CONTRACT FOR CONSTRUCTION
BETWEEN
MINERA SAN XAVIER, S.A. de C.V.
AND
MEXTICA de MEXICO S. de X.X., de C.V.
DATED AS OF MARCH 3, 2004
TABLE OF CONTENTS
PAGE
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RECITALS........................................................................................ 1
ARTICLE I DEFINITIONS........................................................................... 2
ARTICLE II PERFORMANCE OF THE WORK.............................................................. 7
ARTICLE III OWNER'S RESPONSIBILITIES............................................................ 12
ARTICLE IV REPRESENTATIVES...................................................................... 13
ARTICLE V PROJECT SCHEDULE AND WORK COMPLETION.................................................. 14
ARTICLE VI COMPENSATION OF CONTRACTOR........................................................... 16
ARTICLE VII ADDITIONS, DELETIONS, AND CHANGES TO WORK........................................... 18
ARTICLE VIII LIABILITY AND INDEMNIFICATION...................................................... 21
ARTICLE IX INSURANCE AND BONDS.................................................................. 22
ARTICLE X TERMINATION OF CONTRACT AND OWNER'S RIGHT TO PERFORM CONTRACTOR'S OBLIGATIONS......... 23
ARTICLE XI ASSIGNMENT OF SUBCONTRACTORS......................................................... 25
ARTICLE XII CONFIDENTIAL INFORMATION............................................................ 26
ARTICLE XIII SUSPENSION OF THE WORK............................................................. 27
ARTICLE XIV TITLE TO THE WORK................................................................... 28
ARTICLE XV PATENTS AND COPYRIGHTS............................................................... 28
ARTICLE XVI ARBITRATION......................................................................... 29
ARTICLE XVII MISCELLANEOUS PROVISIONS........................................................... 29
EXHIBITS
Exhibit A Scope of Work
Exhibit B Division of Responsibilities (DOR)
Exhibit C Drawings and Specifications List
Exhibit D Performance Test
Exhibit E-l Mextica Labor Rates
Exhibit E-2 Lyntek Rate Sheet
Exhibit E-3 Construction Equipment Rates
Exhibit F Schedule
Exhibit G MSX Permit Conditions
Exhibit H MSX Parent Guarantee
Exhibit I Mextica Parent Guarantee
DESIGN/BUILD/INSTALL CONTRACT FOR
This agreement ("Contract") is entered into and effective as of the
10th day of December, 2003, by and between Minera San Xavier, S.A. de C.V., a
Mexican Corporation ("Owner"), and Mextica de Mexico S. de X.X., de C.V. a duly
organized and legally existing company under the laws of the United Mexican
States ("Contractor").
Recitals
Owner is constructing an open pit gold mine with related materials
handling and ore processing facilities at its Minera San Xavier project near San
Xxxx Potosi, Mexico ("Project"). Owner desires to have Contractor design,
procure or supply all equipment and material for, and install or construct
certain facilities or structures, more particularly described as the gold and
silver heap xxxxx facility ("Facility"), in connection with the Project.
Contractor desires to undertake such design, procurement, supply
installation and construction so as to provide Owner with such Facility.
Agreement
In consideration of the mutual covenants and promises set forth herein,
the parties agree as follows:
ARTICLE I
DEFINITIONS
When used in this Contract, the following terms shall have the meanings
set forth in this Article:
1.1. "Affiliate" means any person, partnership, joint venture,
corporation or other form of enterprise which directly or indirectly controls,
is controlled by, or is under common control with a Owner or with the
Contractor, as applicable.
1.2. "Applicable Laws" shall mean all applicable federal, provincial,
state and local laws, ordinances, regulations and decrees including, without
limitation, environmental protection laws.
1.3. "Change Order" means a written order executed by Owner's
Representative defining and authorizing a change in the scope of the
Contractor's Work.
1.4. "Completion Date" means the date set forth in Section 5.1 by which
the Work shall be completed as adjusted from time to time in accordance with the
Contract.
1.5. "Construction Contract" means any agreement between Owner and any
Construction Contractor in relation to carrying out construction and
design/build activities forming part of the Project.
1.6. "Construction Contractors" mean those persons or entities,
(including Contractor) Owner proposes to contract with or has contracted with in
relation to the carrying out of construction and design/build activities forming
part of the Project.
1.7. "Construction Team" shall mean, collectively, Owner, and the
Engineer.
1.8. "Contract" means the Contract, all exhibits or addenda hereto, and
all drawings, specifications, and other documents incorporated by reference
herein, as the same may be amended in writing from time to time.
1.9. "Contract Price" means the aggregate amount invoiced by Contractor
for the Work performed, as described in Article VI.
1.10. "Contractor's Representative" means the person designated in
Section 4.3 hereof to receive notices on behalf of Contractor.
1.11. "Defective Work" means Work that is unsatisfactory, faulty or
deficient, or does not conform to this Contract, or does not meet the
requirements of any inspection, reference standard, test or approval referred to
in this Contract, or has been damaged prior to Owner becoming responsible for
protection thereof.
1.12. "Engineer" means any entity or individual other than Contractor
or its Subcontractors with which Owner has contracted on behalf of the Owner to
provide procurement, design, and other engineering or architectural services in
connection with the Project.
1.13. "Facility" means the gold and silver heap xxxxx facility which is
the object of this Contract and intended to be the product of the Work, as
finally constructed.
1.14. "Liens" mean mechanic's and materialmen's liens and any other
liens, charges, security interests or other encumbrances which may cloud or
affect the Owner's title to the Work, the Facility, or the Project.
1.15. "Limited Notice to Proceed" means the agreement between the Owner
and Contractor, effective December 10, 2003, directing the Contractor to begin
the Work on a limited basis.
1.16. "Milestone Dates" are certain key events in the orderly
development of the Project as identified in Section 5.1.
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1.17. "Owner's Representative" shall mean the representative designated
from time to time by Owner as described in Article IV.
1.18. "Performance Test" means the mechanical performance test as
described in Exhibit D.
1.19. "Project" means Owner's development and construction of an open
pit gold mine, including related process facilities to extract gold and other
saleable minerals, with supporting ancillary facilities and infrastructure,
including design, procurement of equipment, construction, assembly, testing and
commissioning of the mine and related facilities.
1.20. "Project Schedule" means the schedule for completing the various
phases and facilities of the Project prepared by the Contractor and approved by
Owner, as it may from time to time be revised and updated.
1.21. "Project Work" means construction work performed by Construction
Contractors in furtherance of the Project.
1.22. "Representative" shall refer to the Contractor's Representative,
or to Owner's Representative, whichever may be applicable, as described in
Article IV.
1.23. "Scope of Work" means the description of expressly-described Work
set forth in Exhibit "A" hereto.
1.24. "Site" means the location of the Owner' planned mining, milling,
and related operations near San Xxxx Potosi, Mexico, as more particularly
described in the Specifications.
1.25. "Specifications" shall mean the physical, technical, and
performance requirements of the Owner, and the physical conditions and
constraints at the Site relevant or pertaining to the Facility to which
Contractor shall be subject and which Contractor shall fulfill in performance of
the Work.
1.26. "Subcontractor" shall mean any authorized party, not an employee
of Contractor, engaged by Contractor pursuant to Section 11.3 to perform or
assist in performing any portion of the Contractor's Work. Vendors or suppliers
of standard equipment and off-the-shelf items shall not be considered as
Subcontractors, and Contractor purchasing from such vendors and suppliers shall
be governed by Section 2.11.
1.27. "Substantially Complete" means that the Work has been completed,
in Owner's reasonable opinion, to the extent that the Facility is ready for use
or is being used for its intended purpose and the portion of the Work still not
completed will in no way delay work of other Construction Contractors.
1.28. "Work" means all duties of the Contractor expressly set forth in
this Contract including but not limited to the work set forth in the Scope of
Work, and any services reasonably inferred in
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order to carry out the Work expressly set forth herein, excluding (a) work to be
performed by the Engineer , and (b) construction, design/build or other Project
Work to be performed by Construction Contractors other than either Contractor or
its Subcontractors.
ARTICLE II
PERFORMANCE OF THE WORK
2.1. Contractor hereby agrees to perform the Work so as to produce a
functionally complete and operating Facility in accordance with the terms and
conditions contained in this Contract.
2.2. Contractual Relationship and Acknowledgements.
2.2.1. In all things undertaken by the parties under this
Contract, it is specifically understood and agreed that neither Contractor nor
any Subcontractor nor any of their employees, agents, or consultants shall be
considered or treated as an agent, employee, or servant of the Owner for any
purpose whatsoever, including worker's compensation. Contractor shall be, and
remain at all times during the term of this Contract, an independent contractor
and shall not, except as specifically authorized by this Contract or by Owner in
writing, make or purport to make commitments or representations of any kind on
behalf of the Owner. Contractor shall not have the authority to bind the Owner
to any contractual obligation or to any expenditure for any services, equipment
or other matter or thing, except as provide herein, without prior approval of
Owner in writing and shall, prior to the performance of any services or action
which will result or is likely to result in a claim for compensation against the
Owner by a third party, advise Owner of the possibility of the claim and all
details relating thereto and obtain Owner's direction in respect thereof.
2.2.2. Contractor shall be responsible for determining whether
or not it has sufficient information from Owner to perform the Work prior to
commencing the Work. Contractor shall notify Owner of any additional
information, data, or test results it considers it needs from Owner before
undertaking any portion of the Work to which such information applies.
2.2.3. Any work that may reasonably be inferred from the Scope
of Work as being required to produce the result specified in this Contract shall
be supplied or performed whether or not it is specifically called out herein.
2.2.4. Owner reserves the right to perform other work and to
let other contracts in connection with the Project Work. The Contractor shall
afford Owner and other Construction Contractors, reasonable opportunity for the
introduction and storage of their materials and the execution of their work, and
shall properly coordinate and connect its work with theirs. If any part of the
Work depends for proper execution or results upon the work of Owner, or of
another Construction Contractor, the Contractor shall visually inspect such work
and promptly report to Owner any observed defects in such work that render it
unsuitable for such proper execution and result. The Contractor's failure to so
inspect and report defects, that were reasonably detectable by prior to its
commencement of the affected portion of the Work shall constitute an acceptance
of
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Owner's and other Construction Contractor's work as fit and proper for the
execution of the Work. To ensure the proper execution of subsequent Work, the
Contractor shall examine work already in place and shall at once report to Owner
any discrepancy between the executed work and the drawings and specifications.
2.3. Representations and Warranties.
Contractor represents that:
2.3.1. Contractor is fully experienced and properly qualified,
equipped, organized, financed and licensed as necessary to perform the Work and
complete the Facility in accordance with (i) the terms and conditions of this
Contract, (ii) all Applicable Laws, (iii) all permits or approvals necessary to
construct the Facility, and (iv) all industry design and construction standards
and specifications applicable to facilities and operations of a nature and
extent comparable to the Facility, including but not limited to those laws and
standards set forth in the Scope of Work;
2.3.2. The Work shall be performed in a first class,
workmanlike manner in accordance with: the terms of this Contract; all
Applicable Laws relating to construction of the Facility; and all permits and
approvals required for construction of the Facility, including those obtained
for the Project in general which may pertain to or affect the Facility;
2.3.3. With respect to engineering design included in the
Work, the Work shall be in accordance with the highest quality design and
engineering practices and standards of professional engineers performing similar
services;
2.3.4. With respect to the construction services and other
Work (other than engineering design), the Work shall be in accordance with the
highest quality standards for qualified and experienced persons engaged in
providing such services in similar locations;
2.3.5. Material and equipment specified and used by Contractor
for the Work shall be in accordance with the specifications in Exhibit C_______
and, unless otherwise specified, shall be of first quality new materials and
workmanship, and shall be free from defects in workmanship or materials.
2.3.6. The Facility shall be fit for the purposes intended by
Owner, as specified by this Contract;
2.3.7. With respect to equipment or machinery purchased and
installed by Contractor, such equipment or machinery shall be installed in
accordance with the manufacturer's or supplier's instructions and
specifications.
2.4. Contractor acknowledges that the Owner has in good faith
endeavored to supply all information and data in its possession to Contractor to
aid Contractor in formulating the Work, has made all records and data in its
possession which was deemed relevant by the Owner or requested by Contractor
available to Contractor, and has allowed Contractor full access to the Site in
order for
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Contractor to familiarize itself with local conditions. Contractor acknowledges
that the Owner has made no representation as to plans, data, specifications or
conditions at the Site, except that it has in good faith attempted to disclose
to Contractor information actually known to it. Contractor acknowledges that it
has fully reviewed and understands all information supplied to it by the Owner,
that it has requested and received any additional information which it deems
necessary in order to commence the Work, that it has fully viewed the Site, and
that it has made an independent evaluation of such data and information and
based upon such independent evaluation, has determined to its own satisfaction
the scope of the Work, requirements to complete the Work, and Contractor's
qualifications to carry out the Work as warranted herein.
2.5. Covenants.
With the respect to its performance of the Work, Contractor covenants
and agrees as follows:
2.5.1. The Work shall be carried out by Contractor utilizing
Contractor's best care, skill and diligence, which shall in any event be as good
as the standards set forth in Sections 2.3.2, 2.3.3, 2.3.4, and 2.3.5.
2.5.2. The Work shall be carried out with a view to completing
the Project in the most expeditious and economical manner consistent with the
requirements and conditions set forth herein and the interests of the Owner.
2.5.3. The Contractor shall carry out its activities and
functions in a manner which allows completion of those activities and functions
consistent with the Project Schedule. Contractor shall cooperate with
Construction Manager in matters pertaining to the Project Schedule.
2.5.4. The Work shall be coordinated with activities being
carried out or planned by the Construction Team and other Construction
Contractors.
2.5.5. Contractor and its Subcontractors, their employees,
agents and invitees, shall strictly observe and comply with any and all
Applicable Laws bearing on the Work and the conduct of the Work. If Contractor
performs any work contrary to such Applicable Laws, it shall assume full
responsibility therefor and shall indemnify and save harmless the Owner from and
against any liabilities, expenses, fines, penalties or losses resulting
therefrom.
2.5.6. Contractor and its Subcontractors, their employees,
agents and invitees shall strictly observe and comply with any and all rules,
regulations and accident prevention programs promulgated by Owner for the safe,
orderly and efficient conduct of the Work at the Site including, but not limited
to the contractor safety, environmental and conduct requirements applicable to
the Work set forth in Exhibit G, MSX Permit Conditions attached hereto and
incorporated by this reference. Reference to "Contractor" in such requirements
shall mean Contractor and its Subcontractors and their employees, agents, and
invitees, and reference to "Company" shall mean Owner.
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2.6. Contractor represents and covenants that it has not and will not
accept commissions or allowances from, and that it will disclose, prior to their
involvement, any financial interest in persons (other than Owner) involved in or
seeking to become involved in the Project.
2.7. In performing the Work Contractor shall utilize key personnel
identified to and approved by Owner unless such personnel prove to be
unsatisfactory to Contractor or Owner. Contractor will promptly remove from the
Site and the Work any employee or agent who Owner reasonably deems
unsatisfactory. Contractor shall not remove any key personnel without the
written consent of Owner.
2.8. Contractor shall advise Owner of any errors or omissions in the
work of any Engineer any other Construction Contractor, or others it discovers
in the course of performing the Work and of any matters or things it discovers
that are likely to affect adversely the Facility, Project Budget, or Project
Schedule, or the Project.
2.9. No inspection, review, approval or advice undertaken by Engineer
or other Construction Contractors pursuant to any Construction Contract or
engineering contract by or on behalf of the Owner shall define or limit
Contractor's obligations under this Contract.
2.10. In the event the Work called for in this Contract necessitates
the sealing of drawings or other documents by a duly licensed engineer or other
professional, then Contractor and/or a sufficient number of individual engineers
or other professionals employed by Contractor on the Work shall be licensed as
necessary to seal drawings and documents.
2.11. All purchasing of equipment and/or materials to be imported into
Mexico, pursuant to the Scope of Work, shall be accomplished by purchase order
on Owner's forms. The purchase orders must specify that the invoices be
presented to the Contractor for payment on behalf of the Owner. The Contractor
will loan funds to the Owner for payments made under said purchase orders for
imported materials and equipment. The Owner will repay the Contractor the loaned
monies plus a fee of 10% within 15 days of presentation of the invoice to Owner
for the loan amount and the 10% fee. (IVA will be due on the 10% fee but not on
the loan repayment).
All purchasing of equipment and/or materials from Mexican suppliers
shall be accomplished by purchase order on Contractor's forms, and Contractor
shall obtain reimbursement for such materials and equipment pursuant to Article
VI, below. Specification of equipment and materials and selection of the vendor,
regardless of country origin, shall be in accordance with the Scope of
Work.2.12. During the execution of the Work the Contractor shall take all
necessary precautions to protect all workmanship, materials and equipment
furnished under this Contract (including workmanship, materials and equipment
furnished by Owner) from loss or damage, and shall protect the Project and
Facility from loss or damage of any sort which might result, either directly or
indirectly, from the Contractor's operations under this Contract. The means
which the Contractor provides for protecting the Owner' property shall be
subject to Owner's approval, but Owner's approval shall not relieve the
Contractor of any responsibility therefor.
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2.13. The Contractor shall not block any roads on the Site nor obstruct
access to any of Owner's equipment or the equipment of other Construction
Contractors without first obtaining Owner's approval.
2.14. Contractor shall at all times keep the Site free from
accumulation of waste materials and rubbish due to the Work. Promptly after
completing the Work, the Contractor shall remove all construction equipment from
the Site, remove all rubbish and waste material of any kind resulting from the
Work, dispose of said rubbish in a manner satisfactory to Owner, and place the
ground around the Facility in a condition satisfactory to Owner; and, if any
similar work is needed because of repairs, alterations, changes or corrections
which the Contractor subsequently makes on the Work or any portion thereof, the
Contractor shall perform same.
2.15. The Contractor's buildings and other forms of protection for
tools and materials at the Site will be permitted only at such places as Owner
shall designate.
2.16. The Contractor shall keep itself and Owner fully advised as to
all pertinent local and regional labor agreement practices, including any local
labor union contract negotiations occurring during the term of this Contract.
Contractor shall use its best efforts to resolve any labor disputes affecting
Contractor's performance hereunder, with due consideration for Owner's interest
hereunder and will consult with Owner in connection with any such labor dispute.
2.17. Owner reserves the right to use all of Site for its own purposes
in any manner it deems fit and proper, provided its use thereof does not
interfere unduly with the performance of the Work.
2.18. Contractor's Representative shall attend such scheduling
meetings, review meetings or other meetings as Owner reasonably requests.
2.19. If required by Owner, Contractor shall promptly, as directed,
either correct all Defective Work, whether or not fabricated, installed or
completed, or, if the Work has been rejected by Owner, remove it from the Site
and replace it with non defective Work. Contractor shall perform all costs of
removal, correction and reinstallation at the rates shown in Exhibit E, without
Contractor's Overhead and Fee.
2.20. If within twelve months after the Substantial Completion Date any
Work is found to be defective, Contractor shall promptly, in accordance with
Owner's written instructions, correct such Defective Work, The corrected or
replaced Work shall be subject to this Section for twelve months from the date
the correction or replacement is completed, but not to exceed (18) eighteen from
the Substantial Completion Date. Contractor shall perform all costs of removal,
correction and reinstallation of Defective Work at the rates shown in Exhibit E,
with out Contractor's Overhead and Fee.
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ARTICLE III
OWNER'S RESPONSIBILITIES
3.1. Owner shall:
3.1.1. Endeavor to provide Contractor with information
regarding its requirements in connection with the Facility and the Project and
shall supply Contractor with information in Owner's possession or coming into
its possession related to the Facility or Project, in each case to the extent
such information is relevant to Contractor's performance of the Work.
3.1.2. Furnish for the site of the Facility all necessary
surveys describing the physical characteristics, soil reports and subsurface
investigations, legal limitations, utility locations, and a legal description.
3.1.3. Furnish the site for erection and installation of the
Facility including work and storage areas reasonably needed by Contractor for
the erection of the Facility at the Site.
3.1.4. Secure and pay for necessary approvals, easements,
assessments and charges required for the construction, use or occupancy of
permanent structures or for permanent changes in existing facilities.
3.1.5. Furnish such legal services as may be necessary for
providing the items set forth in Section 3.1.4 and such auditing services as it
may require.
3.1.6. Provide any reviews, approvals, or directions required
in order for Contractor to perform the Work, provided that nothing contained
herein requires Owner to approve any matter or thing inconsistent with or
contrary to the Project or Work being completed as contemplated by this
Contract, the Project Budget and the Project Schedule, or the rights or
obligations of the Owner pursuant to any contract with a third party.
3.18 . Indemnify, defend, and hold harmless Contractor from
any liability, damages, penalties, or costs of any kind arising from hazardous
materials on site or brought to site by persons other than Contractor or its
Subcontractors.
3.2. Nothing in this Article shall affect Owner's right to add to,
delete from, or change the Work, or shall affect Owner's right on behalf of the
Owner to terminate the Contract, suspend the Work, or terminate or suspend the
Project.
3.3. No review or approval by Owner of any matter requested by
Contractor shall affect or limit the Contractor's responsibilities for
performance of the Work.
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3.4. Owner's security measures for the Project and the Site shall not
be deemed an undertaking by Owner to protect Contractor's Work, equipment,
tools, materials and the like. Contractor shall be solely responsible for
protecting such Work, equipment, tools, materials and the like.
ARTICLE IV
REPRESENTATIVES
4.1. Owner and Contractor shall each designate a Representative
authorized to act on its behalf, shall delineate the scope of each such
Representative's authority to act on its behalf, and shall have the right to
change the Representative or the scope of the Representative's authority upon
prior written notice to the other party. Each party's Representative shall have
the right to delegate duties and powers to another particular individual for
specified periods or in connection with specified portions of the Work by giving
the Representative of the other party written notice of the decision to do so.
4.2. Owner's Representative with general authority concerning the
Facility, and his address for notice, initially shall be:
Xxxx Xxxxxxxx, Vice President Operations
Metallica Resources, Inc
0000 X. Xxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxx, XX 00000
4.3. Contractor's Representative with general authority to represent
Contractor in dealing with Owner initially shall be:
Xxxx Xxxxxxxx, Senior Operations Manager
Xxxxxxx xx Xxxxxx
Xxxxx 0 #0000
Xxxxxxx Xxxxxxxxxxxx
00000 Tlaxcala, Tlaxcala
Mextica de Mexico Job Site
Camino Cerro de San Xxxxx KM.3.8 #200
Colonia La Zapatillo
San Xxxx Potosi, San Xxxx Potosi, Mexico
C.P. 78440
4.4
ARTICLE V
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PROJECT SCHEDULE AND WORK COMPLETION
5.1. Owner contemplates that various phases of the Project will be
undertaken in general accordance with the schedule as shown in Exhibit F.
Contractor shall be entitled to a bonus for early attainment of the milestones
and at the rates (USD) shown below. The bonus for each milestone shall be
separate and independent. The aggregate amount of the bonuses shall not exceed
two hundred and twenty five thousand dollars ($ 225,000).
5.1.1 Ready to Spray Solution on Cell #1: Date - September 16,
2002; Rate - $10,000 per day
5.1.2 Haul Road Ready to turnover to Washington Group: Date -
June 9, 2004; Rate - $5,000 per day
5.2. Time is of the essence under this Contract for the milestones
listed below and Contractor shall, as to those matters within Contractor's
control and for which Contractor is responsible, plan and perform the Work with
due regard for meeting the Completion Date in Section 5.1 as it may be revised
from time to time in the Project Schedule. Owner's sole remedy for schedule
delay shall be termination, per Section 10.2.and liquidated damages. Liquidated
damages shall not exceed an aggregated limit of fifty thousand dollars ($50,000)
and shall be for exceeding the aforementioned guaranteed milestone dates, at the
rates shown below.
Ready to spray cell#1: Rate - $5,000/day
Notwithstanding the above, to the extent the amount the Budget,
pursuant to Section 6.10, exceeds the final Project Price, such amount shall be
an off-set liquidated damages owed the Owner.
5.3. Contractor shall supply to the Owner a detailed schedule for
performance of the Work promptly after this Contract becomes effective.
Contractor shall commence the Work promptly after receipt from Owner of a
written "Notice to Proceed." Contractor shall promptly report to the Owner
likely or known delays or variances which may affect the Completion Date or
Project Schedule.
5.4. Neither party shall be liable to the other for failure to perform
its obligations hereunder if and to the extent such failure to perform results
from reasonably unforeseen causes beyond its reasonable control, all of which
causes herein are called "force majeure," including but not limited to, labor
disputes (however arising and whether or not employee demands are reasonable or
within the power of the party to grant); civil disturbances; fires; explosion;
floods; unusual climatic conditions; acts of God; acts of a public enemy;
inability to obtain or delay in obtaining required licenses, permits, or other
authorizations; or laws, regulations, or orders of any governmental authority
having jurisdiction. Financial difficulty shall not be considered a cause beyond
a party's control. The party asserting force majeure shall use all reasonable
efforts to remove or overcome the cause of the delay or inability to perform.
The party unable to perform as a result of force majeure shall promptly notify
the other at the beginning and ending of each such period.
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5.5. When Contractor considers the Facility and Work to be
Substantially Complete and ready for performance testing, Contractor shall
notify Owner in writing of this fact. Within a reasonable time thereafter, Owner
will make an inspection of the Work to determine the status of completion. If
Owner does not consider the Work Substantially Complete, Owner will notify
Contractor in writing giving the reasons therefore. If the Work appears
Substantially Complete to Owner, Owner will so advise Contractor of this fact,
and the parties shall schedule the performance test of the Facility set forth in
Exhibit D hereto ("Performance Test"). If the Performance Test is successful as
set forth in Exhibit D, the Owner shall acknowledge, in writing, that
Substantial Completion has occurred. If Owner considers the Work not to be
Substantially Complete after such inspection, Contractor will promptly remedy
the matters upon which such determination is based and shall again advise Owner
that the Work is Substantially Complete.
5.6. Use by Owner of any finished part of the Work, which has
specifically been identified in this Contract or which Owner and Contractor
agree constitutes a separately functioning and useful part of the Facility that
can be used by Owner without significant interference with Contractor's
performance of the remainder of the Work, may be made prior to all the Work
being Substantially Complete, subject to the following:
5.6.1. Owner at any time may request Contractor in writing to
permit Owner to use any such part of the Work which Owner believes to be ready
for its intended use and Substantially Complete. If Contractor agrees,
Contractor and Owner shall make an inspection of that part of the Work to
determine its status of completion. If, after such inspection, Owner does not
consider that part of the Work to be Substantially Complete, Owner will notify
Contractor in writing giving the reasons therefore and, unless Owner otherwise
requests, Contractor shall take all steps necessary to Substantially Complete
such part of the Work in response to Owner's objections. If Owner considers that
part of the Work to be Substantially Complete, the performance testing
provisions of Section 5.5 will apply with respect to that part of the Work.
5.6.2. No occupancy or separate operation of part of the Work
by Owner will be made prior to compliance with appropriate provisions concerning
property insurance.
5.6.3 Owner shall have care, custody, control and risk of loss
for such part of the Work upon use by Owner and the warranty period, as noted in
Section 2.20, shall commence for such part of the Work upon use by Owner.
5.7. Upon completion of the Performance Test, Owner will make a final
inspection with Contractor and will notify Contractor in writing of all
particulars in which this inspection reveals that the Work is incomplete or
defective. Contractor shall immediately take such measures as are necessary to
remedy such deficiencies and place the Facility in full compliance with this
Contract.
5.8. After Contractor has completed all corrections to the satisfaction
of Owner and has delivered all lien waivers or releases, consents of sureties,
maintenance and operating instructions, schedules, guarantees, bonds,
certificates of inspection, marked up documents, and other documents -- all as
required by this Contract -- and after Owner has given written notice that the
Work is
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acceptable (subject to Contractor's continuing obligations and warranties),
Contractor shall submit an invoice for final payment following the procedure as
provided in Section 6.2 and the procedure in Section 6.6. If any Subcontractor
or supplier of materials, equipment and the like fails to furnish a release or
receipt in full, Contractor may furnish a bond or other collateral satisfactory
to Owner to indemnify the Owner against any Lien.
