Lessons Learned along three decades of Iron Ore Projects


Angel Pelegry Cuesta, Duro Felguera; Alejandro Lopez Ferrer, Duro Felguera

Duro Felguera (DF), a public company based in Spain with more than 160 years of history, has developed several Iron Ore Projects during the last three decades. Several factors have influenced the execution performance: market fluctuations, commodity price cycles, evolution of contract strategies, local conditions, iron ore quality, etc. This paper summarize different scenarios of how risk mitigation was accomplished, either from the point of view of the promoter or from EPC supplier perspective, in order to obtain a win/win scenario which enable both parties to create added value for all stakeholders. Special attention will be paid on following projects: Ferrominera Del Orinoco / Venezuela Roy Hill / Australia Bellara / Argelia Alderon, Kami / Canada Snim / Mauritania Arcelor Mittal / Liberia As a conclusion, it is mentioned that many Project Execution models could work (EPCM, EPC Lump Sum, EPC Open Book, etc) but any of them has to be based on team cooperation between all parties, as well as flexibility and innovation have to be major drivers for all decisions.
Keywords: Project Execution, Lessons Learned, EPC, added value