tenke phase 1 tsf_rwp constr completion rpt

MWH Job No. 1005795

Prepared for:

Freeport McMoRan Copper & Gold Inc. One North Central Avenue

Phoenix, AZ 85004

TENKE FUNGURUME MINE TAILING STORAGE FACILITY AND RETURN WATER POND

PHASE 1 CONSTRUCTION COMPLETION REPORT

August 2009 Prepared by:

1801 California Street Suite 2900 Denver, Colorado 80202 (303) 291-2222

August 2009 Tenke Fungurume Mine TSF and RWP Phase 1 Construction Report x TOC-i

MWH * 1801 California Street, Suite 2900 * Denver, Colorado 80202 * 303 291 2222

TABLE OF CONTENTS Section No. Page No. 1.0 INTRODUCTION ............................................................................................................................. 1

1.1 GENERAL ...................................................................................................................................... 11.2 PURPOSE AND SCOPE OF WORK ............................................................................................. 21.3 PROJECT DOCUMENTS .............................................................................................................. 31.4 DISCLAIMER ................................................................................................................................ 41.5 REPORT ORGANIZATION .......................................................................................................... 5

2.0 PROJECT OVERVIEW ................................................................................................................... 6

2.1 GENERAL ...................................................................................................................................... 62.2 PROJECT COMPONENTS ............................................................................................................ 72.3 DESIGN MODIFICATIONS ......................................................................................................... 82.4 SEQUENCE OF CONSTRUCTION .............................................................................................. 92.5 PART 1: CONTRACTING APPROACH ORGANIZATION ..................................................... 13

2.5.1 Owner ....................................................................................................................................... 152.5.2 EPCM ....................................................................................................................................... 162.5.3 Designer ................................................................................................................................... 172.5.4 Construction Manager .............................................................................................................. 172.5.5 Contractor ................................................................................................................................ 18

2.6 PART 2: SELF-PERFORM APPROACH ORGANIZATION ..................................................... 202.6.1 Owner, Construction Manager, and Contractor ...................................................................... 202.6.2 Construction Quality Assurance ............................................................................................... 202.6.3 Subcontractors .......................................................................................................................... 21

PART 1 CONSTRUCTION COMPLETION

3.0 FIELD DOCUMENTATION ......................................................................................................... 24

3.1 SUMMARY .................................................................................................................................. 243.2 SUBMITTALS ............................................................................................................................. 24

3.2.1 General ..................................................................................................................................... 243.2.2 Schedule ................................................................................................................................... 26

3.3 FIELD REPORTS ......................................................................................................................... 283.3.1 Correspondence ........................................................................................................................ 283.3.2 Construction Quality Assurance Reports ................................................................................. 29

3.4 RECORD DRAWINGS ................................................................................................................ 29

4.0 EARTHWORKS ............................................................................................................................. 32

4.1 SUMMARY .................................................................................................................................. 324.2 CLEARING AND GRUBBING ................................................................................................... 334.3 TOPSOIL REMOVAL ................................................................................................................. 334.4 BASIN CONTOURING ............................................................................................................... 344.5 SUBGRADE PREPARATION .................................................................................................... 354.6 EMBANKMENT EXCAVATION ............................................................................................... 41

4.6.1 North Embankment ................................................................................................................... 414.6.2 Return Water Dam .................................................................................................................... 424.6.3 West Embankment .................................................................................................................... 43

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4.7 EMBANKMENT STRUCTURAL ROCKFILL ZONE 1 ......................................................... 434.7.1 Test Fill .................................................................................................................................... 434.7.2 North Embankment ................................................................................................................... 464.7.3 Return Water Dam .................................................................................................................... 484.7.4 West Embankment .................................................................................................................... 51

4.8 EMBANKMENT BACKFILL GRAVEL ZONE 1A ................................................................ 534.9 EMBANKMENT ENGINEERED FILL ZONE 2 AND 2A ..................................................... 54

4.9.1 Borrow Source .......................................................................................................................... 544.9.2 North Embankment ................................................................................................................... 554.9.3 Return Water Dam .................................................................................................................... 614.9.4 West Embankment .................................................................................................................... 65

4.10 PERIMETER ROADS .................................................................................................................. 694.11 PERMANENT STORMWATER CONTROLS ........................................................................... 70

4.11.1 SPILLWAY ........................................................................................................................... 704.11.2 Drainage Culverts ................................................................................................................ 71

4.12 TEMPORARY STORMWATER CONTROLS ........................................................................... 714.12.1 Return Water Dam Stormwater Drain ................................................................................. 714.12.2 North Embankment Stormwater Drain ................................................................................ 724.12.3 Other Temporary Stormwater Controls ............................................................................... 74

5.0 UNDERDRAINS ............................................................................................................................. 75

5.1 SUMMARY .................................................................................................................................. 755.2 DELIVERY, STORAGE, AND HANDLING OF MATERIALS ................................................ 75

5.2.1 Geotextile.................................................................................................................................. 755.2.2 Zone 4 Drain Gravel ................................................................................................................ 765.2.3 Piping ....................................................................................................................................... 76

5.3 MATERIAL QC/QA DATA ........................................................................................................ 765.3.1 Geotextile.................................................................................................................................. 765.3.2 Zone 4 Drain Gravel ................................................................................................................ 765.3.3 Piping ....................................................................................................................................... 77

5.4 UNDERLINER DRAIN INSTALLATION ................................................................................. 785.5 EMBANKMENT DRAIN INSTALLATION .............................................................................. 78

6.0 GEOSYNTHETICS ........................................................................................................................ 79

6.1 SUMMARY .................................................................................................................................. 796.2 DELIVERY, STORAGE, AND HANDLING .............................................................................. 79

6.2.1 Geotextile.................................................................................................................................. 796.2.2 Geomembrane .......................................................................................................................... 80

6.3 MATERIAL QC/QA DATA ........................................................................................................ 816.3.1 Geotextile.................................................................................................................................. 816.3.2 Geomembrane .......................................................................................................................... 82

6.4 GEOSYNTHETIC INSTALLATION EQUIPMENT ................................................................. 846.4.1 Geotextile.................................................................................................................................. 846.4.2 Geomembrane .......................................................................................................................... 84

6.5 GEOTEXTILE INSTALLATION ................................................................................................ 856.5.1 Underliner and Embankment Drain ......................................................................................... 856.5.2 Embankment Filter ................................................................................................................... 86

6.6 GEOMEMBRANE INSTALLATION ......................................................................................... 876.6.1 Deployment ............................................................................................................................... 876.6.2 Field Seaming ........................................................................................................................... 906.6.3 Non-Destructive Testing ........................................................................................................... 936.6.4 Destructive Testing ................................................................................................................... 93

6.6.4.1Sampling Procedure ............................................................................................................. 936.6.4.2Laboratory Destructive Tests ............................................................................................... 946.6.4.3Field Destructive Test and Statistical Analysis .................................................................... 95

6.6.5 Liner Leak Location Survey ...................................................................................................... 98

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7.0 WELL ABANDONMENT .............................................................................................................. 99

8.0 ROCK QUARRY .......................................................................................................................... 101

8.1 SALABWE ROCK QUARRY ................................................................................................... 1018.2 FWAULU ROCK QUARRY ..................................................................................................... 102

9.0 CONSTRUCTION MATERIAL VOLUMES ............................................................................ 103

9.1 SUMMARY ................................................................................................................................ 1039.2 DESIGN AND MEASURED VOLUME COMPARISON ........................................................ 1039.3 FINAL SURFACE COMPARISON BETWEEN WBHO AND KWA SURVEYS .................. 105

10.0 PART 1 SUMMARY AND CONCLUSIONS ............................................................................. 106

PART 2 CONSTRUCTION COMPLETION

11.0 FIELD DOCUMENTATION ....................................................................................................... 108

11.1 SUMMARY ................................................................................................................................ 10811.2 SUBMITTALS ........................................................................................................................... 10811.3. CORRESPONDENCE ................................................................................................................ 10911.4 RECORD DRAWINGS .............................................................................................................. 109

12.0 EARTHWORKS ........................................................................................................................... 110