ARTICLE VI
COMPENSATION OF CONTRACTOR
6.1. Owner shall compensate Contractor for the Work performed on a cost
basis. Subcontractor and vendor costs shall be invoiced at actual cost and work
performed by Contractor shall be invoiced at the rates shown in Exhibit_E. The
rates shown in Exhibit E shall not change during the term of this Contract.
Overhead ("Overhead") shall be a fixed percentage of seven (7.00%) and shall be
applied to all costs. Profit ("Fee") shall be a fixed percentage of three (3%),
and shall be applied to all costs and Overhead. All costs paid by Contractor in
US dollars shall be invoiced to Owner in US dollars and all costs paid in
Mexican pesos shall be invoiced to Owner in Mexican pesos.
6.2. The Contractor shall invoice the Owner each month, no sooner than
the 15th of the month, the estimated cost of work to be completed during the
next month. This invoice ("Application for Payment") shall include the estimated
cost for work to be completed, and amounts for Overhead and Fee based on the
above percentages applied to the estimated costs, with adjustments for over or
under payment in the prior month. The first Application for Payment shall
include any necessary adjustments for over or under payments made under the
Limited Notice to Proceed. The Application for Payment shall show the amounts to
be paid in US dollars and the amounts to be paid in Mexican pesos. If payment is
requested on the basis of materials and equipment not incorporated in the Work
but delivered and suitably stored at the site or at another location agreed to
in writing, the Application for Payment shall also be accompanied by a xxxx of
sale, invoice or other documentation warranting, if applicable, that the Owner
has received the materials and equipment free and clear of all Liens and
evidence that the materials and equipment are covered by appropriate property
insurance and other arrangements to protect the Owner's interest therein, all of
which will be satisfactory to Owner.
6.3. Contractor warrants and guarantees that title to all Work,
materials and equipment covered by any Application for Payment, whether
incorporated in the Project or not, shall pass to Owner no later than the time
of full payment free and clear of all Liens.
6.4. Owner will, within seven days after receipt of each Application
for Payment, either indicate in writing a recommendation of payment or a
statement of reasons for refusing to recommend payment. Owner and Contractor
shall endeavor to resolve informally any matter leading to a negative
recommendation as to the Application for Payment.
6.5. Subject to the following sentence, payment by the Owner to the
Contractor of the amount claimed in the Application for Payment shall be made
within fifteen (15) days after receipt of the
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Application for Payment. If Owner disputes or questions any charge appearing in
the Request for Payment, Owner will notify Contractor's Representative of the
nature of such question or dispute, and Owner may withhold from payment an
amount sufficient to cover the item questioned or disputed and shall have no
obligation to pay such questioned or disputed amount until the matter is
resolved to Owner's reasonable satisfaction.
6.6. The final Application for Payment shall be submitted after
Contractor believes the Work is complete. Within seven days after the final
Application for Payment is received pursuant to Section 5.8, Owner will either
indicate in writing a recommendation of final payment or a statement of reasons
as to why the Owner considers the Work not to have been completed satisfactorily
or the Contractor's other obligations under this Contract not to have been
fulfilled. Within fifteen days after the final Application for Payment, Owner
shall determine if it is satisfied that the Work has been completed, that there
are no outstanding claims made against the Owner for which Contractor is liable,
and that Contractor's other obligations under this Contract have been fulfilled.
Owner shall give written notice of its decision to Contractor, and if the final
Application for Payment is accepted, final payment will be due and payable by
Owner to Contractor. If Owner has any objection to the sufficiency of completion
of the Work, Owner shall instead give notice of such objections to Contractor
and Contractor shall promptly remedy the same and advise Owner when such matters
have been completed and the Work is considered by the Contractor to be complete,
and the foregoing review and payment process shall again apply.
6.7. The making and acceptance of the final payment will constitute a
waiver of all claims by Contractor against the Owner other than those previously
made in writing and still unsettled. Final payment shall not constitute a waiver
by the Owner of any rights in respect of Contractor's continuing warranty
obligations under this Contract.
6.8. All Applications for Payment shall be supported by time sheets,
receipts, ledgers and the like sufficient to support the matters charged to the
Work. To the extent relevant for calculation or verification of Contractor's
entitlement to any interim or final payment hereunder, Owner shall have the
right to audit, for a period of one year following Acceptance of Facilities,
Contractor's books and records relevant to the Work in order to verify that
charges are proper. Owner shall also have the right to require evidence that
Contractor has paid for labor, material, equipment, supplies, Subcontractors and
other matters related to the Work. Notwithstanding the above, Owner shall not
have a right to audit the Contractor built-up rates shown in Exhibit E.
6.9. Contractor shall not allow any Liens to attach to the Work or to
the Project, arising from the Work, and Contractor shall act promptly to remove
at its cost any such Liens if they do arise. Owner shall have the right at any
time, including the time of final payment, to retain from payments otherwise due
Contractor amounts sufficient to protect the Owner from such Liens.
6.10. The Project Price is estimated to be $ (12-24-03 Budget),
composed of:
Site Work/Xxxxx Pads: $6,663,537
Well Water System: $ 298,479
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Transmission Line: $ 580,262
Buildings: $ 721,047
Process Systems and Piping: $ 2,191,742
Plant Equipment: $ 1,906,126
Electrical: $ 1,265,731
Engineering: $ 554,500
Indirects and Misc: $ 1,405,092
Contingency $ 331,725
Overhead $ 1,160,800
Fee $ 500,000
Total 12-24-03 Budget $18,579,040
6.11. Contractor's books, records, and reports shall be established and
maintained so as to present cost breakdowns and other matters in a format
compatible with Owner requirements.
6.12 Owner shall provide a guarantee of payment to Contractor in a form
satisfactory to Contractor.
ARTICLE VII
ADDITIONS, DELETIONS, AND CHANGES TO WORK
7.1. Owner is entitled to add to any portions of Work specifically
described in this Contract so long as the added services are within the general
description of the Work contained in this Contract. The Work added by Owner,
together with any work reasonably inferred from portions of Work so added which
is required to produce the intended result, shall be performed by Contractor and
shall be compensated for as set out in Article Six above.
7.2. Owner is entitled to delete from the Work any work or services
described in this Contract or previously added to the Work.
7.3. All additions or deletions to the Work shall be in writing. If
Owner requests additional services which Contractor considers not to be within
the Work described in Exhibit A, Scope of Work, or if Owner makes any deletion
from the Work, then Contractor shall prepare a request for a Change Order
covering the revised Work and documenting any change in the Budget, Fee Cap or
Milestone Dates resulting from the change in Work.. Work outside the Scope of
Work shall not be performed by Contractor without execution by Contractor and
Owner of such a written Change Order.
7.4. Changes in the Work shall be preceded by a "Project Change Notice"
issued by Owner. Upon the issuing of a "Project Change Notice" the Contractor
shall present to Owner:
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7.4.2. The Contractor's estimate of the effect of the change
in the Work on the Milestone Dates;
7.4.3. The following:
A. An estimate of the cost effect of such change in
the Work, and the Budget, including specific identification of the cost of the
labor, (including identification of hours and trades involved) and materials
involved, and
B. The identity of any Subcontractor who will be
involved in performing such change in the Work and details of any quotations
which the Contractor may have obtained in relation to such work, and
C. If the change in the Work involves equipment,
details as to the type of equipment, hours and cost (whether rented or owned);
and
7.4.4. Such other information as may be requested by Owner.
Without limiting the generality of the foregoing the information listed above
shall be submitted in the form requested by Owner.
7.5. The Contractor shall have ten (10) working days from the receipt
of a "Project Change Notice" to prepare and present the information referred to
in Section 7.4.
7.6. Notwithstanding Section 7.4, in the event a change in the Work is
required immediately, Owner may direct the Contractor to carry out the same. In
such event the procedures set out in Section 7.4 shall be complied with as soon
after such direction as is reasonably possible..
7.7. Following receipt of the information referred to in Section 7.4,
Owner shall have the right to:
7.7.1. require the Contractor to proceed with the change, or
7.7.2. withdraw the proposed change in the Work.
If Owner elects to proceed in accordance with Sections 7.7.1, Owner will execute
a written "Change Order" directed to the Contractor.
7.8. If Owner makes a change in the Work, the Milestone Dates, Fee Cap
and the Budget shall be adjusted as agreed to by the Owner and the Contractor,
or failing agreement within thirty (30)
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days of such change in the Work being ordered, as may be determined in
accordance with Article XVI hereunder.
7.9. Failure by the parties to agree on the Budget, Fee Cap or the time
adjustments resulting from a change in the Work shall not constitute a valid
reason for the Contractor's failure to effect such change in the Work.
7.10. Any dispute as to the right to change or amount of change of the
Budget or Completion Date shall be resolved in accordance with Article XVI
hereunder.
7.11. In the event of any change, after the date of this Contract, of
any Applicable Laws, permit conditions, industry construction or design factors
or other factors, that will in Contractor's reasonable opinion materially affect
the cost, progress, or performance of the Work, Contractor shall immediately
advise Owner thereof. Provided that the changed condition was not one which was
or reasonably should have been foreseen by Contractor as of the date of this
Contract, Contractor shall be entitled to request a Change Order to meet such
changed condition, and the applicable provisions of this Article VII shall be
invoked with respect to such requested change. Discovery of conditions different
from those anticipated by Contractor but which were in existence as of the date
of this Contract does not constitute a change in conditions to which this
Section is applicable.
ARTICLE VIII
LIABILITY AND INDEMNIFICATION
8.1. The Contractor shall indemnify and save harmless the Owner and its
directors, officers, employees and agents from and against all liabilities,
demands, claims and causes of action of any nature arising from damage to third
party property or injury to persons, and to the extent of Contractor's
proportionate share of fault. The Owner shall indemnify and save harmless the
Contractor and its directors, officers, employees and agents from and against
all liabilities, demands, claims and causes of action of any nature arising from
damage to third party property or injury to persons, and to the extent of
Owner's proportionate share of fault.
8.2. The Owner shall not be liable or responsible in any way for any
property damage of any nature whatsoever that may be suffered or sustained by
the Contractor in the performance of its obligations under this Contact.
8.3. Owner shall have the right to withhold payments otherwise due
Contractor sufficient to reasonably protect the Owner from losses or claims made
against it, or which Owner has a reasonable expectation will be made against it,
for which Contractor is liable pursuant to this Article and to set off any
amounts paid to satisfy, compromise or settle any such claim or loss against
amounts otherwise due Contractor.
8.4. Acceptance of the Work by the Owner shall not relieve Contractor
of its warranty, indemnification, or other obligations hereunder.
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8.5. If the Facility fails to meet the Performance Test described in
Exhibit "D," the provisions of paragraph 3 of Exhibit "D" shall apply to define
Contractor's liability and Owner's rights.
8.6. With respect to Defective Work other than that described in
Section 8.6, Owner may direct Contractor to correct the deficiencies, correct
the deficiencies itself or engage another party to correct such deficiencies.
8.7 Contractor's total collective liability to Owner for any and all
damages of any kind (including, but in no way limited to liquidated damages but
excluding indemnity liabilities) arising out of or related, in whole or in part,
to the Project, the Contract and/or any work performed by Contractor under the
Contract is limited to 5% of the Contract Price. This limitation shall apply
regardless of the theory of recovery and regardless of whether liability arises
in tort or contract, at law or equity.. HOWEVER, THIS AMENDMENT SHALL IN NO WAY
LIMIT ANY RIGHT TO INSURANCE PROCEEDS OWNER MAY HAVE AS A RESULT OF ITS STATUS
AS "ADDITIONAL INSURED" ON ANY POLICY OF INSURANCE SUPPLIED BY CONTRACTOR
PURSUANT TO THE CONTRACT.
8.8 Neither party shall be liable to the other for special, incidental
or consequential damages arising out of or related, in whole or in part, to the
Project, the Contract and/or any work performed by Contractor under the
Contract. Neither earned Fee or Overhead are considered consequential. This
exclusion shall apply regardless of whether the liability arises in tort or
contract, at law or equity.
ARTICLE IX
INSURANCE AND BONDS
9.1. Prior to commencing work, the Contractor shall obtain and maintain
continuously during the term of this Contract the following insurance:
9.1.1. The Mexican equivalent of Workers' Compensation
Insurance in full and complete compliance with all applicable laws and
regulations of the jurisdiction(s) in which work under this Contract is being
performed. The Contractor will provide the Owner with a copy of a certificate or
other suitable evidence of compliance prior to the start of work.
9.1.2. Employer's Liability Insurance with limits of not less
than One Million dollars ($1,000,000) for accidental injury or death of any of
the Contractor's employees engaged in the work.
9.1.3. Motor Vehicle Liability insurance with limits of not
less than One Million dollars ($1,000,000)inclusive limit for each accident and
covering any motor vehicle, used or
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operated by Contractor in conjunction with the Work regardless whether such
motor vehicle is owned, non-owned, rented and/or leased.
9.1.4. Comprehensive general liability insurance with a
combined limit for bodily injury and/or property damage of not less than Ten
Million Dollars ($10,000,000) per occurrence and including coverage for Products
Liability, Owners and Contractors Protective, Broad Form Property Damage,
twenty-four (24) months Completed Operations and Blanket Contractual Liability
specifically recognizing the liability assumed under the indemnification clauses
of this Contract.
9.1.5. Contractor's equipment insurance against "All Risks" of
physical damage to Contractor's owned or leased equipment and tools used in
connection with the Work in an amount equal to its full replacement cost or
value, or, an amount that will provide sufficient funds to expedite replacement
of key equipment and tools, in the event of loss, to minimize undue delay in the
work schedule.
9.1.6. Professional liability ("errors and omissions")
insurance, either directly or by Contractor's engineering subcontractor, either
purchased specifically for the Work under this Contract or covered under
Contractor's existing Practice Policy, but in any event with minimum limits of
One Million Dollars ($1,000,000) each claim/One Million Dollars ($1,000,000)
annual aggregate available with respect to Contractor's Work under this
Contract.
9.2. With respect to the coverages in 9.1 and 9.4, excepting only
9.1.1. and 9.1.6, Contractor's insurance shall include Owner as an additional
named insured and a Waiver of Subrogation in favor of the Owner. The
Contractor's insurer will provide the Owner with at least thirty (30) days prior
written notice of cancellation or material change of the insurance and provide a
certificate of insurance, verifying that the coverage is in effect, prior to the
start of work.
9.3. The certification of Comprehensive Liability Insurance shall not
contain exclusions for damage to underground property, collapse of structures,
or damage resulting from explosion or blasting.
9.4 Builders All Risk insurance in an amount equal to the Budget on
non-admitted paper.
9.5 Said insurance coverage shall be written by companies satisfactory
to Owner. Certificates of insurance coverage evidencing such insurance shall be
provided to Owner. Contractor shall require and be responsible for similar
coverage being in force for any of its Subcontractors.
9.64. Contractor shall maintain at the Owner' expense, charged as a
disbursement, such other and additional types and amounts of insurance as Owner
may request in writing.
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ARTICLE X
TERMINATION OF CONTRACT AND OWNER'S
RIGHT TO PERFORM CONTRACTOR'S OBLIGATIONS
10.1. Without limitation, the following events shall constitute events
of default under this Contract:
10.1.1. if Contractor is adjudged a bankrupt or insolvent,
10.1.2. if Contractor makes a general assignment for the
benefit of creditors,
10.1.3. if a trustee or receiver is appointed for Contractor
or for any of Contractor's property,
10.1.4. if Contractor files a petition to take advantage of
any debtor's act, or to reorganize under bankruptcy or similar laws,
10.1.5. if Contractor fails to assign sufficient skilled
personnel or suitable materials or equipment for performance of the Work,
10.1.6. if Contractor fails to make prompt payments for labor,
materials or equipment unless such payments are withheld due to a failure by the
supplier to properly perform the labor or supply acceptable materials or
equipment,
10.1.7. if Contractor violates, contravenes, or disregards
Applicable Laws of any public body having jurisdiction, or disregards safety or
environmental protection rules, security, regulations and accident prevention
programs of Owner at the Project,
10.1.8. if Contractor disregards the authority of Owner's
Representative,
10.1.9. if Contractor acts in excess of the authority granted
it by this Contract or otherwise by Owner,
10.1.10. if Contractor fails to prosecute the Work with
reasonable diligence, or
10.1.11. if Contractor otherwise violates any provisions of
this Contract.
10.2. Subject to the conditions contained in this Section, Owner shall
have the right to terminate this Contract for Contractor's default under Section
10.1, and upon such termination assume the duties and responsibilities of the
Contractor. If Owner asserts a default, Owner shall give Contractor written
notice thereof. If Contractor fails to cure or commence and thereafter
diligently complete cure of any material default within 30 days after such
notice is given, then Owner may give written notice of termination which shall
be effective when given. Repeated defaults of a similar nature shall themselves
constitute a material uncured default for which Owner may give notice of
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termination without further rights to cure. If this Contract is terminated due
to Contractor's default, Contractor shall submit a final Application for
Payment, pursuant to Section 6.6 and the Owner shall have the right to set off
against the final payment any amounts owed Owner or in dispute.
10.3. Upon seven (7) days' written notice to Contractor Owner may,
without cause, elect to terminate this Contract in its sole discretion and for
any reason whatsoever or for no reason. In such case, Contractor shall be paid
for all Work executed, plus reasonable Termination Expenses. "Termination
Expenses" shall be limited to relocation costs, equipment ordered or delivered
which cannot be returned or delivery of which cannot be cancelled without
Contractor incurring liability therefor, non-refundable lease obligations which
Contractor has incurred with the approval of Owner, and other similar out of
pocket and unavoidable expenses for services or equipment or materials which
were incurred or acquired for the Work and which are not usable on other
projects of Contractor or are not returnable, recoverable or refundable,
provided that "Termination Expenses" shall specifically exclude any loss of
anticipated profits relating to Work not performed prior to the time of
termination. After notice of termination is given and before the effective date
of termination, Contractor shall:
10.3.1. Surrender to Owner full and exclusive possession of
all plans, specifications, drawings, designs, schedules, lists, instructions,
and other information in Contractor's possession or control which are necessary
in order to complete or related to the Work, to the extent available to the
Contractor.
10.3.2. As directed by Owner's Representative on an individual
basis, terminate, cancel, settle, adjust, assign, or transfer to Owner all
orders, subcontracts, and other commitments related to the Work which were
placed, made or entered into by Contractor before notice of termination was
given.
10.3.3. Take all other steps and perform all other services
which Owner's Representative reasonably requires in connection with termination
of all or any portion of this Contract.
In no event shall the provisions of this Contract be applied or construed so as
to require or permit duplication of all or any portion of any individual payment
made to Contractor by Owner, or to require or permit payment to Contractor by
Owner for portions of the Work not actually performed by Contractor before the
effective date of termination. In any and all orders, subcontracts, and other
commitments which Contractor may place, make or enter into in connection with
the Work, Contractor shall include appropriate provisions to ensure similar
termination rights to Owner in the event this Contract is subsequently
terminated as provided herein.
10.4. Notwithstanding termination of the Work under the provisions of
this Article X, there shall survive and remain in effect all of Contractor's
continuing obligations, warranties and indemnities with respect to portions of
the Work previously undertaken and/or completed hereunder.
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ARTICLE XI
ASSIGNMENT AND SUBCONTRACTORS
11.1. Neither party shall assign its interest in this Contract without
the written consent of the other, which consent shall not be unreasonably
withheld.
11.2. Subcontractors
11.3.1. Contractor shall not subcontract any portion of the
Work without the prior written approval of Owner, which approval shall not
unreasonably be withheld. No such approval shall relieve Contractor from any of
its obligations pursuant to this Contract and Contractor shall continue to be
primarily responsible to Owner for all portions of the Work whether or not
subcontracted by it.
11.3.2. Contractor shall bind in a manner acceptable to Owner
its Subcontractors, if any, to all of the provisions of this Contract to the
extent they are applicable under the circumstances to the Work to be performed
by the Subcontractor.
ARTICLE XII
CONFIDENTIAL INFORMATION
12.1. Contractor and its agents and employees shall treat as
confidential all information relating to the ore body, ore reserves, metallurgy,
geology, processes, products, compositions, machinery, apparatus, trade secrets
or computer based information of the Owner or relating to the Work, the Project,
the Owner's operation at the Project or the general business affairs of the
Owner which Contractor may observe or which may be disclosed to it by the Owner
as a result of its services hereunder. Contractor shall not divulge said
information to others, for any reason or at any time, except with the prior
written consent of Owner's Representative, which consent may be withheld for any
reason or for no reason. Contractor shall not in any way or at any time use said
information except as required for the proper performance of the Work.
Contractor agrees to restrict access to all information disclosed by the Owner
or developed by Contractor hereunder within Contractor's organization to only
such limited group of authorized employees who (i) require such information in
connection with Contractor's activities as contemplated by this Contract and
(ii) have agreed in writing with Contractor for the express benefit of the Owner
to maintain the confidential nature of such information on the terms and
conditions set forth herein. Excluded from the provisions of this Article shall
be such portions of the information as:
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12.1.1. were known to Contractor without restriction of
confidentiality prior to their disclosure by the Owner, as demonstrated by
competent documentary evidence in Contractor's possession;
12.1.2. properly become available to Contractor, under
conditions which do not restrict further disclosure, from a third party source
who shall not have obtained such information either directly or indirectly from
the Owner or its Affiliates; or
12.1.3. are at the time of disclosure in the public domain or,
after disclosure, come into public domain without fault on the part of
Contractor or its employees.
12.2. No information relating to the Owner, the Work or the Project
shall be released by Contractor for publication, advertising or any other
purpose without the prior written approval of Owner. Contractor shall obtain
Owner's prior approval in writing before making or releasing to the public any
speech, photograph, press release, article for publication, or other information
for publication concerning the Work or the Project. Such approval may be
withheld by Owner for any reason or for no reason. In general, such information
includes, but is not limited to:
12.2.1. Speeches prepared for, and to be delivered by,
Contractor's personnel concerning the Owner's operations, developments, plans,
business functions, or other information related to the Work.
12.2.2. Photographs of the Owner's equipment, facilities,
operations, functions, and personnel originating within or outside Contractor's
organization and intended for publication in internal or external publications,
or for use outside Contractor's organization, but under its control.
12.2.3. Articles and editorial copy for internal or external
publications concerning Owner's operations, developments, plans, business
functions, etc., prepared either by Contractor's personnel or by persons outside
Contractor's organization, but within its control.
ARTICLE XIII
SUSPENSION OF THE WORK
13.1. Immediately upon Contractor's receipt of a written request by
Owner's Representative to suspend all or any portion of the Work, Contractor
shall suspend the Work to the extent requested to do so by Owner's
Representative. Owner may suspend the Work or any portion thereof for any reason
it desires or for no reason and in its sole discretion without liability to
Contractor other than as set forth in this Contract.
13.2. Upon receipt of such notice of suspension, Contractor shall use
best efforts to reduce and if possible eliminate any costs and expenses which
Owner would be obligated to pay Contractor pursuant to this Contract. If
suspension causes Contractor to incur costs which it would not have incurred but
for the suspension, Contractor shall request a Change Order to cover such costs.
Owner
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shall be obligated to compensate Contractor only for those reasonable and
unavoidable expenditures related to the Work which Contractor continues to incur
while such suspension is in effect.
13.3. If such suspension should exceed 120 days, Contractor may request
reassignment of its personnel and/or at its option terminate this Contract by
giving Owner at least fifteen (15) days' written notice before the effective
date of termination.
13.4 Contractor shall have the right to suspend the work if owner fails
to pay amounts properly due Contractor.
ARTICLE XIV
TITLE TO THE WORK
14.1. All plans and specifications, drawings, reports, or other written
or electronically stored data supplied to Contractor by the Owner, its agents,
or any other consultants, or any such plans, specifications and other data
prepared by Contractor or any Subcontractor specifically to carry out any part
of the Work or otherwise relating to the Facility and not describing or related
to processes proprietary with Contractor or any of its Subcontractors or
suppliers shall remain or become the property of the Owner. Contractor shall not
use them or permit them to be used for other work and shall return them along
with all copies to Owner upon completion of the Work, or earlier, if requested
by Owner, provided that Contractor may retain a single copy for its own record.
ARTICLE XV
PATENTS AND COPYRIGHTS
15.1. Contractor agrees not to include in its designs, plans, or
specifications furnished as part of the Work any methods, processes, equipment,
inventions, or documents which are covered or claimed by any patent or pending
patent application or any copyright or which, to its knowledge, constitute
confidential information or trade secrets of a third party, and Contractor
further agrees to indemnify, defend and save the Owner and its Affiliates
(including officers, directors, employees and agents of Owner and its
Affiliates) harmless from and against all claims, royalties, damages,
liabilities, costs and expenses of whatever kind or nature (including, but not
limited to, attorneys' fees) in any manner resulting from, or claimed to result
from, any such inclusion.
15.2. The provisions of Section 15.1 shall not apply to designs, plans
or specifications furnished by the Owner or purchased from the owner or a
licensee of the method, process, equipment, invention, or document or to any
method, process, equipment or invention designated by Owner for inclusion in the
Work.
15.3. Contractor shall communicate to Owner at once, and require
Contractor's employees assigned to this Project to communicate to Owner all
inventions and improvements which any of Contractor's employees, either alone or
in conjunction with any of Owner's employees, may conceive,
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make or discover during the course of or as a result of work on this Project
under this Contract that relates to the processes, products, compositions,
machinery or plants of the Owner, or relating in any way to any of the
operations in which the Owner or any of its Affiliates have been or are engaged
at the time, and such inventions and improvements shall become the sole,
exclusive property of the Owner without any obligation on its part to make any
payment therefor in addition to any sums which Owner may be obligated to pay to
Contractor as compensation for services rendered by Contractor under this
Contract. Contractor shall require its employees to execute patent applications
and assignments thereof to the Owner or its nominees, and powers of attorney
relating thereto for any country Owner may designate, and shall take all other
actions as Owner may request to maintain and protect such inventions and
improvements. Owner shall pay all costs or charges incurred in protecting such
inventions and improvements if Owner desires to protect them. Before assigning
any of Contractor's employees to work under any contract with the Owner
concerning this Project, Contractor shall obtain from them agreements
satisfactory to Owner effectuating the purposes of this paragraph.
ARTICLE XVI
ARBITRATION
16.1. All claims, disputes and other matters in question between the
parties to this Contract arising out of or relating to this Contract or the
breach thereof, shall be decided in accordance with rules of the American
Arbitration Association then in effect unless the parties mutually agree
otherwise. All proceedings of Arbitration shall be conducted in the English
Language. No arbitration arising out of or relating to this Contract shall
include, by consolidation, joinder or in any other manner, any additional person
not a party to this Contract except by written consent containing a specific
reference to this Contract and signed by the Contractor, Owner, and any other
person sought to be joined. Any consent to arbitration involving an additional
person or persons shall not constitute consent to arbitration of any dispute not
described therein or with any person not named or described therein. This
agreement to arbitrate and any agreement to arbitrate with an additional person
or persons duly consented to by the parties to this Agreement shall be
specifically enforceable under the prevailing arbitration law.
16.2. Notice of demand for arbitration shall be filed in writing with
the other party to this Agreement and with the American Arbitration Association.
The demand shall be made within a reasonable time after the claim, dispute or
other matter in question has arisen. In no event shall the demand for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statute of limitations, or by any express limitation in
this Contract.
16.3. The award rendered by the arbitrators shall be final, and
judgment may be entered upon it in accordance with applicable law in any court
having jurisdiction thereof.
ARTICLE XVII
-28-
MISCELLANEOUS PROVISIONS
17.1. Any failure by the Owner at any time, or from time to time, to
enforce any of the terms and conditions of this Contract shall not constitute a
waiver of such terms and conditions, and shall not affect or impair such terms
or conditions in any way, or the right of the Owner at any time to avail itself
of such remedies as it may have for any breach of such terms and conditions.
17.2. This Contract represents the entire agreement between the Owner
and the Contractor and supersedes all prior negotiations, representations or
agreements. This Contract shall not be superseded by any provisions of the
documents for construction and may be amended only by written instrument signed
by both Owner on behalf of the Owner and Contractor.
