Project Completion Report

1. Project Completion Report

2. Project Summary Client: WorleyParsons / FMG Contract No.: 510P-00000- PU-PC-0059

3. Project Overview The FMG 155Mtpa Port Expansion Project aimed to increase the current port capacity at Anderson Point, Port Hedland from 45 Mtpa to 155 Mtpa. The project included two train unloader stations TU602 and TU603, each capable of tipping two rail cars concurrently as part of the unloading operation. The driving desire was to fast track the design and construction of TU602 and TU603 to gain initiatives typically associated with being early to market.

4. Project Overview • Parties Involved • Primary Stakeholder: FMG • EPCM: WorleyParsons • Supply Contractor: Aerison • Aerison’s Scope • Design, fabricate & ready for transport…… • Two off dust collection and disposal systems • Two off forced air ventilation systems • Two off tippler cell and end ring dust enclosure systems • Two off trunnion level pressurisation systems • Two off compressed air supply systems

5. Project Overview

6. Project Overview

7. Design

8. Design • Lycopodium • A repeat of TU601 (completed 2008) • Design Changes • Agglomerator removed from dust slurrying system • Design upgrade of slurry hopper • Bin fogging system removed • Larger capacity ventilation and pressurisation fans • Two off compressed air supply systems • New layout of ventilation & pressurisation ducting

9. Fabrication – In House • Baghouse • Lower wall seals • Lower ring seals • Upper ring seals • Fan access platform Top Section Mid Section

10. Fabrication – In House Hoppers Lower ring seal Lower Wall Seal Upper Ring Seal

11. Fabrication – In House Fan Access Platforms

12. Fabrication – Sub Contractor • Shedder panels Arch Engineering • Push air walls Arch Engineering • Slurry hoppers Arch Engineering • Batch hopper & chutes Arch Engineering • Hood wall Phillips Engineering • Trunnion wall Phillips Engineering • Dirty & clean air duct Sabre • Ventilation & pressurisation duct Unique Metals • Fans Turbo Air • Pumps Mining & Hydraulic • Compressors SullAir Australia • Conveyors Sanwest • Rotary & slide valves Ansac • Structural steel Fremantle Steel • Surface treatment Ferogalv • Cape • Novacoat • DRA

13. Fabrication – Sub Contractor Shedder Panels - Arch Push Air Wall - Arch Push Air Wall Duct - Arch

14. Fabrication – Sub Contractor Batch Hoppers - Arch Chutes - Arch Slurry Hopper - Arch

15. Fabrication – Sub Contractor Trunnion Wall - Phillips Hood Wall - Phillips Dirty Air Duct - Sabre Clean Air Stack - Sabre

16. Fabrication – Sub Contractor Ventilation/Pressurisation Duct - Unique Main ID Fans - TAT Ventilation Fans - TAT

17. Fabrication – Sub Contractor Pump – MHS Compressor - SullAir Conveyors - SanWest Rotary/Slide Valves - Ansac

18. Project Pictures – Commissioning Pre-Assembled Plate Work Trunnion Level Tippler Cell

19. Project Pictures – Commissioning Installed Wall & Lower Ring Seals Ground Level Overview Install of Tippler Cell

20. Project Pictures – Commissioning Upper Level Construction

21. Project Pictures – Commissioning TU602 System

22. Project Summary Safety and Environment • Target – Nil Incident Actual – 1 (Lost load) • Note: • Baghouse top section fell from trailer en route to site. • Transport under the control of WorleyParsons • Internal issue with use of incorrect bolts • Comments • Safety and environment record for project excellent • No reported incidents from sub contractors

23. Project Summary Scope of Works • Target - Original Contract Scope of Works Total Number of SCN’s 17 • Total Approved 13 • Comments • 4 month extension of time • Over $1.2 million in variations • Installation assistance • Commissioning (no load) • Commissioning (load)

24. Project Summary Schedule

25. Project Summary Schedule

26. Project Summary Schedule

27. Project Summary Schedule • Original Contract Delivery 28/10/2011 Actual Practical Completion – 24/02/2012 • Comments • Design delays at beginning of project • Delay in client issuing AFC drawings • Extension of time and costs negotiated and approved • Revised schedule of deliverables

28. Project Summary Budget and Margin

29. Project Summary Budget and Margin • Original Contract Sum $9,869,999 Expected Final $11,191,043 • Original Contract Margin $2,241,014 (22.7%) Expected Final $ 4,138,308 (36.9%) • Includes Site based income: $250,000 Margin: $62,000 (25%)) • Comments • Over budget items were:- • QA / Doc Control (-$32,237) • Transport / Cranes (-$2,489) • Engineering subcontract (-$1,330) • Load cells (-$3,357) • Under budget items were:- • Fabrication • Compressors • Construction management • Engineering • Drafting

30. Project Summary Quality • Target – Nil Quality Issues or NCR’s Actual – 1 NCR • NCR issued by client for release breach (Due to client not managing transport – • signed by Aerison under protest) • Comments • Internal fabrication checks • Sub contractor quality review documentation • Tracking

31. Issues Sabre Unfinished Duct • Invoice management – maintain upper hand • Progress reports / checks • Early identification of problems and implementation of controls

32. Issues Lost Load Damaged Baghouse Top Section • Transport readiness • Photographs • Quality documentation

33. Issues • Bolt take offs • Trial fit outs • Painting – Sabre • Tagging • Conveyor not reversible • Batch hopper flexible • Rotary valve underspeeds • Plastic fittings on damaged baghouse • Forgotten items (Tracking sheet)

34. Project Summary Human Resources • Comments • Expeditor • QA • Engineering • Document Control • Safety • Management

35. Project Summary Communications • Comments • Internal • Sub contractor • Client • Site

36. Project Summary Client Satisfaction

37. Project Summary Lesson Learnt • Expediting • Transport • Quality • Contract management – Sabre • Tracking sheet • At source inspections

38. Project Summary Project Completion • Unfinished Business • Comments • Thank You Letter • Bank Guarantees • Future Business or Related Projects - Training • Aerison Procedures