12.1 SUMMARY ................................................................................................................................ 11012.2 SITE PREPARATION................................................................................................................ 11112.3 EMBANKMENT BACKFILL GRAVEL ZONE 1A .............................................................. 11112.4 EMBANKMENT ENGINEERED FILL ZONES 2 AND 2A ................................................. 11312.5 ANCHOR TRENCHES .............................................................................................................. 117

13.0 GEOSYNTHETICS ...................................................................................................................... 118

13.1 SUMMARY ................................................................................................................................ 11813.2 DELIVERY, STORAGE, AND HANDLING ............................................................................ 11813.3 GEOSYNTHETIC INSTALLATION EQUIPMENT ................................................................ 118

13.3.1 Geotextile ........................................................................................................................... 11813.3.2 Geomembrane .................................................................................................................... 119

13.4 GEOTEXTILE INSTALLATION .............................................................................................. 11913.5 GEOMEMBRANE INSTALLATION ....................................................................................... 120

13.5.1 Liner Deployment ............................................................................................................... 12013.5.2 Field Seaming .................................................................................................................... 12113.5.3 Trial Seams ........................................................................................................................ 12113.5.4 Non-destructive Testing ..................................................................................................... 12113.5.5 Destructive Testing ............................................................................................................ 122

14.0 CONSTRUCTION MATERIAL VOLUMES ............................................................................ 123

15.0 PART 2 SUMMARY AND CONCLUSIONS ............................................................................. 124

16.0 REFERENCES .............................................................................................................................. 125

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LIST OF TABLES Table No. Description Page No.

1.1 Breakdown of Construction Oversight Responsibilities ......................................... 2 2.1 Summary of Design Modifications ......................................................................... 8 2.2 Sequence of Work Summary ............................................................................... 12 2.3 Project Roles and Responsibilities for TSF and RWP Project ............................ 14 2.4 Owners Personnel and Roles ............................................................................. 16 2.5 Designers Personnel and Roles ......................................................................... 17 2.6 Construction Managers Personnel and Roles .................................................... 18 2.7 Part 1: Contractors Personnel and Roles ........................................................... 19 2.8 Part 2: Self-perform Personnel and Roles ........................................................... 20 2.9 CQA Personnel and Roles .................................................................................. 21 2.10 Part 2: Subcontractors Personnel and Roles ..................................................... 22 3.1 Owner and Contractor General Submittals ......................................................... 25 3.2 Construction Schedule Submittal Sequence ....................................................... 28 3.3 List of New Drawings for Record of Construction ................................................ 30 4.1 RWP and TSF Basin Subgrade Soil Properties .................................................. 36 4.2 North Embankment Engineered Fill Properties ................................................... 56 4.3 Return Water Dam Engineered Fill Properties .................................................... 62 4.4 West Embankment Engineered Fill Properties .................................................... 66 6.1 Grade A-7 Geotextile Physical Properties ........................................................... 81 6.2 Grade A-10 Geotextile Physical Properties ......................................................... 82 6.3 Geomembrane Resin Physical Properties .......................................................... 82 6.4 Geomembrane Physical Properties ..................................................................... 83 6.5 Geomembrane Physical Properties Test Frequency ........................................... 84 6.6 Geomembrane Quantity and Waste Factor ......................................................... 88 6.7 Summary of Welded Seam Length ...................................................................... 91 6.8 Minimum Seam Strength Properties .................................................................... 91 6.9 Destructive Seam Test Result Summary............................................................. 92 6.10 Field Destructive Seam Test Result Summary .................................................... 95 7.1 Wells Abandoned by Grouting ............................................................................. 99 9.1 Comparison Between Design and Survey Quantities ....................................... 104 12.1 North Embankment Engineered Fill Properties ................................................. 114 13.1 Part 2 Field Destructive Seam Test Result Summary ....................................... 122 14.1 Part 2 Comparison of Estimated and Final Quantities ...................................... 123

LIST OF FIGURES Figure No. Description Page No.

4.1 Relative Compaction in RWP Basin Subgrade Soils ........................................... 37 4.2 Relative Compaction in TSF Basin Subgrade Soils ............................................ 38 4.3 Variation from In-place and Optimum Moisture Content in RWP Basin

Subgrade Soils for Density Test Samples ........................................................... 39 4.4 Variation from In-place and Optimum Moisture Content in TSF Basin

Subgrade Soils for Density Test Samples ........................................................... 40 4.5 Test Fill Layout .................................................................................................... 44 4.6 Test Fill Settlement Curves ................................................................................. 45 4.7 North Embankment Particle-size Distribution, Zone 1 (Rockfill) ...................... 47 4.8 Return Water Dam Particle-size Distribution, Zone 1 (Rockfill) ....................... 49 4.9 West Embankment Particle-size Distribution, Zone 1 (Rockfill) ....................... 52 4.10 Particle-size Distribution, Embankment Backfill Gravel - Zone 1A ...................... 54

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4.11 North Embankment Zones 2 and 2A Relative Compaction Test Results, 7 Sept. to 17 Sept. 2008 .................................................................................................. 57

4.12 North Embankment Zones 2 and 2A Relative Compaction Test Results (Cont.), 17 Sept. to 22 Sept. 2008 .................................................................................... 58

4.13 Percent Variation from Optimum Moisture Content in North Embankment Zones 2 and 2A Compacted Soils, 7 Sept. through 17 Sept. 2008 ................................... 59

4.14 Percent Variation from Optimum Moisture Content in North Embankment Zones 2 and 2A Compacted Soils (Cont.), 17 Sept. through 22 Sept. 2008 ..................... 59

4.15 Return Water Dam Zones 2 and 2A Relative Compaction Test Results ............. 63 4.16 Variation from In-place and Optimum Moisture Content in Return Water Dam Soils ..................................................................................................................... 63 4.17 West Embankment Zones 2 and 2A Relative Compaction Test Results ............ 67

4.18 Variation from In-place and Optimum Moisture Content in the West Embankment Soils ............................................................................................... 68

5.1 Particle-size Distribution Zone 4 (Gravel Drain) .................................................. 77 6.1 RWP Field Versus Laboratory Seam Peel Strength ......................................... 96 6.2 TSF Field Versus Laboratory Seam Peel Strength .......................................... 96 6.3 RWP - Field Versus Laboratory Seam Shear Strength ....................................... 97 6.4 TSF Field Versus Laboratory Seam Shear Strength ........................................ 97

12.1 Embankment Backfill Gravel Zone 1A Particle-size Distribution North Embankment Elevation 1,367 to 1,378 m ......................................................... 112

12.2 North Embankment Engineered Fill Zones 2 Relative Compaction Test Results Elevation 1,367 to 1,380 m, Section 2 ............................................................... 115

12.3 Percent Variation from Optimum Moisture Content in North Embankment Engineered Fill Zones 2 and 2A Compacted Soils, Elevation 1,367 to 1,380 m ................................................................................ 116

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LIST OF APPENDICES Appendix Description PART 1 APPENDICES A (Vol. 2) Design Changes B (Vol. 2) Submittals

B.1 Owner Supplied Material B.1.1 HDPE Geomembrane Liner B.2 Contractor Supplied Material B.2.1 Geotextile B.2.2 HDPE Pipe B.3 Contractor General B.3.1 Organization Chart B.3.2 WBHO Safety Documents B.3.3 WHBO On-site QC and Laboratory Equipment B.3.4 WBHO Method Statements B.3.5 Foundation Preparation Method Statements B.3.6 HDPE Geomembrane Installation Method Statements B.3.7 Grouting and Well Abandonment Method Statements B.3.8 Topsoil Stockpile Location B.3.9 Quality Control Plan B.3.10 Field Office Location B.4 Contractor Construction Schedule B.4.1 WBHO Tenke TSF Rev 12 Dec 2007 Schedule B.4.2 WBHO Tenke TSF Rev 16 Apr 2008 Schedule B.4.3 WBHO Tenke TSF Rev 05 May 2008 Schedules B.4.4 WBHO Tenke TSF Rev 03 Nov 2008 Schedule

C (Vol. 3) Field Documentation C.1 Site Instructions C.2 Selected Correspondence C.2.1 Correspondence C.2.2 Meeting Minutes C.3 Construction Progress Reports C.3.1 Client Weekly Progress Report C.3.2 TFM Mine Fleet Production Report