17.3. This Contract shall be governed by the laws of the jurisdiction
in which the Site is located. By agreement of the parties, the language of this
Contract is English. In the event of any ambiguity, inconsistency or conflict
between this English version and any translation thereof, the English version
shall control.
17.4. Words importing the singular shall include the plural and vice
versa, words importing the masculine gender shall include the feminine and
neuter gender and vice versa and words importing individuals shall include firms
and corporations and vice versa.
17.5. The captions and headings appearing in this Contract are inserted
merely to facilitate reference and shall have no bearing on the interpretation
of the provisions hereof.
17.6. In the event any of the terms or conditions of this Contract or
the application of any such terms and conditions to any party or circumstance
shall be held invalid by any court or other regulatory authority having
jurisdiction the remainder of this Contract or the application of the terms or
conditions contained herein to parties or circumstances other than those as to
which it is held invalid shall not be affected thereby.
17.7. The duties and obligations imposed by this Contract and the
rights and remedies available hereunder shall be in lieu of any rights and
remedies available at law or equity.
17.8. This Contract may be executed in counterparts each of which shall
be deemed to be an original and all of which shall be construed together as one
original instrument.
17.9. Termination of this Contract shall not affect the validity of any
provisions of this Contract which are, expressly or by implication, to survive
or to take effect on or after, such termination.
17.10. In the event of any conflict between the text of Articles I
through XVII, inclusive, of this Contract and any addendum, exhibit, schedule,
or attachment hereto, the text of the Contract shall control over the
conflicting addendum, exhibit, schedule, or attachment.
-29-
17.11. Owner represents that it has full authority to enter into this
Contract. All benefits, rights and remedies inuring hereunder shall directly
inure to the benefit of all Owner, and the respective successors and assigns of
Owner.
AGREEMENT EXECUTED THE 3rd DAY of MARCH, 2004.
MINERA SAN XAVIER, S.A. de C.V.
By: /s/ XXXX X. XXXXXXXX
---------------------------------
DIRECTOR GENERAL(Title)
MEXTICA de MEXICO S. de X.X., de C.V.
By: /s/ XXXX X XXXX
---------------------------------
PRESIDENT(Title)
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
The Contractor has estimated this Scope of Work in accordance with the general
direction given by MSX via drawings formulated for the Project by Lyntek Inc.
along with the Division of Responsibility (DOR) mutually agreed during the
course of the estimate and site visit information. The following information
details the Contractor's basis for the Contract .
GENERAL
1. Import Duties will be paid by MSX.
2. MexTICa has not included for encountering any ACM (Asbestos
Containing Material).
3. Design is based on project being situated in a Seismic Zone 2A.
4. The drawings submitted with the proposal for the sitework do reflect
the most current design from AB Engineering .
5. Connection fees to the CFE grid will be paid by MSX.
PROCESS DESCRIPTION
The Contract Scope of Work for the Cerro San Xxxxx project includes all items
defined by the drawings and specifications, which are detailed in Exhibit C. The
project includes the xxxxx pad, ponds, process building, office, laboratory,
guard shacks, power line, and water supply system. Process plant facilities have
been located based upon topographic constraints of the site. The xxxxx pad is
located in a broad, flat valley area along and to the south of the paved road
leading to the Cerro de San Xxxxx Village (elevation: 1,947 m), approximately
2km from the pit exit ramp. The solution recovery plant is situated in close
proximity to the xxxxx pad (elevation: 1,943 m).
XXXXX PAD & PONDS
The xxxxx pad is designed to drain to a single exit point at the southwest end
of the pad. The internal perimeter of the xxxxx pad will contain a system of
v-notch ditches which serve the dual purpose of providing leak detection and
maintaining an open solution flow path for storm water runoff and for pregnant
solutions exiting the heap. Solution will be collected and transported to the
pregnant solution pond system via a lined open channel. The INAH restricted area
has been avoided in the final design and shall not be disturbed.
Prior to the onset of xxxxx pad construction, MSX will remove all existing
structures and protected flora and fauna. The Contractor will then clear and
stockpile the surface
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XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
vegetation and topsoil in a clearly labeled storage area. Surface rock rubble
and organic soil cover will also be stripped prior to construction of the xxxxx
pad with any salvageable topsoil being stockpiled for later use during
reclamation and closure. In areas where there is no rock, the stripped subgrade
surface will be scarified and recompacted in preparation for placement of site
grading fill and/or low-permeability clayey bedding fill beneath the geomembrane
liner. The xxxxx pad has been designed for a total area of 325,000 square meters
for Xxxxx 0. Xxxxx 2 construction is not part of this contract.
The xxxxx pad liner system consists of a 1.5mm (60 mil) low -density
polyethylene (LDPE) geo-membrane overlying a minimum of 0.3 m of
low-permeability fine-grained bedding fill which will be compacted to a
permeability of 1 x 10(-6) cm/sec. The bedding fill material will either be
purchased from stockpiled material about 3 km west of the pad from a private
vendor or be sourced from a borrow pit to be located just northwest of the pad
itself. The 0.5 m protective free-draining layer on the pad will consist of
nominal minus 19 mm size crushed rock or limestone ore from the mine, delivered
by WGI . The xxxxx pad is divided into a total of six northeast-southwest
oriented cells, each cell measuring about 75 - 125 m wide and 600 - 900 m long.
Each cell is separated by a one-meter high berm. There are three cells in Phase
I and three cells in the Phase II pad expansion.
The solution ponds store the operational, draindown, and design storm flows. The
86,400 cubic meter (m(3)) storm water pond is designed to contain water produced
from a 100 year, 24-hour storm event (79 mm), with 75 percent runoff from
covered areas and 100 percent runoff from the final maximum lined areas, plus
direct precipitation on the pond. The pregnant solution pond will store 48,000
cubic meters (m(3)), which represents 24 hours of operating volume plus 24 hours
of drain down. The Xxxxxxx-Xxxxx plant will discharge into an 88 cubic meter
(m(3)) (23,250 gal) tank, from which barren solution will be pumped directly
back to the heap. An overflow from the barren tank will be directed to the
pregnant solution pond if there is an excess of process solution. The pregnant
solution pond will be double lined with a 1.5 mm (60 mil) LDPE lower liner and a
2mm (80 mil) HDPE upper liner. A geo-synthetic net to promote flow of any
potential leakage from the primary liner to a collection/ pump back sump will
separate the pregnant pond liner. The storm water pond will have the same double
liner. The design of the ponds is base upon the capacity of the heap xxxxx pads.
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XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
An open ditch diversion system diverts the natural runoff from uphill catchment
areas around the phased heap xxxxx pad into the downhill natural drainages.
Diversion ditches will be sized and constructed to divert the 24-hour design
storm runoff. Two monitoring xxxxx will be installed down gradient of the xxxxx
pad and solution ponds. Location of these xxxxx will follow a geotechnical
investigation to assure the best locations and the optimum number of xxxxx
required for adequate monitoring. The internal perimeter of the xxxxx pad will
contain small double-lined v-notch ditches which serve the dual purpose of
providing leak detection and maintaining an open solution flow path for storm
water runoff and for pregnant solutions exiting the heap. Solution passing
through the primary liner in these ditches, if any, will be collected in a
geogrid and drained by gravity to the pregnant solution pond. The leak detection
will be positive by 12 mm plastic pipe that will visually show any leaks.
Contractor will construct the heap xxxxx pad. The mine contractor will deliver
the ore to the pad. The ore will be direct dumping from 100-tonne haul trucks in
10 m lifts at a nominal rate of 1,450 tonnes per hour. Depending on the length
of the ore haul, two or three trucks will generally be used for xxxxx pad
loading. A D-10 bulldozer equipped with a ripper will level and rip the heap
surface as necessary to minimize compaction. Heap xxxxx cells will typically be
loaded from the southwest to the northeast, or from the downhill side to the
uphill side. Panels of ore approximately 100 m by 100 m will be ripped and
placed under xxxxx on a weekly basis. As the ore haul retreats along the haul
road, segments of the haul road will also be ripped and placed under xxxxx.
Prior to placing a new lift of ore over an existing lift, the heap is
cross-ripped using a D-10 dozer equipped with a deep penetration (3-4 m) Xxxxx
ripper provided by owner or mine contractor.
The ore is truck-dumped on the xxxxx pad in nominal 10-meter lifts at the
natural angle-of-repose with 5-meter setback benches for an overall two
horizontal to one vertical (2H:1V) slope. The design maximum heap height is 80
meters. Computer slope stability analyses performed on the heap by others at the
most critical down gradient pad section resulted in static and pseudostatic
factors of safety that meet or exceed the minimum recommended standards for such
a structure.
Each phase of the xxxxx pad is divided into cells for solution recovery, three
cells in Phase I, an additional three cells in Phase II. Each cell is divided by
a berm 1.0 m high to collect and direct xxxxx solution percolating through the
xxxxx pad. The solution is directed within each cell through a network of 100 mm
and 200 mm perforated collection pipes to a single central collection pipe
located in the solution trench. Each of the central perforated collection pipes
is routed to the xxxxx pad solution discharge
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CERRO SAN XXXXX PROJECT
CIUDAD DE SAN XXXX POTOSI
SAN XXXX POTOSI, MEXICO
SCOPE OF WORK and DESIGN CRITERIA
trench at a common exit point at the low end of the heap. Solutions from each
individual cell are sampled periodically during operation at the trench and will
be followed daily. These values will determine when the barren solution will be
disconnected and the piping removed and replaced on a new cell.
The storm water pond will be double lined as described above over a 0.3 m
compacted low permeability soil. The pond will have a PVC pipe that will be
below the liner and the low permeability soil. This will allow for the testing
of any solution that will be in the sump.
Solution is recovered from the pregnant solution pond via a submersible turbine
pump rated at 900 m(3)/hr that feeds directly into the clarifier filters at the
Xxxxxxx-Xxxxx plant. Solution recovered from the storm water pond will be pumped
directly to the clarifier filters or back to the pregnant pond via a similar 900
m(3)/hr submersible turbine pump, which also serves as a backup for the pregnant
solution pump.
Barren solution is pumped at a nominal rate of 1000 m(3)/hr (4,400 gpm) from the
barren solution tank through solution distribution piping and irrigation type
drip emitters for application onto the surface of the ore. In order to minimize
the potential for generation of scale and resultant potential plugging of
emitters, an anti-scalant chemical will be added to the barren tank and the
pregnant solution pump intake caisson. Fresh make-up water will either be
added to barren tank or the storm water pond to allow precipitation of scale.
The two horizontal barren solution pumps are set in parallel. Solution
application under xxxxx will average 90 days at an application rate of 9 liters
per square meter per hour (0.0040 gpm per sq ft).
XXXXXXX-XXXXX RECOVERY PLANT
The precious metals are recovered from the pregnant heap xxxxx solution in a
typical Xxxxxxx-Xxxxx zinc precipitation plant. Pregnant solution is pumped from
the pregnant solution pond at a nominal rate of 251 liters per second (4,000
gpm), to three pressure leaf clarification filters, each with a 185 m(2) (2000
ft(2)) surface area. Clarified solution is transferred to a 3.4 m diameter by
4.78 m high de-aeration tower equipped with one vacuum pump for removal of
oxygen from the solution. The de-aeration has 75 mm packing, demister pad, and a
solution distributions system. The level in the de-aeration will be controlled
by a level controller sending a signal to a flow valve located upstream of the
clarifier filter feed header. The discharge of the de-aeration will be equipped
with both dissolved oxygenmeter and a turbidity meter. Zinc dust is slurried in
a zinc mix cone with Diatomaceous earth (DE) for body feed. The zinc will flow
into the pregnant
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MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
xxxxx solution and the precious metals are precipitated from the pregnant xxxxx
solution. The precipitate filter feed pumps will transfer the solution
containing the precipitated precious metals to plate and frame filters for
precious metals recovery from solution. Diatomaceous earth may be mixed in an
agitated pre-coat mix tank and an agitated body feed mix tank, and pumped to the
precipitate filters to facilitate precipitate recovery. Each filter has a total
filtration area of 185 m(2) (2000 ft(2)) surface area. Sumps and pumps are
installed in the Xxxxxxx-Xxxxx area for clean-up purposes. The clarifier
backwash will be discharged into a trench and flow by gravity to a collection
basin outside of the building. The solution will be decanted over a small
concrete wall and flow by gravity to the storm water pond.
The majority of the piping in the process plant will be carbon steel and the
pipe outside will be HDPE.
REFINING PROCESS
The precipitation filter feed pumps to a pressure of 6.9 bars or 100 psig fills
the filters pressure. Once gold and silver are filtered from the solution, the
barren solution from the precipitate filters flows to the barren solution tank.
When a filter is filled it is taken off line and the standby unit is placed on
line so that two filters are on line at all times. The filter cake is dried by
blowing air through the precipitate filter cake until the cake reaches
approximately 10% moisture. Approximately 425 kg per day of precipitate is
generated. The cake will be manually removed from the filter press either 2 or 3
times per week. The cake will be removed from the filter plates and placed into
cart. The carts will be loaded into a mercury retort furnace for mercury
removal.
There will be two Mercury Retorts. Each retort has a capacity of 1.13 m(3) (40
ft(3)) approximately 3,600 kg (8000 pounds) of Filter Cake. After placing the
precipitate filter cake into the chamber the retorts will be heated over a
12-hour period to drive off the excess moisture and mercury. A PLC will control
the heating elements to control the temperature. The retorts will require 150 KW
to complete the heating. The temperature will be increased over time and held at
485 degrees C(900 degrees F) for a period of 3 hours. During this time a vacuum
will be maintained on the retort chamber. The off gas will be condensed and the
water and mercury will be collected in a chamber. The mercury will be loaded in
flasks and stored for sale. The off gas will be further scrubbed with caustic
solution before discharge into the atmosphere. The retort chamber will be cooled
by the introduction of air into the system. The carts with the filter cake will
be removed and either put into the vault or unloaded into the furnace.
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MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
CIUDAD DE SAN XXXX POTOSI
SAN XXXX POTOSI, MEXICO
SCOPE OF WORK and DESIGN CRITERIA
From the retort, the precipitate is loaded into a 0.2 m(3) (7 ft(3)) electric
induction melt furnace. Flux consisting of fluorspar, borax, and sodium nitrate
is charged into a xxxxxx and then transferred to a mixer via a screw conveyor.
Silica is usually made from the DE in the filter cake. Additional silica may be
added in the flux mixer. The precipitate is blended with the flux in a mixing
system. A screw feeder will feed the mixture to the melting furnace on a batch
basis. When the furnace is full, the molten metal is poured into 31 kg (1000 oz)
side pour cascade type mold units, in series. Dore bullion is cleaned with an
air scabbler then weighed, sampled, and stored in a vault awaiting shipment.
Once gold and silver are filtered from the solution, the barren solution from
the precipitate filters flows to the barren solution tank.
Slag, generated from the furnace during melting, is processed through a circuit
consisting of a jaw crusher, ball mill, and slag filter press to remove prills
for re-melting in the furnace. Filter Press tails are sent to the heap xxxxx pad
via carts that will be releached.
Sumps and pumps are installed in the refinery area for clean-up purposes. A bag
house is used to clean up the off gas from the furnace. The furnace will have a
2 m x 2 m hood over the unit to collect the off gasses. The off gasses will be
sent to a bag house with a capacity of 285 cubic meters per minute.
SECURITY
The refinery area is a high security, limited-access area. The door to the
viewing area and refinery will have a card scan and a magnetic lock that monitor
all people into the refinery area. A system of 6 closed circuit television
cameras, with redundant video recording, monitors the entire refinery area
including the entrances (inside and outside). There is a camera located in the
vault. A system of 4 closed circuit television cameras will be located in the
precipitation area. All refinery and precipitation access doors are linked to an
alarm system, which records every access door movement. Motion detectors are
also linked to the cameras and then to the alarm system. The closed circuit
video system will record all events. If an alarm is not attended by the security
people, a third party will be notified by telephone automatically.
REAGENTS
Sodium cyanide mix and storage facilities will be included in the system. Bulk
sodium cyanide is transported as solid briquettes. The product is dissolved on
site in a sodium cyanide mixing and storage tank 12 m(3) (3200 gallon). Caustic
is added before the cyanide to achieve a pH of 10. The tank will be equipped
with a "flow bin" loading arrangement. The mix tank will transfer the 5%
solution to storage in one 94 m(3) (24,800 gallon) storage tank. Cyanide will be
injected into the barren solution pump discharge
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MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
to maintain sodium cyanide concentration of approximately 0.5 grams per liter.
The cyanide injection will be by flow meter and tested and adjusted by the
operator.
Sodium hydroxide mix and storage facilities will be included in the system. Bulk
sodium hydroxide is transported as solid prills in bags. The tank is equipped
with a bag breaker. The product is dissolved on site in a caustic mixing and
storage tank sized at 9.7 m(3) (2600 gallon). The caustic is added to the
cyanide tank.
Pebble lime will be added directly to the ore trucks from a 300 tonne silo
equipped with a vibrating bottom and discharge conveyor capable of delivering
the lime to a weigh bin located on a truck loadout structure adjacent to the
lime silo. The weigh bin will have a pneumatic valve that can transfer 300 kg of
lime to each truck in a few seconds. The trucks will drive under the weigh bin
and the valve will open automatically. Lime deliveries will be via bulk trucks
from a nearby source. Pebble lime is pneumatically delivered to the top of the
silo. Pebble lime addition to ore will be optimized at approximately 3 kg per
ore tonne to maintain heap feed solution pH in the range 10.5 to 11.0.
Anti-scalant is added to the inlet of the pregnant feed pumps, the barren
solution tank, and storm water pond via chemical metering pumps, which can
maintain an appropriate dosage rate (estimated between 3 to 8 mg/liter of
solution). Plastic tanks and pumps for the addition of anti-scalant will be
supplied by the vendor.
High purity zinc powder will be received in 36-kg cans, which are manually added
to the zinc feeder system at the Xxxxxxx Xxxxx plant. The cans will be open
manually and, for each can of zinc, 2 bags of DE will be added as body feed to
the precipitation filters.
Diatomaceous earth (DE) is received in 23-kg bags loaded on pallets. The pallets
are located by forklift on the platform and the DE is then added to both the
body feed and precoat tanks. The precoat application will be done with 3 bags of
DE to each filter. The precoat solution is recirculated on the filter with a
precoat pump that is 45 kW. The body feed DE is manually added to the mixer and
feed tanks in the Xxxxxxx-Xxxxx plant and the body feed is pumped into the
pregnant feed solution before the clarification filters.
ASSAY/METALLURGICAL LABORATORY
The metallurgical and assay laboratory is located adjacent to the process
building. The laboratory facility has been designed to perform the following
works:
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MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
CIUDAD DE SAN XXXX POTOSI
SAN XXXX POTOSI, MEXICO
SCOPE OF WORK and DESIGN CRITERIA
- Preparation mine grade control samples by drying;
- Crushing and pulverizing samples;
- Analysis of hot cyanide shake xxxxx;
- Gold and silver fire assay for ore control, plant operation and Dore
analysis;
- Atomic absorption analysis for gold and silver in solution;
- Fire assay and gravity finish final dore and concentrates
- Atomic absorption analysis of final dore and concentrates;
- Leaching (CN soluble) analyses;
- Metallurgical test work required for process optimization;
- Water analysis
- Screen analysis
- Column testing
- Bottle rolls or xxxxx work
The responsibility for the laboratory furniture and laboratory equipment is
detailed in Exhibit B Division of Responsibility. The assay lab is sized to
perform sample preparation and fire assay gold analyses on a nominal 200 samples
from the mine in a 24 to 36-hour turnaround time.
POWER LINE AND ELECTRICAL
A 115 KV transmission line will carry power from the substation San Xxxx XX to
the Zapatilla water well substation. The line will be sized by CFE. A step-down
transformer sized for 3 MW located adjacent to the Zapatilla water well
substation will transform the line voltage down to 13.8 KV. The 13.8 KV line
will feed the water well, the plant, the Lime Bin facility, and the truck shop
(approx. 3900 meters beyond the plant). There is a 750 kW (minimum) emergency
generator sized to run the barren and pregnant precipitation pumps and other
critical items in the plant.
WATER WELL
The submersible well water pump will pump 60 l/s to the plant. The water well
has an existing 350 mm casing. The static water level is approximately 150
meters below the
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XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
surface. The dynamic water level is projected to be 156 meters below the
surface. The majority of water consumption at Cerro San Xxxxx will occur as a
result of heap xxxxx operations and dust control in the mine. New water will be
added to the solution inventory as the heap xxxxx pad grows due to the residual
soak moisture in the ore, evaporation losses, and other water uses in the plant
and mine facility. The moisture is estimated at 5% by weight of the ore tonnage
applied to the xxxxx pad. To account for other water uses (road watering,
construction water, domestic water uses, etc.) the water consumption estimates
for Cerro San Xxxxx are conservatively based upon a 12% by weight of ore tonnage
factor. The water from the well is pumped directly to the main plant water
storage tank (2850 m distant). Transfer pumps located at the plant will pump
water from the plant water tank to the truck shop water tank (3900 m distant).
Both the plant water tank and the truck shop tank have a capacity of 750 m(3). A
volume of 332 m(3) of the plant water tank volume is reserved for fire
protection. The plant is fed by gravity throughout from the water storage tank.
Underground fire protection pipelines will be installed to the plant area
facilities to cover the office, laboratory, and process building.
TECHNICAL CLARIFICATIONS
The following are technical clarifications regarding the Scope of Work.
CIVIL
1. Due to unknown conditions at the site, Contractor has based pricing on
the assumption that the soil is not contaminated and can be excavated
with a backhoe or loader in a continuous activity at standard
productivity rates.
2. Contractor has made no allowance for removal or relocation of existing
above or underground utilities with the exception of the microwave
tower and the Questa xx Xxxxx water line.
3. Contractor has assumed all soil or rock is rippable.
4. There will be no concrete or asphalt paving.
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XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
5. The sitework scope of work is based upon the AB Engineering xxxxx pad
design and utilizing WGI for rough grading and drilling and blasting
work.
CONCRETE
1. Concrete work is based upon ACI guidelines.
2. Drilled concrete piers, H-Piling, or any other type of supplemental
support under the foundations will not be required.
3. A soil bearing capacity of 2,500 PSF at the plant area is the basis for
foundations.
4. The foundation concrete scope of work is based on the following general
descriptions of the various elements.
a) Lime Bin Foundation; 9 m square mat x .46 m thick w/ 20 ea rock
anchors tying mat to existing rock & 4 piers w/ anchors. Load-Out
slab along side of lime bin foundation 4 m x 9 m x .46 m thick
with column piers.
b) Pump Pad @ pregnant pond assumed 10' Sq w/ thickened edge, 6"
thick slab & 18" x 6" thickened edge.
c) Cyanide Tote Storage 6" thick slab w/ curb between Retort Room &
Deaeration Tower & sloping to 30" deep Sump.
d) Guard shacks (2): support pads and door pads as necessary for
office trailer installations.
e) Main Office building; 50' x 100' x 6" slab inside masonry walls on
305 mm thick spread footer for an 8" CMU block bldg.
f) Assay Lab Building; same as office bldg.
g) Process Plant Building & Perimeter Structures; (plan as shown on
Lyntek Dwg 03023-G-01 rev-D) settling pond, sodium cyanide storage
& trenches would be lower than process bldg and would have a 6"
base slab with 6" raised sections under tanks and 8" high
containment walls.
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MINERA SAN XAVIER.
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XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
The process building foundation would consist of a 381 mm thick
spread footer 355 mm below grade, (masonry wall shall be built
directly on this footer), then 8" slabs butt to the masonry walls.
h) Water Storage Tanks; 2 @ 12.4 m square, 300 mm thick.
i) Door Pads; 4" pads at mandoors, 6" apron slabs at roll-up doors.
j) Creek Drainage Tunnel; Includes 5.86 m round Multiplate CMP set
with the invert at the level of the CSP creek bed under the WGI
haul road with Rip Rap slope stabilization around each end. The
pipe is enveloped in engineered fill 3m thick at each side and 1m
above.
k) Road Tunnel; Includes cast-in place (CIP) concrete footings and
walls at each side with pre-cast twin tee or box beam roof members
spanning over the existing Cerro San Xxxxx road. The clear opening
of the tunnel is 7.3 m wide x 4.57 m high. Tapered CIP wing walls
and head walls will be constructed at each end.
BUILDINGS AND ARCHITECTURAL
1. Buildings shall be constructed using masonry block walls, 8" exterior and
4"interior, with rebar reinforcing and grout filled cavities as required
for structural integrity. Roofing shall consist of 24 gauge ribbed metal
panels on steel purlins on trusses bearing on the exterior masonry wall
system. The roof system will incorporate 2" of fiberglass blanket
insulation for sound and condensation control. The roof will be designed
with a 1:12 slope.
2. Doors and frames shall be 16 gauge hollow metal with industrial grade
hardware as required.
3. Louvers and ventilators shall be industrial grade.
4. Steel shall be coated with red oxide prime paint. Masonry shall be painted
at building exterior and in office areas. The Retort room shall receive an
epoxy coating on floor, walls and ceiling. Doors and window frames shall
be painted.
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
5. Ceilings shall be 2 x 4 suspended grid acoustical type at 8' above floor
except in designated areas that do not have a suspended grid ceiling.
MECHANICAL
1. MexTICa will install the plant equipment indicated in the Equipment List
in accordance with manufacturers' recommendations and typical Nevada, USA
mining practice. Manufacturers' representatives will be contracted for
startup assistance for the 3 or 4 critical pieces of equipment (including
Furnace, Retort, and Clarification Filters).
2. Plant Equipment will be installed directly on floor slabs set 2" above
slab level on cement grout, fastened with drill-in Hilti type anchors
bolts. Tanks will be set up on 6" housekeeping pads unless they have
integral support legs.
ELECTRICAL
The following generally defines the scope of electrical work in each area of the
project.
1. Electrical Power Distribution
a. Well Area - Electrical power shall be supplied to the well site via
a 115 kV overhead distribution line with a transformer.
b. Truck Shop & Lime Bin Area - Electrical power shall be provided from
a branch off the 13.8 kV overhead distribution line with a
transformer. Power to the Lime Bin control board will be fed via
underground. Lighting and local control for the lime bin is included
in the scope of work.
c. Plant Area - Electrical power shall be provided from the plant
substation to the Plant Area via a 13.8 kV overhead distribution
line and transformer.
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
2. Secondary Power and Controls
The One-Line Diagram (Drawing no. 03023-E-03 Rev. C) and Equipment List
form the basis for the electrical scope work. Instrumentation is per the
P&ID's listed in Exhibit C. The following paragraphs define our approach
to various systems in each area.
a. Well Area - Secondary feed from the 13.8kV/480V Transformer will
consist of ductbank or buried conduit, above grade conduit, power
cables, terminations, and motor connection to the 350 hp well pump
and seal water pump. Required instrumentation shall be provided and
installed with direct buried cabling running in the water line
piping trench.
b. Process Plant Area-
1. Cabling for power and instrumentation shall be
galvanized armored cable in cable tray. Cable tray shall
be galvanized vented; 36" for power circuits and 24"
tray for control and instrumentation cabling. EMT
conduit system is utilized for non-process distribution.
Cabling between buildings shall be run in underground
conduit. Electrical Equipment & Gear is provided as
indicated on Lyntek drawings 03023-E-03, 04, 08, and 09
(single line drawings).
2. Lighting & Outlets; Interior lighting consists of 2x4
Troffers in office locations, Low Bay lighting in
process areas, with exit and emergency lighting.
Switches, receptacles and data ports are included in
office areas. Power for electric roll up doors and HVAC
components included. Welding receptacles are provided in
the process area. Lightning Protection, without UL
Label, is provided for in the scope of work.
c. Lab Building -
All branch circuit wiring for equipment power and HVAC systems,
including switches, receptacles, and data ports, shall be run in an
EMT conduit system. Interior lighting shall be provided utilizing
2x4 troffers in all public locations and industrial surface mount
florescent strips in mechanical rooms. Exit and emergency interior
lighting and two 250 Watt HPS Wall Packs on exterior wall facing
plant are provided. Local fire alarm and lightning protection
systems are included.
