This document provides a conceptual study for a proposed 330 km iron concentrate slurry pipeline from Mt Reed to Port Cartier, Quebec. Key aspects of the proposed system include: - A 28" diameter steel pipeline operating at 1.7-1.8 m/s, carrying 24 Mt/y of 65% solids iron concentrate slurry - Two pump stations, one at the mine site and one intermediate, using positive displacement pumps - Agitated storage tanks at the mine site, intermediate station, and terminal for continuity of operations - Cathodic protection, leak detection, and a SCADA system to monitor and control the pipeline The study concludes the pipeline system is technically feasible. Further optimization and testing are

1. Process Infrastructure
1943-G-G-001
Revision Number C
ArcelorMittal
Mt Reed to Port Cartier Iron
Concentrate Pipeline Conceptual
Study
Study Report
April 2011
06-Apr-11

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Revision Status
Revision Date Description Author Checked By Approved By
C 06-Apr-11 Issued to Incorporate Client Comments RT APS APS
B 29-Mar-11 Issued for Client Review RT PMW APS
A 29-Mar-11 Issued for Internal Review RT APS ---

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Contents
1 Introduction 1
1.1 Scope of Work 1
1.2 Purpose of This Document 1
2 Executive Summary 3
2.1 Study Conclusions 4
2.2 Recommendations for Future Work 4
3 Route Description 5
4 System Design Criteria 7
4.1 Battery Limits 7
4.2 Slurry System Design Criteria 7
4.3 Process Design Criteria 8
4.4 Pipeline Mechanical Design Criteria 9
4.5 General Study Assumptions 9
5 Hydraulic Design 10
5.1 Pipeline Design Philosophy 10
5.2 Pipe Diameter Selection 10
5.3 Operating Velocity 10
5.4 Agitated Storage Tanks 10
5.5 Hydraulic Design 11
6 Pipeline Systems Description 14
6.1 Selected System 14
6.2 Slurry Pipeline 14
6.3 Pump Selection 15
6.4 Pump Station 1 – Mine Site 15
6.5 Intermediate Pump Station – PS 2 16
6.6 Monitoring Stations 17
6.7 Terminal Station 17
6.8 Pipeline Slope Restrictions 18
6.9 Pipeline Crossings 18
6.10 Cathodic Protection 18
6.11 Leak Detection 18
6.12 SCADA System 19
6.13 Telecommunications 19
7 Operating and Control Philosophy 20
7.1 Start-up 20
7.2 Normal Operating and Control Philosophy 20
8 Capital Cost Estimate 21
8.1 Summary 21
8.2 Material Costs 21
8.3 Pipeline Construction 21
8.4 Recommendation for Next Project Phase 22
9 Operating Cost Estimate 26
9.1 Operating Cost Basis 26
10 Comparison with Commercial Pipeline Operations 28

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11 Project Execution Plan 29
11.1 Project Implementation 29
11.2 Schedule 30
Appendix 1 – Process Flow Diagrams
Appendix 2 – Pipeline FacilitiesPhotographs
Appendix 3 – Concept Layouts
Appendix 4 – Vendor Quotations
Appendix 5 – Railway Route Profile – Port Cartier to Mont Wright

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1 Introduction
ArcelorMittal has iron ore mines in Mont Wright, Mt Reed and Fire Lake in Northern Quebec, and
operates a pellet plant in Port-Cartier. The renewed interest toward pipeline expansion projects is
driven by the ambitious objective of ArcelorMittal for a higher degree of self-sufficiency in iron ore.
As a result of the high cost of railroad expansion, operating costs, and other related expenses,
ArcelorMittal would like to compare the cost and feasibility of pipeline transport of iron concentrate
from Mt Reed to the port at Port-Cartier versus rail transport.
In March 2011 ArcelorMittal awarded Ausenco PSI a conceptual study for an iron concentrate
pipeline system from the concentrator at Mt Reed to Port-Cartier at a throughput of 24 Mt/y. The
length of the pipeline from Mt Reed to Port-Cartier, Quebec is about 330 km. Ausenco PSI has also
been asked to provide a conceptual level estimate of the capital and operating costs for the
pipeline.
1.1 Scope of Work
The scope of work includes the development of a conceptual design and associated capital and
operating costs including the following:
 Preliminary hydraulic analysis
 Overview of project showing selected route using Google Earth.
 Preliminary PFDs
 Overview of project execution plan including overall schedule
 Preliminary pump specification (type, head, flow, power)
 Preliminary pipe specification (size, material, pressure rating, tonnage, coating, liner (if
required) and construction / installation method)
 Order of magnitude capital cost based upon similar systems and broken down in a form to
allow ArcelorMittal to further develop supply and installation costs
 Operating cost estimate
1.2 Purpose of This Document
This study includes all system components related to the pipeline transportation system including:
 Agitated storage tanks at mine site and terminal station
 Iron concentrate slurry pipeline transport system
 Pressure monitoring stations

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 Ancillary facilities including control and telecommunication systems

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2 Executive Summary
The following tables summarize the pipeline system.
Table 2-1: System Summary
Design Parameters
Average Annual Throughput,Mt/y 24
Slurry Pipeline Design Throughput,t/h, @ 95% Availability 2884
Design SlurryConcentration,wt % solids 65
Pipeline Design Flow Rate,m3
/h 2257
Pipe Diameter,inches 28
Pipe Material Steel, API 5L X70
Pipeline Length,km (miles) 330 (205)
Pipe Steel Weight, t 66,920
Total Number ofPump Stations 2
Table 2-2: Station Summary
Station Mine Site / PS 1 PS2 Terminal
Distance from Mine site,KP 0 130 330
Distance from Terminal,MP 205 124 0
Slurry Tanks
(20 m diameter X 20 m high)
4 1 4
Water Tanks
(12 m diameter X 12 m high)
1 1 0
Pump Type Positive Displacement
Mainline Pump Quantity
3 operating +
1 stand-by
3 operating +
1 stand-by
N/A
Pump Station Discharge Pressure,
MPa (psi)
8.0 (1160) 8.4 (1220) N/A
Pump Operating Power,kW (HP) 5585 (7490) 5865 (7860) N/A
Water Receiving Pond No Yes Yes