C.4 WBHO Final Punch List

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D (Vol. 4) Earthworks Quality Control Data

D.1 Clear and Grubbing D.2 Topsoil Removal D.3 Basin Subgrade Preparation D.3.1 Summary of Test Results D.3.2 Test Location Map D.3.3 Return Water Pond D.3.4 Tailing Storage Facility D.4 Embankment Foundation Preparation D.4.1 Summary of Test Results D.4.2 Test Location Map D.4.3 North Embankment D.4.4 Return Water Dam D.4.5 West Embankment

D (Vol. 5) D.5 Embankment Fill D.5.1 North Embankment D.5.1.1 Test Fill D.5.1.2 Test Results D.5.1.3 Zone 2 Test Results D.5.2 Return Water Dam D.5.2.1 Zone 1 Test Results D.5.2.2 Zone 2 Engineered Fill Test Results D.5.3 West Embankment D.5.3.1 Zone 1 Test Results D.5.3.2 Zone 2 Engineered Fill Test Results D.5.4 Zone 1A Rockfill Results D.6 Perimeter Road D.6.1 Return Water Pond Perimeter Road D.6.2 North Road D.6.3 South Road D.7 Spillway

E (Vol. 6) Drainage Quality Control Data E.1 Drain and Gravel Material E.1.1 Summary of Test Results E.1.2 Drain Gravel In-place Density Test Results E.2 Underdrain Installation E.2.1 Pipe Inventory E.2.2 Return Water Pond and Dam E.2.3 Tailing Storage Facility and West Embankment E.2.4 North Embankment E.3 Temporary Stormwater Drains E.3.1 Return Water Dam Stormwater E.3.1.1 Concrete Checklist E.3.1.2 Pipe Installation E.3.1.3 Pipe Abandonment E.3.2 North Embankment E.3.2.1 Concrete Checklist E.3.2.2 Pipe Installation

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F (Vol. 7) Geosynthetics F.1 Material Inventory F.2 Geotextile Filter F.2.1 North Embankment F.2.2 Return Water Dam F.2.3 West Embankment F.3 HDPE Geomembrane F.3.1 Not Used F.3.2 Not Used F.3.3 WBHO Quality Control Data

F.3.3.1 Return Water Pond F (Vol. 8) F.3.3.2 Tailing Storage Facility F (Vol. 9) F.3.4 MWH Quality Assurance Data

F.3.4.1 Return Water Pond F.3.4.2 Tailing Storage Facility F.3.5 Laboratory Test Results F.3.5.1 Return Water Pond F.3.5.2 Tailing Storage Facility F.3.6 Liner Leak Location Survey

G (Vol. 10) Well Abandonment

G.1 Well Locations G.1.1 Map and Coordinate Table G.1.2 Borehole Completion Diagrams G.2 Abandonment G.2.1 Grouting Checklist G.2.2 MWH QA Report

H (Vol. 10) Rock Quarry H.1 Salabwe Rock Quarry H.1.1 Salabwe 2 and 4 Quarry Mine Plan H.1.2 Salabwe 5 Quarry Investigation H.2 Fwaulu Rock Quarry H.2.1 Original Mine Plan Memorandum H.2.2 Potential Pit Layout and Quantities Memorandum H.2.3 Drill Hole Logs and Photos

I (Vol. 10) Survey Data

J (Vol. 11) Photographs J.1 2004 (Part 1) J.2 2005 (Part 1) J.3 2006 (Part 1) J.4 2007 (Part 1) J.5 2008 (Part 1 January through May)

J (Vol. 12) J.5 2008 (Part 1 June through December) J (Vol. 13) J.6 2009 (Part 1 and Part 2)

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PART 2 APPENDICES

K (Vol. 14) Submittals

L (Vol. 14) Field Documentation L.1 Meeting Notes and Engineered Fill QC Report L.2 Construction Weekly Progress Reports

M (Vol. 14) Earthworks QC Data M.1 Site Preparation M.2 North Embankment Fill Zone 1A Test Results M.3 North Embankment Fill Zone 2 Test Results M.4 North Embankment Fill Zone 2 Test Data M.5 Embankment Fill Soils lab Test Results

N (Vol. 14) Geosynthetics QC Data N.1 Geotextile Filter N.2 HDPE Geomembrane Aquatan QC Data N.3 Geomembrane MWH QA Data

O (Vol. 15) TFM Final Survey

P (Vol. 15) MWH Calculation Check

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LIST OF ACRONYMS ASTM American Society of Testing Materials CAT CM

Caterpillar Equipment Company Construction Management

CQA Construction Quality Assurance CSI DRC

Construction Specification Institute Democratic Republic of Congo

EPCM Engineering, Procurement and Construction Management Contractor

FMI Freeport McMoRan Copper and Gold, Inc. Golder Golder Associates Africa (Pty) Ltd. GRI HDPE

Geosynthetic Research Institute High-Density Polyethylene

HWL High Water Level ID LDPE

Identification Low-Density Polyethylene

mamsl Minproc

Meters above mean sea level GRD Minproc Ltd.

MWHA MWH Americas, Inc. MWH DRC MWH DRC, S.P.R.L. QA Quality Assurance QC Quality Control RC Relative Compaction RCP Reinforced Concrete PipeRQD Rock Quality Designation RWP Return Water Pond SANS SDR SCS

South African National Standards Standard Dimension Ratio Soil Conservation Service

TFM Tenke Fungurume Mining TSF Tailing Storage Facility TQ Technical Queries USACE CRD USCS

United States Army Corps of Engineers Concrete Research Division Unified Soil Classification System

WBHO Wilson Bayly Holmes-Ovcon Ltd

August 2009 Tenke Fungurume Mine TSF and RWP Phase 1 Construction Report x 1

MWH * 1801 California Street, Suite 2900 * Denver, Colorado 80202 * (303) 291-2222

1.0 INTRODUCTION 1.1 GENERAL Tenke Fungurume Mining (TFM) operates the Tenke Fungurume copper and cobalt mine in the Katanga province of the Democratic Republic of Congo (DRC) in central Africa. TFM is a company incorporated under the laws of the DRC for the purpose of developing the deposits of copper, cobalt, and associated minerals under a mining concession from the DRC Ministre des Mines. TFM is a partnership of Freeport-McMoRan Copper & Gold, Inc (FMI), the Lundin Mining Corporation, and the government of the DRC through La Gnrale des Carrires et des Mines (Gcamines). Currently, TFM is developing the mine site, which is located approximately 180 km northwest of the provincial capital of Lubumbashi and includes the towns of Tenke and Fungurume. The mine site location is shown on Drawing 52018-0051-01-120-500. The initial mine plan consists of mining and processing 100 million tonnes of ore reserves with an average grade for copper and cobalt of 2% and 0.3%, respectively. The Tenke Fungurume copper and cobalt deposits are part of the central African copper belt and are found near the surface in a series of hills within the mine concession. TFM plans to mine and process ore from the Kwatebala, Goma, and Kavifwafwaulu ore bodies over an initial 20-year period or more using a conventional open pit mining method. Ore processing will continue for a total mine life of 40 years or more. TFM began first copper production from the Kwatebala hill ore in the first quarter of 2009. The ore processing plant consists of a semi-autogenous grinding (SAG) mill for producing a finely ground ore that will undergo a solution extraction/electrowinning process to produce electrolytic copper cathodes. A sulfuric acid plant provides sulfuric acid and sulfur dioxide (SO2) for copper extraction and cobalt recovery, respectively. The processing plant will also use water, electricity, and raw materials such as lime, magnesium hydroxide, and limestone to extract the metals from the ore and to produce the final copper and cobalt products. The main wastes and emissions from the processing plant are tailing and air emissions. Tailing from the processing plant is deposited in a geomembrane-lined tailing storage facility (TSF) supplemented by a geomembrane-lined, return water pond (RWP). The TSF is a cross-valley type repository that will be developed in several stages to reduce the initial capital cost. The first (Phase 1) state will have a capacity to provide tailing storage for approximately one to one and a half years of mine production. The second (Phase 2) stage will extend the life to about 5 years. The TSF will need to be expanded and/or a new facility built to store tailing for the remainder of the mine life. Construction of the TSF and RWP began at the end of July 2007. The RWP and lower half of the TSF, herein referred to as Phase 1, was completed and placed into operation in the first quarter of 2009. Construction of the remainder of the TSF (i.e., Phase 2) is scheduled to begin in August 2009 with an anticipated completion date of September 2010. This report provides the construction completion documentation for the Phase 1 TSF and RWP project (project). The observations, inspections, and testing performed during construction, as described in this report, demonstrate that the TSF and RWP have been constructed in accordance with the project drawings, specifications, and design intent.