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
d. Office Building
All branch circuit wiring for equipment power and HVAC systems,
including switches, receptacles, data ports, shall be run in an EMT
conduit system. Interior lighting shall be provided utilizing 2x4
florescent troffers in office locations, recessed cans in rest rooms
with brackets above vanities, recessed cans & architectural pendants
with dimming switches in large conference room, and exit & emergency
lighting. Two 250 Watt HPS Wall Packs on exterior wall facing plant
are provided.
Fire alarm and Lightning protection systems are included.
3. Yard Lighting
a. Plant Area - 250Watt HPS Wall Packs with glare shades shall be
mounted on the exterior of Plant area Buildings. Three 1000W HPS
pole type roadway fixtures on 50' concrete poles shall be used
around the perimeter of the ponds. One at each end and one between
the storm and pregnant solution pond.
x. Xxxxx Pad Area - 8 ea 1000W HPS pole type roadway fixtures on 50'
concrete poles shall be placed around the base of the xxxxx pad
along the collection trench with 24"(phi) x 5' Deep concrete bases.
Power shall be run via direct burial cable along the trenches.
4. Alarms & Monitoring - Reference: Environmental Impact Statement (MIA)
issue #91 & #93. "Monotox" cyanic acid detectors are provided for
Clarifying and Preciptate areas. Low pH sound alarm system is provided for
in sodium cyanide mixing and storage tank.
5. Control Systems - The plant is designed around a non-automated philosophy.
As such, only local control stations are provided for equipment.
6. Security & CCTV - Fixed cameras, with motion sensors are provided and
located in room corners of refining, precipitate, and vault. These cameras
communicate to system hardware including monitor and VCR in security room.
Monitoring of these critical process rooms can also be viewed at manager's
office and plant guard shack. Position monitoring for all doors of these
rooms is provided. A Card Reader system shall be installed to facilitate
screening of entrants to Secure areas of the plant and monitored in the
security room. The gate area of the
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
refinery storage area shall be monitored by CCTV.
7. Communications - Relocation of the existing microwave tower and cabling
and reinstallation, in the area above the new water tank, is included.
Backbone cabling from tower to plant shall be surface run. Tele/data
systems for Process Building, Lab, and Office, include cabling,
terminations, and installation of owner provided hardware and system
components have been included.
8. Grounding - A ground loop of #4/0 copper shall be installed around process
building with cad weld tails and mechanical connections to building steel,
pipe rack & equipment. Grounding for pond pumps shall be installed.
9. Ductbank - Underground conduit shall be installed to provide raceway to
connect Guard Shack, Office, Lab Bldg and Process Building.
PIPE
1. Materials of construction for above ground pipe are as indicated on P &
ID's. Utility and Service piping systems are generally HDPE or PVC and
field routed.
2. Valving and instrumentation are consistent with a "manually operated"
plant philosophy with materials and components normally used in this type
of mining process application and suitable for an installation with a life
expectancy of 8 years.
3. Excavated existing site material will be acceptable for trench backfill
without screening or sorting. Pipe bedding material has been included.
4. All carbon steel piping 2" and smaller shall be A106B schedule 80 with
socket weld fittings. 2.5" and larger piping shall be A53B ERW schedule 40
with butt-welded fittings. Flange ratings, where required shall be 150#.
All above ground carbon steel will have coat of primer paint only.
5. Xxxxx collection/drain piping shall be ADS type pipe, 4" and 8",
perforated with filter fabric. The 12" and 24" diameter collection header
shall be non-perforated. The Scope of work includes only the xxxxx
collection pipe for Phase 1.
6. All plant drains shall be HDPE
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EXHIBIT A
MINERA SAN XAVIER.
CERRO SAN XXXXX PROJECT
XXXXXX XX XXX XXXX XXXXXX
XXX XXXX XXXXXX, XXXXXX
SCOPE OF WORK AND DESIGN CRITERIA
7. The underground fire water system shall be 6" HDPE, SDR9 and includes six
fire hydrants with hose houses installed around the process plant area.
8. A cyanide drip system (Netafim) for 92000 SM has been included. The 1/2"
drip tubing and threaded fittings shall be supplied with this scope of
work. MSX shall install the tubing and fittings
9. All buried pipe shall have 24" backfill cover.
10. Water for construction and testing shall be made available to this
contract at no cost to the contractor.
11. Contractor assumes all trench excavation can be performed with a 325 Cat,
62,000 pound, or equal, type excavator.
12. A 6" Carbon Steel/HDPE piping system shall be used to supply raw water
from the main plant water storage tank to the truck shop water tank.
Piping required between this tank and other facilities at the truck shop
site shall be supplied and installed by others.
13. Untreated water shall be provided for the lab and rest rooms. Drinking
water shall be provided by the owner's vendor.
14. Contractor has included self-contained eye wash safety showers as shown on
drawings.
15. Per the vendors' recommendation, 11 each manual 6" butterfly valves have
been included on the drip system header at the 4" branches to control flow
rates.
16. Contractor has included a septic system.
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SCOPE MATRIX
DIVISION OF RESPONSIBILITIES
Date: 7/9/2003
Project: Cerro San Xxxxx
Location: San Xxxx Potosi, Mx
Owner: Metalica Res. Engineer _______________________________
MexTICa Representative: Xxxx Xxxxx - Xxxxxx De Dycker
Phone: 000-000-0000 x 0000 Fax: 000-000-0000
Email: xxxxxx@xxxxx.xxx
Owner Representative: Xxxx Xxxxxxxx
Phone: 000-000-0000 x 000 Fax: 000-000-0000
Email: xxxxxxxxxx@xxxxx-xxx.xxx
Engineer Representative: Xxxx Xxxx
Phone: 000-000-0000 x 000 Fax: 000-000-0000
Email: xxxxx@xxxxxx.xxx
Note: The mining contractor is on his own for all of his work. We have added a
column only to show items that may not be obvious.
LEGEND
C = Construct/Erect/Install
E = Engineer/Design
F = Furnish/Provide/Supply
P = Pricing/Develop & Carry Price
Q = Quantity Development
X = Quantify/Price Furnish/Install (all)
DATE NAME REVISION NO.
---- ---- ------------
7/9/2003 Initial Issue Rev. 0
7/26/2003 Xxx Xxxxxx Rev. 1
7/30/2003 Xxxx Xxxx Rev. 2
2/5/2004 Xxxx Xxxxxxxx Rev. 3
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ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
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A. GENERAL REQUIREMENTS [GENERALES]
1. Project Management (Administracion del Proyecto)
- Provide Project Manager (Gerente de Proyecto) X X
- Provide Site Management Team (Proveer Personal X X X
de Direccion de Obra)
- Provide Engineering Project Manager & X
Engineers (Proveer Ingenieros y Generente de
Proyectos de Ingenieria)
2. Prepare Engineering Schedule (Elaborar Programa X
de Ingenierias)
3. Prepare and Maintain Equipment & Materials X
Procurement & Delivery Schedule (Elaborar y
controlar el Programa de Compras y
Abastecimientos)
4. Prepare & Maintain Construction Schedule X X Each his own
(Elaboracion y Control del Programa de Obra)
5. Prepare Monthly Project Progress Reports X X X X Each his own
(Elaboracion de Reportes de Avance Mensuales)
6. Prepare Equipment & Material Specs (Elaboracion
de Especificaciones de Equipo y Materiales) X
7. Provide Equipment Technical Data & Manuals X
(Proveer Hojas Tecnicas y Manuales de Equipo)
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8. Prepare Operating & Maintenance Manuals
(Preparacion de Manuales de Operacion y X
Mantenimiento)
9. Permits (Tramites y Permisos) Support Lead
(Apoyo) (Direccion)
- Building (Uso de suelo) Support E X
- Environmental (Impacto Ambiental) Support E X
- Construction Permits - Septic (Permisos de
Construction - Septico Support E X
- Right Of Way (Derechosde via) Support E X
- Easements (Servidumbre) Support E X
- Water Rights (Agua) Support E X
- Other (Otros) Support E X
- Electrical (Electrico) Support E X
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10. Tap Fees (Pagos por toma) X/X X/X X/X X/X X/X X/X
- Sewer (De Drenaje Sanitario)
- Water (de agua)
11. Plan Checks (Revisiones a planos) Support Support X X X
(Apoyo) (Apoyo)
12. Constructability Reviews (Revisiones de X X X
Constructabilidad)
13. Time, Costs, & Trips to Vendor Fab Shops, etc. X
(Tiempo, Costos e Inspecciones a Plantas de
Fabricantes)
14. Vendor Representative Costs During
Construction (Costos del Provedor por su
Representante durante la Construccion)
- Erection (Instalacion) X
- Start-up (Comisionamiento y Arranque) X
15. Permanent Lubricants & Chemicals After Initial X
Charge (Lubricantes y Quimicos Despues de
la Primera Carga Inicial)
16. Provide Start-up Supervision and Procedures
(Responsible del Comisionamiento y Arranque) X X X
Startup Schedule (Programa de Arranque) X
Define Turnover Packages (Definicion de
Paquetes de Entrega) X X
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17. Provide Start-Up Craft Assistance (Proveer Mano X
de Obra para el Arranque)
Discuss & Mutually Agree on the Definition of The discussion's
Mechanical Completition, Start-up & regarding
Commissioning. (Acordar lo que significara la mechanical
Terminacion de la Instalacion Mecanica, el completion
Arrangue y el Comisionamiento) definition is on
going.
18. Supply of Operation & Maintenance Personnel X X The need and who
(Suministro de Personal de Mantenimiento y is required will
Operacion) be defined by the
owner and
procured by the
contractor.
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ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
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19. A. Permanent/Temporary Power, Fuel & Water for X CFE 500 kw, 3
Checkout & Testing Through Mechanical phase to MR
Completion. (Energia, Agua y Combustible Trailer.
Durante la Instalacion Mecanica) Generators for
construction.
19. B. Permanent/Temporary Power, Fuel & Water for X
Checkout & Testing Through Final Acceptance.
(Energia, Agua y Combustible Durante Pruebas y
Arranque Hasta la Aceptacion Final)
20. Performance Plant: (Desempeno o Ejecucion de la
Planta)
- Procedures (Procedimientos) X X
- Testing (Pruebas) X
- Guarantees (Garantias) X Process
guarantees
21. Liquidated Damages - Engineer, Construct, TBD(A LD's continue to
Delivery (Penas Convencionales por Retrasos de determinar) be discussed at
Obra de Ingenieria o de Suministros) this time.
22. Buy Down on Plant Under Performance (Multas por X/X X/X X/X X/X X/X X/X
Incumplimiento de Production Especificada)
23. Contractor's Warranty (12 Months) Garantia del X X TBD (A X 12 month warranty
Contratista (12 Meses). determinar) period
24. Payment & Performance Bonds (Emision de Fianzas X/X X/X X/X X/X X/X X/X
de Pago y Cumplimiento)
25. Insurances with Premiums & Deductibles
(Seguros con Xxxxxx y Deducibles)
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ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
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- General Liability Insurance (Seguro de X
Responsabilidad Civil)
- Builder's Risk X
- Efficacy (Eficiencia) X/X X/X X/X X/X X/X X/X
- Errors & Omissions (Errores y Omisiones) X X X
26. Taxes and Duties (Impuestos y Derechos de
Aduana)
- Sales Tax (Impuestos por Ventas, Solo en
E.U.) X X Each their own
- Customs Clearance & Fees - Pay by Contractor,
Reimburse by Client. (Impuestos aduanales) X X X Each their own
- Import Duties and Taxes (Impuestos de
Importacion) X X X Each their own
- IVA (Pay By Contractor, Reimburse by Client) X X X X Each their own
but not included
in price (No
incluir en el
precio)
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27. Environmental Mitigation (Mitigacion de Impacto
Ambiental)
- Revegetation (Revegetacion) X
- Monitoring (Monitoreo) X X Mextica Installs
xxxxx (Mextica
instala los
xxxxx)
- Enhancement - Cactus Relocation - Garden
(Mejoras - Traslado de cactus - jardines) X
28. Overseas Shipping (Transportacion
internacional)
- Freight To/From Port (Xxxxxx) X X
- Container Packaging (Empaques y Contenedores) X X
- Ocean Freight (Transporte Maritimo) X X
- Inland Transportation (Transporte Terrestre) X X
- Broker (Agente Aduanal) X X
29. Subsistence (Viaticos al Personal) X X X X Each his own
30. Relocation Costs for Salary and Hourly X X X X Each his own
Personnel (Costos por Xxxxxxxxxxx xxx Xxxxxxxx
xx Xxxx x Xxxxxxxxx)
00. Temporary Housing for Transferred Workers Until X X X X Each his own
Permanent is Located (Alojamiento Temporal para
el Personal Reubicado Hasta Encontrar
Alojamiento Permanente)
B. DESIGN [DISENO]
1. Design & Engineering (Diseno e Ingenieria)
- Conceptual Design (Diseno Conceptual) X
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ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
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- Process Design (Ingenieria de Proceso) X refer to Term
Sheet
- Detail Engineering (Ingenieria de Detalle) X X
2. Model (Maquetas, Simulaciones) X/X X/X X/X X/X X/X X/X
3. Quantity Contingency (Contingencia en el X
estimado de cantidades)
4. Reproducibles of Design Document Drawings, X X X X Electronic
Specifications, etc. (Reproduccion de los transfer
Documentos Impresos Como Planos, (Transferencia
Especificaciones, etc.) Electronica)
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5. As-Built Drawings - Redlined Marked-up Drawings X X X Each his own with
(Planos As-Built) a true set of
as-built at end
of the project.
C. TESTING, SURVEYS & INSPECTIONS [PRUEBAS,
1. Topographical / Site Survey (Levantamiento X
Topografico)
2. Geotechnical & Seismic Survey / Investigations X
(Estudio Geotecnico y Sismico)
3. Geotechnical Design (Diseno Geotecnico) X
4. Primary Survey Control (Topografo de Planta, X
Revision de Trazos)
5. Concrete & Soils Testing (Laboratorio para X
Pruebas de Suelos y Concreto)
6. Non Destructive Examination - NDE (Pruebas no X
Destructivas)
7. Welder Qualification (Certificacion de X
Soldadores)
8. Inspections
- Local (Perito local de obra) N/A N/A N/A N/A N/A N/A
- Boiler - Authorized Inspector (Inspector X/X X/X X/X X/X X/X X/X
autorizado para calderas)
- Plumbing (Inspector de Tuberias) X/X X/X X/X X/X X/X X/X
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- Gas (Perito de instalaciones de gas) X/X X/X X/X X/X X/X X/X
- Electrical (Perito electrico) X/X X/X X/X X/X X/X X/X
- Membrane (Membrana) X X
9. QA/QC (Aseguramiento y Control de Calidad)
a. Project Quality Plan (Plan de Calidad del
Proyecto)
- Engineering (Ingenieria) X
- Construction (Construccion) X
- Liner (Forro o revestimiento del patio de Sub X
lixiviacion) (Subcontratista)
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b. Project Quality Control Manager (Gerente de X X
Calidad del Proyecto)
D. CONSTRUCTION (CONSTRUCCION)
1. TEMPORARY FACILITIES (INSTALACIONES
PROVISIONALES)
a. Temporary Power Setup (Instalacion X X X Each his own
provisional de Energia Electrica)
- Source (Identificacion del Suministro)
- Hook Up & Distribution (Toma y Ask CFE if we
Distribucion a la Obra) can get
- Power Consumption (Gasto x Consumo) poles from other
state (Preguntar
a CFE si podemos
obtener xxxxx de
otro estado)
b. Temporary Lighting (Alumbrado Temporal) X
c. Potable Water (Agua Potable) X X X X Each his own
- Source (Identificacion del Origen del
Suministro Temporal)
- Hook Up & Distribution (Toma y Distribucion
a la Obra)
- Consumption (Gastos x Agua de Consumo)
d. Construction Water
- Source (Identificacion del Origen del X Existing well
Suministro Temporal)
- Hook Up & Distribution (Toma y Distribucion a
la Obra) X E
- Consumption (Gastos x Agua de Consumo) X X
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e. Dust Control - Labor, Equipment, and Water X X Mine contractor
(Control de Polvo y Tierra) does own
f. Office Facilities with Equipment & Supplies
(Oficinas de Obra, Equipo de Oficina y
Consumibles)
- MexTICa X
- Engineers (Ingenieria) X
- Owner (Cliente) X
- Lunch Trailer (Comedor para el Personal) X X X Each his own.
- Computer Hardware, Software, Setup & Maint. X X X Each his own.
(Equipo de Computo, Mantenimiento)
- Messanger Freight, Courier (Gastos de
Mensajeria) X X X Each his own.
g. Telephone - Setup, Maintenance & Monthly Costs.
(Instalacion, Mantenimiento y Consumo)
- Regular, Cell, Pager, Phone Cards, Satelite X X X X Owner to provide
access to
Microwave
System.
- Internet (Internet) X X X X Each his own
h. Xxxxx Xxxxx (Sanitarios Portatiles) X X Each his own
i. Trash Disposal (Servicio de Recoleccion de X X X Each his own
Basura y Escombro) read conditions
(Leer
condiciones)
j. Compressed Air - Construction & Testing X
(Construccion y Pruebas de Red de Aire
Comprimido)
k. General Clean Up and Janitorial Services X X X Each his own
(Limpieza General de la Obra)
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l. Laydown (Areas de almacen de equipo y
materiales)
- Provide Adequate Area within 1 kilometer. X
(Provision xx Xxxx Xxxxxxxx)
- Xxxxx (Xxxxxxxx x Xxxxxxxxxxx xxx xxxx) X X
- Gravel Area (Colocacion xx Xxxxx en area) X X
- Fencing (Cercado) X
m. Warehousing / Receiving / Offloading / X X
Inspection & Storage (Almacenamiento, Recibo,
Descarga, Inspeccion y Resguardo)
Temporary Warehouse Building (Construccion de X X
Bodegas y Alamacenes Temporales)
n. Temporary Roads/Access (Accesos Temporales) X X
o. Handling & disposal of Hazardous Waste (Manejo 3rd party (Un
de desechos toxicos) Xxxxxxx)
- MexTICa Generated (Generados por MexTICa) X
- All Other (Generados por Otros) X X
p. First Aid - Facility and Supplies X X
(Instalaciones para Enfermeria)
Ambulance (Ambulancia) X
q. Doctor / Emergency Medical Technician (Doctor) X
r. Security (Vigilancia)
- Jobsite (Obra) X X
- Laydown/Warehouse Area (Areas de Almacen) X X
- Fencing (Cercado) X X Fencing at mine
pit by owner
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s. Construction Equipment Rental, Mobilization, X X X Each his own
Demobilization, Fuel, Oil & Maintenance Labor
& PaXts. (Equipo de Construccion, Movilizacion
y Desmovilizacion de Equipo e Instalaciones,
Combustibles, Personal de Mantenimiento)
t. Lunch Service and Facilities (Comedor y X X X Each his own
Servicios de Almuerzo)
2. SITE WORK/CIVIL [PRELIMINARES Y TERRACERIAS]
a. Site Clearing & Grubbing (Desmonte y Despalme) X X Owner removes
protected cactus
and other fauna.
Site Preparation to Plus/Minus 30mm (0.10') X
(Preparacion del Terreno)
Mass Excavation & Backfill (Corte y Terraplen) X
b. Locate / Remove Underground Utilities & X X Unforeseen
Obstructions (Ubicacion de Obstrucciones y subsurface
Lineas Subterraneas) conditions by
owner.
Relocate - 3" Pipe to Campo (Traslado de X Rout for this
tuberia de 3" hacia el campo) water line
relocation to be
determined by
owner.
c. Above-Ground Demolition (Demoliciones X X Owner removes
Superficiales) old Zapatilla
d. Finish Grading/Surfacing (Nivelacion y X
Conformacion de la Superficie)
Page 14 MexTICa
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------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
e. Permanent Plant Roads & Parking Access X
(Vialidades permanentes de la planta y acceso
para estacionamiento)
Haul Road (Ruta o camino para transporte de X
materiales desde la xxxx xxxxx la planta)
f. Site Drainage & Culverts (Drenaje Pluvial y X E
Escurrideros)
Multiplate Under Haul Road (Multiples planchas X E Option, Provide
galvanizadas sosteniendo tunel de drenaje fill from
ubicado debajo de ruta de transporte de Tripesa. 1 meter
material) over plate
Errosion Control (Control de erosion) X E
g. Ponds/(Estanques,) X E
h. Liners (Membranas Plasticas o Geotextiles) X
i. Dewatering - Surface Water (Bombeo de Agua en X
Recolectores)
Dewatering - Ground Water (Bombreo de Agua en X/X X/X X/X X/X X/X X/X
Acuiferos)
j. Excavation & Backfill - Structural (Excavacion X X
para Estructuras)
k. Fencing with Gates (Cercado xx Xxxxx con X X
Puertas)
l. Landscaping/Seeding (Jardineria) X
m. Reinforced Earth Walls (Muros de Suelo X To be determined
Reforzado)
Page 15 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
n. Rock Excavation/Blasting (Excavacion en Roca) X X See qualification
o. Well Drilling (Perforacion para Pozo de Agua) X
Well Pumps (Bombas para Pozo de Agua) X E
Well Head Mechanical (Instalacion Mecanica para
Pozo de Agua) X E
Well Head Electrical & Instrumentation
(Instalacion Electrica para Pozo de Agua) X E
3. CONCRETE WORK (TRABAJOS DE CONCRETO)
a. Concrete (Concreto) X
b. Formwork (Cimbra) X
x. Xxxxx & Mesh (Varilla y Xxxxx xx Xxxxxxxx) X
d. Anchor Bolts/Embeds (Anclas y Embebidos) X
e. Grouting (Grouteo) X
f. Joint Fillers; Mortar for Linings (Juntas) X
g. Special Coatings, Sealants, Retort Area
(Selladores e Impermeabilizaciones, Zona de
retorta) X E
Page 16 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
h. Precast Manhole (Boca de acceso o caja
de registro, Pre-fabricado de Concreto) X
i. Cold/Hot Weather Concrete (Concreto a Altas o
Bajas Temperaturas) X
j. Shoring (Apuntalamientos) X
k. Q-Deck (Lamina Acanalada Tipo Losacero) X
l. Batch Plant - Provide (Suministro de Planta
Concretera en la Obra) X/X X/X X/X X/X X/X X/X
Batch Plant - Power (Conexion de Electricidad a
la Planta) X/X X/X X/X X/X X/X X/X
Batch Plant - Water (Conexion de Agua a la Planta
Concretera) N/A N/A N/A N/A N/A N/A
4. BUILDINGS AND ARCHITECTURAL [ARQUITECTONICO Y
EDIFICIOS]
a. Masonry Buildings (Edificios construidos con
bloques prefabricados de concreto) X E
b. Roofing - Metal or steel Trusses (Sistema de
Cubierta, Techo - Armaduras reticuladas de metal
o acero) X E
c. Siding (Sistema de Fachadas) X E
d. Doors/Windows (Puertas y Ventanas) X E
Page 17 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
e. Overhead Doors (Puertas Seccionales) X E
f. Insulation (Buildings) (Aislamiento de Edificios) X E
g. Water Proofing (Impermeabilizacion) X E
h. Masonry (Albanilerias) X E
i. Carpentry (Carpinteria) X E
j. Furnishings (Mobiliario) x X Lab building
cabinet tops, etc
by contractor
k. Architectural Finishes (Acabados Arquitectonicos) X E
- Painting (Pintura)
- Floorings (Piso)
- Ceilings (Plafones)
- Tile (Azulejo y loseta)
- Caulking/Flashing (Selladores y Flashings)
l. Plumbing (Plomeria) X E include septic
tank
m. HVAC (Aire Acondicionado y Ventilacion) Consider security
of areas
(Considerar la
seguridad de las
areas)
Flux Mixing (Mezcla de flujos o fundentes) X E
Lab/Sample Prep/ Fire Assay
(Laboratorio/Preparacion de muestras/Horno de
ensayar) X E
Wet Chem (Quimicos mojados) X E
Furnace (Horno) X E
Page 18 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
Plant Retort (Retorta de la planta) X E
Slag Crushing (Trituracion de escorias) X E
n. Fire Protection/Suppression (Sistema vs Incendio) X E X NFPA code unless
otherwise
directed by owner
Fire loop with
hose
stations -
Contact Xxxxx
o. Fire Proofing (Pruebas vs Incendio) X E
p. Penetrations/Core Drilling (Inspeccion de
Corazones) X E
q. Protective Coatings - Retort (Pintura de Epoxy - all
Proteccion - Retorta) X E surfaces in
room
(Epoxy - en todas
las superficies
en la habitacion,
sala o lugar)
r. Lab Equipment (Equipo de laboratorio) X E X
5. STRUCTURAL STEEL (ESTRUCTURA METALICA)
a. Structural Steel (Estructura Metalica) X E
b. Handrail, Grating, Checkered Plate (Barandales,
Rejillas, Placa Antiderrapante) X E
c. Ladders, Cages (Escaleras, jaulas) X E
Page 19 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
d. Secondary Steel for Pipe/Electrical/Ductwork
(Estructura de Soporte para Tuberia y Ductos
Electricos) X E
e. Prime Painting of Steel (Capa inicial de pintura
sobre estructuras xx xxxxx) X E
f. Touch-Up Paint (Pintura para retocar la
estructura) X
g. Grouting of Structural Steel (Grouteo de
estructura metalica) X
6. EQUIPMENT [EQUIPO] Write P.O.S. on
M.R. paper
a. Mechanical Equipment per Equipment List (Equipo
Mecanico segun lista) X E
Lime Silo (Silo o tanque de deposito de cal) X E 300 TN
b. Fastners, Hardware, Shims, Gaskets, Nuts, Bolts,
etc. (Sujetadores,calzas, empaques, tornillos,
tuercas, etc.) X E
c. Field Erected Tanks - 2 Each Water Tanks (Tanques With fire
Instalados en la Obra - 2 Tanques de agua) X E capacity
d. Pumps (Bombas) X E
e. Insulation & Lagging - Equipment (Aislamiento)
Furnace (Horno) X E Part of package
(Parte del
paquete)
Page 20 MexTICa
MEXTICA
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ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
f. Initial Charge of: (Primera Carga de:) C F
- Lubricants (Lubricantes)
- Chemicals, Resins, Desiccants, (Quimicos,
Resinas)
- Oil Fill, Catalysts, etc. (Aceite, Agentes
Cataliticos)
g. Initial Charge of Tanks, Vessels & Bins Greater
Than 300 Gallon Capacity (Primera Carga de
Tanques y Tolvas Mayores a 300 Galones) C F
h. Spare Parts (Refacciones)
- Startup (Para el Arranque y Pruebas) X E Pumps - installed
- Permanent (Permanentes) X spare 100% pump
Bombas - bomba de
repuesto 100%, ya
instalada
I. Special Tools (Herramientas Especiales) C E X Clarification
filters Dore
handling
j. Finish Painting of Equipment (Pintura de Acabado Per manufacturer
para Equipos) X std. (De acuerdo
al standard del
fabricante)
Water Tanks (Tanques de agua) X E
k. Touch-up Paint (Pintura para Retocar los Equipos) X
l. Grouting of Equipment (Grouteo de Equipos) X
m. Hydrostatic Tests - Equipment (Pruebas
Hidrostaticas a Equipos) X
Page 21 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
---------------------------------------------------------------------------------------------------------------------------------
Water Supply (Suministro de Agua) F
n. Refurbish/Recondition (Reparaciones o X Possible - filter
Renovaciones) presses
- clarification
filter
o. Dismantle/Relocate Mechanical Equipment X/X X/X X/X X/X X/X X/X
(Desmantelamiento / Reubicacion de Equipo)
7. DUCT/PLATEWORK/CHUTES [DUCTOS, PLACA, CHUTES] HVAC & exhaust duct
at refinery & lab.