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Table 2-3: Capital and Operating Cost Summary
Cost
Capital Cost(Million USD) 811.3
Operating Cost(Million USD/y) 11.6
2.1 Study Conclusions
The proposed pipeline system for the Arcelor Mittal iron concentrate pipeline is technically feasible.
Existing mineral slurry pipelines have operated successfully and have demonstrated that, with
qualified personnel and adherence to operating procedures and maintenance programs, high
reliabilities can be achieved in comparison with other transportation methods such as railroad or
trucking. In addition, pipeline operation is minimally affected by weather, and traffic accidents can
be eliminated.
The selected system is adequately conservative such that it should be able to withstand normal
design changes as the project advances. Opportunities for optimization have been identified which
can be pursued in future phases of the project.
2.2 Recommendations for Future Work
The following issues should be addressed further in future phases:
 Validate slurry characteristics by testing a sample from the site under study
 Investigate a revised PSD of 70% passing 325 mesh compared to the PSD of 83% used in this
study to eliminate the need for regrinding
 Field visit by Ausenco PSI route specialist to identify best possible routes and analyse
constructability access issues for the selected route. The railway right of way width, track
location, fibre optic cable location, and any other buried utilities should be determined. A
geotechnical report is recommended in future phases to determine amount and type of rock
along the route.
 Optimize pipe diameter, and pumping requirements once the slurry characterization has been
completed and the pipeline throughput range and route has been finalized.
 Perform transient analysis to optimize steel requirements and provide necessary equipment for
pressure containment for normal operation and emergency conditions
 Review storage tank requirements in conjunction with likely production variability
 Evaluate station and pipeline construction costs:
o Working conditions and local costs
o Capabilities of local contractors

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3 Route Description
The pipeline route from the concentrator at Mt Reed is shown in Figure 3-1. The pipeline heads
East from Mt Reed for approximately 22 km (14 miles) where it intersects with the existing Mt
Wright-Port Cartier Railway at rail MP 191. It then follows the railway south to Port Cartier. Total
pipeline length is about 330 km (205 miles). Refer to the Port Cartier to Mont-Wright railway route
profile in Appendix 5.
The initial 22 km (14 miles) section is cross-country through hilly terrain with many lakes and
streams. The balance of the route parallels the railway from rail MP 191 to MP 0. There are
several areas along the railway where the right-of-way is quite narrow.
Figure 3-1: Slurry Pipeline Route

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The pipeline starts at an elevation of 577m, has intermediate high points of 677m at KP 78.6 (rail
MP 156) and 570 m at KP 215 (rail MP 71), and then descends to an elevation of 18 m at the
terminal, as shown in Table 3-1.
Table 3-1 – Pipeline Elevations
KP Rail MP Elevation (m)
0 577
22 191 530
78.6 156 677
215 71 570
330 0 18
Pipeline route optimizations should be performed in the next phase of the project to better define
the pipeline corridor. Early identification of rocky areas, steeply sloping areas, and water crossings
will allow reduction of construction costs. The objective of optimizing the pipeline route is to
minimize length, eliminate potential environmental impacts and assure engineering criteria are met.
Pipeline route investigations, including field surveys and GIS engineering analysis, should be
performed with this purpose.

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4 System Design Criteria
The design basis for the pipeline was prepared using data provided by ArcelorMittal and
complemented with Ausenco PSI’s in-house information from similar commercial operations.
Key elements of the Design Basis for this project have been summarized in the sections below.
4.1 Battery Limits
Ausenco PSI’s scope starts at the inlet of the slurry agitated storage tanks at the mine site pump
station and ends at the discharge of the agitated storage tanks at the terminal station.
Refer to the Process Flow Diagrams in Appendix 1.
4.2 Slurry System Design Criteria
4.2.1 Slurry Characteristics
Ausenco PSI used in house data for this phase of the project.
Table 4-1 summarizes the slurry characteristics.
Table 4-1 - Slurry Characteristics
Parameter Value
Solids SG 5.0
Slurry pH 10
Slurry Temperature, o
C 25
Viscosity, cP 9
Particle Size Distribution (mesh – Cum.% Passing) 100 mesh – 99% - 100%
150 mesh – 99% - 100%
200 mesh – 97% - 100%
270 mesh – 90% - 94%
325 mesh – 80% - 85%
Concentration by Weight (wt %) 65
4.2.2 Slurry System Throughput
Table 4-2 presents throughput and flow rate at design transport concentration for the slurry pipeline
design. The hourly design throughput for the pipeline assumes 95% availability based on a typical
multiple pump station system.

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Table 4-2 - Slurry System Throughput
Parameter Pipeline System
Throughput,Mt/y 24
Throughput,tph 2884
Flow Rate at 65 wt%, m3
/h 2257
4.2.3 Pipeline Life
The slurry pipeline is designed for a 20 year life. Experience shows that pipeline life can be
extended with proper ongoing maintenance – this merely represents the economic life for
evaluation and design of system components.
4.2.4 Pump Selection:
Pumps used for slurry transportation generally fall into two categories:
 Centrifugal type
 Positive displacement type
Centrifugal pumps are ideally suited for low discharge pressure design conditions (up to 50-60
bar). Many long distance slurry pipelines utilize positive displacement pumps due to the higher
discharge pressure requirements (up to 250 bar).
4.3 Process Design Criteria
The following design criteria were used to develop the hydraulic model for the concentrate slurry
pipeline. These criteria are the same for the design of all pipelines at the conceptual study level
and will be refined in future phases of work.
For slurry flows, pressure loss calculations will be determined from Ausenco PSI’s proprietary slurry
hydraulic computer model, Ausenco PSI-WASP 1.1.
A design factor of 6% for flow is used for the hydraulic design to account for variations in slurry
characteristics and general operations variability. This is equivalent to a design factor of
approximately 12% for pressure loss.
A 5% design factor on pipeline length is included to account for deviations/optimizations in the final
pipeline route.
The minimum clearance between the hydraulic gradient line and the pipeline profile is 50 m.
The minimum clearance between the hydraulic gradient line and the maximum allowable operating
pressure (MAOP) line is 50 m.

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4.4 Pipeline Mechanical Design Criteria
The pipeline will be designed in accordance with the mechanical design criteria specified below:
Code for Slurry ASME B31.11, Slurry Transportation Piping Systems
Pipe Carbon Steel, API-5L, Grade X70 for slurry (no lining will be used)
Pipe Design Factor 0.80 of Specified Minimum Yield Stress (SMYS)
Transient Pressure Factor 1.10 times maximum allowable operating pressure
4.5 General Study Assumptions
It is assumed that electric power and fresh water suitable for gland seal water is available at all
station locations.