1.2 PURPOSE AND SCOPE OF WORK TFM retained MWH DRC S.P.R.L. (MWH) to provide construction management and construction quality assurance (CQA) services for the earthwork and liner construction of the TSF and RWP. MWH mobilized a team consisting of a combination of expatriates from MWHs global operations and local DRC staff. The construction oversight team included both field and home office engineering personnel who were familiar with the design intent, specified materials, and construction techniques associated with the geomembrane-lined TSF and RWP. The team worked closely with TFMs on-site TSF construction management team throughout the duration of construction. MWH was responsible for overseeing the construction for compliance with the plans, specifications, and approved design changes and for addressing technical issues that were raised during construction. MWHs scope of work included CM, CQA, construction progress monitoring, and reporting activities. TFM was actively involved in the construction process and made decisions that had an impact on the cost and schedule of construction and other functions within the areas of responsibility of the owner. TFM also self-performed some of the construction activities. Table 1.1 provides the construction components of the project that were MWHs responsibility and the components that were the responsibility of other parties.

TABLE 1.1 BREAKDOWN OF CONSTRUCTION OVERSIGHT RESPONSIBILITIES

MWH Other Parties

Year 2007 Design representation: MWH had a field engineer during 2007 who functioned as a design representative for the TSF and RWP. Construction management and CQA were provided by GRD Minproc, LTDC.

Mobilization of the earthwork and liner contractor TSF and RWP clear and grub Approximately 13% of the spillway excavation Approximately 80% of the North Embankment foundation excavation

West Fwaula and Salabwe rock quarry geotechnical investigations

HDPE liner laydown area construction Stormwater runon management facilities Plant site earthworks and process ponds

Year 2008 TSF and RWP clearing and grubbing Salabwe rock quarry haul road construction TSF and RWP topsoil stripping Salabwe rock quarry mine plan TSF and RWP basin contouring Salabwe and Fwaulu rock quarry management Remainder of the North Embankment foundation excavation

Tailing slurry pumping and distribution system installation

Return Water Dam foundation excavation TSF water reclaim barge access ramp construction West Embankment foundation excavation TSF water reclaim barge installation Fwaulu rock quarry mine plan development Return Water Pond return water pump platform and

piping Zone 1 and 1A rockfill for the North Embankment, Return Water Dam, and West Embankment

Process and construction water wells

Geotextile filter installation for the Return Water Dam1, North and West Embankments.

Village relocation Mine waste and ore storage facilities

Zone 2 and 2A engineered fill for the North Embankment, Return Water Dam1 and West Embankment.

Safety berms

North Embankment and Return Water Dam temporary storm drains Perimeter road excavation



MWH Other Parties HDPE liner installation for the TSF and Return Water Dam Groundwater monitoring well abandonment

Year 2009 Demobilization of the original earthworks and liner contractor

North Embankment temporary storm drain abandonment

Mobilization of the HDPE liner installation contractor who installed the North Embankment liner from elevation 1367 to 1380 m

Liner ballast installation2

Security facilities Commissioning

Notes: 1. The engineered fill (Zone 2) for the downstream side of the Return Water Dam was completed to

an elevation of 1,380 m under MWHs oversight responsibility. 2. MWH oversaw the initial liner ballast installation that occurred during the 1st and 2nd Quarters of

2009. MWH was responsible for the general construction management (CM) and CQA services for the project components that were within MWHs scope of work. MWHs primary responsibility was for those project components. MWHs duties included coordinating site activities, administering the contracts for construction, monitoring the contractors performance, cost/schedule control and reporting results from site inspection to TFM, responding to design and technical submittals, managing changes during construction, and preparing a construction completion report. TFM provided cost and schedule control for the self-perform construction activities performed in 2009. 1.3 PROJECT DOCUMENTS The observations and testing conducted during the construction period were performed according to the following plans and specifications:

MWH, 2007. Tenke Fungurume Mine: Tailing Storage Facility and Return Water Pond PACKAGE 1: Site Clearing, Grubbing, and Stripping, Construction Drawings and Engineering Specifications prepared for Tenke Fungurume Mining, June.

MWH, 2007b. Tenke Fungurume Mine: Tailing Storage Facility and Return

Water Pond PACKAGE 2 Phase 1A: Foundation Preparation, Embankment Construction and Liner Installation, Construction Drawings and Engineering Specifications prepared for Tenke Fungurume Mining, October.

MWH, 2007c. Tenke Fungurume Mine: Tailing Storage Facility and Return

Water Pond PACKAGE 2 Phase 1B: Foundation Preparation, Embankment Construction and Liner Installation, Construction Drawings and Engineering Specifications prepared for Tenke Fungurume Mining, October.

MWH, 2008. Tenke Fungurume Mine: Tailing Storage Facility and Return Water Pond PACKAGE 2 Phase 2: Foundation Preparation, Embankment Construction and Liner Installation, Construction Drawings and Engineering Specifications prepared for Tenke Fungurume Mining, January.

Other project-related and guidance documents referenced during the project include:



Daniel, David E. and Koerner, Robert M, 1995. Quality Assurance and Quality Control for Waste Containment Facilities, U.S. Environmental Protection Agency Research and Development: EPA/600/SR-93/182, September.

Golder Associates and MWH, 2008. Tenke Fungurume Mine Tailing Storage

Facility and Return Water Pond Final Design, prepared for GRD Minproc LTD, August.

Golder Associates, 2007. Environmental Impact Assessment Tenke Fungurume Project, prepared for Tenke Fungurume Mining S.A.R.L (TFM), March.

GRD Minproc LTD, 2007. Tenke Fungurume Feasibility Study Feb 2007

Technical Report, prepared for Tenke Mining Corp, April.

International Finance Corporation, 2007. Environmental, Health and Safety Guidelines for Mining, December.

MWH, 2008a. Request for Re-Pricing for the Tenke Fungurume Mine Tailing

Storage Facility and Return Water Pond Earthworks and Liner, prepared for Freeport McMoRan Copper and Gold, Inc, March.

MWH, 2008b. Tenke Fungurume Mine: Tailing Storage Facility and Return

Water Pond PACKAGE 1: Site Clearing, Grubbing, and Stripping, Construction Drawings and Engineering Specifications, March.

1.4 DISCLAIMER This document contains the expression of the professional opinion of MWH as to the matters set out herein, using its professional judgment and reasonable care. It is to be read in the context of the agreement (the Agreement) dated June 19, 2008, between TFM (the Client) and MWH (the Consultant), and the methodology, procedures, and testing techniques used, the Consultants assumptions, the circumstances, and constraints under which its mandate was performed. This document is meant to be read as a whole, and sections or parts thereof should thus not be read or relied upon out of context. MWH has, in preparing the as-constructed information, followed methodology and procedures, and exercised due care consistent with the intended level of accuracy, using its professional judgment and reasonable care. Unless expressly stated otherwise, assumptions, data, and information supplied by or gathered from other sources (including the Client, other consultants, contractors, testing laboratories, and equipment suppliers, etc.) upon which the Consultants opinion as set out herein is based has not been verified by the Consultant; the Consultant makes no representation as to its accuracy and disclaims all liability with respect thereto. MWH has, in preparing the record of construction drawings, relied on the survey information from others. Surveying was outside of MWHs scope of work and, therefore, this information was produced by others. Since MWH was not responsible for development of the surveys and has no way to verify their accuracy, MWH assumes no responsibility or liability for the surveys or their accuracy. It is recommended that the accuracy of these surveys be confirmed if used in future design work or construction.