a. Shop Fabrication (Fabricacion en Taller) X
b. Bolt & Gaskets Sets (Juegos de Tornillos,
Empaques y Tuercas) X
c. Supports & Hangers (Soporteria) X
- Engineered (Con Diseno Especial) X/X X/X X/X X/X X/X X/X
- Non-Engineered (Sin Diseno Especial) X
e. Expansion Joints (Juntas de Expansion) X
f. Liners (Placas xx Xxxxxxxx) X/X X/X X/X X/X X/X X/X
g. Tie-Ins (Amarres) X/X X/X X/X X/X X/X X/X
h. Testing (Pruebas) X
Page 22 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
----------------------------------------------------------------------------------------------------------------------------------
i. Insulation & Lagging - Ductwork (Aislamiento X
de Ductos)
j. Finish Painting of Ductwork (Pintura de Acabado X
de Ductos)
k. Touch-Up Paint (Pintura para Retocar Ductos) X
8. PIPING (TUBERIA)
a. Pipe & Fittings (Tuberia y Accesorios) X E
- 2" & Smaller - small bore (De 2 Pulgadas o
Menores)
- 2 1/2" & Larger - Large Bore (De 2 1/2 X E
Pulgadas Diametro o Mayores)
- Shop Fabricated Spools (Piezas Fabricadas en X/X X/X X/X X/X X/X X/X
Taller)
b. Valves (Valvulas)
- 2" & Smaller Manual (De 2" o Menores) X E
- 2 1/2" & Larger Manual (De 2 1/2" o Mayores) X E
- Control Valves/Motor Operated Volves (Valvulas
de Control u Operadas con Actuadores) X E
- In-Line Specialities (Especiales en o sobre la X E
tuberia)
c. Nuts, Bolts & Gaskets (Xxxxxxxxx, Xxxxxxxxxx, X E
Tuercas y Empaques)
d. Hangers & Supports (Soporteria)
- Field Fab (Non-engineered) (Fabricada en Campo) X E
- Small Bore (Dimensiones Pequenas) X E
- Large Bore (Dimensiones Mayores) X E
Page 23 MexTICa
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ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
- Patented Type Hangers & Supports - Xxxxxxxx, X E
etc. (Soporteria por diseno especial)
- Small Bore (Dimensiones Pequenas) X E
- Large Bore (Dimensiones Grandes) X E
- Anchors & Guides (Anclas y Guias) N/A N/A N/A N/A N/A N/A
- Spring Hangers & Engineered Supports (Soportes X/X X/X X/X X/X X/X
Flexibles y Disenados)
- Seismic Design & Supports (Soportes por X/X X/X X/X X/X X/X X/X
Diseno Sismico)
e. Hot Taps (Conexiones en Caliente) X/X X/X X/X X/X X/X X/X
f. Tie-ins (Amarres) X/X X/X X/X X/X X/X X/X
Page 24 MexTICa
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------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
g. Systems Flushing (Sistemas para Llenado y X
Desahogo de Tuberias)
h. Lube Oil Flush (Sistemas para Lavado y Desahogo N/A N/A N/A N/A N/A N/A
de Lubricantes en Tuberias)
I. Hydrostatic Tests - Pipe (Pruebas Hidrostaticas X E
de Tuberia)
Water Supply (Suministro de Agua para Pruebas) X F
j. Pneumatic Tests (Pruebas con Aire) X E
k. Pre-heat (Pre-Calentamiento) X/X X/X X/X X/X X/X X/X
l. Stress Relieving/Post Weld Heat Treat - PWHT N/A N/A N/A N/A N/A N/A
(Tratamiento Termico Post-Soldadura)
m. Steam Trace (Registros Hidrometricos) X/X X/X X/X X/X X/X X/X
n. Primer Paint Pipe (Pintura de Proteccion de X E
Tuberia)
o. Pipe Labeling/Banding (Etiquetado y Senalizacion X
de Tuberias)
p. Underground Pipe Excavation (Excavacion para X
Tuberia Subterranea)
Page 25 MexTica
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
q. Underground Pipe Backfill (Relleno de Zanjas de X E
Tuberia Subterranea
r. Underground Pipe Bedding (Cama de Arena en X E native material
Zanjas de Tuberia Subterranea)
s. Underground Pipe & Fittings (Colocacion de X E
Tuberia Subterranea)
Underground Valves (Colocacion de Valvulas en X E
Tuberia Subterranea)
t. Pipeline (GasoDuctos, Oleoductos) N/A N/A N/A N/A N/A N/A
Water Line (Tuberia para agua) X E
Heap (Monton) X E
u. Pipeline Sleepers/Supports (Silletas y X E
Soporteria de Gasoductos,Oleoductos, etc)
v. Coat & Wrap Pipe (Pintura y Envoltura de X/X X/X X/X X/X X/X X/X
Proteccion de Tuberia)
w. Insulation & Lagging - Piping (Aislamiento X E
de Tuberia)
x. Dust Suppression/Collection Piping (Sistema para X/X X/X X/X X/X X/X X/X
la Recoleccion y Supresion de Polvos por
Aspersion desde Tuberia)
y. Replace Valve Packing (Reemplazar Paquete de X/X X/X X/X X/X X/X X/X
Valvulas)
Page 26 MexTica
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
9. ELECTRICAL (ELECTRICO)
a. Cable Tray (Charolas) X E
b. Conduit & Fittings (Conduits y Accesorios) X E
c. Ductbanks (Ductos Subterraneos) X E Subst to MCC
overhead
d. Wire & Cable (Cable Electrico)
- Low Voltage (Bajo Voltaje) X E
- High Voltage (Alto Voltaje)
- Instrument (De Instrumentacion)
- Megger & Hi-Pot Cables (Pruebas a Cables)
e. Grounding (Sistema de Tierras) X E
f. Switchgear (Sistema de Distribucion) X E
g. Motor Control Centers (Centros de Control de X E
Motores)
h. Transformers (Transformadores)
- 100 KVA & Larger X E
- 75 KVA & Smaller X E
- Oil Filling (Llenado de Aceite) X E
Page 27 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
i. Panelboards (Tableros)
- 120/208 Volt X E
- 480 Volt X E
j. Motor Control Devices - Field (Aparatos de X E
Control)
k. Light Fixtures-Structures (Luminarias, X E
Sstructuras para Luminarias)
l. Site Lighting (Alumbrado Exterior) X E Xxxxx pad roads
(rutas a patios
de lixiviacion)
Access road poles
Shielded fixtures
m. Electric Heat Trace (Mantenimiento de X/X X/X X/X X/X X/X X/X
Temperatura en Tuberia)
n. Cathodic Protection (Proteccion Catodica) X/X X/X X/X X/X X/X X/X
o. Communication Systems (Sistemas de Comunicacion) X
- Telephone (Telephono)
p. Security Systems (Sistemasde Seguridad) X E X Owner to
determine type
Card System at Refinery (Sistema de Tarjetas de and
Identificacion a usar en la Refineria) specifications.
Motion Detector at Vault (Detector de Movimiento
en la Boveda)
Page 28 MexTICa
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------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERFA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
q. Alarm Systems (Sistema de Alarmas) X E Ring at 3rd party
& guard
gate(Puerta,
entrada)
Fire Protection (Proteccion contra Incendios) X E See permit
requirements (Ver
requerimientos
del Permiso)
r. Lightning Protection (Sistema de Pararrayos) X E
s. Closed Circuit Television - CCTV (Sistema X E
Cerrado de TV)
t. Fire Detection (Deteccion vs Incendio) X E At offices (En
las oficinas)
u. Emergency Generator (Planta de Emergencia) X E
Page 29 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
v. Back-up Systems (Sistemas de Respaldo Electrico)
- Uninterruptible Power Supply (UPS) (Sistema Incl's emerg'y
Ininterrumpible de Energia) generator
(Incluye
generador
de emergencia)
- Battery System (Sistema con Baterias) X/X X/X X/X X/X X/X X/X
w. Transmission Overhead Pole Line - 115 KV X E All new 13 km -
(Lineas de Transmision Alta Tension) plant
x. Substation/Switchyard (Subestacion, Conexion X E
con Lineas de Distribucion)
y. Metering (Sistemas de Medicion) E X
z. Rotate Motors (Motores Rotatorios) X
aa.Fuses & Lamps (Fusibles y Lamparas) X E
bb.Isolated Phase Bus Duct (Electroducto de X/X X/X X/X X/X X/X X/X
Fase Aislada)
cc.Refurbish/Recondition Electrical Equipment X/X X/X X/X X/X X/X X/X
(Reparacion o Renovacion de Equipo)
10.INSTRUMENTS AND CONTROLS [INSTRUMENTACION] Alarm on
deareator (Alarma
del desareador)
Alarm on cyanide
prot
a. Instruments Per List (Instrumentos) X Turbitity meter
D.O. meter
Flowmeter - preg
and
Page 30 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxx Flowmeter
- well
b. Instrument Air Header with Block Valves X
(Instrumentacionen Cabezales y Valvulas)
c. Tubing & Tube Tray (Canalizacion) X
d. Instrument Valves & Fittings (Valvulas y X E
Accesorios)
Page 31 MexTICa
MEXTICA
------------------------
ENGINEER WASHINGTON
(FIRMA DE MSX GROUP LATIN COMMENTS
ITEM # DESCRIPTION (DESCRIPCION) CONSTRUCTION INGENIERIA) (DUENO) VECTOR AMERICA (COMENTARIOS)
------------------------------------------------------------------------------------------------------------------------------------
e. Calibration (Calibracion)
- Skid/Vendor Mounted (Equipo del Proveedor) X
- Bench (En banca) X E
- In-Line (En el Lugar, en o sobre la tuberia) X
f. Loop Checks (Chequeos en Circuitos)
- Point to Point Cable Checks (Punto a Punto) X
- Through DCS or PLC (Por Medio de PLC o DCS) X/X X/X X/X X/X X/X X/X
g. Functional Test (Pruebas de Funcionamiento) X
h. Local Control Panels (Tableros de Control) X E
i. Supports/Stands (Soportes y Bases) X
j. DCS and/or PLC X/X X/X X/X X/X X/X X/X
k. Analog Control System (Sistema de Control X/X X/X X/X X/X X/X X/X
Analogo)
l. Programming (Programacion) N/A
m. Relay Setting & Testing (Programacion y C F Owner to
Pruebas de Funcionamiento) interface with
CFE for
procedures,
contractor to
perform work.
n. Refurbish/Recondition Instruments (Reparacion o N/A N/A N/A N/A N/A N/A
Renovacion de Apartos)
Page 32 MexTICa
Metallica Resources - Cerro San Xxxxx Proj. Exhibit C - DRAWING LIST MexTICa Job No. 20003
Rev Date 12/30/03
DRAWING LIST
--------------------------- DATES
O332 DRAWING CURRENT ----------------------------------
NO. TITLE REV NO. COMMENTS (I)NFO ORIGINAL LAST COMP APPROV
--------------------------------------------------------------------------------------------------------------------------------
ARCHITECTURAL
00000-X-00 Xxxxxxx Xxxxx Xxxxxxxx - X Rev per new plant GA 10/10/2003 11/12/03
Plan & Elevation
03023-A-02 Lab Building - Plan and 1 Is'd for Apprl-Show Lab 11/26/03
Elevation Furniture & Equipment
00000-X-00 Xxxx Xxxxxx Xxxxxxxx - X Remove 2 offices 11/05/03
Plan & Elevations
03023-A-04 Process Building - Roof By Architectural
Plan Subcontractor
03023-A-05 Process Building - By Architectural
Elevations Subcontractor
03023-A-06 Process Building - By Architectural
Sections Subcontractor
03023-A-07 Door & Hardware Schedule By Architectural
Subcontractor
CIVIL
03023-C-01 Title Sheet and Project 0 Issued for Construction 10/30/03
Location Map
03023-C-02 General Facilities 0 Issued for Construction 10/30/03
Arrangement
03023-C-03 Phase 1 Xxxxx Pad Layout 0 Issued for Construction 10/30/03
03023-C-04 Xxxxx Pad Sections 0 Issued for Construction 10/7/2003 10/30/03
03023-C-05 Xxxxx Pad Sections & 0 Issued for Construction 10/2/2003 10/30/03
Details
03023-C-06 Collection Ditch Layout 0 Issued for Construction 10/30/03
and Profile Section
03023-C-07 Pad Grading Layout & 0 Issued for Construction 10/1/2003 10/30/03
Sections
03023-C-08 Drain Pipe Layout, 0 Issued for Construction 10/30/03
Sections & Details
03023-C-09 Collection Pond Layout & 0 Issued for Construction 10/30/03
Sections
03023-C-10 Collection Pond Sections 0 Issued for Construction 10/30/03
& Details
03023-C-11 Sediment Basin Layout & 0 Issued for Construction 10/30/03
Sections
03023-C-12 Xxxxx-xx Xxxxx 0 Heap 0 Issued for Construction 10/30/03
Stacking-Lift 1
03023-C-13 Phase 1 Heap 0 Issued for Construction 10/30/03
Stacking-Lifts 2 & 3
03023-C-14 Xxxxx-xx Xxxxx 0 Heap 0 Issued for Construction 10/30/03
Stacking-Lifts 1 & 2
03023-C-15 Phase 2 Heap Stacking-Lift 0 Issued for Construction 10/30/03
3
03023-C-16 Phase 1 & 2 Heap 0 Issued for review 10/30/03
Stacking-Lifts 4 & 5
03023-C-17 Phase 1 & 2 Heap 0 Issued for Construction 10/30/03
Stacking-Lifts 6 & 7
03023-C-18 Monitoring Well Plan & 0 Issued for Construction 10/30/03
Details
03023-C-19 Not Used
03023-C-20 Site Layout C Grading Alt 4, for review 10/28/03 11/26/03
03023-C-21 Buried Pipe & Pipe Rack B Issued for review 11/21/03 12/2/03
Layout Plan
03023-C-22 Phase 1 Earthwork, Pad Later
Elevations
03023-C-23 Phase 1 Earthwork, Not Used
Restricted Area Pad
03023-C-24 Phase 1 Earthwork, Pad Later
Elevations
03023-C-25 Site Utilities Plan Later - see C-21
03023-C-26 Utilities Plan Process Area Later
P & ID 'S
03023-D-01 P & ID - Clarification/ D Rev's & add Line No.s 9/23/2003 11/14/03 10/21/03
Xxxxxxxxxx Xxxx
00000-X-00 P & ID - Zinc Precipitate D Rev's & add Line No.s 9/23/2003 11/14/03 10/21/03
Filter Xxxxx Xxxx
00000-X-00 P & ID - Reagents, Mix & D Rev's & add Line No.s 9/24/2003 11/14/03 10/21/03
Storage Area
03023-D-04 P & ID - Pregnant Solution D Rev's & add Line No.s 9/23/2003 11/14/03 10/21/03
Area
03023-D-05 P & ID - Mercury Retort D add Line No.s 9/23/2003 11/13/03 10/21/03
System - Model 30MR1LP
03023-D-06 P & ID - Process Water D Rev's & add Line No.s 9/23/2003 11/13/03 10/21/03
System
03023-D-07 P & ID - Generator, Fuel E Rev's & add Line No.s 9/11/2003 11/17/03 ON HOLD
Storage, & Distribution
System
03023-D-08 P & ID - Lime Storage Area A Issued for review 11/21/03 11/21/03
ELECTRICAL
03023-E-01 Electrical Power Lines, A 10/2/2003
Plan View
03023-E-02 Elect. Power Aerial to A Issued for Review 10/2/2003
Underground Under Xxxx
Xxxx
00000-X-00 Xxx Line Diagram, Truck 10/8/2003
Shop, Lime Bin
03023-E-04 Electrical One Line B Transfmrs, meters on extg 11/10/03
Diagram lines
03023-E-05 One Line Diagram, 11/19/03 hand sketch
Precipitation, Refinery,
Laboratory
00000-X-00 Xxxxxxxxxxxx Xxxx Xxxx X Rev Notes, add well 11/10/03
Substation
03023-E-07 13.8 kV Electrical Power B Adjst power lines and 11/10/03
Lines, Plan notations
03023-E-08 Electrical One-Line B Issued for Review 11/21/03 12/3/03
Diagram
03023-E-09 Electrical One-Line B Issued for Review 11/21/03 12/3/03
Diagram
03023-E-10 Laboratory Panel Diagram Later
03023-E-11 Site Electrical Later
Distribution & Lighting
Plan
03023-E-12 Yard Lighting w/Details Later
03023-E-13 Lighting Wiring Diagram Later
00000-X-00 Xxxxxxxxxx Electrical Plan Later
03023-E-15 Office Electrical Plan Later
03023-E-16 Zapatilla Well Temp Power A Issued for Review 12/17/03
Installation
03023-E-17 Underground Conduit Plan Later
PROCESS FLOW SHEETS
03023-F-01 Process Flowsht - Xxxxx 4 General Revisions 9/23/2003 11/17/03 10/21/03
Solution Recovery + Mass
Bal
03023-F-02 Process Flowsheet - 4 General Revisions 9/23/2003 11/14/03 10/21/03
Xxxxxxx Xxxxx + Mass
Balance
-- Page 1 --
Metallica Resources - Cerro San Xxxxx Proj. Exhibit C - DRAWING LIST MexTICa Job No. 20003
Rev Date 12/30/03
DRAWING LIST
--------------------------- DATES
O332 DRAWING CURRENT ----------------------------------
NO. TITLE REV NO. COMMENTS (I)NFO ORIGINAL LAST COMP APPROV
--------------------------------------------------------------------------------------------------------------------------------
03023-F-03 Process Flowsheet - 4 General Revisions 9/23/2003 11/17/03 10/21/03
Refining + Mass Balance
GENERAL ARRANGEMENTS
03023-G-01 General Arrangement - D Issued Gen revs, move sump A - 11/12/03
Plant Layout Plan for Bid
03023-G-02 General Arrangement - A Issued For Review - 11/06/03
Plant Elevation - Section
A-A
03023-G-03 Not Used -
03023-G-04 Not Used -
03023-G-05 Not Used
03023-G-06 Not Used
03023-G-07 Laboratory Building 9/19/2003
03023-G-08 Lime Bin - General B Combine 2 conveyors into 8/3/03 `0/31/03
Arrangement one
MECHANICAL/TANKS
03023-M-01 Pregnant Pond Pump - A Issued For Review 8/27/03
Sectional View
03023-M-02 Tank Data Sheet - Water A Issued For Review 10/2/2003
Storage Tank
03023-M-03 Tank Data Sheet - Truck A Issued For Review 10/2/2003
Stop Water Tank
03023-M-04 Tank Data Sheet - Barren A Issued For Review 10/3/2003
Solution Tank
03023-M-05 Tank Data Sheet - NaCN A Issued For Review 10/6/2003
Mix/Storage Tank
03023-M-06 Tank Data Sheet - NaCN A Issued For Review 10/6/2003
Mix/Storage Tank
03023-M-07 Tank Data Sheet - Caustic A Issued For Review 10/7/2003
Mix Tank
03023-M-08 Tank Data Sheet - A Issued For Review 11/21/03
Deaeration Tower
03023-M-09 Tank Data Sheet - Body A Issued For Review 11/21/03
Feed Tank
03023-M-10 Tank Data Sheet - Precoat A Issued For Review 11/21/03
Tank
03023-M-11 Tank Data Sheet - Seal A Issued For Review 11/21/03
Water Tank
03023-M-12 Tank Data Sheet - Lime Bin A Issued For Review 11/21/03
03023-M-13 Tank Data Sheet - Steady A Issued For Review 11/26/03
Head Tank
03023-M-14 Wire Sampler, Sections & A Issued For Review 12/1/03
Details
03023-H-01 HVAC Layout By Architectural
Subcontractor
03023-H-02 HVAC Sections By Architectural
Subcontractor
PIPING
03023-P-01 Water Line Plan C Reroute pipe & rev Plant 11/10/03 11/26/03
Layout
03023-P-02 Pipe Rack Plan, Barren & A Issued for Quote 11/25/03
Preg Solution
03023-P-03 Pipe Rack Plan, A Issued for Quote 11/25/03
Ancillaries
STRUCTURAL (CONCRETE)
03023-Q-1 Sediment Basin, Plan & A Issued for Quote, BELONGS 11/20/03 11/20/03
Elevation w/ "S" drawings(concrete)
03023-Q-2 Sediment Basin, Details A Issued for Quote, BELONGS 11/20/03 11/20/03
w/ "S" drawings(concrete)
03023-R-01 Plot Plan - Walkway A (should be Pipe Rack Fdns
Foundations & w/ "S") Issue for Bids 11/21/03
03023-R-02 Process Building By Architectural
Foundation Section & Subcontractor
Details
03023-R-03 Process Building Slab Later ( these should be
Joints, Reinforcing, w/ "S" Dwgs )
Embeds
03023-R-04 Concrete Notes & Details Later ( these should be
w/ "S" Dwgs )
03023-R-05 Water Tank Foundation Later ( these should be 11/19/03
(Hand Sketch) w/ "S" Dwgs )
03023-R-06 Lime Bin Foundation, Later ( these should be 11/19/03
(Hand Sketch w/ "S" Dwgs )
03023-R-07 Foundation Location Plan Later ( these should be
w/ "S" Dwgs )
STRUCTURAL
03023-S-01 GA, Plant Foundation Plan A Preliminary - Foundation 11/18/03 VOID
Design by ARCHITECT
03023-S-02 Plant Roof Framing Plan A Preliminary - Roof Design 11/18/03 VOID
by ARCHITECT
03023-S-03 Lab Building Foundation A Preliminary - Foundation 11/18/03 VOID
Plan Design by ARCHITECT
03023-S-04 Lab Bldg Roof Framing Plan A Preliminary - Roof Design 11/18/03 VOID
by ARCHITECT
03023-S-07 Masonry Wall & Slab A Preliminary - Masonry
Details Design by ARCHITECT
03023-S-08 Masonry Wall Details A Preliminary - Masonry
Design by ARCHITECT
03023-S-09 Pipe Rack Assemblies - for A Issued For Quote ( need 11/21/03 11/21/03
Quote more detail)
03023-S-10 Long Joist - Pipe Chases A Issued For Quote 11/21/03 11/21/03
03023-S-11 Short Joist - Pipe Chases A Issued For Quote 11/21/03 11/21/03
03023-S-12 Lime Bin Loadout Structure A Issued For Quote 11/21/03 11/21/03
SYMBOL LEGENDS
03023-X-01 P&ID, Symbols A Issued For Review 10/1/2003 10/07/03
03023-X-02 P&ID, Equipment Numbering A Issued For Review 9/30/2003 10/07/03
System
03023-X-03 Site/Plot Plan & Location Later
Map
03023-X-04 Electrical Standards Later
03023-X-05 Process & Instrument Later
Standards
-- Page 2 --
Exhibit "D"
PERFORMANCE TEST
PERFORMANCE TEST
1. Upon attainment of mechanical completion, Owner shall conduct the
performance test, which shall consist of operating the Facility for seven
days of continuous operation with pregnant solution operating at 4000 gpm
and the barren solution operating at 4400gpm. During this test the
clarification filters, de-aeration tower, vacuum pump, zinc feeder,
precipitation filters and ancillary systems shall be tested to demonstrate
that they meet or exceed the design conditions. The Contractor will be
notified as far in advance as possible of this test and shall have a
representative present.
2. (a) If the Performance Test is interrupted for reasons not due to
deficiencies in the Work and otherwise beyond the control of the
Contractor, the test period will continue and include the elapsed test
time prior to the interruption.
3. (b) If the Performance Test is not completed successfully due to any
deficiency in the Contractor's work, the Contractor shall make necessary
repairs and adjustments to obtain performance of the Facility in
accordance with the Contract conditions. The full one-week test period
shall then be repeated immediately.
4. In case any of the equipment furnished under this Contract fails to
operate as required, or fails to comply with the performance criteria
provided for in this Contract, Owner shall have the right to operate the
equipment until such defects have been remedied, and performance criteria
complied with. Owner, however, shall grant to the Contractor at all
reasonable times access to and availability of such equipment for
inspecting and remedying any defects.
5. The performance test is based upon the design criteria detailed in Exhibit
A Scope of Work.