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5 Hydraulic Design
5.1 Pipeline Design Philosophy
The hydraulic design of the ArcelorMittal pipeline is based on a conservative sizing of equipment
and facilities because of the safety factors required to design a system without specific slurry data.
It is possible that future engineering optimization will improve the facility design.
5.2 Pipe Diameter Selection
Selection of a pipeline diameter is based on commercial operations for slurries with similar solids
specific gravity and particle size distribution. Various pipe diameters were reviewed to avoid
particle deposition and optimize friction losses (pump duty). For the desired throughput, 26, 28 and
30 inch diameter pipes were considered. The velocity of flow in the 30-inch pipe was less than the
minimum safe velocity and hence cannot be used except with slurry - water batching. A 26-inch
diameter requires higher pumping pressures. A 28-inch diameter pipe was selected as the
operating velocity was above the minimum safe operating velocity and the pressures were lower
than in the 26” pipeline.
For the 28” pipeline option two scenarios were evaluated:
 One pump station system
 Two pump station system
5.3 Operating Velocity
The minimum safe operating velocity for a concentrate pipeline is intended to maintain pseudo-
homogeneous flow behaviour in order to avoid unstable pipeline operation resulting from deposition
of particles. The pipeline should operate in turbulent flow regime. The transition velocity is the point
of transition from laminar to turbulent flow in the pipeline. The minimum safe operating velocity is
based on deposition velocity as well as on transition velocity evaluations. Ausenco PSI uses an in-
house model to calculate both the transition and deposition velocities. The greater of these two
values, with adequate margin, was selected as the minimum safe operating velocity for each pipe
size.
The minimum safe operating velocity calculated at 65% Cw is about 1.5 meters per second (m/s).
The design velocity in the 28” pipe is about 1.7 to 1.8 m/s depending on wall thickness of the
pipeline section which is slightly above the minimum safe velocity and significantly less than the
maximum allowable velocity of 3 m/s to allow some flexibility in operation. At velocities above 3 m/s
erosion of the pipeline can occur.
5.4 Agitated Storage Tanks
The agitated storage tanks at the start of the slurry pipeline receive slurry from the beneficiation
plant thickeners. Slurry from these tanks is transported via the slurry pipeline to the next pump
station or to the terminal. If slurry flow from the thickeners is interrupted, slurry in the tanks
provides feed for the slurry pipeline. If problems occur with the slurry pipeline, the storage tanks
continue to receive slurry from the thickeners for a limited time. Storage volume is established

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based on the amount of time required to react to operating problems. The objective is to avoid
facility shutdowns for short-term upsets (e.g., 6 to 8 hours).
Based on an 8 hour storage requirement, four 20m high x 20 m diameter tanks each were selected
at the head station and terminal.
One 20m high x 20m diameter tank was selected at the intermediate pump station. This tank will
be used during pipeline re-start after a shutdown to agitate the slurry and re-suspend the solids.
5.5 Hydraulic Design
The hydraulic gradient is a graphical illustration of the head in meters at any point in the pipeline.
The hydraulic gradient must stay above the pipeline profile with at least 50 m clearance in order to
avoid slack flow. If the gradient line is too close to the profile, slack flow can occur (the pipeline runs
partially full creating high operating velocity at the bottom of the pipe), which can result in premature
pipeline failure due to erosion.
The pipeline system will transport 24 Mt/y iron concentrate from mine to terminal. The hydraulic
design developed for this system is a DN700 (28” OD) API 5L X70 pipeline with either one or two
pump stations.
Option 1 has a single pump station with 6 positive displacement pumps operating in parallel with 1
standby unit.
Option 2 has two pump stations, each with 3 operating and 1 standby unit.
The ground profile, hydraulic gradient and maximum allowable operating pressure at 24 Mt/y for
Option 1 is presented in Figure 5-1. Option 2 is presented in Figure 5-2.

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Figure 5-1 –Hydraulic Profile: Option 1, 28”, 24 Mt/y Iron Concentrate Pipeline – 1 Pump Station
1943 - MT Reed To PortCartier Arcelor Mittal - 24 Mt/y - 28" Pipeline - 1PS Option
Slurry Characteristics
Solids S.G. 5
Temp (°C) 25
B' 2.60
Von Karman 0.9
Durand 80
Slurry viscosity 9.2
Slurry SG 2.08
Particle Size Distribution
65 99.70
100 99.82
150 99.30
200 97.82
270 90.97
325 83.31
Pipeline Life 20 yr
Corrosion Rate (0-20 km) 6 mpy
Corrosion Rate (20-End km) 4 mpy
Length Pipe 330.00 km
Steel Tonnage 96,583 mt
API5L X 70
Pipeline Characteristics
OD (inch) Section 1 28.000
Avg wall thickness (inch) 0.641
Rubber Liner (inch) 0.000
ID (inch) 26.718
Roughness (inch) 0.002000
Availability (%) 95.00%
OD (inch) Section 2 28.000
Pipeline Throughput Line Velocity MAOP Clearance
Flowrate 2257.4 m³/h Minimum 1.68 m/s Minimum 124 m
Cw% 65.0% 30.4% Maximum 1.80 m/s Maximum 832 m
Throughput 2883.9 tph
Annual Throughput 24.00 MTA Hydraulic Gradient Chokes
Minimum 3.40 m/km Chokes Station 1 0 m
Pumping Requirements PS 1 PS2 PS3 Maximum 3.97 m/km Chokes Station 2 200 m
PS location 0.0 KM
TDH 837.1 m
Discharge Pressure 2564 psig Profile Clearance Terminal
17666 kPa Minimum 86.8 m Tank 20.0 m
176.664 Bar Maximum 881.1 m
Pump Efficiency 95%
Motor HP 16567 HP Flow SF 1.06
Motor kW 12354 kW Length Factor 1.05
0
200
400
600
800
1000
1200
1400
1600
1800
0 50 100 150 200 250 300 350
Elevation(m)
Length (km)
Hydraulic Gradient Line "End of Life" Maximum Allowable Operating Pressure Land Profile Static Pressure Line