MWH disclaims any liability to any third party with respect to any reliance on this document by any third party without the prior written consent of MWH. Although MWH prepared a design for Phase 2 of the TSF, FMI retained Golder of Lakewood, Colorado, to redesign the Phase 2 portion and to oversee its construction. MWH has had no involvement with the Phase 2 redesign and assumes no responsibility for its construction, performance, or impacts to performance of Phase 1 of the project that are impacted by Phase 2 design and construction. 1.5 REPORT ORGANIZATION

This construction completion report provides the documentation of the construction activities overseen by MWH for the TSF and RWP Phase 1 construction. On-site activities began in 2007 under oversight by GRD Minproc LTD (GRD Minproc); however, little construction progress was made until the beginning of 2008. The majority of the Phase 1 construction was performed by a single earthworks and liner installation contractor, WBHO, in 2008 although TFM performed portions of the construction in 2008, including managing the rock quarries, drilling, and blasting rock in the quarries, hauling a portion of the rockfill, stripping of a portion of the Phase 1 TSF footprint, and grouting to abandon the storm drain pipe through the Return Water Dam. TFM completed the remaining earthwork for Phase 1 with its own forces during the first half of 2009, including grouting to abandon the North Embankment temporary storm drain and completing the North Embankment from elevation 1,367 mamsl to approximate elevation 1,380 mamsl. Part 1 of this report describes the construction activities performed by the earthworks and liner installation contractor, which occurred during 2007 through January 2009. Part 2 of the report describes the construction activities performed by TFM from February to June 2009, including abandoning the temporary stormwater drain. This report is divided into 15 volumes. Volume 1 contains the text and record drawings, Volumes 2 through 13 contain the appendices associated with Part 1 of the construction completion, and Volumes 14 through 15 contain the appendices for Part 2 of the construction completion. Volume 2 contains design changes and submittals (as Appendices A through B). Volume 3 contains field documentation, including site correspondence, and construction progress reports (as Appendix C). Volumes 4 through 6 contain the completed construction documentation and quality control data for earthworks, drainage material placement, and liner placement (as Appendices D and E). Volumes 7 through 9 contain geosynthetic quality control and quality assurance data (as Appendix F). Volumes 10 through 13 contain information on well abandonment, rock quarry, survey data, and photographs (as Appendices G through J). Volume 14 contains information on the North Embankment temporary storm drain abandonment and information on the design changes, submittals and field documentation for Part 2 of the report (as Appendices K through M). Volume 15 contains the completed construction documentation and quality control data for the earthworks and liner placement and the survey data for Part 2 (as Appendices O through Q).



2.0 PROJECT OVERVIEW 2.1 GENERAL Construction of the Phase 1 TSF and RWP began at the end of July 2007 and was completed in June 2009. Prior to the Phase 1 final completion, the TSF and RWP were placed into operation by TFM in March 2009. TFM completed the remainder of the Phase 1 work during the beginning of the operation. Construction and operation of the TSF was divided into Phase 1 and Phase 2. Phase 1 refers to the lower portion of the TSF up to a perimeter crest elevation of approximately 1,380 mamsl with some areas slightly higher in order to accommodate the required grades of the roadway and tailing discharge pipeline. Phase 1 construction included the entire RWP except for a small portion of the Return Water Dam, which will be completed during Phase 2 construction. Phase 2 refers to the upper portion of the TSF finished to a perimeter crest elevation of approximately 1,396 mamsl. Although MWH prepared a design for Phase 2 of the project, FMI retained Golder to redesign the Phase 2 portion of the TSF and to oversee its construction. Phasing construction was necessary due to the short construction season from May to September (i.e., dry season) and the requirement to have the TSF and RWP operational by the first quarter of 2009. The majority of the average annual rainfall (1,137 mm) occurrs between October and April (i.e., rainy season), limiting the work to placement of rockfill for the embankments. Construction of the weather-sensitive components such as the engineered fill and geomembrane were restricted to the dry season. TFM retained a South African heavy civil contractor, WBHO Construction (Pty) Ltd (WBHO), to perform the majority of the construction. TFM performed the drilling and blasting for developing the rock quarries and self-performed some of the work later in the project. In December 2008, TFM notified WBHO that the start of Phase 2 would be deferred due to the depressed global economic conditions at that time. Subsequently, WBHO demobilized from the project at the end of January 2009 and TFM terminated their contract with WBHO shortly thereafter. Although the TSF and RWP were substantially complete, the temporary stormwater drain abandonment and a small portion of the North Embankment were items left to complete the Phase 1 construction. In February 2009, TFM abandoned the temporary stormwater drain and started construction of the remainder of the Phase 1 North Embankment. TFM completed the North Embankment to the Phase 1 crest height of approximately 1,380 mamsl in June 2009. The portion of the TSF below elevation 1,367 mamsl constructed by WBHO was commissioned in March 2009 with the first tailing deposition on March 20, 2009. GRD Minproc managed the TSF and RWP construction in 2007 and in the beginning of 2008. TFM had retained GRD Minproc to provide engineering, procurement, construction, and management (EPCM) services for building the mine infrastructure that included the processing plant, roads, main electric transmission lines, TSF, RWP, and logistic support during construction. At the end of February 2008, TFM formally transferred the construction management of the TSF and RWP to MWH, leaving some smaller components of the TSF and RWP in GRDs EPCM scope, such as the tailing delivery and distribution and water reclaim pumping and piping systems.



The following sections provide a description of each key project component built during the Phase 1 construction. A summary of the design modifications made during construction, a description of the construction sequence, and the organization and responsibilities of the project team, are described in subsequent sections. 2.2 PROJECT COMPONENTS The primary TSF and RWP components that were constructed for Phase 1 include:

Zoned rock-fill embankments varying in height from approximately 30 m to approximately 12 m

Basin contouring Underliner drain Embankment drain High density polyethylene (HDPE) geomembrane liner Perimeter roads Temporary storm drains Stormwater diversion Spillway

The North Embankment is the largest of the embankments followed by the Return Water Dam and West Embankment. The Return Water Dam is located to the east of the TSF and separates the RWP from the TSF. The West Embankment is located to the west of the TSF. The spillway is located just northwest of the West Embankment outside the TSF to divert stormwater runoff from the west drainage basin around the TSF and RWP. The TSF and RWP basins were contoured and the subgrade was compacted to a depth of 300 mm to provide a smooth and firm foundation for the installation of a 1.5-mm-thick HDPE geomembrane. An underdrain system was installed to drain groundwater and reduce hydrostatic uplift pressures on the geomembrane liner. An access road is located on the perimeter of the TSF at an elevation of approximately 1,380 mamsl and at the perimeter road of the RWP at an elevation of approximately 1,396 mamsl. Temporary storm drains were installed in the Return Water Dam and North Embankment to help manage stormwater and protect the facilities during construction. These drains were instrumental in allowing construction activities to continue into the early part of the wet season months. The Return Water Dam and North Embankment temporary stormwater drains were abandoned on December 19, 2008, and March 3, 2009, respectively. Stormwater diversion channels and small embankments were also constructed to divert stormwater and provide erosion control during and after construction. The spillway is a large, valley-shaped excavation through an existing topographic knob. It ranges up to approximately 34 m below the existing ground surface at its deepest point. The spillway has 1H:1V (horizontal to vertical) side slopes in areas with rock and 2H:1V in soil areas. It is approximately 3 m wide at its base. Part 1 of the record of construction drawings shows the Phase 1 components constructed primarily by WBHO. Part 2 of the record of construction drawings shows the remaining portion of the North Embankment completed by TFM and North Embankment temporary storm drain abandonment which was also performed by TFM. The general arrangement of the TSF and RWP is shown on Drawing 52018-0051-01-120-502.



2.3 DESIGN MODIFICATIONS A number of design modifications were implemented during construction. Design changes were either initiated in the field by the owner or as a result of discussions with the contractor. The design modification process included:

Technical review by the designer Schedule and cost implications review by the construction manager and owner Technical justification Designer and owner approval Submittal to the contractor for execution

Table 2.1 provides a summary of the design modifications.