EXHIBIT "E-1" - MEXTICA LABOR RATES Page 1 of 2
Project : Cerro San Xxxxx Project Current as of : Xxx 0, 0000
Xxxxxxxx: Xxx Xxxx Xxxxxx, Xx Expiration Date : Dec 31, 0000
Xxxx XX Overtime Weekly
Expat & US Classifications USD/Hr USD/Hr Subsistence
-------------------------- ------ ------ -----------
Sr Operations Mgr (Expat part time) $90.95
Site Manager (Expat full time) $92.24 $92.24 $300.00
Mgr Int. Project Serv (US part time) $60.90
Senior Ind Estimator (US part time) $75.65
Purchasing Agent (US part time) $51.45
Eng'r Manager (US part time) $68.00
Mexican Salary Classifications Pesos/Mo
------------------------------ --------
Project Superintendent $67,100
Field Engineer II $44,500
Office Manager $30,700
Safety Inspector $28,300
Craft Supt Civil $45,000
Craft Supt Mech $36,000
Craft Supt Pipe/Conc $27,000
Project Control Engr $49,800
Project Engineer $46,100
Field Engineer/Coord IV $21,600
Subcontract Administrator $46,100
Purchasing Agent $21,600
Material Manager $26,800
QC Manager Level III $27,000
Doc Control Supervisor $21,600
Field Clerk $14,700
Timekeeper $18,100
Mexican Craft Classifications Pesos/Hr Overtime
----------------------------- -------- --------
Sobrestante Xxxxxxx Civil $169.00 see notes
Official Journeyman Civil $136.00 see notes
Ayudante Helper Civil $ 57.00 see notes
Sobrestante Xxxxxxx Steel $168.00 see notes
Official Journeyman Steel $136.00 see notes
Ayudante Helper Steel $ 57.00 see notes
[MEXTICA DE MEXICO LOGO]
EXHIBIT "E-1" - MEXTICA LABOR RATES (con't) Page 2 of 2
Mexican Craft Classifications Pesos/Hr Overtime
----------------------------- -------- --------
Sobrestante Xxxxxxx Mech $195.00 see notes
Official Journeyman Mech $142.00 see notes
Ayudante Helper Mech $ 71.00 see notes
Sobrestante Xxxxxxx Pipe $199.00 see notes
Soldador (Code Welder) Pipe $179.00 see notes
Official Journeyman Pipe $146.00 see notes
Ayudante Helper Pipe $ 64.00 see notes
Sobrestante Xxxxxxx Elec $195.00 see notes
Official Journeyman Elec $143.00 see notes
Ayudante Helper Elec $ 62.00 see notes
Sobrestante Xxxxxxx Instru $209.00 see notes
Official Journeyman Instru $153.00 see notes
Ayudante Helper Instru $ 83.00 see notes
Warehouse Helper $ 53.00 see notes
Survey Party Chief $114.00 see notes
Survey Xxxxxx $ 53.00 see notes
Security $ 53.00 see notes
Field Mechanic $ 87.00 see notes
Equip Oiler $ 87.00 see notes
[MEXTICA DE MEXICO LOGO]
MEXICO'S LABOR RATES
FACTOR
BASE WAGE SALARIO WAGES WITH TRANSPORTE ALIMENTOS
DESCRIPTION FOR PROJECT REAL FSR VIATICO WEEK PER WEEK PER WEEK LABOR/WK
-------------------------------------------------------------------------------------------------------------------------------
COMPOSITE CREW CIVIL
Sobrestante Xxxxxxx Civil 2,568.00 1.9379 4,997.52 725.00 180.00 240.00 6,223
Oficial Journeyman Civil 2,033.00 1.9410 3,956.37 575.00 180.00 240.00 5,021
Ayudante helper Civil 856.00 1.9410 1,661.46 - 180.00 240.00 2,111
COMPOSITE CREW STRUCTURAL
Sobrestante Xxxxxxx Steel 2,568.00 1.9379 4,997.52 725.00 180.00 240.00 6,223
Oficial Journeyman Steel 2,033.00 1.9410 3,956.37 575.00 180.00 240.00 5,021
Ayudante helper Steel 963.00 1.9410 1,869.14 - 180.00 240.00 2,319
COMPOSITE CREW MECHANICAL
Sobrestante Xxxxxxx Mech 2,996.00 1.9363 5,830.44 840.00 180.00 240.00 7,179
Oficial Journeyman Mech 2,140.00 1.9402 4,164.60 610.00 180.00 240.00 5,267
Ayudante helper Mech 963.00 1.9572 1,874.07 270.00 180.00 240.00 2,612
COMPOSITE CREW PIPING
Sobrestante Xxxxxxx Piping 2,996.00 1.9363 5,830.44 840.00 180.00 240.00 7,179
Soldador (Code Welder) Piping 2,675.00 1.9374 5,205.75 750.00 180.00 240.00 6,458
Soldador (Whitout Code Welder) Piping - 1.9402 - - 180.00 240.00
Oficial Journeyman Piping 2,140.00 1.9402 4,164.60 600.00 180.00 240.00 5,256
Ayudante helper Piping 963.00 1.9572 1,874.07 - 180.00 240.00 2,323
COMPOSITE CREW ELECTRICAL
Sobrestante Xxxxxxx Elect 2,996.00 1.9363 5,830.44 840.00 180.00 240.00 7,179
Oficial Journeyman Elect 2,140.00 1.9402 4,164.60 600.00 180.00 240.00 5,256
Ayudante helper Elect 963.00 1.9572 1,874.07 - 180.00 240.00 2,323
COMPOSITE CREW INSTRUMENT
Sobrestante Xxxxxxx Inst 2,996.00 1.9363 5,830.44 840.00 180.00 240.00 7,179
Oficial Journeyman Inst 2,140.00 1.9402 4,164.60 600.00 180.00 240.00 5,256
Ayudante helper Inst 1,070.00 1.9541 2,082.30 300.00 180.00 240.00 2,853
INDIRECTS PAID BY WEEK
Warehouseman Ind 995.10 1.9527 1,943.15 100.00 180.00 300.00 2,564
Survey Pty Chf Ind 2,675.00 1.8607 4,977.49 - 180.00 300.00 5,491
Survey Xxxxxx Ind 995.10 1.9527 1,943.15 100.00 180.00 300.00 2,564
Security Ind 995.10 1.9527 1,943.15 100.00 180.00 300.00 2,564
Field Mech Ind 1,926.00 1.9072 3,673.29 - 180.00 300.00 4,187
Equip Oiler Ind 1,926.00 1.9072 3,673.29 - 180.00 300.00 4,187
LABOR/HR
LABOR/HR LABOR/HR SMALL PESOS W/ ST LABOR/HR $US
DESCRIPTION PESOS $US TOOLS CONSUMABLES & CON. W/ST & CON. CONT. O/H FEE
----------------------------------------------------------------------------------------------------------------------------
COMPOSITE CREW CIVIL
Sobrestante Xxxxxxx 129.64 12.96 19.45 19.45 168.53 $16.85 $- $- $-
Oficial Journeyman 104.60 10.46 15.69 15.69 135.99 $13.60 $- $- $-
Ayudante helper 43.98 4.40 6.24 6.60 56.82 $ 5.68 $- $- $-
COMPOSITE CREW STRUCTURAL
Sobrestante Xxxxxxx 129.64 12.96 19.45 19.45 168.53 $16.85 $- $- $-
Oficial Journeyman 104.60 10.46 15.69 15.69 135.99 $13.60 $- $- $-
Ayudante helper 48.30 4.83 3.62 4.83 56.76 $ 5.68 $- $- $-
COMPOSITE CREW MECHANICAL
Sobrestante Xxxxxxx 149.55 14.96 22.51 22.43 194.50 $19.45 $- $- $-
Oficial Journeyman 109.72 10.97 16.35 16.46 142.53 $14.25 $- $- $-
Ayudante helper 54.42 5.44 8.30 8.16 70.89 $ 7.09 $- $- $-
COMPOSITE CREW PIPING
Sobrestante Xxxxxxx 149.55 14.96 24.00 25.42 198.98 $19.90 $- $- $-
Soldador (Code Welder) 134.53 13.45 21.59 22.87 179.00 $17.90 $- $- $-
Soldador (Whitout Code Welder) - - - - - $ - $- $- $-
Oficial Journeyman 109.50 10.95 17.57 18.61 145.69 $14.57 $- $- $-
Ayudante helper 48.41 4.84 7.21 8.23 63.85 $ 6.38 $- $- $-
COMPOSITE CREW ELECTRICAL
Sobrestante Xxxxxxx 149.55 14.96 22.43 22.51 194.50 $19.45 $- $- $-
Oficial Journeyman 109.50 10.95 16.53 16.48 142.51 $14.25 $- $- $-
Ayudante helper 48.41 4.84 6.66 7.29 62.35 $ 6.23 $- $- $-
COMPOSITE CREW INSTRUMENT
Sobrestante Xxxxxxx 149.55 14.96 29.91 29.91 209.38 $20.94 $- $- $-
Oficial Journeyman 109.50 10.95 22.01 21.90 153.41 $15.34 $- $- $-
Ayudante helper 59.43 5.94 12.12 11.89 83.44 $ 8.34 $- $- $-
INDIRECTS PAID BY WEEK
Warehouseman 53.41 5.34 - - 53.41 $ 5.34 $- $- $-
Survey Pty Chf 114.40 11.44 - - 114.40 $11.44 $- $- $-
Survey Xxxxxx 53.41 5.34 - - 53.41 $ 5.34 $- $- $-
Security 53.41 5.34 - - 53.41 $ 5.34 $- $- $-
Field Mech 87.23 8.72 - - 87.23 $ 8.72 $- $- $-
Equip Oiler 87.23 8.72 - - 87.23 $ 8.72 $- $- $-
TOTAL COSTO
BUILT-UP RATE WITH
DESCRIPTION PESOS OUT P & O
------------------------------------------------------------
COMPOSITE CREW CIVIL 85.96
Sobrestante Xxxxxxx $168.53 $16.85
Oficial Journeyman $135.99 $13.60
Ayudante helper $ 56.82 $ 5.68
COMPOSITE CREW STRUCTURAL 85.92
Sobrestante Xxxxxxx $168.53 $16.85
Oficial Journeyman $135.99 $13.60
Ayudante helper $ 56.76 $ 5.68
COMPOSITE CREW MECHANICAL 97.99
Sobrestante Xxxxxxx $194.50 $19.45
Oficial Journeyman $142.53 $14.25
Ayudante helper $ 70.89 $ 7.09
COMPOSITE CREW PIPING 115.19
Sobrestante Xxxxxxx $198.98 $19.90
Soldador (Code Welder) $179.00 $17.90
Soldador (Whitout Code Welder) $ - $ -
Oficial Journeyman $145.69 $14.57
Ayudante helper $ 63.85 $ 6.38
COMPOSITE CREW ELECTRICAL 106.81
Sobrestante Xxxxxxx $194.50 $19.45
Oficial Journeyman $142.51 $14.25
Ayudante helper $ 62.35 $ 6.23
COMPOSITE CREW INSTRUMENT 122.76
Sobrestante Xxxxxxx $209.38 $20.94
Oficial Journeyman $153.41 $15.34
Ayudante helper $ 83.44 $ 8.34
INDIRECTS PAID BY WEEK $ -
Warehouseman $ 53.41 $ 5.88
Survey Pty Chf $114.40 $12.58
Survey Xxxxxx $ 53.41 $ 5.88
Security $ 53.41 $ 5.88
Field Mech $ 87.23 $ 9.59
Equip Oiler $ 87.23 $ 9.59
INDIRECTS PAID BY MONTH VIATICO MONTH LUNCH/ WK LABOR/WK
---------------------------------------------------------------------------------------------------------------------------------
Project Supt. Salary 32,100.00 1.80 57,651.60 7,500.00 0.00 450.00 15496.56 322.84 $32.28
F.E. / Coord II Salary 23,540.00 1.80 43,172.36 300.00 10275.37 214.07 $21.41
Office Mgr Salary 10,700.00 1.99 21,250.20 7,500.00 0.00 450.00 7089.77 147.70 $14.77
Safety Mgr Salary 14,980.00 1.80 27,001.45 6,495.00 0.00 300.00 6535.90 136.16 $13.62
Crfaft Supt Civil Salary 25,000.00 1.80 45,000.00 0.00 0.00 10392.61 216.51 $21.65
Craft Supt Mech Salary 20,000.00 1.80 36,000.00 0.00 0.00 8314.09 173.21 $17.32
Craft Supt Pipe / Conc Salary 15,000.00 1.80 27,000.00 0.00 0.00 6235.57 129.91 $12.99
Project Controls Engineer Salary 24,062.00 1.80 43,311.60 6,495.00 0.00 0.00 13003.83 270.91 $27.09
Project Engineer Salary 22,000.00 1.80 39,600.00 6,495.00 0.00 0.00 10645.50 221.78 $22.18
F.E. Coord IV Salary 12,000.00 1.80 21,600.00 0.00 0.00 4988.45 103.93 $10.39
Subcontr. Admin Salary 22,000.00 1.80 39,600.00 6,495.00 0.00 0.00 10645.50 221.78 $22.18
Purch. Agent Salary 12,000.00 1.80 21,600.00 0.00 0.00 4988.45 103.93 $10.39
Materials Manager Salary 12,000.00 1.80 21,600.00 5,196.00 0.00 0.00 6188.45 128.93 $12.89
QC Inspector III Salary 15,000.00 1.80 27,000.00 0.00 0.00 6235.57 129.91 $12.99
Doc. Control Supv Salary 12,000.00 1.80 21,600.00 0.00 0.00 4988.45 103.93 $10.39
Field Clerk Salary 8,000.00 1.83 14,672.00 0.00 0.00 3388.45 70.59 $ 7.06
Timekeeper Salary 10,070.00 1.80 18,126.00 0.00 0.00 4186.14 87.21 $ 8.72
INDIRECTS PAID BY MONTH PESOS / MTH Monthly
-------------------------------------------------------------------------------------------------
Project Supt. - - 67,100 34 $- $- $- $60,375.00 $33.55
F.E. / Coord II 44,492 22 $22.25
Office Mgr - - 30,699 15 $- $- $- $50,187.00 $15.35
Safety Mgr - - 28,300 14 $- $- $- $33,495.00 $14.35
Crfaft Supt Civil - - 45,000 23 $- $- $- $45,000.00 $22.50
Craft Supt Mech - - 36,000 18 $- $- $- $36,000.00 $18.00
Craft Supt Pipe / Conc - - 27,000 14 $- $- $- $27,000.00 $13.50
Project Controls Engineer - - 49,806 28 $- $- $- $56,306.60 $28.15
Project Engineer - - 46,095 23 $- $- $- $46,095.00 $23.05
F.E. Coord IV - - 21,600 11 $- $- $- $21,600.00 $10.80
Subcontr. Admin - - 46,095 23 $- $- $- $46,095.00 $23.05
Purch. Agent - - 21,600 11 $- $- $- $21,600.00 $10.80
Materials Manager - - 26,796 13 $- $- $- $26,796.00 $13.40
QC Inspector III - - 27,000 14 $- $- $- $27,000.00 $13.50
Doc. Control Supv - - 21,600 11 $- $- $- $21,600.00 $10.80
Field Clerk - - 14,672 7 $- $- $- $14,672.00 $ 7.34
Timekeeper - - 18,126 9 $- $- $- $18,126.00 $ 9.06
NOTES TO LABOR RATE SHEET E-1
Notes to Expat and US Classifications:
Labor rates include wages, payroll taxes, fringe benefits, escalation, uplifts
and tax equalization costs where applicable. Rates do not include
transportation, travel, living and meals (unless noted in the rate sheet),
overhead and profit.
Notes to Mexican Classifications:
Labor rates include wages, factor salario real, escalation, viaticos, aginaldo,
and alimentos. Rates do not include transportation, overhead and profit.
Notes to Mexican Craft Classifications:
Labor rates include wages, factor salario real, escalation, viaticos, aginaldo,
alimentos, small tools, and consumables. Rates do not include overhead and
profit.
Notes in General:
Overtime for all Mexican classifications will be invoiced in accordance with
Mexican Law. The base workweek is 48 hours per week.
EXHIBIT "E-2" LYNTEK RATE SHEET
RATE SCHEDULE - FOR THE CERRO SAN XXXXX PROJECT
EFFECTIVE JANUARY 1 THRU DECEMBER 31, 2004
CHARGE RATE
-------------------
CLASSIFICATION HOURLY DAILY
-------------------------------------------------------------------------
Project Manager $105.00 $840.00
Project Engineer $ 85.00 $690.00
Technical Assistant/Designers $ 55.00
Mechanical/Process Engineer $ 70.00 $560.00
Civil Engineer $ 70.00
Instrumentation Engineer $ 70.00
Structural Engineer $ 70.00
Electrical Engineer $ 70.00
Piping Engineers $ 65.00
Secretarial Services $ 32.00
Accounting Services $ 45.00
Above Rates Include OH&P.
SUBCONTRACTORS AND CONSULTANTS-HOURLY RATE PLUS 20% (Mult. 1.2)
OFFICE BURDEN & EXPENSES: 6% OF HOURLY RATES
TRAVEL EXPENSES AT COST + 10% (Mult. 1.10)
VEHICLE RATE
------- ----
2 wheel drive $ 0.32/mile
4 wheel drive $ 0.50/mile
Trailer w/winch $ 0.18/mile
RENTAL EQUIPMENT Cost + 8%
(Mult. 1.08)
For job related equipment rentals
PROCUREMENT SERVICES
If Lyntek procures items under our name and purchase order the client
will be charged the cost plus a 10% markup (1.1 Mult.).
INSURANCE
ANY SPECIAL INSURANCE REQUIREMENTS Cost + 5%
(Mult. 1.05)
Computer Costs-Included in Engineering or Office Burden & Expense Rates
EXHIBIT E-3 CONSTRUCTION EQUIPMENT RATES
Third Party construction equipment rates and fuel, oil, mob, demob, and
maintenance will be billed at actual invoice cost.
Contractor does not anticipate using Owned construction equipment. In the event
owned equipment is brought onto the job site, fair market rental rates will be
mutually agreed to between Owner and Contractor.
INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
General Conditions
18DIC03 0.00 LIMITED NOTICE TO PROCEED [DIAMOND]
18DIC03 02FEB04 0.00 SUPPORT FOR PERMIT EFFORT MDM [1]
05ENE04* 0.00 SITE AVAILABLE FOR PRE-CONSTRUCTION ACTIVITIES [DIAMOND]
05ENE04 26MAR04 0.00 MOBILIZE MEXTICA [1]
22ENE04* 11FEB04 0.00 MOBILIZE WASHINGTON GROUP [1]
03FEB04* 16FEB04 0.00 OBTAIN PERMITS [1]
05FEB04* 03MAR04 0.00 OBTAIN BLASTING PERMIT [1]
16FEB04* 0.00 FINALIZE POWER CONFIGURATION WITH CFE [DIAMOND]
17FEB04* 17FEB04 0.00 FINAL NOTICE TO PROCEED [1]
26ABR04 0.00 ZAPATILLA WELL COMPLETE [FLAGGED]
26ABR04 0.00 WATER AVAILABLE TO WGI [FLAGGED]
09JUN04 0.00 TURN OVER HAUL ROAD TUNNELS TO WGI [FLAGGED]
14SEP04 0.00 SUBSTANTIAL COMPLETION [DIAMOND]
16SEP04 0.00 READY TO SPRAY CYANIDE [DIAMOND]
30SEP04 0.00 FINAL ACCEPTANCE [FLAGGED]
Utilities
18DIC03 11FEB04 0.00 CIVIL AND FDN DESIGN WELL AREA [1]
18DIC03 28ENE04 0.00 CIVIL DESIGN ACCESS ROAD [1]
29ENE04 11FEB04 0.00 CUT ACCESS ROAD PROCESS PLANT [1]
12FEB04 25FEB04 0.00 FILL COMPACT FINISH ACCESS ROAD [1]
04MAR04 23JUN04 0.00 BUILD HAUL ROAD [1]
Eelectrical Distribution
16FEB04 19MAR04 0.00 DESIGN MAIN LINE TO CSP [1]
08MAR04 19MAR04 0.00 DESIGN 13.8 DROP TO PLANT [1]
08MAR04 19MAR04 0.00 DESIGN 13.8 LINE TO TRUCK SHOP [1]
15MAR04 19MAR04 0.00 DESIGN 13.8 DROP TO WELL [1]
15MAR04 19MAR04 0.00 DESIGN DROP AT NEW ZAPATILLA [1]
22MAR04 02ABR04 0.00 PROCURE SUBCONTRACT FOR 13.8 LINES [1]
05ABR04 14MAY04 0.00 INSTALL POLE LINE TO CSP [1]
03MAY04 14MAY04 0.00 INSTALL DROP TO CERRO SAN XXXXX [1]
17MAY04 25JUN04 0.00 MAIN POWER LINE [1]
14JUN04 25JUN04 0.00 INSTALL DROP PROCESS PLANT [1]
28JUN04 09JUL04 0.00 INTERCONNECT WITH CFE [1]
28JUN04 09JUL04 0.00 INSTALL DROP AT NEW ZAPATILLA [1]
28JUN04 02JUL04 0.00 INSTALL PERMANENT DROP TO ZAPATILLA WELL PUMP [1]
05JUL04 09JUL04 0.00 POWER DROP AT LIME AREA [1]
12JUL04 14JUL04 0.00 ENERGIZE 13.8 POWER SYSTEM [1]
02AGO04* 13AGO04 0.00 INSTALL DROP 13.8 LINE TO TRUCK SHOP [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
------------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
l6AGO04 16AGO04 0.00
Tunnels
18DIC03 04FEB04 0.00 CIVIL DESIGN TUNNEL [1]
18DIC03 11FEB04 0.00 CONCRETE DESIGN TUNNEL [1]
05FEB04 17MAR04 0.00 PROCURE MULTIPLATE FOR TUNNELS [1]
17FEB04 08MAR04 0.00 EARTH WORK AT CSP ROAD TUNNEL [1]
09MAR04 10MAY04 CONC 0.00 CONCRETE WORK AT CSP ROAD TUNNEL [1]
18MAR04 24MAR04 0.00 EARTH WORK DRAINAGE TUNNEL [1]
25MAR04 07ABR04 CONC 0.00 FOOTERS AT DRAINAGE TUNNEL [1]
08ABR04 28ABR04 CONC 0.00 PLACE CONCRETE PIPE AT DRAINAGE TUNNEL [1]
15ABR04 12MAY04 0.00 WING WALLS AT DRAINAGE TUNNEL [1]
29ABR04 12MAY04 0.00 STRUCTURAL FILL AT DRAINAGE TUNNEL [1]
11MAY04 24MAY04 0.00 STRUCTURAL FILL AT CSP ROAD TUNNEL [1]
13MAY04 26MAY04 0.00 BACKFILL FROM TOP OF PIPE FILL TO CSP ROAD EL [1]
24MAY04 0.00 TURN OVER HAUL ROAD TUNNELS TO WGI [DIAMOND]
27MAY04 09JUN04 0.00 BACKFILL FROM SCP ROAD EL TO MINE ROAD EL [1]
Process Water
18DIC03 28ENE04 0.00 DESIGN WATER TANKS [1]
18DIC03 28ENE04 0.00 CIVIL DESIGN MAIN WATER TANK [1]
18DIC03 08ENE04 0.00 DESIGN ELECTRICAL AT WELL PUMP [1]
18DIC03 28ENE04 0.00 DESIGN WATER LINES [1]
18DIC03 18FEB04 0.00 PROCURE ZPATILLA WELL PUMP [1]
18DIC03 04FEB04 0.00 DESIGN TEMP POWER DROP AT ZAPATILLA WELL PUMP [1]
18DIC03 28ENE04 0.00 DESIGN WATER LINE TO TANK [1]
09ENE04 22ENE04 0.00 XXX XXXXX AND ELECTRICAL MATERIALS AT WELL [1]
23ENE04 29MAR04 0.00 PROCURE AN DELIVER ELECTRICAL MATERIALS WELL [1]
29ENE04 11FEB04 0.00 BEA HDPE PIPE FOR WATER LINES [1]
02FEB04 13FEB04 0.00 REHABILITATE ZAPATILLA WELL [1]
12FEB04 10MAR04 0.00 FAB AND DELIVER HPDE PIPE [1]
17FEB04 15MAR04 0.00 FRP WELL PUMP BLDG AND ERECT BUILDING [1]
17FEB04 01MAR04 0.00 TEMPORARY DROP AT ZAPATILLA WELL PUMP [1]
19FEB04 03MAR04 0.00 INSTALL ZAPATILLA WELL PUMP [1]
02MAR04 08MAR04 0.00 CIVIL AT MAIN TANK [1]
09MAR04 22MAR04 0.00 FRP MAIN WATER TANK FOUNDATION' [1]
11MAR04 24MAR04 0.00 WATER LINE FROM PUMP TO TEMP TRUCK FILL [1]
23MAR04 03MAY04 0.00 ERECT MAIN WATER TANK [1]
26MAR04 08ABR04 0.00 WATER LINE TO MAIN WATER TANK [1]
30MAR04 26ABR04 0.00 ELECTRICAL WELL PUMP [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
--------------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
26ABR04 0.00 Zapastilla Well Complete [diamond]
26ABR04 0.00 Water available to WGI [diamond]
03MAY04 25JUN04 0.00 Furnish and Install 13.8 Line to Well, [1]
01JUL04* 14JUL04 0.00 FRP Truck Shop Wrt Tank Fdn [1]
01JUL04* 28JUL04 0.00 Water Line From MWT to Truck Shop [1]
09JUL04 29JUL04 0.00 Raw Water MWT Header to Plant [1]
15JUL04 25AGO04 0.00 Erect Truck Shop Water Tank [1]
16SEP04 16SEP04 0.00 Turn over water Process Area [1]
Xxxxx Pad
18DIC03 28ENE04 0.00 Civil Design Xxxxx Pad [1]
29ENE04 01MAR04 0.00 Procure Liner Sub [1]
29ENE04 07ABR04 0.00 Excavate Xxxxx Pad [1]
17FEB04 15MAR04 0.00 Relocate 3" line at pad site [1]
17FEB04 10MAR04 0.00 Clear and Grub Xxxxx Pad [1]
23FEB04 16ABR04 0.00 Drain Rock [1]
02MAR04 26ABR04 0.00 Fab and Deliver Liner [1]
18MAR04 21ABR04 0.00 Prepare Xxxxx Pad for Underliner [1]
25MAR04 07ABR04 0.00 Rock Excavation of Knob at Xxxxx area [1]
18ABR04 05MAY04 0.00 Cut Collection Ditch [1]
04MAY04 17MAY04 0.00 Install underliner cel 3A [1]
07MAY04 20MAY04 0.00 Install Liner Cel 3A [1]
14MAY04 03JUN04 0.00 Install Collection Pipe Cel 3A [1]
18MAY04 31MAY04 0.00 Install underliner cel 2A [1]
25MAY04 07JUN04 0.00 Install Liner Cel 2A [1]
08MAY04 01JUL04 0.00 Install Drain Cover cell 3A [1]
01JUN04 14JUN04 0.00 Install underliner cel 1A [1]
04JUN04 24JUN04 0.00 Install Collection pipe cel 2A [1]
08JUN04 21JUN04 0.00 Install Liner cel 1a [1]
15JUN04 28JUN04 0.00 Install underliner Cel 1B [1]
18JUN04 22JUL04 0.00 Install Drain cover Cel 2A [1]
18JUN04 01JUL04 0.00 Install Collection Pipe Cel 1A [1]
22JUN04 05JUL04 0.00 Install Liner Cel 1B [1]
29JUN04 12JUL04 0.00 Install Collection pipe Cel 1B [1]
29JUN04 19JUL04 0.00 Install underliner cel 2B [1]
02JUL04 15JUL04 0.00 Install Liner Cel 2B [1]
09JUL04 12AGO04 0.00 Install Drain Cover Cel 1A [1]
09JUL04 22JUL04 0.00 Install Collection Pipe Cel 2B [1]
13JUL04 16AGO04 0.00 Install Drain Cover Cel 1B [1]
20JUL04 09AGO04 0.00 Install underliner cel 3B [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
--------------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Pedra Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
23JUL04 05AGO04 0.00 INSTALL LINER CEL 3B [1]
30JUL04 12AGO04 0.00 INSTALL COLLECTION PIPES CEL 3B [1]
03AGO04 06SEP04 0.00 INSTALL DRAIN COVER CEL 2B [1]
13AGO04 23SEP04 0.00 INSTALL HEAP CEL 1A [1]
24AGO04 27SEP04 0.00 INSTALL DRAIN COVER 3B [1]
27AGO04 16SEP04 0.00 CYANIDE SPRAY PIPE CEL 1A [1]
28SEP04 28SEP04 0.00 TURN OVER XXXXX PAD [1]
Lime Bin Area
18DIC03 04FEB04 0.00 DESIGN AND SPECIFY LIME BIN [1]
18DIC03 10MAR04 0.00 FOUNDATION DESIGN LIME AREA [1]
18DIC03 28ENE04 0.00 CIVIL DESIGN LIME BIN AREA [1]
05FEB04 28ABR04 0.00 PROCURE LIME BIN [1]
05FEB04 31MAR04 0.00 PROCURE LIME BIN STEEL [1]
26FEB04 19MAY04 0.00 FAB AND DELIVER AIR COMPRESSOR LIME BIN [1]
08ABR04 21ABR04 0.00 MASS EXCAVATION AT LIME BIN INCLUDING ROAD [1]
22ABR04 05MAY04 0.00 FRP LIME AREA FOUNDATIONS [1]
06MAY04 12MAY04 0.00 STRUCTURAL AT LIME BIN [1]
13MAY04 02JUN04 0.00 ASSEMBLE LIME BLN [1]
03JUN04 07JUN04 0.00 INSTALL WEIGH XXXXXX [1]
08JUN04 14JUN04 0.00 INSTALL AIR COMPRESSOR AND AIR PIPING [1]
15JUN04 17JUN04 0.00 INSTALL TRUCK UNLOADING SYSTEM [1]
18JUN04 01JUL04 0.00 ELECTRICAL LIME BLN AREA [1]
18JUN04 01JUL04 0.00 INSTALL INCLINE CONVEYOR [1]
12JUL04 12JUL04 0.00 TURNOVER LIME BIN [1]
Ponds
18DIC03 28ENE04 0.00 CIVIL DESIGN PONDS [1]
18DIC03 28ENE04 0.00 FOUDATION DESIGN POND AREA [1]
29ENE04 11FEB04 0.00 BEA PREG SOLN AND STORM WATER PUMPS [1]
29ENE04 25FEB04 0.00 BEA AIR COMPRESSOR LIME BIN [1]
12FEB04 02JUN04 0.00 FAB AND DELIVER PREG SOLN AND STORM WATER PUMPS [1]
09MAR04 29MAR04 0.00 MASS EXCAVATION AT PONDS [1]
09ABR04 06MAY04 0.00 FILL AND COMPACT AT PONDS [1]
07MAY04 03JUN04 CONC 0.00 FRP MISC. FOUNDATION POND [1]
07MAY04 27MAY04 0.00 UNDERLINE AT PONDS [1]
14MAY04 10JUN04 0.00 LINER AT PONDS [1]
04JUN04 17JUN04 MECH 0.00 INSTALL PREGNANT AND STORMWATER POND PUMPS [1]
11JUN04 08JUL04 0.00 BIRD NETTING AT PONDS [1]
18JUN04 24JUN04 0.00 INSTALL ANTI SCALANT SYSTEM AT PONDS [1]
18JUN04 01JUL04 0.00 PREGNANT SOLUTION PIPE AT POND AREA [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
--------------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
20JUL04 16AGO04 0.00 Pond Area Electrical [1]
17AGO04 30AGO04 0.00 Test Ponds [1]
31AGO04 31AGO04 0.00 Turn over Ponds [1]
Lab Building
15ENE04 28ENE04 0.00 Foundation design Lab Building [1]
29ENE04 11FEB04 0.00 BEA Lab Baghouses [1]
09ABR04 28ABR04 CONC 0.00 FRP Lab Building Foundation [1]
13ABR04 05JUL04 0.00 Erect Lab Building [1]
25MAY04 21JUN04 0.00 Install Lab Equipment [1]
25MAY04 07JUN04 0.00 Install Lab Baghouses [1]
25MAY04 14JUN04 0.00 Complete Assay section [1]
01JUN04 28JUN04 0.00 Lab Building Electrical [1]
03JUN04 23JUN04 0.00 Install Misc Lab Mechanical [1]
03JUN04 23JUN04 0.00 Lab Piping [1]
08JUN04 21JUN04 0.00 Install Lab acetylene Equipment [1]
14JUN04 0.00 Partial Use of Lab [diamond]
22JUN04 05JUL04 0.00 Install Lab Baghouses [1]
06JUL04 06JUL04 0.00 Turn over Lab Building [1]
Plant
18DIC03 28ENE04 0.00 Preliminary Mechanical Design [1]
18DIC03 04FEB04 0.00 Civil design Plant Area [1]
18DIC03 04FEB04 0.00 Design Pipe rack Steel [1]
18DIC03 28ENE04 0.00 Foundation Design Process Building [1]
18DIC03 10MAR04 0.00 BEA CCTV System [1]
18DIC03 28ENE04 0.00 Design Misc Foundations [1]
18DIC03 10MAR04 0.00 Electrical Plant design [1]
18DIC03 21ABR04 0.00 Above Ground Pipe Design [1]
18DIC03 14ENE04 0.00 Issue Subc to Arch for Buildings [1]
18DIC03 10MAR04 0.00 Underground Pipe Design [1]
22ENE04 04FEB04 0.00 BEA Precipitate Filters [1]
22ENE04 04FEB04 0.00 BEA Furnace [1]
22ENE04 04FEB04 0.00 BEA Retorts [1]
29ENE04 11FEB04 0.00 BEA NaCn Pumps [1]