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Figure 5-2 –Hydraulic Profile: Option 2, 28”, 24 Mt/y Iron Concentrate Pipeline – 2 Pump Stations
1943 - MT Reed To PortCartier Arcelor Mittal - 24 Mt/y - 28" Pipeline - 2PS Option
Slurry Characteristics
Solids S.G. 5
Temp (°C) 25
B' 2.60
Von Karman 0.9
Durand 80
Slurry viscosity 9.2
Slurry SG 2.08
Particle Size Distribution
65 99.70
100 99.82
150 99.30
200 97.82
270 90.97
325 83.31
Pipeline Life 20 yr
Corrosion Rate (0-20 km) 6 mpy
Corrosion Rate (20-End km) 4 mpy
Length Pipe 330.00 km
Steel Tonnage 66,920 mt
API5L X 70
Pipeline Characteristics
OD (inch) Section 1 28.000
Avg wall thickness (inch) 0.441
Rubber Liner (inch) 0.000
ID (inch) 27.118
Roughness (inch) 0.002000
Availability (%) 95.00%
OD (inch) Section 2 28.000
Pipeline Throughput Line Velocity MAOP Clearance
Flowrate 2257.4 m³/h Minimum 1.65 m/s Minimum 65 m
Cw% 65.0% 30.4% Maximum 1.73 m/s Maximum 663 m
Throughput 2883.9 tph
Annual Throughput 24.00 MTA Hydraulic Gradient Chokes
Minimum 3.25 m/km Chokes Station 1 20 m
Pumping Requirements PS 1 PS2 PS3 Maximum 3.63 m/km Chokes Station 2 200 m
PS location 0.0 130.0 KM
TDH 362.0 381.5 m
Discharge Pressure 1159 1217 psig Profile Clearance Terminal
7987 8383 kPa Minimum 20.0 m Tank 20.0 m
79.874 83.834 Bar Maximum 411.5 m
Pump Efficiency 95% 95%
Motor HP 7490 7862 HP Flow SF 1.06
Motor kW 5586 5863 kW Length Factor 1.05
0
200
400
600
800
1000
1200
0 50 100 150 200 250 300 350
Elevation(m)
Length (km)
Hydraulic Gradient Line "End of Life" Maximum Allowable Operating Pressure Land Profile Static Pressure Line

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6 Pipeline Systems Description
6.1 Selected System
Capital costs were estimated for Options 1 and 2 and are presented in Section 8. Operating costs
are very similar for each option.
Option 2 was selected because its capital cost is about USD 49.5 million lower than Option 1.
The sections below describe the selected Option 2
6.2 Slurry Pipeline
Pipeline materials and construction are selected to optimize initial cost, operating cost, operating life
and hydraulic performance of the pipeline. The pipeline is designed to have adequate steel wall
thickness to withstand the steady state slurry hydraulic gradient, and static head when the line is
shutdown on slurry.
The recommended pipe for the slurry pipeline is DN700 (28” OD) API 5L GrX70, high strength
carbon steel. The wall thickness varies from 7.9 mm (0.312”) to 15.9 mm (0.625”). The pipeline wall
thickness was chosen to provide a safe pressure envelope to operate the pipeline within t he
intended operating range. Allowances for corrosion/erosion based on operating conditions and
pipeline life have also been taken into account in selecting the pipeline wall thickness. The pipe wall
thickness used in this study is preliminary and will be finalised in the basic design phase.
The recommended external pipeline corrosion coating is factory applied three layer polyethylene.
The pipeline will be buried for security with a minimum 2.0 m depth of cover over top of pipe. The
final depth of cover for this project can only be decided in the next phase when frost depth is
known.
A design factor of 80% of specified minimum yield stress (SMYS) has been used for allowable
stress values of the buried pipeline design in accordance with ASME B31.11, Slurry Transportation
Piping Systems. Thicker pipe (lower design factor) will be used in sensitive areas such as river
crossings.
Station locations are as follows.
Table 6-1: Station Locations
Facility
Location
(km)
Location
(Rail Mile Post)
Distance
between
Stations
(km)
Distance
between
Stations
(miles)
Mine Site/PS1 0
PS 2 130 124 130 81
Terminal 330 0 200 124

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6.3 Pump Selection
Positive displacement pumps were selected for this system. Pump data is listed below.
Table 6-2: Pump Data
Station Mine Site/ PS 1 PS 2
Mainline Pump Type Positive Displacement
Mainline Pump Quantity 3 operating +1 stand-by
Flow Rate, m3
/h 2257
Pump Station Discharge
Pressure,MPa (psi)
8.0 (1160) 8.4 (1220)
Pump Operating Power, kW
(HP)
5585 (7490) 5865 (7860)
Although calculated pump discharge pressure is slightly different, all the pumps are identical.
6.4 Pump Station 1 – Mine Site
Refer to Appendix 3 for a conceptual layout of PS 1.
Major components of PS 1 are agitated storage tanks, charge pumps, gland seal pumps, main line
PD pumps and test loop.
6.4.1 Agitated Storage Tanks
Studies completed by Ausenco PSI for other projects indicate that agitated storage tanks of equal
diameter and height are the most economic when considering capital and operating costs. For this
study, four tanks 20 m diameter and 20 m high were selected at the mine site to provide about 8
hours of storage.
Each tank will be designed to contain slurry at a maximum specific gravity of 2.25, which
corresponds to 70% solids by weight, in addition to supporting the agitator structure and other loads
such as wind and earthquake.
Refer to Table 6-3 for recommended tank dimensions.
Table 6-3: Agitated Slurry Storage Tanks
Number ofTanks Diameter (m) Height(m) Working Volume (m3
)
Pump Station 1 4 20 20 5,500 each

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6.4.2 Slurry Charge Pumps & Gland Seal Pumps
Slurry is pumped from storage tanks to the mainline pumps with two centrifugal, slurry charge
pumps (one operating and one standby). The charge pumps are provided with high-pressure gland
seal water pumps (one operating and one standby) to prevent ingress of solids into the pump shaft
seal. Both charge pumps will be provided with variable frequency drives (VFD).
6.4.3 Mainline Slurry Pumps
The main line pumps are triplex piston-diaphragm type positive displacement pumps operating in
parallel (three operating and one standby).
Each pump is equipped with variable speed drive controller, gear reduction, pressure pulsation
dampeners, and pressure relief devices.
Pump duty conditions are listed in Table 6-2.
6.4.4 Test Loop
Long distance slurry pipelines are generally provided with a test loop to confirm the hydraulic
characteristics of the slurry prior to committing it to the pipeline.
The test loop has the same diameter as the slurry pipeline, and is of sufficient length to obtain
reliable pressure drop readings. In the case of the ArcelorMittal iron pipeline, the test loop will be
28” diameter, and will have a length of about 190 m.
The loop will be installed at the mine site pump station between the charge pumps and main line
positive displacement pumps. It will be equipped with block valves so that flow from the tanks to
the pipeline can be diverted through the loop, or can bypass the loop. Downstream of the loop, flow
can be sent to the pipeline or diverted back to the storage tanks.
During commissioning, slurry will be re-circulated back to the storage tanks. During normal
operation the test loop can be used in series with the main line (no recirculation to tanks). The
instrumentation will give advance warning of increasing pressure drop which could indicate a grind
that is too coarse or an increase in slurry concentration.
6.4.5 Flush and Gland Seal Water
It is assumed that the flush water required for the pipeline will be provided by the client from the
beneficiation plant. The gland seal water required for the charge pumps will be stored in a 12m x
12m water storage tank.
A volume of 55,000 m3 of flush water is needed at the Head Station in order to displace slurry from
PS 1 to PS 2.
6.5 Intermediate Pump Station – PS 2
Refer to Appendix 3 for a concept layout of the intermediate pump station.
Major components of PS 2 will be choke station, agitated storage tank, gland seal water storage
tank, charge pump, gland seal pump, main line pumps and water recovery pond.