TABLE 2.1 SUMMARY OF DESIGN MODIFICATIONS

Design Revision

WBHO Change Order #

Date Implemented

1 Return Water Dam Temporary Stormwater Drain 1 8-Aug-08 2 Spillway Diversion Fill 2 5-Sep-08 3 North Embankment Modifications 3 10-Sep-08 4 Liner Ballast 4 25-Nov-08 5 North Embankment Temporary Storm Drain Outlet Extension 5 29-Oct-08 6 West Embankment Alteration and Spillway Diversion Fill Modification 6 9-Dec-08 7 Well Abandonment 7 12-Dec-08 8 Embankment Instrumentation 8 15-Dec-08 9 Geotextile Specification Design Change N/A 8-Apr-08

10 Filter Construction Method N/A 1-Jul-08 Note: To the knowledge of MWH, the change orders were not executed, although the work was performed. Finalization of the change orders during close out of WBHOs contract between FMI and WBHO may have occurred, but MWH was not informed of this.

A copy of each change order is included in Appendix A. A typical change order package included a technical justification memo and drawings relevant to the change. Design modification number 5 was not implemented since a decision was made by FMI in November 2008 to suspend rockfill placement at the North Embankment in early 2009. Design modification number 10 required only a designer and owner approval since it had been already included in the Drawings as an optional method of constructing the embankment filter. Drawing 52018-0051-01-120-915 shows details of two embankment filter layer construction options. Option 1 allows the use of a geotextile filter fabric. Option 2 allows the use of a graded gravel filter. MWH recommended using the geotextile filter fabric (option 1) based on the results of the engineered fill properties determined during the geotechnical investigation.



2.4 SEQUENCE OF CONSTRUCTION TSF and RWP project activities started with WBHO clearing and grubbing the RWP area at the end of July 2007. Activities continued with excavating the North Embankment foundation and a portion of the spillway. Work continued until wet weather conditions in October prohibited work from continuing. At the beginning of the 2008 dry season, WBHO resumed activities with peak construction occurring during the middle of the year. Phase 1 of the TSF and RWP was substantially complete by the beginning of the 2008/2009 wet season. The RWP and the portion of the TSF below elevation 1,367 mamsl were ready for operation by the end of February of 2009. In addition to drill and blasting services and quarry management, TFM performed parts of WBHOs work scope to maintain the project schedule until additional WBHO equipment could be mobilized to the site. TFMs activities included:

Topsoil stripping and stockpiling from the west end of the TSF to the central portion

Constructing the Fwaulu haul road from the rock quarry to the TSF and RWP

Hauling Zone 1 rockfill from the Fwaulu rock quarry to the Return Water Dam, North Embankment and West Embankment

Grouting to abandon the storm drain pipe through the Return Water Dam TFM performed the activities in conjunction with the WBHO team, working side by side in some areas. Surveying and construction quality control remained WBHOs responsibility for all work performed by TFM. The sequence of work is described herein as two parts. Part 1 is work mainly completed by WBHO between 2007 to the end of January 2009. Part 2 is the completion of the North Embankment by TFM after WBHO had demobilized from the project. In general, the sequence for Part 1 construction activities consisted of:

1. Procurement and contractor mobilization 2. Site preparation, clearing and grubbing, and stripping 3. Embankment and dam construction 4. Basin contouring and subgrade preparation for the HDPE geomembrane liner 5. Temporary stormwater drain installation and abandonment 6. Basin and perimeter road construction 7. HDPE liner installation 8. Spillway excavation



The general sequence for Part 2 construction activities consisted of:

1. North Embankment temporary storm drain abandonment 2. Zone 1A and geotextile filter material placement on the North Embankment from

elevation 1,367 to the crest of the rockfill at approximately elevation 1,378 mamsl

3. Engineered fill placement in Zone 2 of the North Embankment from elevation 1,367 mamsl to approximately elevation 1,380 mamsl

4. HDPE geomembrane installation on the North Embankment from elevation 1,367

mamsl to approximately elevation 1,380 mamsl Since WBHO had forces already on site for the plant site bulk earthworks, mobilization for the TSF consisted of adding more earth moving equipment and personnel to their existing force. TFM purchased the HDPE geomembrane and manufactured the Zone 1A and Zone 4 gravel for the project. Geotextile, piping, and other materials required by the project were furnished by WBHO. Materials delivered to the site were unloaded and stored in the HDPE liner lay-down area that WBHO constructed early in the project. Prior to disturbing ground, the area was surveyed by the TFM social and environmental department to identify rare species of plants that would require relocation and appropriation of land in accordance with the TFM social and environmental policies for the project. After receiving a social clearance, site preparation for an area would begin with harvesting timber, clearing and grubbing, and topsoil removal. WBHO first began site preparation activities at the North Embankment footprint and spillway excavation area consisting of clearing and grubbing and stockpiling topsoil. WBHO also cleared and grubbed the RWP area in 2007, which had to be repeated in 2008 due to the vegetation re-growth during the wet season. Timber was harvested by TFM labor crews and used for beneficial use by the communities. Late in 2007, WBHO demobilized a portion of its force due to the delay by GRD Minproc and TFM in determining a rock quarry source. In December 2007, TFM selected the Salabwe quarry for the source of Zone 1 rockfill material. WBHO began constructing the 5-km-long Salabwe haul road shortly thereafter. The haul road construction required approximately 4 months to complete due to wet weather delays. The North Embankment and Return Water Dam are the largest of the Phase 1 structures and required the largest quantity of construction materials. Construction began at the North Embankment, followed by the Return Water Dam and the West Embankment, which was the last of the three structures to be completed. The general sequence of construction for each embankment and the Return Water Dam was:

1. Foundation excavation 2. Embankment drain installation 3. Zone 1 rockfill placement 4. Zone 1A embankment gravel placement



5. Zone 1A filter geotextile installation 6. Zone 2 and 2A engineered fill placement 7. HDPE geomembrane installation

TFM began drill and blasting operations at the Salabwe quarry in late February 2009. After almost two months of quarry development, the first load of Zone 1 rockfill was hauled to the North Embankment prepared foundation on April 26, 2009. Due to the large volume of unusable Zone 1 rockfill at the Salabwe quarry, TFM decided to develop the Fwaulu rock quarry as another source of Zone 1 rockfill. The Fwaulu rock quarry proved to be a significantly better source for Zone 1 rockfill, reducing the initial waste to usable rock ratio from 3:1 to 0.8:1 by the end of the project. Rock became available from the Fwaulu rock quarry the last week of July approximately 4 months after starting development of the Salabwe rock quarry. TFM crews began hauling Zone 1 rockfill from the Fwaulu rock quarry during the week of July 28, 2008, to the Return Water Dam foundation. In October WBHO moved its Salabwe quarry crews to the Fwaulu quarry along with the TFM crews due to more efficient production of rockfill and closer haul distance to the TSF. After the level of the rockfill in the North Embankment and Return Water Dam reached the required elevation, the drains were installed, which connected to the underliner drains in the TSF and RWP basins. Zone 1 rockfill placement continued at the North Embankment and Return Water Dam concurrently. The Zone 1 rockfill reached the Phase 1 design crest elevation for the Return Water Dam in the last week of September, followed two months later with the West Embankment and, lastly, the North Embankment reaching its rockfill crest elevation in the middle of December. Zone 1A embankment backfill gravel, filter geotextile installation, and Zone 2 engineered fill were constructed concurrently. The Zone 1A gravel was placed over the Zone 1 rockfill followed by the geotextile filter fabric, extending 3 to 5 m above the working elevation of the Zone 2 engineered fill. The Zone 2 engineered fill was completed at the North Embankment in the first week of October to an elevation of 1,367 mamsl, followed a month later by completing the engineered fill at the Return Water Dam engineered fill to an elevation of 1,386 mamsl and, lastly, at the West Embankment to a crest elevation of 1,380 mamsl completed in late December 2008. Zone 2A consisted of hand picking out oversized materials from the surface and smooth drum rolling and hand raking the surface in preparation for the HDPE liner installation. The general sequence of the Part 2 construction activities consisted of abandoning the temporary storm water drain and completing the remainder of the North Embankment components from elevation 1,367 mamsl to 1,380 mamsl consisting of:

1. Installing Zone 1A gravel 2. Installing Zone 1A filter geotextile 3. Placing Zone 2 engineered fill 4. Installing the geomembrane liner



Table 2.2 summarizes the general sequence of the work by quarter for each project component.