29ENE04 25FEB04 0.00 BEA Air Compressor @ plant [1]
29ENE04 11FEB04 0.00 BEA NaCn Tanks [1]
29ENE04 11FEB04 0.00 XXX Xxxxxx and Precipitate Pumps [1]
29ENE04 28JUL04 0.00 Fab and Deliver Clarification Filters [1]
29ENE04 19MAY04 0.00 Fab and Deliver Body Feed Tanks [1]
29ENE04 11FEB04 0.00 BEA Misc Mechanical Equipment [1]
Fecha de Inicio 17DIC03
Fecha de Terminacion 14OCT04
Fecha de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
--------------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Pedra Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
-------- -------- ------- -----------
29ENE04 11FEB04 0.00 BEA SLAG CRUSHER [1]
29ENE04 03MAR04 0.00 BEA SUMP PUMPS [1]
29ENE04 11FEB04 0.00 XXX XXXX MILL [1]
29ENE04 11FEB04 0.00 BEA DEARATION TOWER [1]
29ENE04 11FEB04 0.00 BEA EMERGENCY GENERATOR [1]
29ENE04 25FEB04 0.00 BEA REFINERY BAGHOUSE [1]
29ENE04 11FEB04 0.00 BEA WATER TANKS [1]
29ENE04 11FEB04 0.00 BEA FLUX MIX CONVEYOR, LIME CONVEYOR [1]
29ENE04 11FEB04 0.00 BEA LAB EQUIPMENT [1]
29ENE04 10MAY04 0.00 PROCURE FURNACE FEED CONVEYOR [1]
29ENE04 10MAR04 0.00 XXX XXXXXX SOLUTION TANK [1]
29ENE04 11FEB04 0.00 BEA BODY FEED TANK [1]
29ENE04 11FEB04 0.00 BEA LAB BAGHOUSES [1]
29ENE04 24MAR04 0.00 BEA CASCADE MOLDS [1]
29ENE04 11FEB04 0.00 BEA FURNACE FEED CONVEYOR [1]
05FEB04 28JUL04 0.00 FAB AND DELIVER PRECIPITATE FILTERS [1]
05FEB04 16JUL04 0.00 FAB AND DELIVER FURNACE [1]
05FEB04 16JUL04 0.00 FAB AND DELIVER RETORTS [1]
05FEB04 28ABR04 0.00 PROCURE PIPE RACK STEEL [1]
12FEB04 23JUN04 0.00 FAB AND DELIVER NACN PUMPS [1]
12FEB04 02JUN04 0.00 FAB AND DELIVER NACN TANKS [1]
12FEB04 28JUL04 0.00 FAB AND DELIVER BARREN AND PRECIPITATE PUMPS [1]
12FEB04 02JUN04 0.00 FAB AND DELIVER MISC MECHANICAL PLANT [1]
12FEB04 09JUN04 0.00 FAB AND DELIVER SLAG CRUSHER [1]
12FEB04 02JUN04 0.00 FAB AND DELIVER BALL MILL [1]
12FEB04 19MAY04 0.00 FAB AND DELIVER DEARATION TOWER [1]
12FEB04 02JUN04 0.00 FAB AND DELIVER EMERGENCY GENERATOR [1]
12FEB04 17MAR04 0.00 FAB AND DELIVER WATER TANKS [1]
12FEB04 24MAY04 0.00 FAB AND DELIVER FLUX MIX CONV ; LIME LOADER CONV [1]
12FEB04 05MAY04 0.00 FAB AND DELIVER LAB EQUIPMENT [1]
12FEB04 14ABR04 0.00 FAB AND DELIVER LAB BAGHOUSES [1]
16FEB04* 20FEB04 0.00 PROCURE OVERLINER MATERIAL [1]
17FEB04 08MAR04 0.00 CLEAR AND GRUB POND AND PLANT SITE [1]
26FEB04 07JUL04 0.00 FAB AND DELIVER AIR COMPRESSOR @ PLANT [1]
26FEB04 14JUN04 0.00 PROCURE BAGHOUSE BLOWERS [1]
26FEB04 10MAY04 0.00 FAB AND DELIVER REFINERY BAGHOUSE [1]
02MAR04 15MAR04 0.00 MASS EXCAVATION AT PLANT SITE [1]
04MAR04 23JUN04 0.00 FAB AND DELIVER SUMP PUMPS [1]
11MAR04 05MAY04 0.00 FAB AND DELIVER CCTV [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
---------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
-------- -------- ------- -----------
11MAR04 05MAY04 0.00 FAB AND DELIVER BARREN SOLUTION TANK [1]
12MAR04 08ABR04 0.00 FIRE WATER PIPE [1]
19MAR04 08ABR04 0.00 FILL AND COMPACT AT PLANT SITE [1]
25MAR04 07ABR04 0.00 FAB AND DELIVER CASCADE MOLDS [1]
09ABR04 03MAY04 0.00 FRP PROCESS BUILDING FOUNDATION [1]
09ABR04 20MAY04 0.00 ELECTRICAL DUCT BANK [1]
09ABR04 06MAY04 0.00 DRAIN PIPING [1]
23ABR04 10JUN04 0.00 FRP PROCESS BUILDING SLABS [1]
23ABR04 15JUL04 0.00 ERECT PROCESS BUILDING [1]
04MAY04 07JUN04 0.00 FRP PIPE RACK FDN [1]
08JUN04 19JUL04 0.00 STRUCTURAL PIPE RACK TO PONDS [1]
11JUN04 08JUL04 0.00 STRUCTURAL PIPE RACK IN BUILDING [1]
11JUN04 24JUN04 0.00 INSTALL NACN TANKS (3 TANKS) [1]
11JUN04 24JUN04 0.00 INSTALL BODY FEED & PRECOAT TANKS [1]
11JUN04 19AGO04 0.00 INSTALL MISC PLANT MECHANICAL [1]
11JUN04 05AGO04 0.00 PLANT CONTROL SYSTEM [1]
11JUN04 24JUN04 0.00 INSTALL SLAG CRUSHER [1]
11JUN04 08JUL04 0.00 YARD LIGHTING PLANT AREA [1]
11JUN04 17JUN04 0.00 INSTALL DEARATION TOWER [1]
11JUN04 24JUN04 0.00 INSTALL EMERGENCY GENERATOR [1]
11JUN04 17JUN04 0.00 INSTALL BARREN SOLUTION TANK [1]
18JUN04 24JUN04 0.00 INSTALL ANTICALANT SYSTEM PLANT [1]
21JUN04 23JUL04 0.00 PLANT UTILITY ELECTRICAL [1]
24JUN04 07JUL04 0.00 INSTALL NACN PUMPS 3 PUMPS [1]
24JUN04 08JUL04 0.00 INSTALL REFINERY SUMP PUMPS [1]
25JUN04 08JUL04 0.00 INSTALL PRECOAT AND BODY FEED PUMPS [1]
02JUN04 08JUL04 0.00 INSTALL BALL MILL [1]
02JUL04 29JUL04 0.00 INSTALL CCTV [1]
08JUL04 28JUL04 0.00 PIPE REAGENT AREA [1]
08JUL04 27JUL04 0.00 ELECTRICAL XXXXXXX XXXX [0]
00XXX00 00XXX00 0.00 INSTALL PLANT AIR COMPRESSOR [1]
09JUL04 29JUL04 0.00 RAW WATER HEADER PIPE TO PONDS [1]
09JUL04 05AGO04 0.00 CABLE TRAY PROCESS PLANT [1]
09JUL04 22JUL04 0.00 INSTALL SLAG FILTER PRESS [1]
09JUL04 22JUL04 0.00 PLANT BARREN SOLUTION PIPING [1]
09JUL04 15JUL04 0.00 PRECOAT PIPE [1]
15JUL04 04AGO04 0.00 INSTRUMENTATION REAGENT AREA [1]
19JUL04 30JUL04 0.00 INSTALL SMELTER FURNACE [1]
19JUL04 30JUL04 0.00 INSTALL MERCURY RETORT [1]
Fecha de Inicio 00XXX00
Xxxxx xx Xxxxxxxxxxx 00XXX00
Xxxxx de Corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
---------------
[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
------------------------------------------------------------
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INICIO FINAL COSTO
TEMPRANO TEMPRANO RECURSO RESUPUESTAD
-------- -------- ------- -----------
20JUL04 02AGO04 0.00 BARREN SOLUTION PIPE TO PONDS [1]
20JUL04 09AGO04 0.00 PREGNANT SOLUTION PIPE TO BARREN TANK [1]
29JUL04 18AGO04 0.00 INSTALL PRECIPATATE FILTERS [1]
29JUL04 11AGO04 0.00 INSTALL PRECIPITATE PUMPS [1]
29JUL04 11AGO04 0.00 INSTALL CLARIFICATION FILTERS [1]
29JUL04 11AGO04 MECH 0.00 INSTALL BARREN SOLUTION PUMPS [1]
30JUL04 19AGO04 0.00 RAW WATER TO CYANIDE MIXING AND BARREN SOL TANKS [1]
02AGO04 19AGO04 0.00 ELECTRICAL ZINC AREA [1]
02AGO04 20AGO04 0.00 INSTRUMENTATION RETORT AREA [1]
02AGO04 13AGO04 0.00 PIPE RETORT AREA [1]
02AGO04 13AGO04 0.00 INSTALL FLUX MIX CONVEYOR [1]
02AGO04 13AGO04 0.00 INSTALL FURNACE FEED CONVEYOR AND SUMP PUMPS [1]
02AGO04 13AGO04 0.00 INSTALL CASCADE MOLDS [1]
02AGO04 20AGO04 0.00 ELECTRICAL RETORT AREA [1]
02AGO04 03AGO04 PIPE 0.00 PIPE ZINC AREA [1]
05AGO04 05AGO04 0.00 TURN OVER REAGENT AREA [1]
05AGO04 25AGO04 0.00 INSTRUMENTATION CLARIFICATION AREA [1]
12AGO04 25AGO04 0.00 PIPE CLARIFICATION AREA [1]
19AGO04 01SEP04 0.00 INSTALL REFINERY BAGHOUSE [1]
19AGO04 08SEP04 0.00 ELECTRICAL CLARIFICATION AREA [1]
20AGO04 26AGO04 0.00 INSTRUMENTATION ZINC AREA [1]
23AGO04 23AGO04 0.00 TURN OVER RETORT AREA [1]
02SEP04 15SEP04 0.00 INSTALL MINE PUMPS [1]
02SEP04 02SEP04 0.00 TURN OVERZINC PRECIP FP AREA [1]
09SEP04 09SEP04 0.00 TURN OVER CLARIFICATION SYSTEM [1]
16SEP04 16SEP04 0.00 TURN OVER PROCESS BUILDING [1]
Office building
18DIC04 28ENE04 0.00 FOUNDATION DESIGN OFFICE BUILDING [1]
11JUN04 01JUL04 0.00 FRP OFFICE BUILDING FOUNDATION [1]
02JUL04 26AGO04 0.00 ERECT OFFICE BUILDING [1]
06AGO04 02SEP04 0.00 OFFICE BUILDING ELECTRICAL [1]
03SEP04 03SEP04 0.00 TURN OVER OFFICE BUILDING [1]
Startup
06AGO04 14OCT04 0.00 COMMISSIONING [1]
03SEP04 30SEP04 0.00 PUNCH LIST [1]
16SEP04 0.00 SUBSTANTIAL COMPLETION [diamond]
17SEP04 27SEP04 0.00 PLANT PERFORMANCE TEST [1]
30SEP04 0.00 FINAL ACCEPTANCE [diamond]
Fecha de inicio 17DIC03
Fecha de Terminacion 14OCT04
Fecha de corte 18DIC03
Fecha Corrida 11FEB04 11:45
(C) Primavera Systems, Inc.
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[1] Barra Temprana
[2] Barra de Avance
[3] Actividad Critica
XXXX Xxxx 0 xx 0
XxxXXXx xx Xxxxxx
Cerro San Xxxxx Gold Project
Classic Schedule Layout
Date Revision Reviso Aprobo
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This document was created with Win2PDF available at xxxx://xxx.xxxxxxxxxxx.xxx.
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EXHIBIT H
MSX PARENT GUARANTY
(ATTACHED)
TO: MEXTICA de MEXICO S. de X.X. de C.V.
TIC HOLDINGS, INC.
CONTRACTOR GUARANTEE
Dear Sirs:
1. The undersigned, METALLICA RESOURCES INC., ("Guarantor"), an
Ontario, Canada corporation with its principal place of business at c/o
Metallica Management Inc., 00000 X. Xxxxxxxxx Xxx., xxxxx 000, Xxxxxxxxxx,
Xxxxxxxx 00000, XXX, does hereby unconditionally, guarantee to Mextica de Mexico
S. de X.X. de C.V., a Mexican corporation ("Contractor"), and to TIC Holdings
Inc., a corporation organized under the laws of the State of Colorado, U.S.A.,
and the Contractor's parent ("the Parent"), and their respective successors and
assigns, the complete and timely performance of all the obligations, terms, and
conditions to be carried out or performed by Minera San Xavier, S.A. de C.V., a
Mexican corporation ("Project Owner"), under the design/build contract between
the Contractor and Project Owner dated MARCH 3, 2004 ("Agreement) regarding the
Cerro San Xxxxx Project in Cerro de San Xxxxx, Mexico ("Project").
2. Project Owner shall perform its obligations contained in the said
Agreement, and if Project Owner shall fail to perform the said Agreement or
commits any breach thereof, we shall ourselves perform on the simple demand of
the Contractor or take whatever steps as may be necessary to achieve performance
of the obligations of Project Owner, as the case may be, under the Agreement and
shall be responsible for any obligations, damages, costs and expenses whatsoever
arising from the said failure or breach for which Project Owner was liable
thereunder, as if we were the original obligor.
3. We shall not be discharged or released from our undertakings
hereby by any waiver or forbearance by the Contractor or the Parent, whether as
to payment, time, performance or otherwise. No waiver, amendment, release or
modification of this Guarantee shall be established by conduct, custom or course
of dealing, but only by written instrument duly executed by the Contractor and
Guarantor.
4. This Guarantee shall continue in force notwithstanding any
alterations to or delegations from the Agreement until all of Project Owner's
obligations thereunder have been performed.
5. The foregoing Guarantee shall be interpreted to mean Guarantor
shall be responsible to the Contractor for the true and faithful performance of
the said Agreement in the manner and to the same extent as if Guarantor had
originally executed said Agreement in place of Project Owner. Should there be
any default in said Agreement on the part of Project Owner, the
Contractor has the right to proceed immediately against Guarantor without first
proceeding against Project Owner.
6. Notwithstanding anything contained herein, in no event shall the
aggregate of the obligations and liability of Guarantor and Project Owner be
greater than the obligations and liability of Project Owner under the Agreement
with the Contractor and Guarantor shall be entitled to assert any and all
claims, counterclaims, defenses, offsets, and other rights which Project Owner
could assert against Contractor with respect to the obligations and liabilities;
provided, however, that the obligations and liability of the Guarantor under
this Guarantee shall not be discharged or released by reason of the discharge or
release of Project Owner in bankruptcy, receivership or other proceedings, a
disaffirmation or rejection of the Agreement by Project Owner or a trustee,
custodian or other representative in bankruptcy, or any other stay or other
enforcement restriction, or other reduction, modification, impairment or
limitation of liability or remedy of the Contractor that would not have been
applicable if Guarantor was the original obligor under the Agreement (such as,
for example, a lack of corporate authority of Project Owner).
7. This Guarantee shall be irrevocable and binding upon the
Guarantor, its successors and assigns, and shall inure to the exclusive benefit
of the Contractor and the Parent and their respective successors and assigns.
This Guarantee shall be construed and take effect in accordance with the laws of
the State of Colorado, U.S.A. (without giving effect to conflict of laws
principles).
8. The Guarantor hereby agrees that the resolution of any and all
disputes related to or arising out of this Guarantee shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association as in force at the time of the dispute. The arbitration
shall be held in English in Denver, Colorado. Without in any way negating the
duty to arbitrate any dispute hereunder, for purposes of enforcement of any
arbitration award, preliminary relief in aid of arbitration proceedings or any
other action properly brought before a court in connection with this Guarantee,
Guarantor acknowledges that venue is proper and shall be laid exclusively in the
state and federal courts in Denver, Colorado, and hereby submits to the
jurisdiction of such courts in connection with any such action or proceeding
Dated this 3 day of MARCH, 2004.
METALLICA RESOURCES INC.,
By: /s/ Xxxx X. Xxxxxxxx
--------------------------------------------
SR. VICE PRESIDENT & CHIEF OPERATING OFFICER
EXHIBIT I
MEXTICA de MEXICO PARENT GUARANTY
(ATTACHED)
TO: MINERA SAN XAVIER, S.A. de C.V.
METALLICA RESOURCES INC.
COMPANY GUARANTEE
Dear Sirs:
1. The undersigned, TIC Holdings, Inc., ("Guarantor"), a Colorado,
U.S.A. corporation with its place of business at 0000 Xxx Xxxxx Xxxx, Xxxxxxxxx
Xxxxxxx, Xxxxxxxx, does hereby unconditionally, guarantee to MINERA SAN XAVIER,
S.A. de C.V., a Mexican corporation ("the Company"), and to METALLICA RESOURCES
INC., a corporation organized under the laws of the province of Ontario, Canada,
and the Company's parent ("the Parent"), and their respective successors and
assigns, the complete and timely performance of all the obligations, terms, and
conditions to be carried out or performed by Mextica de Mexico S. de X.X. de
C.V. ("Contractor") under the design/build contract between the Company and
Contractor dated MARCH 3, 2004 ("Agreement) regarding the Cerro San Xxxxx
Project in Cerro de San Xxxxx, Mexico ("Project").
2. Contractor shall perform its obligations contained in the said
Agreement, and if Contractor shall fail to perform the said Agreement or commits
any breach thereof, we shall ourselves perform on the simple demand of the
Company or take whatever steps as may be necessary to achieve performance of the
obligations of Contractor, as the case may be, under the Agreement and shall be
responsible for any obligations, damages, costs and expenses whatsoever arising
from the said failure or breach for which Contractor was liable thereunder, as
if we were the original obligor.
3. We shall not be discharged or released from our undertakings
hereby by any waiver or forbearance by the Company or the Parent, whether as to
payment, time, performance or otherwise. No waiver, amendment, release or
modification of this Guarantee shall be established by conduct, custom or course
of dealing, but only by written instrument duly executed by the Company and
Guarantor.
4. This Guarantee shall continue in force notwithstanding any
alterations to or delegations from the Agreement until all of Contractor's
obligations thereunder have been performed.
5. The foregoing Guarantee shall be interpreted to mean Guarantor
shall be responsible to the Company for the true and faithful performance of the
said Agreement in the manner and to the same extent as if Guarantor had
originally executed said Agreement in place of Contractor. Should there be any
default in said Agreement on the part of Contractor, the Company has the right
to proceed immediately against Guarantor without first proceeding against
Contractor.
6. Notwithstanding anything contained herein, in no event shall the
aggregate of the obligations and liability of Guarantor and Contractor be
greater than the obligations and liability of Contractor under the Agreement
with the Company and Guarantor shall be entitled to assert any and all claims,
counterclaims, defenses, offsets and other rights which Contractor could assert
against the Company with respect to the obligations and liabilities; provided,
however, that the obligations and liability of the Guarantor under this
Guarantee shall not be discharged or released by reason of the discharge or
release of Contractor in bankruptcy, receivership or other proceedings, a
disaffirmation or rejection of the Agreement by Contractor or a trustee,
custodian or other representative in bankruptcy, or any other stay or other
enforcement restriction, or other reduction, modification, impairment or
limitation of liability or remedy of the Company that would not have been
applicable if Guarantor was the original obligor under the Agreement (such as,
for example, a lack of corporate authority of Contractor).
7. This Guarantee shall be irrevocable and binding upon the
Guarantor, its successors and assigns, and shall inure to the exclusive benefit
of the Company and the Parent and their respective successors and assigns. This
Guarantee shall be construed and take effect in accordance with the laws of the
State of Colorado, U.S.A. (without giving effect to conflict of laws
principles).
8. The Guarantor hereby agrees that the resolution of any and all
disputes related to or arising out of this Guarantee shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association as in force at the time of the dispute. The arbitration
shall be held in English in Denver, Colorado. Without in any way negating the
duty to arbitrate any dispute hereunder, for purposes of enforcement of any
arbitration award, preliminary relief in aid of arbitration proceedings or any
other action properly brought before a court in connection with this Guarantee,
Guarantor acknowledges that venue is proper and shall be laid exclusively in the
state and federal courts in Denver, Colorado, and hereby submits to the
jurisdiction of such courts in connection with any such action or proceeding
Dated this 2nd day of MARCH, 2004.
TIC Holdings, Inc.
By: /s/ X. X. Xxxxxxx
---------------------------------------------
X. X. Xxxxxxx
Vice President
EXHIBIT K
CERRO SAN XXXXX
PERMIT CONDITIONS
(See Attached)
NATIONAL INSTITUTE OF ECOLOGY
GENERAL DIRECTION OF ECOLOGICAL ORDINANCE
AND ENVIRONMENTAL IMPACT
Mexico City, February 26, 1999.
MR. XXXXXXX XXXXXXXX DODGE XXXXXXX
GENERAL MANAGER AND LEGAL REPRESENTATIVE OF
MINERA SAN XAVIER, S.A. DE C.V.
XXXXXXX XXXXXXX NO. 492
FRACCIONAMIENTO TANGAMANGA
San Xxxx Potosi, S.L.P.
TEL (48) 11-8916, FAX, (48) 11-3382
After analysis and evaluation of the Environmental Impact Statement, in its
general mode, the Risk Analysis in its Detailed Risk Analysis mode, the
Justifying Technical Study for the change in land use, and additional
information, of the mining-metallurgical open cut exploitation and heap leaching
of minerals with gold and silver contents denominated "CERRO SAN XXXXX" with a
presumed location in the public land of "Cerro San Xxxxx", "Cuesta xx Xxxxx",
"Xxxxx de la Xxxx", and several properties located in the "Comunidad da La
Zapatilla", in the Cerro San Xxxxx municipality, in the state of San Xxxx
Potosi, submitted by MINERA SAN XAVIER S.A. DE C.V., that will be denominated as
the PROMOTER, and
RESULTING:
I. On August 1st, 1997, the communication No. 1960 with the same date was
received in the Federal Delegation of the Environment, Natural Resources
and Fisheries Ministry (Delegacion Federal de la Secretaria de Medio
Ambiente, Recursos Naturales y Pesca, SEMARNAP), in the state of San Xxxx
Potosi, through which the Promoter requested:
"the authorization for the change in land use (land rezoning) with an area
of 000-00-00 has in lands located in the public land of Palma de la Xxxx,
Cerro de San Xxxxx, Cuesta xx Xxxxx, and other private properties in the
Cerro de San Xxxxx municipality, which will be used to build a
mining-metallurgical gold and silver producer unit. There's no official
classification for the use of the land in the study area, even though
INEGI defines it indistinctively as of 'forestal use or cattle pasture and
collective use'. The request for change In land use is to 'others', that
specifically will consist in the development of an industrial mining
complex".
II. On September 1st, 1997 the communication dated August 29, 1997 was
received in the SEMARNAP Federal Delegation, in the state of San Xxxx
Potosi, through which the Promoter submitted the Preventative Report to
evaluate the construction of two explosive magazines in the Mining
District of Cerro de San Xxxxx, presumably located approximately at a 2
kms distance straight from the Cerro de San Xxxxx town, in the state of
San Xxxx Potosi, considering them as works associated with the "CERRO SAN
XXXXX" project.
III. On September 1st, 1997 the communication dated August 29, 1997 was
received in the SEMARNAP Federal Delegation in the state of San Xxxx
Potosi, through which the "Promoter" submitted a modification report to
the Preventative Report that was conditionally approved by the General
Direction of Ecological Ordinance and Environmental Impact with the
official document D.O.O.DGOEIA.-05605 dated November 6, 1996, with the
purpose of carrying out the new core drilling stage, in the Mining
District of Cerro de San Xxxxx, in the state of San Xxxx Potosi, for its
evaluation on the matter.
IV. On October 8, 1997 the communication dated October 8, 1997, was received
in the SEMARNAP Federal Delegation in the state of San Xxxx Potosi,
through which the "Promoter" asked for authorization for the construction
of a mining-metallurgical unit in the Mining District of "Cerro de San
Xxxxx", with a presumed location in the public land of "Cerro San Xxxxx",
"Cuesta xx Xxxxx", "Xxxxx de la Xxxx", and several properties located in
the "Comunidad de La Zapatilla", in the Cerro San Xxxxx municipality, in
the state of San Xxxx Potosi; for this purpose, it submitted the
Environmental Impact Statement, in its general mode, and the Risk
Analysis, in the Detailed Risk Analysis mode, as well as other support
documents, for its corresponding evaluation.
V. On October 10, 1997, the official document No. 1085 dated October 10, 1997
was received in the General Direction of Ecological Ordinance and
Environmental Impact, through which the SEMARNAP Federal Delegation in the
state of San Xxxx Potosi, submitted the following information for the
"CERRO SAN XXXXX" project evaluation, promoted by Minera San Xavier, S.A.
de C.V.:
1. Volumes I and II of the Environmental Impact Statement in its
general mode.
2. The Project Executive Summaries.
3. The Risk Analysis in the Detailed Risk Analysis mode.
As attachments:
4. Volumes IIIA and IIIB of the Environmental Impact Statement, in its
general mode.
5. The explosive magazines construction and access routes.
6. Volume II: Risk Analysis Technical Appendix.
And as reference to the Environmental Impact Studies:
7. The geophysical resistivity studies to determine the possible
existence of underground workings under the San Xxxxx Xxxxxx in the
Cerro San Xxxxx town, in the state of San Xxxx Potosi.
8. Blasting considerations for old buildings in the projected open cut
mine at Xxxxx xx Xxx Xxxxx, Xxx Xxxx Xxxxxx
0. The adverse effect analysis in the use of explosives for rock
fragmentation in mining operations.
10. The Seismic Tomography Study Report carried out in the surroundings
of the San Xxxxx Xxxxxx.