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A choking system is incorporated to ensure the hydraulic gradient line adequately clears the ground
profile and to create additional head dissipation when required. About 20 m choking is required at
PS 2.
Main line pumps will be similar to the pumps at PS 1
PS 2 will have one 20 m D x 20 m H agitated storage tank which can be used in case of shutdown
or emergencies; however the pipeline will be directly connected to the mainline pumps and
therefore will by-pass the tank and charge pump during normal operation. A 12m x 12m water
storage tank will supply gland seal water required for the charge pumps.
On the upstream side of the tank a rupture disc is installed to protect the pipeline and piping from
over-pressure. The discharge of the rupture disc is directed to the slurry storage tank.
During start up, the pipeline is filled with water. When slurry is introduced at PS 1, the water will be
displaced by slurry to the water recovery pond at PS 2. The pond will accommodate the pipeline
volume - approximately 55,000 m3 of water.
Water stored in this pond can be used to flush the next pipe section during pipeline shutdown.
6.6 Monitoring Stations
Pressure monitoring stations (PMS) are usually required every 50 km and/or near the points where
slack flow is expected. Pressure monitoring stations also facilitate leak detection.
PMSs have been located in between each pump station. A total of five are required: two upstream
of PS 2 and three downstream.
6.7 Terminal Station
Refer to Appendix 3 for a concept layout of the terminal station.
Major components of the terminal station will be choke station, agitated storage tanks and water
recovery pond
About 200m of chocking is required at the terminal for steady state slurry pumping, but during water
batching additional choking may be required. This needs to be optimized during a future phase of
the project.
On the upstream side of the terminal a rupture disc is installed to protect the pipeline and piping
from over-pressure. The discharge of the rupture disc is directed to the terminal slurry storage
tanks.
Tank sizing is listed in the table below.
Table 6-4: Agitated Slurry Storage Tanks
Number of Tanks Diameter (m) Height (m) Working Volume (m3
)
Terminal Station 4 20 20 5,500 each

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The terminal station will also have a water recovery pond to accommodate the pipeline volume
between PS 2 and the terminal station - approximately 85,000 m3 of water.
6.8 Pipeline Slope Restrictions
The maximum pipeline slope will be restricted to 12% to minimize risk of a blockage.
6.9 Pipeline Crossings
Road and stream crossings will be trenched. Certain river, larger highways and all railway
crossings will be bored. Existing rail bridges will be used if there is enough space to support the
pipeline.
6.10 Cathodic Protection
A cathodic protection system is provided to protect any areas of the pipe that may have gaps in the
external coating which were not detected during installation. Insulating joints will be provided to
electrically isolate the pipeline from pump station and terminal facilities. Bonding bridges will be
installed across the station for cathodic protection continuity. Cathodic protection test leads will be
spaced at a maximum distance of 1 km along the pipeline. Consideration will be given to the
influence of any high tension power lines in the pipeline corridor.
A temporary system using sacrificial anodes may be required to protect the pipeline at all water
crossings.
6.11 Leak Detection
Two methods normally are used in pipelines to detect leaks:
 Pressure wave detection
 Mass balance
6.11.1 Detection by Pressure Valves
Pressure wave detection uses two or more pressure signals to both detect and locate leaks. This
works on the principle that any leak in a pipeline will generate a pressure wave that travels
upstream and downstream from the leak source. Such waves are detectable using standard
instrumentation. Using the time difference between the wave detections, it is possible to detect leak
location. Leaks in the range of 3-5 percent of design flow have been detected, and leak locations
can be estimated within 1 km. With this method a leak can be detected within minutes.
6.11.2 Detection by Mass Balance
Mass balance uses flow meters and is based on the principle of conservation of mass. Running
averages are used to account for short-term flow fluctuations.
The Ausenco PSI software product Pipeline Advisor™ is applicable for leak detection on slurry
pipelines.

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6.12 SCADA System
The pipeline will be operated from the mine pump station.
A supervisory control and data acquisition (SCADA) system provides input to the pipeline
programmable logic controller (PLC) and provides the operator the information and functions
needed to operate the pipeline. Facilities will allow remote (i.e., from the control room) and manual
(by a local operator) control of all pipeline equipment. A leak detection system will be included in the
SCADA system.
During future phases of work, operating procedures will be developed and converted to program
sequences, permitting automated operation of the pipeline system, as well as all other operating
functions.
6.13 Telecommunications
A fiber optic telecommunications system using Ethernet technology is provided to support the
pipeline control requirements at the pump stations, pressure monitoring stations, and the terminal.
While the fiber optic system is primarily installed as the most economic and reliable method to
control intermediate and remote stations, it will also be capable of transporting voice, data, video, or
other information if required by the project. Based on experience on other projects a 12-fiber cable
is recommended. Four fibers would be dedicated for the pipeline control system and eight would be
for other possible communication needs including:
 Linking mine site processing plant and terminal site DCS systems
 Linking mine site processing plant and terminal site PABX systems
 Providing communication link to commercial/public system and
 Providing internal networks for email, data exchange, file servers, etc.
The above system has adequate capacity to support the SCADA systems for future pipelines.
Based on Ausenco PSI’s experience, an Ethernet technology is recommended as the most cost
effective approach for telecommunications. Under this approach Ethernet switches would be
located at each of the stations.
A radio system with coverage along the pipeline is also recommended. A radio system provides a
communication link between the control room operator and operations/maintenance personnel
working between the intermediate stations and can be used as partial voice back-up to the primary
fiber optic communications system to support manual operation of the pipeline.

