Case Study

Power station for Sino Iron project in the Pilbara Western Australia

Desert

Helping deliver a power plant for the largest magnetite mining and processing operation in Australia

The situation

Sino Iron Project involves a significant investment in dedicated infrastructure, including a 450 Megawatt combined cycle gas fired power station.

The power station will primarily power a concentrator circuit which will generate electricity equivalent to the entire capacity currently installed in the Pilbara. The power plant consists of a number of gas and steam turbines, supplied from the Dampier to Bunbury Natural Gas Pipeline, and is configured to allow for expansion and future connection to the grid.

Our approach

Advisian was appointed by CITIC Pacific Mining to assist with the development of the modelling and optimisation of the power plant configuration to suit the iron ore mine requirement.

Together with CITIC Advisian further detailed the project delivery plan including:

  • Developing a procurement strategy for the power plant equipment and services

  • Undertaking technical, commercial and financial evaluation (CAPEX and OPEX) for the selection of the gas turbines and steam turbines supplier and EPC contractor

  • Undertaking technical and commercial negotiation for the supply contracts and the power plant EPC contract

  • Assisting in the development of the Environmental Management Plan and Works Approval documents and liaising with Governmental authorities for approval

  • Establishing and monitoring of the power plant budget

  • Developing a maintenance strategy for the power plant equipment

  • Managing and administering the terms of the contract on behalf of CITIC Pacific Mining, including cost and time management.

Results

The power plant was completed on time which allowed a reliable power supply for the commissioning and production of the mine.

Advisian’s involvement also saved the client a significant amount of money through:

  • Selecting a power plant configuration that was best suited for the mine

  • Selecting appropriate technology and suppliers of equipment

  • Effectively and efficiently managing the technical and commercial negotiations.

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