal-rich Bowen Basin of Central Queensland.

BMA has appointed Bechtel to provide engineering, procurement, construction and management services for mining projects at Caval Ridge, Daunia Mine and Broadmeadow. With a mix of greenfield and brownfield sites, the projects represent multi-billion dollar investments in large, low cost, expandable mines with long lives.

In a resource-constrained contracting environment, with tight deadlines, Bechtel needed high-quality experienced support and commercial acumen to assist with contract administration, including strategic commercial and contract advice.

Approach

In February 2012, Bechtel engaged Advisian to assist with the development, expansion and upgrade for the multi-billion dollar Caval Ridge, Daunia Mine and Broadmeadow mining projects. This involved providing commercial and contract advice during the procurement and administration of sub-contracts relating to coal handling, preparation plants, mine pit construction and other works at the mines.

Results

We brought our extensive experience in the mining industry and a pragmatic commercial approach to the administration of contracts on these projects. These skills were transferred to the remainder of the project team so solutions can be found for issues early before they become disputes.

When disputes have arisen, Advisian has assisted BMA and Bechtel in establishing contractual entitlements and negotiating commercial resolutions.

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