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7 Operating and Control Philosophy
7.1 Start-up
The pipeline is filled with water during commissioning. The pumps and pipeline system are initially
operated and checked out on water. After the system operation is confirmed on water, a slurry
batch will be introduced at PS 1 and pumped through the system. Water will be displaced from
each section of the pipeline into the water pond.
7.2 Normal Operating and Control Philosophy
Mainline pump speed control will be used to adjust flow rate and suction and discharge pressures.
7.2.1 Mine Site Pump Station (PS 1)
At the mine site pump station, the slurry from the thickener underflow enters the tanks at about 65%
Cw. The tank agitator maintains the solids in suspension. The slurry tank has low and high level
alarms to warn of abnormal tank level conditions.
The slurry charge pump provides suction head from the slurry tank to the mainline slurry pumps.
The main line slurry pump raises the slurry pressure to enable flow through the pipeline. Pump
speed is controlled to achieve desired pipeline flow rate. Low suction pressure and high discharge
pressure over-rides protect the pump and pipeline, respectively.
7.2.2 Intermediate Station (PS 2)
Slurry from the pipeline will feed directly to the main line PD pumps. During tight-line operation the
intermediate pump stations will have suction pressure control with maximum discharge pressure
over-ride.
7.2.3 Terminal Station
The pipeline delivers slurry into the slurry tanks at the terminal. The slurry tank has low and high
level alarms to warn of abnormal tank level conditions.

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8 Capital Cost Estimate
8.1 Summary
The capital cost estimate has been developed to an accuracy of +/-30% for the defined scope of
work.
The capital cost is reported in first quarter (‘1Q’) 2011 United States dollars (‘USD’).
The capital cost estimate assumes that the project will be executed as an engineering, procurement
and construction management (EPCM) contract through to the completion of commissioning.
Pipeline and station construction contracts will be competitively bid.
The capital cost estimate is summarized by area in Table 8-1.
8.2 Material Costs
The following material cost basis was used:
 Positive displacement slurry pumps: Vendor quotation
 Line pipe: Vendor quotation
 Slurry storage tanks: Based on recent estimate for tank plus agitator
 Water storage pond: Not included
 Other costs are from recent projects.
8.3 Pipeline Construction
Construction costs were developed using the Ausenco PSI pipeline cost database and using our
best judgment to adjust for local conditions. No site visit to Quebec has been made to verify local
conditions or costs.
It was assumed that the route is hilly terrain with many lakes and streams following an existing
railroad right of way.
10% rock ditch has been included in this estimate.
There are 13 rivers ranging from 40m to 220m in width to be crossed, as well as approximately 25
streams 10m in width. It is anticipated that rivers will be crossed via directional drilling and the
small streams by open cut below scour depth and with anti-flotation weights added.
Pipe is assumed to be imported through the port of Port-Cartier, Quebec Canada. The entire pipe
will be offloaded into a pipe yard near Port-Cartier. The pipe will then be transported to storage sites
near the intermediate pump stations for stringing along the pipeline route.
The “Lay Pipe” crew will line-up the pipe and complete the stringer bead and hot pass on each
weld. This crew sets the pace for most of the other crews on the pipeline spread.

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The welding crew will follow the lay pipe crew and complete the fill and cap passes. The fill and cap
passes are estimated at 7 welds per welder day.
The weld inspection will be 100% Automatic Ultrasonic (AUT). A specialty subcontractor will supply
three crews to cover the mainline.
The external field joints require sand blasting and the application of a liquid epoxy coating.
The lowering-in will be accomplished with side boom tractors, equipped with rolli-cradles. Welders
will tie-in any field gaps ahead of the lowering-in.
There will be two tie-in crews. Each tie-in crew will include side booms, hydraulic backhoes,
welders, and the equipment and pers onnel required for the field joints. The AUT costs are already
included in the inspect weld operation.
Where the pipeline is constructed in rocky soils, the pipe will be bedded, padded, and backfilled
using three crews. Most of the padding material will be placed using an “Ozzie” padding machine.
Some material will require hauling from borrow pits. It is assumed that borrow pits can be located
within five kilometres of fill sites.
It is assumed that there are 24 hydrostatic test sections containing 5,800 m3 each. Each test
section is estimated to require an average of six days to fill and test.
The pipeline contractor will install an HDPE conduit in the ditch before backfilling. After the main line
pipe has been tested, separate crews will blow a fibre optic cable into the HDPE conduit and splice
the cable. The cable will be installed last so it will not be damaged by any other crews. The crews
will also test the cable. It is assumed that the cable will be supplied in six kilometre reels.
The pipeline contractor, or his specialty subcontractor, will supply and install an impressed current
cathodic protection system. The estimated cost of the system is $5000 per kilometre for the cross-
country pipeline. Cathodic protection for the stations is estimated in the station electrical estimates.
Separate crews will install the river crossings, road and rail crossings as needed, and any other
special points.
Indirect costs for the pipeline contractor are estimated based on the schedule, personnel,
equipment, and other costs that are required to support the direct construction operations. Indirect
costs include home office support, project office, field supervision, field office administration, field
engineering, health, safety, environmental, field warehouse, equipment maintenance and service,
equipment transportation, camp, catering, mobilization, demobilization, communications, aircraft
support, commissioning assistance, personnel rotation expense, insurance, off right-of-way
damages, etc.
8.4 Recommendation for Next Project Phase
In the next phase of the project it is recommended that pipeline and station construction costs
should be thoroughly investigated. The following items are required:
 Working conditions and local costs
 Route & site conditions

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 Capabilities of local contractors
 Availability of international pipeline contractors