TABLE 2.2 SEQUENCE OF WORK SUMMARY

Project

Component Construction Activity1 Performed By

Year 2007 2nd Quarter2

Procurement and mobilization

Purchase HDPE geomembrane for the Phase 1 TSF and RWP from Aquatan Tanks (Pty) Ltd. and ship to the site

GRD Minproc

Construction capital cost estimating using feasibility study design

GRD Minproc, Golder, and WBHO

Begin mobilizing equipment and personnel for TSF and RWP construction

WBHO

Prepare HDPE liner laydown area WBHO Year 2007 3rd Quarter2

Spillway Begin excavation WBHO North Embankment

Begin foundation excavation WBHO

RWP Clearing and grubbing Return Water Pond WBHO Year 2007 4th Quarter2 (Wet Season)

Spillway Continue excavation WBHO Year 2008 1st Quarter2 (Wet Season)

Salabwe rock quarry haul road

Begin Salabwe haul road construction WBHO

Year 2008 2nd Quarter North Embankment

Continue foundation excavation WBHO Begin to haul and place Zone 1 rockfill from the Salabwe quarry

WBHO

Return Water Dam

Begin foundation excavation WBHO Return Water Dam foundation excavation WBHO

Underliner drain Begin to produce Zone 4 gravel for underliner drain TFM Perimeter road Begin the RWP perimeter road construction WBHO HDPE liner Begin installing the liner in the RWP WBHO

Year 2008 3rd Quarter North Embankment

Continue the foundation excavation WBHO Continue hauling and placing Zone 1 rockfill from the Salabwe quarry and begin hauling Zone 2 rockfill from the Fwaulu quarry

WBHO and TFM

Install the temporary stormwater drain WBHO Begin construction of the Zone 2 engineered fill WBHO

Return Water Dam

Continue excavating the foundation WBHO Begin hauling and placing Zone 1 rockfill from the Fwaulu quarry

WBHO and TFM

Install the temporary stormwater drain WBHO Underliner drain Begin installing the underliner drain at the RWP and TSF WBHO Perimeter road Continue the RWP perimeter road construction and start the

TSF perimeter road construction WBHO

HDPE liner Continue installing liner in the RWP and begin installation in the TSF

WBHO

Spillway Resumed excavation activities WBHO Year 2008 4th Quarter

North Embankment

Complete placing Zone 1 rockfill from the Fwaulu quarry WBHO and TFM

Complete the temporary storm drain WBHO Complete the construction of the Zone 2 engineered fill and geomembrane to elevation 1,367 m

WBHO



Project Component Construction Activity1

Performed By

Return Water Dam

Complete hauling and placing Zone 1 rockfill from the Fwaulu quarry

WBHO and TFM

Complete the Zone 2 engineered fill WBHO Underliner drain Complete the underliner drain WBHO Perimeter road Complete the RWP and TSF perimeter roads WBHO HDPE liner Complete the deployment of the liner for the RWP and TSF WBHO

Year 2009 1st Quarter Demobilization WBHO demobilizes from the TSF project WBHO North Embankment

Abandon the temporary storm drain TFM

HDPE Liner Complete the liner detail work WBHO Spillway Complete excavation of the spillway TFM RWP Abandon temporary storm water drain WBHO TSF and RWP Abandon wells WBHO

Year 2009 2nd Quarter TSF and RWP Commissioning TFM North Embankment

Complete engineered fill and geomembrane from elevation 1367 mamsl to 1380 mamsl

TFM

Notes: 1. Only key construction activities are listed 2. Calendar quarters

WBHO had provided TFM with construction pricing in April of 2007 based on a conceptual design prepared for the TSF Feasibility Study. Later in 2008, WBHO re-priced the project based on the detailed design and construction specification packages and re-pricing package prepared by MWH listed in Section 1.3 Project Documents. The majority of the construction was performed under the re-pricing agreement. The small portion of work performed in 2007 and the Salabwe haul road construction in 2008 was performed under the 2007 agreement for plant site earthworks administered by GRD Minproc. 2.5 PART 1: CONTRACTING APPROACH ORGANIZATION This section describes the project roles and responsibilities by the owner, EPCM, designer, and contractor for the Part 1 work using a contracting approach for work completed between 2007 to the end of January 2009. Changes in the roles and responsibilities of the parties occurred two times during the project. The first change occurred when MWH assumed the role of construction manager at the beginning of 2008. The second change occurred when TFM terminated their contract with WBHO because of TFMs decision to defer Phase 2 of the TSF and RWP construction. During this time, TFM also made the decision to self-perform the bulk earthworks to complete Phase 1 construction of the project and take on the responsibility to manage the remainder of the Phase 1 construction. MWH provided only QA services for the final month of Phase 1 construction in 2009. Table 2.3 summarizes the project roles and responsibilities by the owner, EPCM, designer, and contractor during the construction phase of the project.



TABLE 2.3 PROJECT ROLES AND RESPONSIBILITIES FOR

TSF AND RWP PROJECT

Part

Time Period

Party Role Responsibility

Part 1 C

onstruction Com

pletion

July 2007 through January 2009

TFM Owner Define responsibilities of the other parties

Final approval of contractors Supply owner-furnished materials and

supplies Site-wide health and safety Site-wide environmental monitoring Social and environmental surveys of

work areas Tree harvesting Payment to other parties

GRD Minproc

EPCM Detailed design and CM of tailing distribution and water reclaim system

Project planning Procurement Contract administration Project health and safety Schedule and cost control Construction quality assurance Logistics

MWH and Golder

Designer Detailed design of TSF and RWP (civil and earthworks)

Construction drawings and specifications for the TSF and RWP (civil and earthworks )

WBHO Contractor Work execution Surveying Construction quality control Managing subcontractors

March 2008 through January 2009

TFM Owner Same as above including: TSF project specific on-site owners

representative during construction Quarry management Allocation of contractors resources

between the TSF and other projects Supplementing contractor for topsoil

removal and Zone 1 rockfill hauling GRD Minproc


Procurement Project health and safety Logistics

MWH and Golder

Designer Same as above

MWH CM and CQA

Project planning Contract administration Schedule and cost control Construction quality assurance

WBHO Contractor Earthworks and liner installation Surveying Construction quality control Managing subcontractors



Part

Time Period

Party Role Responsibility

Part 2 C

onstruction Com

pletion

February 2009 through June 2009

TFM Owner Same as above, plus: Project planning Self perform earthworks and North

Embankment temporary storm drain abandonment

Contract administration Schedule and cost control Construction quality control for

earthworks and liner Surveying

GRD Minproc


Procurement Project health and safety Logistics

MWH and Golder

Designer Same as above

MWH CQA Construction quality assurance Aquatan Contractor Liner installation (under contract to

TFM) Liner construction quality control

(under contract to TFM) Notes:

1. WBHOs work performed in March 2008 was based on the plant site earthworks contract unit rates and was a transition month from GRD Minproc to MWH for providing CM and CQA services.

2. WBHOs work performed in April 2008 was based on the plant site earthworks schedule of values and the work scope in the 2008 re-pricing agreement.

3. WBHOs work in May 2008 was based on the schedule of values and scope of work in 2008 re-pricing agreement.

4. WBHOs payment certificate 13 for work performed in April 2008 was prepared using the plant site agreement unit rates. The previous payment was set to $0.00 to avoid duplication of payment for items in both the old and new agreements.