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Table 8-1 Total Capital Cost Estimate
Option 1: One Pump Station
Iron Concentrate Pipeline: DN 700 (28"); Steel Pipeline with 1 Slurry Pump Station
Area Description Quantity Unit
Unit Cost
US$
Total
US$
Storage tank, 18m x 18m, complete including foundation, installed, with
agitator, from PSI data base 4 each 1,800,000 7,200,000
Water Storage Tank 12m x12m 1 each 300,000 300,000
Mainline PD Pump, 2257m3/h, 2391PSI, with VFD, 5 operational; +2
standby
Geho Quote TZPM 2000 ( 3,500,000 Euros) 1.36171 exchange rate 7 each 5,085,987 35,602,000
Charge & Gland seal Pumps, 1 operational + 1 standby 4 each 40,000 160,000
Pump station materials and construction. Includes , sump pump, pump
shelter, valves, fittings, mechanical, structural, civil, installation, electrical
distribution, instrumentation and labor cost, based on 1.5 x PD pump cost 1 lot 53,403,000
Pressure monitoring Station 6 each 160,000 960,000
Total Cost 97,625,000
Storage tank, 18m x 18m, complete including foundation, installed, with
agitator, from PSI data base 4 each 1,800,000 7,200,000
Terminal Station @ 10% total 1 each 720,000 720,000
Choking 1 lot 500,000 500,000
Water Storage Pond, 85,000 m3, w/ concrete liner 1 lot nic
Total Cost 8,420,000
Slurry Pipeline; Bare Steel Pipe w/3LPE coating, DN8-700 (28"), API 5L Gr
X70 96,583 t 1,636 158,023,000
Cathodic Protection, material and installation for concentrate pipeline 346.5 km 5000 1,733,000
SCADA, Leak Detection, Pipeline Monitoring 800,000
Fiber Optic Cable, Conduit and Junction Boxes, material only 346.5 km 5,000 1,733,000
Slurry Pipeline construction, DN 700 (28"), 20.0 km New ROW 20.0 km 840,000 16,800,000
Slurry Pipeline construction, DN 700 (28"), 346.5 km, Existing ROW 326.5 km 840,000 274,260,000
Rock Ditch est 10% total distance @ $231m 34.65 km 230,000 7,970,000
River Xing's, 13 ea = 1.211 km, 25 minor >10m 1.211 km 10,930,250 10,930,000
Highway Xings , 1-4 lane, 2-2 lane Paved, other minor dirt/gravel 60.000 m 500 30,000
Total Cost 472,279,000
Total Direct Cost 578,320,000
Indirects Spare Parts 5% Total Station Cost 5,302,000
EPCM, 18% of total direct cost plus spares 105,052,000
Contingency, 25% of directs plus indirects 172,169,000
Total Pipeline Cost, excluding Owner's costs 860,843,000
Iron Concentrate
Pump Station #1
at Mine Site
Terminal Station
Pipeline

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Table 8-1 Total Capital Cost Estimate
Option 2: Two Pump Stations
Iron Concentrate Pipeline: DN 700 (28"); Steel Pipeline with 2 Slurry Pump Stations
Area Description Quantity Unit
Unit Cost
US$
Total
US$
Storage tank, 18m x 18m, complete including foundation, installed, with agitator,
from PSI data base 4 each 1,800,000 7,200,000
Water Storage Tank 12m x12m 1 each 300,000 300,000
Mainline PD Pump, 2257m3/h, 2391PSI, with VFD, 3 operational; +1 standby
Geho Quote TZPM 2000 ( 3,500,000 Euros) 1.36171 exchange rate 4 each 5,007,859 20,031,000
Charge & Gland seal Pumps, 1 operational + 1 standby 4 each 40,000 160,000
Pump station materials and construction. Includes , sump pump, pump shelter,
valves, fittings, mechanical, structural, civil, installation, electrical distribution,
instrumentation and labor cost, based on 1.5x PD pump cost 1 lot 30,448,000 30,448,000
Pressure monitoring Station 3 each 160,000 480,000
Total Cost 58,619,000
Storage tank, 18m x 18m, complete including foundation, installed, with agitator,
from PSI data base 1 each 1,800,000 1,800,000
Water Storage Tank 12m x12m 1 each 300,000 300,000
Mainline PD Pump, 2257m3/h, 2391PSI, with VFD, 3 operational; +1 standby
Geho Quote TZPM 2000 ( 3,500,000 Euros) 1.36171 exchange rate 4 each 5,007,859 20,031,000
Charge & Gland seal Pumps, 1 operational + 1 standby 4 each 40,000 160,000
Pump station materials and construction. Includes , sump pump, pump shelter,
valves, fittings, mechanical, structural, civil, installation, electrical distribution,
instrumentation and labor cost, based on 1.5 x PD pump cost 1 lot 30,448,000 30,448,000
Pressure monitoring Station 2 each 160,000 320,000
Choking 1 lot 200,000 200,000
Water Storage Pond, 55,000 m3, w/ concrete liner 1 lot nic
Power Generation, Source Unknown 1 lot nic
Total Cost 53,259,000
Storage tank, 18m x 18m, complete including foundation, installed, with agitator,
from PSI data base 4 each 1,800,000 7,200,000
Terminal Station @ 10% total 1 each 720,000 720,000
Choking 1 lot 500,000 500,000
Water Storage Pond, 85,000 m3, w/ concrete liner 1 lot nic
8,420,000
Slurry Pipeline; Bare Steel Pipe w/3LPE coating, DN8-700 (28"), API 5L Gr X70 66,920 t 1,636 109,490,000
Cathodic Protection, material and installation for concentrate pipeline 346.5 km 5000 1,733,000
SCADA, Leak Detection, Pipeline Monitoring 800,000
Fiber Optic Cable, Conduit and Junction Boxes, material only 346.5 km 5,000 1,733,000
Slurry Pipeline construction, DN 700 (28"), 20.0 km New ROW 20.0 km 840,000 16,800,000
Slurry Pipeline construction, DN 700 (28"), 326.5 km, Existing ROW 326.5 km 840,000 274,260,000
Rock Ditch est 10% total distance @ $231m 34.65 km 230,000 7,970,000
River Xing's, 13 ea = 1.211 km, 25 minor >10m 1.211 km 10,930,250 10,930,000
Road Xing's, 1-4 lane paved, 2 -2 lane paved, as needed dirt/gravel 1.000 ls 30,000 30,000
Total Cost 423,746,000
Total Direct Cost 544,044,000
Indirects Spare Parts 5% Total Station Cost 6,015,000
EPCM, 18% of total direct cost plus spares 99,011,000
Contingency, 25% of directs plus indirects 162,268,000
Total Pipeline Cost, excluding Owner's costs 811,338,000
Iron Concentrate
Pump Station #1
at Mine Site
Terminal Station
Iron Concentrate
Pump Station #2
Total Cost
Pipeline

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9 Operating Cost Estimate
9.1 Operating Cost Basis
One mechanic and one electrician per shift will be shared between pump stations for maintenance.
These mechanics will have a full complement of skills (welding, pipe-fitting, etc.). A total of four
shifts will be required to provide coverage 24 hours per day, 365 days per year. The control rooms
at both the pump stations will be manned 24 hours per day throughout the year.
One mechanic and electrician will be dedicated for the terminal station. A total of four shifts will be
required.
For this study, it was assumed that the pipeline will operate at its design annual throughput to
generate an operating cost estimate. The operating cost estimate is summarised Table 9-1. The
following were included in estimating costs:
 Labour – Based on client data
 Supplies/miscellaneous maintenance material for all other equipment.
 Contracted Services - includes maintenance of the pipeline right-of-way, piping spools, etc.
 Power - estimated according to the operating horsepower for a continuous slurry operation.
$0.046/kWh was used for the power cost based on client provided data.
 Contingency – a 10% contingency was added to this preliminary operating cost estimate.