2.5.1 Owner In 2008, the owner assigned Mr. David Barraza to oversee all work on the TSF as a representative of the owner. Mr. Barraza became involved with the project in April 2008 and had a full-time presence on the project site thereafter. He monitored the work in the field on a daily basis and acted as a liaison between the contractor and the owner. Mr. Barraza worked closely with MWH on CM topics and with MWHs QA personnel to review daily QA reports and observe construction in the field. Mr. Barraza prepared monthly presentations, reviewed pay requests from WBHO and MWH, and conveyed instructions and directives from TFM to the project team. He also conducted progress meetings with the contractor and QA personnel weekly or as needed. The owner also had several other representatives on site who supported the project. Table 2.4 provides a list of the Owners team and their role:



TABLE 2.4 OWNERS PERSONNEL AND ROLES

Name Role

Tamara Johndrow FMI Manager Tailings and Water Resources

Chris Schmitz TFM Mine Manager and TSF Project Sponsor

Dave Ogonowski FMI Construction Project Director Bill Cravens FMI Senior Construction Manager Lello Galassi Senior Project Manager David Barazza FMI TSF Superintendent Lee Passmore FMI Quarry & Construction Superintendent Tom Weiskoph TFM Environmental Manager Wolfram Shuh TFM Manager of Geological Services Luis Beaza FMI Project Health and Safety Manager Mike Brewer TFM Procurement and Logistics Manager

The owner was responsible for managing the quarries, including drilling and blasting to develop the quarries. The owner also had representatives that oversaw site vehicles, fuel supplies, water supplies, safety, security, equipment commissioning, labor relations, and overall construction of the facility. As construction of the TSF and the main processing plant were underway, the owner was developing the mine, stockpiling raw materials, and developing a permanent village for full-time, long-term operations personnel. Beginning in 2008, TFM would convene a meeting each day to summarize overall progress on the project and to discuss any quality or safety issues that needed to be addressed. MWH QA personnel attended the meeting each day and reported progress made on construction of the TSF. Any instructions or directives from the owner were communicated to the MWH project team and the contractor on a daily basis. The progress meeting was convened six days a week. MWH also attended special training and safety classes as needed to comply with the owners requirements. 2.5.2 EPCM GRD Minproc was the EPCM for the Tenke Fungurume Mine project. They were responsible for managing the logistics on the project, including safety, health care, lodging, meals, and security for all workers. The EPCM procured materials and equipment used for construction at the site, managed the subcontractors and day to day work products, and transportation and QA for the constructed work in the main plant area. The EPCM also managed WBHO at the beginning of the TSF and RWP project (i.e., through February 2008) and was responsible for procuring the HDPE geomembrane and manufacturing the gravels needed for construction the TSF and RWP facilities.



2.5.3 Designer The design of the TSF and RWP project was completed jointly by Golder and by MWH. The design was completed in multiple design packages to allow the contractor to begin work at the site in 2007 prior to the rainy season, to work through the 2007/2008 rainy season, and then continue as weather improved during the dry season. The TSF design was submitted on time with construction specifications in English, and the specifications followed the United States Construction Standards Institute (CSI) format. The design incorporated standards from United States and worldwide organizations, including the American Society for Testing and Materials (ASTM International), South African National Standards (SANS), and The US Army Corps of Engineers Concrete Research Division (CRD). The Golder/MWH design included field work to find source areas for the rockfill used in the embankments. The quarry locations and mine plans for the Salabwe and Fwaulu quarries were developed by Golder and MWH, respectively. MWH prepared the construction level drawings and specifications. MWH performed on-site design oversight services during the initial part of the TSF and RWP construction with an expanded role to provide construction management and CQA beginning in early 2008. A summary of the design team, as well as a brief description of the role of each project position, is shown in Table 2.5:

TABLE 2.5 DESIGNERS PERSONNEL AND ROLES

Firm. Name Role

MW

H

James Obermeyer Client Service Manager and Engineer of Record

Tatyana Alexieva Design Manager

Keith Johnson Lead Designer

Josh Rogers Project Engineer

Staff Discipline Staff Engineers

Golder

Dave Walker Principal

Staff Discipline Staff Engineers

2.5.4 Construction Manager MWH provided construction management and CQA services beginning in March 2008 through January 2009 utilizing a defined project team approach under the direction of a client service manager and principal-in-charge. Prior to March, MWH provided a design representative in the field. The EPCM provided construction management and quality assurance services. The construction manager was the on-site senior representative for MWH and was primarily responsible for all field engineering activities and for verifying that the construction activities were performed in accordance with the design intent and contract documents. The construction managers responsibilities included:



Oversight of construction activities Overall management of MWH field personnel Review and reply to contractor submittals and technical queries Attendance at construction meetings Participation in final inspection and acceptance of the work Promotion of safety awareness and daily direction so that MWHs personnel could

conduct work according to safety standards. MWHs home office located in Denver, Colorado, USA, provided engineering support to the field team in answering technical RFIs and provided guidance and input on the design intent and design clarifications. A summary of the MWH project team, as well as a brief description of the role of each project position, is shown in Table 2.6:

TABLE 2.6 CONSTRUCTION MANAGERS PERSONNEL AND ROLES

Base Name Role

Office

James Obermeyer Client Service Manager and Principal-in-Charge

Tatyana Alexieva Design Manager Phillip Crouse Construction Project Manager Keith Johnson Contract Administrator Rick Shassetz

Director of Environmental Health and Safety

Field

Pedro Rodriques Construction Manager Robert Pocano QA Manager Eric Lundborg/Will Hatrick QA Supervisor Atanas Atanasov QA Supervisor Patrick Beya Dibwe QA Inspector Fernando Torres QA Inspector Herve Kitambo QA Inspector Fred Kabin Dampande QA Inspector Philamon Onyango Liner QA Supervisor Stephen Onyango Liner QA Inspector David Ogada Liner QA Inspector Louvin Baruani Liner QA Inspector Solange Matuga Field Administrator

The construction project manager spent over half of his time at the site especially at the beginning of MWHs role as the construction manager. The engineer of record visited the site frequently to review the work. Both the construction project manager and construction manager were intimately involved with day-to-day operations and all field changes for the work up to the end of 2008.

2.5.5 Contractor

WBHO was the prime contractor that performed the Part 1 construction activities as described as in this report between 2007 to the end of January 2009. TFM used a self-perform approach to complete the Part 2 activities.



WBHO constructed roads, embankments, grading, and the majority of the bulk earthworks associated with the TSF and RWP. WBHO also procured and installed the geotextile, underdrain piping and installed the HDPE geomembrane with its own crews. Construction QC and surveying was also performed by WBHO. WBHOs staff included on-site managers, laboratory technicians, QC personnel, surveying team, equipment operator trainer, and key heavy equipment operators. Laborers were hired mainly from the surrounding communities. The on-site management team included a full-time project manager, site agents, production manager, quality control manager, surveying manager, health and safety manager, equipment manager, and quantity surveyor. Each site agent was responsible for a specific area such as processing plant site bulk earthworks, processing plant concrete, and TSF/RWP area. The production manager was responsible for tracking construction progress and acted as the crew leader. Other than the site agents, the management team members spread their time between all the project areas. The off-site team included division managers and corporate managers for quality and safety and an off-site scheduler. The off-site team also included a corporate equipment manager and other construction support staff as needed. The QC department included a team of supervisors that oversaw geomembrane quality control testing, on-site laboratory testing, and earthwork quality control testing. A copy of WBHOs project organization is presented in Appendix B.3.1. Table 2.7 provides the contractors key personnel and roles.

TABLE 2.7PART 1: CONTRACTORS SUPERVISORY PERSONNEL AND ROLES

Base Name Role

Office

Mike Sprott Commercial Director

Mike Adams Contract Director

Arno Boshoff Group Quality Manager

Nick Steenkamp Quantity Surveyor

Field

Dave Birnie Project Manager

Bundu Sparks Production Manager

Givemore Simende TSF Site Agent

Dragan Bibic Survey Manager

Herath Gunawardena Quality Manager

Christian Martey Liner Quality Supervisor

Tinase Manyiwa Laboratory Manager

Tshepo Toho Site Administration

The commercial director, contract director, and the quality surveyor visited the site approximately once a month. The quality manager and other corporate management staff visited the site periodically. The quality surveyor was responsible for preparing the invoice certificate using the monthly survey measurements of the pay item quantities. WBHOs management team interacted closely with the construction management team and owner representative.



2.6 PART 2: SELF-PERFORM APPROACH ORGANIZATION 2.6.1 Owner, Construction Manager, and Contractor TFM self-performed the Part 2 construction activities as described in this report from February 2009 to the end of June 2009. Their role and responsibilities included that of an owner, construction manager, and contractor. The TFM mine operations department took the responsibility to provide construction management and to self perform the bulk earthworks including installation of the Zone 1A embankment backfill gravel, and embankment filter for completing the remainder of the North Embankment. TFM retained specialty contractors for the geomembrane installation and construction quality control services. For the self-perform approach, the TFM personnel involved in the project remained the same as during the Part 1 activities. However, key individuals from the owners team took a more active role in managing the day-to-day construction. Table

tenke phase 1 tsf_rwp constr completion rpt

Documents

construction manager

sequence of construction

construction completion

report organization

construction report

construction quality

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