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Table 9-1: Operating Cost Estimate
Staff required
per shift
On-duty shifts
per day
Manpower
Total
Annual
Salary (1)
Annual
Cost (US$)
Pipeline Supervisor (5 d/w x 8 hrs)Note 2 1.0 1.0 1.0 $125,000 $125,000
Lead Operator (7 d/w x 24 hrs) 1.0 4.0 4.0 $125,000 $500,000
Operator Assistant (PS 1) Control Room(7 d/w x 24
hrs)
1.0 4.0 4.0 $125,000 $500,000
Engineer (5 d/w x 8 hrs)Note 2 1.0 1.0 1.0 $125,000 $125,000
Maintenance / Electrician (7 d/w x 24 hrs) 1.0 4.0 4.0 $125,000 $500,000
Maintenance / Mechanical (7 d/w x 24 hrs) 1.0 4.0 4.0 $125,000 $500,000
PS 2 Pump Station Operator (7 d/w x 24 hrs) 1.0 4.0 4.0 $125,000 $500,000
Terminal Station Maintenance/Electrical
(7 d/w x 24 hrs)
1.0 4.0 4.00 $125,000 $500,000
Terminal Station Maintenance/Mechanical
(7 d/w x 24 hrs)
1.0 4.0 4.00 $125,000 $500,000
$3,750,000
Operating
kW
Annual
kWh
Power Cost
$ / kWh
Annual
Cost (US$)
800 6,307,200 $0.046 $290,131
5,590 44,071,560 $0.046 $2,027,292
5,860 46,200,240 $0.046 $2,125,211
800 6,307,200 $0.046 $290,131
500 3,942,000 $0.046 $181,332
13,550 106,828,200
$4,914,000
$50,000
$100,000
$1,568,000
$80,000
$20,000
$20,000
$10,502,000
$1,050,000
$11,552,000
Supplies/Misc. Maintenance Material (spares, safety equipment) allowance
Right of Way Maintenance
Slurry Tank Agitators at Mine site (4)
PS 1 Slurry Pumps (3 Operating, 1 Spare)
(1) Annual salaries figures include total cost of benefits, etc.
Slurry Mainline Pumps Maintenance Material (4% of Pump Cost)
(2) Staff on call 24 hours a day, 7 days a week.
Total Annual Operating Cost
Contingency, 10%
Costs
LABOR (1)
Personnel
Subtotal Operating Cost
Overhead and Administration
Contract Services
Miscellaneous (travel, fuel, training, security, etc.)
Total Annual Electric Power Cost -Slurry
OTHERS
PS 2 Slurry Pump (3 Operating, 1 Spare)
Subtotal Labor Cost
ELECTRIC POWER
Slurry Tank Agitators at Terminal (4)
Subtotal Electric Power -Slurry Line
Miscellaneous Loads (Charge Pumps, Gland Seal Pumps etc)
Slurry Pipeline System

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10 Comparison with Commercial Pipeline Operations
Table 10-1 below provides benchmark for worldwide commercial iron concentrate slurry pipelines.
Table 10-1: Iron Concentrate Pipelines
Pipeline Location
Throughput
MT/Y
Diameter
Inch
Length
km
Year of
Operation
Samarco
(2nd
Pipeline)
Brazil 8.0 16/14 398 2008
Da Hong Shan China 2.3 9 171 2006
Essar Steel India 7.0 16/14 268 2005
Jian Shan China 2.0 9 105 1997
Samarco Brazil 12.0 20 398 1977
Kudremukh India 7.5 18 71 1980
Savage River Tasmania 2.3 9 85 1967
Photographs of Pump stations, typical pipeline construction, valve station and tanks or similar
facilities can be found in Appendix 2.

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11 Project Execution Plan
11.1 Project Implementation
11.1.1 Overview
The project implementation plan is envisioned to be organized around an integrated and dedicated
management team for cost effective execution of the project. For this study, it is assumed that the
management team will be under the leadership of a Ausenco PSI project manager, responsible for
all the phases of work. This model has been successfully applied to other construction projects.
The pipeline project manager will report to the overall ArcelorMittal project manager. However, the
specialty nature of the pipeline project requires the assignment of specialist personnel to ensure
timely, cost-effective completion of the project.
The primary objective of the management team is to implement the project while considering the
following:
 Minimization of project completion risks
 Maximization of project quality standards
 Optimization of project quality/cost ratio
 Minimization of project cost overrun risks
The project will be divided into seven major phases to provide the necessary controls to efficiently
implement and control a project of this nature.
For the proposed project, it is assumed that an integrated Ausenco PSI/ArcelorMittal team will be
developed. Ausenco PSI will provide overall management for the pipeline as part of the overall
project coordination by ArcelorMittal. ArcelorMittal will provide support services for the pipeline team
working under the direction of the Ausenco PSI management team.
11.1.2 Project Phases
The project will consist of seven major phases, each terminating in a well-defined deliverable
package, which will be presented for approval before being issued for its intended purpose as
outlined below.
Table 12-1: Project Phases
Phase Title Deliverable
I FeasibilityStudy Optimize conceptual design
II Basic Engineering Final system sizing and specification of significant
system components
III Detailed Engineering Detailed design including procurement and
construction specifications, drawings, etc. for the
project – includes final cost estimate/control budget
for the project

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Phase Title Deliverable
IV Engineering follow-up Construction supportand final documentation
Operating Manual
V Contracting / Procurement Major equipmentand Material-Contracts and
Pipeline construction-Contracts /Materials
VI Construction Completed facility
VII Commissioning Start up and Commissioning reports. Operator
training. System capacity confirmation. System in
service
Incorporated in the above-mentioned phases is the system design which is part of the engineering
that occurs throughout the detailed engineering phase. The system design is interactive, with
updates required to incorporate the latest information (vendor certified prints) to provide the basis
for the design.
Ausenco PSI estimates that this work (Engineering, Procurement and Construction Management –
EPCM) will be approximately 12% to 18% of the project cost
11.2 Schedule
The major phases to complete the pipeline project are listed below with the estimated time required
to complete each phase:
 Feasibility Study, system optimization (2 to 4 months)
 Basic Engineering (5 to 7 months)
 Detailed Engineering – includes initiation of procurement (10 to 12 months)
 Construction (16 to 20 months)
 Commissioning (2 to 3 months)

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Appendices
Appendix 1 – ProcessFlow Diagrams

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Appendices
Appendix 2 – Pipeline Facilities Photographs

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Appendices
Appendix 3 – ConceptLayouts

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Appendices
Appendix 4 – Vendor Quotations

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Appendices
Appendix 5 – Railway Route Profile – Port Cartier to MontWright