VI. On October 10, 1997, copy of the official document No. 000-0000-0000/97
dated August 5, 1997 was received in the General Direction of Ecological
Ordinance and Environmental Impact, through which the National Institute
of Anthropology and History, San Xxxx Potosi Center, sent to Xx. Xxxx Xxxx
Xxxxx Xxxxxxxxx, SEMARNAP's Federal Delegate in the state of San Xxxx
Potosi, with the following information:
1. Its Technical Resolution.
2. A recommendation letter.
3. The Federal Declaration of the preservation area in Cerro San Xxxxx
(maps attached), and
4. The State Declaration of the preservation area in Cerro San Xxxxx
(maps attached).
This last in order to support the Environmental Impact Evaluation of the
referred project and consider the fact that, presenting a protection
perimeter for the Cerro de San Xxxxx town is sustained in the handling of
the necessary area to minimize the impact that historical monuments could
be susceptible of suffering.
VII. On October 16, 1997, Minera San Xavier, S.A. de C.V. published an abstract
of the Environmental impact Statement in its general mode, for the mining
exploitation project
"Cerro San Xxxxx", in two newspapers of State circulation, according with
the 34 Article, Fraction 1, of the General Law of Ecological Balance and
Environment Protection.
VIII. On October 22, 1997, a communication dated October 20, 1997 was received
in the SEMARNAP Federal Delegation in the state of San Xxxx Potosi sent by
the Pro Ecological San Xxxx Group, through which it requested for public
knowledge the Environmental impact Statement of the "CERRO SAN XXXXX"
project.
IX. By the official document D.O.O.DGOEIA-06798 dated October 22, 1997, the
General Direction submitted the "Cerro de San Xxxxx" project Risk
Analysis, Detailed Risk Analysis mode to the General Direction of
Materials, Hazardous Waste and Dangerous Activities of the National
Institute of Ecology for its technical resolution.
X. On October 27, 1997 a communication without number, was received in the
SEMARNAP Federal Delegation in the state of San Xxxx Potosi, through which
the "Promoter" submitted the "ATTACHMENT TO THE ENVIRONMENTAL IMPACT
STATEMENT IN ITS GENERAL MODE, REQUESTING THE FOREST LAND USE CHANGE OF
THE CERRO SAN XXXXX MINING EXPLOITATION PROJECT CORRESPONDING TO THE
RELOCATION OF THE LA ZAPATILLA TOWN, CERRO SAN XXXXX, SAN XXXX POTOSI" for
its evaluation.
XI. From November 3, 1997, the "CERRO SAN XXXXX" project file was open to the
public for consultation at the SEMARNAP Federal Delegation installations
in the state of San Xxxx Potosi, and the Document Center of the National
Institute of Ecology, according with Article 34 of the General Law of
Ecological Balance and Environment Protection.
XlI. On November 17, 1997 a communication dated November 14, 1997, file number
2813, was received in the SEMARNAP Federal Delegation in the state of San
Xxxx Potosi, through which the Pro Ecological San Xxxx Group requested to
this Ministry that in coordination with the State authorities a Public
Meeting was convoked in relationship with the project of Minera San
Xavier, according with Article 34, Fraction III of the General Law of
Ecological Balance and Environment Protection.
XIII. On November 21, 1997, through the official document No. 1234 dated
November 13, 1997, the SEMARNAP Federal Delegation in San Xxxx Potosi,
asked to the Northeast Regional Management office of the Water National
Commission (CNA), their technical opinion related to the water use and
consumption required by the "Promoter" for the "CERRO SAN XXXXX" project
operation, and, for being of its competence area, the CNA will judge
whatever is relevant for its interest in regard to concession that might
eventually be granted.
XIV. On December 10, 1997, the official document No. 1327 dated November 28,
1997 was received in the General Direction of Ecological Ordinance and
Environmental Impact, sent by the SEMARNAP Federal Delegation in the state
of San Xxxx Potosi, in which an attachment to the Environmental Impact
Statement, in its general mode of the "CERRO SAN XXXXX" project,
corresponding to the relocation of the La Zapatilla town, since its within
the project's influence area, was submitted.
XV. Through the official document No. 1358 dated December 10, 1997, the
SEMARNAP Federal Delegation in the state of San Xxxx Potosi asked to the
Ecology and Environmental Affairs Ministry of The State Government their
opinion upon the "CERRO SAN XXXXX" project, promoted by the Minera San
Xavier S.A. de C.V. company, attaching the following documents.
1. The Environmental Impact Statement, General mode.
2. The explosives magazine construction and access route.
3. The attachment for the Environmental Impact Statement, general mode
of the "CERRO SAN XXXXX" mining exploitation project, corresponding
to the relocation of the La Zapatilla town, in the Cerro San Xxxxx
Municipality, San Xxxx Potosi.
4. The Risk Analysis, Detailed Risk Analysis mode.
5. Volume II, Technical appendix to the Risk Analysis.
6. The geophysical resistivity studies to determine the possible
existence of underground workings under the San Xxxxx Xxxxxx, Xxxxx
xx Xxx Xxxxx, Xxx Xxxx Xxxxxx.
0. Blasting considerations for old buildings in the open cut Cerro de
San Xxxxx mine project, San Xxxx Potosi.
8. The adverse effects analysis in the use of explosives for rock
fragmentation in mining operations.
9. The seismic tomography study report practiced around the San Xxxxx
Xxxxxx.
XVI. Through official document No. 1393, dated December 15, 1997, received in
the SEMARNAP General Direction on January 19, 1998, the Federal
Delegation of SEMARNAP in the state of San Xxxx Potosi, submitted the copy
of the results obtained in the Public Consultation Process, carried out
from November 3, 1997 in the SEMARNAP Federal Delegation in the state of
San Xxxx Potosi, according with article 34 of the General Law of
Ecological Balance and Environment Protection, for the Environmental
Impact Statement, general mode, of the "CERRO SAN XXXXX" project.
XVII. Through official document No. D.O.O.DGOEIA - 07865 dated December 16,
1997, received by the "Promoter" on January 21, 1998, the General
Direction requested Minera San Xavier, S.A. de C.V. the presentation of
any additional information resulting from the visit to the project
location, in order to continue with the evaluation in Environmental Impact
matters of the "CERRO SAN XXXXX" project.
XVIII.Through the official document No. 1403 dated December 23, 1997, the
SEMARNAP Federal Delegation in the state of San Xxxx Potosi, asked to the
Ecology and Environmental Affairs Ministry of the State Government of San
Xxxx Potosi a list of the instances that would participate in the document
review previously sent to such Ministry, and the probable resolution date
about the "CERRO SAN XXXXX" project.
XIX. Through the communication No. San Xxxx Potosi-98009WD dated January 29,
1998, Xx. Xxxx X. Xxxxxxxx, legal representative of Minera San Xavier S.A.
de C.V,, informed to this Ministry, that, from that date on, his legal
responsibility was transferred to Mr. Xxxxxxx Xxxxxxxx Dodge Xxxxxxx,
General Manager of the Company.
This transfer of powers, was registered on the four hundred and twenty
second book, JMMG /ASP / ENC, Public Instrument No. Twenty thousand one
hundred forty one, in Mexico City, dated April twenty seven, one thousand
nine hundred ninety eight, approved by C. Xxxx Xxxxx Xxxxxx Xxxxxxxx,
principal officer of the Notary Public Register number one hundred and
two of the Federal District (Mexico City).
XX. On March 17, 1998, the SEMARNAP Federal Delegation in the state of San
Xxxx Potosi published, in four State newspapers the edict to convoke to a
Public Information Hearing of the "CERRO SAN XXXXX" mining project, in
response to requests submitted by several organizations of civil
character, that would take place on March 20, 1998, from 15:00 to 21:00
hours in the Lomas Racquet Club at Cofre de Perote 52, Lomas 3" Seccion,
in the city of San Xxxx Potosi, in order to collect the doubts and
comments about the Environmental Impact Evaluation of the project, and
include them to the Environmental Evaluation Process.
XXI. Through the official document No. 255 dated March 16, 1998, received in
the General Direction dated March 17, 1998, the SEMARNAP Federal
Delegation in the state of San Xxxx Potosi submitted additional
information requested to Minera San Xavier, S.A. de C.V., for the "CERRO
SAN XXXXX" project, within the period established by the current
Environmental legislation, as well as a copy of the preliminary advance
report of the study "Geo-hydrologic operation of the aquifer in the Cerro
de San Xxxxx Zone, S.L.P.", carried
XXVII. On July 10, 1998, through the official document No. D.O.O.DGOEIA-03008,
the Genera Direction requested for second time, according with Article 35
Bis of the General Law of Ecological Balance and Environment Protection,
additional information for continuing with the evaluation of the "Cerro
San Xxxxx" project, due the analysis results and the considerations made
by the technical-academic Commission of the Autonomous University of San
Xxxx Potosi.
XXVIII. On August 19, 1998, the communication No. SLP98260/WCD dated August
18,1998, was received in the General Direction through which the
"Promoter" submitted the additional information requested for continuing
with the evaluation in environmental impact matters of the "CERRO SAN
XXXXX" project.
XXIX. On August 26, 1998, through the official document No. 983, the SEMARNAP
Federal Delegation submitted to the technical-academic comission of the
Autonomous University of San Xxxx Potosi the additional information
requested for concluding their opinion about the "CERRO SAN XXXXX"
project.
XXX. On November 10, 1998, through the document No. SLP98372-WCD Minera San
Xavier, S.A. de C.V. submitted to the SEMARNAP Federal Delegation in the
state of San Xxxx Potosi, a copy of the official document No. BOO.E42-2023
dated October 27 , 1998, through which the National Water Commission
authorized the drilling of an exploratory well in the La Zapatilla area,
in the Cerro San Xxxxx municipality, State of San Xxxx Potosi, as a
supplement of the geo-hydrological study carried out by the Autonomous
University of San Xxxx Potosi.
XXXI. Through the official document No. EC0. 01.0004/99 dated January 4, 1999,
received in the General Direction dated January 6, 1999, the Ecology and
Environmental Affairs of the State Government of San Xxxx Potosi,
submitted to the SEMARNAP Federal Delegation in the state, the opinion of
the State Government of San Xxxx Potosi related to the "CERRO SAN XXXXX"
project, through the document "Technical-scientific opinion about the
environmental components of the Cerro de San Xxxxx Project by Minera San
Xavier", for integrating the present authorization, indicating, besides,
the following:
"By the strong commitment of the Autonomous University of San Xxxx Potosi
with the interests of our society and state, as well as the high
professional level and ethics of every one of the Commission members that
prepared this document, the State Government takes responsibility of all
of its content as public opinion related to the Environmental Components
of the Minera San Xavier Project"
XXXII. On February 16, 1999, the communication SLP990464-WCD dated February 16,
1999, was received by fax in this General Direction, through which the
"Promoter" clarified to the SEMARNAP Federal Delegation in the state of
San Xxxx Potosi the area to be used in the CERRO SAN XXXXX project, that
once verified resulted to be 373.39 ha.
And
CONSIDERING:
I. That the project "CERRO SAN XXXXX", with presumed location in the public
land of "CERRO SAN XXXXX", "Cuesta xx Xxxxx", "Xxxxx de la Xxxx", and
several properties located in the "Comunidad La Zapatilla", in the Cerro
San Xxxxx municipality in the state of San Xxxx Potosi, promoted by Minera
San Xavier, S.A. de C.V., pretends to establish an open cut and heap
leaching of minerals containing gold and silver mining-metallurgical
exploitation unit, the change of land use in a project area of 373.39 out
of 469.9854 total has under lease.
II. That MINERA SAN XAVIER S.A. DE C.V. submitted copy of the leasing contract
of:
1. 136.1549 has of land, located at the public land of Palma de la
Xxxx, Xxxxx xx Xxx Xxxxx xxxxxxxxxxxx, Xxx Xxxx Xxxxxx.
0. 290.8465 has of land, located at the public land of Cerro de San
Xxxxx, Xxxxx xx Xxx Xxxxx xxxxxxxxxxxx, Xxx Xxxx Xxxxxx.
0. 42.9844 has of land, located at the public land of Cuesta xx Xxxxx,
Cerro de San Xxxxx municipality, San Xxxx Potosi.
III. The project Public Consultation period, established according with Article
34, Fraction IV, of the General Law of Ecological Balance and Environment
Protection was registered from November 3, 1997 during which 17
communications in total were received, from several committees, neighbors
groups, unions, and diverse civil associations from different communities:
Citizens of San Xxxx Potosi, La Morena, La Xxxxxx de la Xxxx, Xxxxxx xx
Xxxxx and Cerro de San Xxxxx, and attached to them a total of 1,696
registers of citizens (1,242 names and signatures, 444 names and 10
signatures),
IV. Minera San Xavier S.A. de C.V. submitted copy of the following Concession
Titles of Mining Exploration:
CERRO SAN XXXXX PROJECT, S.L.P.
MINING CONCESSIONS
TITLE
CONCESSION No. TYPE CONCESSIONAIRE AREA (Has)
-------------------- ----- ------------ -------------------------------------------------------- ----------
Xx Xxxxxxxx 000000 Exploitation Xxx.Xxx.Xx Victoria y Anexas en S. Pedro, S.A. de C.V. 5.5916
La Princesa Poniente 180366 - Xxx.Xxx.Xx Victoria Y Anexas en S. Pedro, S.A. de C.V. 0.0076
Xxxxxx 000000 - Xxx.Xxx.Xx Victoria y Anexas en S. Pedro, S.A. de C.V. 10.0000
Santa Xxx 180598 - Xxx.Xxx.Xx. Victoria y Anexas en S. Pedro, S.A. de C.V. 8.0000
Xxxxx Xxx Xxx 000000 - Neg. Min. La Victoria y Anexas en S. Pedro, S.A. de C.V. 1.5076
Los Blancos 181180 - Neg. Min. La Victoria y Anexas en S. Pedro. S.A. de C.V. 9.0394
Gogorron 180300 - Neg. Min. La Victoria y Anexas en S. Pedro, S.A. de C.V. 9.6250
San Nicolas 180608 - Xxx.Xxx.Xx Victoria y Anexas en S. Pedro, S.A. de C.V. 6.9788
San Nicolas Sur 180610 - Neg. Min. La Victoria y Anexas en S. Pedro, S.A. de C.V. 1.4986
San Nicolas Suroeste 180609 - Neg. Min. La Victoria y Anexas en S. Pedro, S.A. de C.V. 0.1923
Los Riscos 182282 - Neg. Min La Victoria y Anexas en S. Pedro, S.A. de C.V. 4.3474
La Conceocion 182281 - Neg. Min. La Victoria y Anexas en S. Pedro, S.A. de C.V. 4.0000
Cnstina 186231 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 93.6220
Cnstina 2 180938 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 0.5537
Gama 179256 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 41.6391
La Canoa 186370 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 3.4799
La Canoa 2 180948 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 0.6649
La Canoa 3 184906 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 0.0051
Omega 193390 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 2.0576
Omega 2 180958 - Xxxxx and Xxxxxxx Xxxxxxx Xxxxxx 0.1687
San Salvador 186268 - Xxxxx Xxxxxxx Xxxxxx 12.9399
El Tribilin 187088 - Xxxxx Xxxxxxx Xxxxxx 18.2808
La Victoria 185387 - Xxxxx Xxxxxxx Xxxxxx and Xxxxxxx Xxxxx Xxxxxxxxx 10.3797
Gabnel 197045 - Xxxxx Xxxxxxx Xxxxxx and Xxxxxxx Xxxxx Xxxxxxxxx 18.0000
El Xxxxxxx 179603 - Xxxxx Xxxx Brothers 11.2359
El Porvenir 199546 - Xxxxxxx Xxxxxxx Xxxx 4.4200
Porvenir 183925 - Xxxxxxx Xxxxxxx Xxxx 12.0000
And Surface Lands:
SURFACE LAND NAME LEASED AREA (Has)
------------ ---- -----------------
0 Xxxxx xx xx Xxxx Public Land 136.1549
0 Xxxxx xx Xxx Xxxxx Public Land 290.8465
3 Cuesta xx Xxxxx Public Land 42.9844
V. That during the Public Consultation period of the "CERRO SAN XXXXX"
project file, from November 1997, in the SEMARNAP Federal Delegation in
the state of San Xxxx Potosi, according with Article 34 of the General Law
of Ecological Balance and Environment Protection, the attendance of 21
persons was registered, for consulting the Environmental Impact Statement
of the project with approximately 104 consulting hours, where the proposal
for a public information hearing was requested.
VI. That during the technical inspection carried out to the project site
during the period of November 12-14, 1997, by SEMARNAP Federal Delegation
personnel, in the state of San Xxxx Potosi, the "Promoter" and the General
Direction of Ecological Ordinance and Environmental Impact, several
technical matters related to the "CERRO SAN XXXXX" project were explained,
and submitted by the "Promoter" as additional information requested by the
official document No. D.O.O.DGOEIA-07865, dated December 16, 1997 for the
project evaluation.
VII. At the Public Information Hearing of the "CERRO SAN XXXXX" mining project,
in order to gather doubts and comments about the project execution and
integrate them to the environmental evaluation process:
1. Part of the Presidium was integrated by:
a) Lie. Xxxxxxxx Xxxxx Palau, Ministry of Economic Development of
the State
b) Ing. Xxxxx Xxxxxx Xxxxxxxx, Ministry of Ecology and
Environmental Affairs of the San Xxxx Potosi State Government
c) Congressman Xxxxx Xxxxx Xxxxxx Sierra, Ecology Commission of
the State Congress
d) Ing. Xxxxx Xxxxx Xxxxxxx, Northeast Regional Sub-manager of
the National Water Commission
e) Ing. Xxxxxxx Xxxxxx Xxxxxxxxx, representative of the San Xxxx
Potosi Municipal President, Lic. Xxxxxxxxx Xxxxxx Perogordo
f) X. Xxxxxxxx Xxxxx Xxxxxx, Cerro de San Xxxxx Municipal
President
g) C. Xxxx Xxxxxx Xxxxxxxxx Xxxxxxxxx, SEMARNAP Federal Delegate
in the state, and
h) Biol, Xxxxx Xxxxxx Xxxxxxxx, Environmental Impact Director of
the National Institute of Ecology, Mexico, D.F.
1. 319 persons were registered, among which there were members of
social organizations, academies, businessmen, ecological groups,
municipal, State and federal government institutions, as well as
non-organized citizens interested in the project.
2. 15 persons were registered to express their particular opinion and 7
more gave a formal presentation. The comments and proposals
submitted by the attendants to the Public Information Meeting were
answered by the "Promoter" properly, summarizing both side opinions
in the following table:
RECLAMATION The reclamation of the area affected by the project
The company should commit The company has expressed that the execution, will be planned from the activities startup,
itself to restore the zone zone has already been damaged; without waiting to the abandonment stage, as it is
in case of pollution. nevertheless, it does accept the pointed out in the present authorization and as part
commitment of assuring the of the General Reclamation Plan of the zone requested
reclamation activities in case of By Condition No.75.
pollution.
WATER
If the company has in mind The company will carry out analysis Since there could be other options. It has been
using the water from the of the water present in the San Xxxxx requested in the Condition No.67 to the company to
San Xxxxx shaft, the shaft, for verifying its metals develop and apply an "aspersion" method of barren
metals contents should be content and determining its use solutions with Sodium Cyanide to the heaps, as one
analyzed prior to its use. availability. of the methods to save water pretending to reduce
its consumption as an alternative.
The company should submit at the proper time, If it
decides to modify the supplying source of water,
considering the one found in the shaft of old mining
operations, according to the Condition No.68
There's no There's already a geo-hydrological The geo-hydrological study was submitted to this
geo-hydrological study of the zone, which will be General Direction, where it is considered that the
studies of the zone available for consultation and aquifer of the San Xxxx Potosi Valley is different
based on field work. review. from the one in the Cerro San Xxxxx area, fact that
was considered for the project feasibility.
SOCIAL ASPECTS
The major percentage of Propose an approach between the In the competence area of this Ministry, It has
taxes should be absorbed municipal authorities and the Public been recommended to the company in Condition no.9 to
by the entity, for State Finance Ministry for analyzing the consider the social and economical benefit for the
environmental reclamation, proposal that the taxes that will be region, so that there could be an economical growth
since benefits should be paid, will return to the municipality in the zone through the personnel hiring, further
received along with the for its application In municipal recommendations are made in the Term 7 No.3 since
risks. works. they go beyond this Ministry scope.
To build another town and Currently, the negotiations for It will be responsibility of the company to maintain
other church doesn't voluntary relocation of the Cerro de under monitoring and restore any damage in the
rebuild history. There San Xxxxx inhabitants is at a 90% historical buildings in Cerro San Xxxxx town.
should be included in the advance. According to the company's opinion, a cooperation
project plans, the areas agreement with National Institute of Anthropology
for the relocation of the and History for the preservation of buildings in
towns. Cerro San Xxxxx. In Condition No. 32 it is stated
We won't allow the that the company should maintain a safety area around
demolition of the town, the town.
neither its evacuation.
Cerro San Xxxxx can go on
without necessarily being
a mining town. We are not
leaving the town.
Twice a year audits by a It is proposed a social audit as As part of the recommendations of this Ministry to
citizenship committee are surveillance and the installation of the company, are those related to the promotion of
proposed. a citizenship committee, that reviews Technical-scientific and citizenship committees, as
its operations every six months. stated in the Term 7 numbers 2 and 3.
HISTORICAL ASPECTS
Two churches will disappear The company pointed out that the Considering the last events in the Cerro San Xxxxx
with the development of physical conditions of the churches, town, where several collapses have occurred in the
this project: San Nicolas specifically San Xxxxx Xxxxxxx, surroundings of the San Xxxxx xxxxxx, it is important
Xxxxxxxxx and San Xxxxx presents an imminent fall risk, even to point out that before anything, this Ministry
Xxxxxxx. if the company didn't operate; considers a need the immediate agreement between the
nevertheless, it commits itself to company and the National Institute of Anthropology and
The authorities should protect and restore such churches History, in order to carry out the proper actions that
provide assurances that the located in the town. allow the preservation of the historical buildings in
Federal Law for Historical The company developed a detailed study Cerro San Xxxxx, according to the Resulting section
Monuments will be obeyed. of seismic tomography that shows the VI, in the Considerations section IX, and in the
conditions of the church, that would Recommendation number 5.
The church could suffer support the protection actions that
permanent damage, it is should take place. The company will
necessary that the company produce a photographic survey submitted
informs about its condition to a notary public.
continuously.
TOURIST ASPECTS
The zone has unique The company doesn't reject the Having in mind the importance of the municipality's
aesthetic characteristics tourist projects execution in the development, this Ministry has recommended to the
even though it is not zone, and therefore invited those company in the Term 7, Nos. 3 and 4, that in
mentioned in the study, and interested to have a meeting to coordination with the State and municipal
therefore is frequently analyze the project availability. governments, carries out actions that promote
visited by artists, benefits for region inhabitants, not only in the
painters, musicians, and social aspect, but also in the economical one.
photographers.
We have already submitted a
tourist-based project that
would generate 400 jobs on
the short term.
FLORA AND FAUNA
Flora and fauna can be A rescue program for flora species The vegetation and fauna preservation is extremely
relocated for their under protection status will be important and therefore included in the Conditions
preservation. designed, under the direction of No. 4, 8, 14, 21 and 24.
There are three species expert institutions.
under protection status, The installation of a botanical
and therefore a specialist garden is proposed.
should be hired for the
recollection of the cactus
before project start.
Identify zones where the
cactus will be relocated.
Permanent Rescue program.
If there are any species in
danger, the authorization
for the project should be
denied.
There should be a The company pointed out that, in The reforestation zone, will include actions that
reforestation program that order to assure the success in the will tend to compensate the surface vegetation lack,
includes: number of needed reforestation, it will carry as indicated in Condition No. 76.
participants, technical out personally a reforestation
level, etc., considering a program in the zone. Since the fertile soil layer in the zone is
specialist and a work crew. superficial, Conditions Nos. ,34 and 35 indicate to
Reclamation of the soil the company that it should recover for the
layers for botanical reclamation activities in the zone.
garden, reforestation area,
species rescue, etc.
The project would affect There's no affectation upon the The ecosystem mentioned doesn't form part of the
the oak and pine forest Sierra xx Xxxxxxx zone. area where the project pretends to be developed, and
ecosystem, part of the isn't under any risk if it's carried out, and
Sierra xx Xxxxxxx where therefore isn't considered for this authorization
several endangered animal
species live.
The project is located 20
kms from the protected
natural area of the Sierra
xx Xxxxxxx, and the impact
includes the oak area on the
top of the Xxxxx Xxxxxxx.
MATTERS REGARDING THE The company stated its commitment to Minera San Xavier, S.A. de C.V. has sated its
PROJECT DEVELOPMENT organize as many meetings as needed commitment to provide the public with all the
It is requested to carry for clearing up any doubts that could information that is required for a better
out another Public be generated. understanding of the "Cerro San Xxxxx" project.
Information Meeting, more The Public Information Hearing was carried out
public and without the need according to Article 34, Fractions III and V of the
of an executive summary. General Law of Ecological Balance and Environmental
Protection, in the place that was found available at
Organization of this forum the time, with enough capacity for all the
is given in hurried terms. attendance.
The forums can take place
anywhere.
Federal authorities should The Environmental Impact Statement, The Environmental impact Statement, in its specific
have requested an submitted in its general mode, counts mode, requested for projects with such
Environmental Impact with supplementary information that characteristics that could alter very particular
Statement, in the specific provides more information than the elements of the biotic communities components that
mode. one that could have been submitted in develop in the area where they will be carried out,
any other mode. areas where there's still a good flora and fauna
natural preservation.
This doesn't mean that it necessarily covers all the
necessary aspects for the activity evaluation, or that
automatically its resolution is positive.
The information submitted in the documents for the "Cerro San
Xxxxx" mining project, exceeded the requirements included in
the guide for developing the Environmental Impact Statement,
in its general mode, nevertheless it was requested to the
company further explanation over some topics that had to be
expanded for assuring that the zone preservation and the
prevention of some impacts that could be generated.
VIII. That the "CERRO SAN XXXXX" project, promoted by Minera San Xavier, S.A. de
C.V. is not located within any protected natural area, of federal or State
character.
IX. That the National Institute of Anthropology and History in the state of
San Xxxx Potosi informed to the "Promoter" through the official document
No.401-22-D 412 dated July 2, 1997, the conservation guidance that should
be observed during the exploitation of minerals in the surroundings of the
Cerro San Xxxxx town.
X. That the area where the "CERRO SAN XXXXX" is pretended to be developed and
promoted by Minera San Xavier, SA de C.V., it was identified the presence
of individuals of species under different protection categories, according
with the Official Mexican Norm NOM-059-ECOL-1994.
XI. That the Cerro de San Xxxxx town has great historic importance in the
foundation of the city of San Xxxx Potosi.
XII. That the land where the open cut and heap leaching of minerals containing
gold and silver a mining-metallurgical "CERRO SAN XXXXX" project pretends
to be developed is considered of forest or cattle pasture use in an arid
zone of low economical profits, and with the change in the use of land it
is pretended to obtain a benefit for most of the Cerro de San Xxxxx
community.
XIII. That Minera San Xavier, SA de C.V. has shown to be willing to obey the
conditions that the authority establishes in Environmental Impact and Risk
matters, integrating the best equipment and systems during the extraction
and leaching process of materials with gold and silver contents, in behalf
of the Cerro San Xxxxx town inhabitants health, the preservation of the
ecological balance, and the respect of the life quality of the San Xxxx
Potosi citizens.
XIV. That based on Article 35, in the next to the last paragraph of the General
Law of Ecological Balance and Environment Protection, the Ministry can
request warranties for the compliance of the conditions established in the
authorization, in those cases specifically pointed out in the regulations
of the law above, if during the development of works, serious damages
could occur to the ecosystems.
Guaranties for the CERRO SAN XXXXX project, proposed by MINERA SAN XAVIER,
S.A. de C.V., as well as bonds that will insure the compliance with the
terms and conditions of this authorization will be established and based
on financial feasibility studies developed by entities with such
capabilities and submitted to this General Direction according to the
terms and conditions of this authorization.
Based on the preceding paragraphs and on Articles; number 28, sections III and
VII, numbers 30 and 34 sections III and V, number 35 section II and 147 of the
General Law for Ecological Balance and Protection to the Environment; numbers 5
and 20 section II of it's regulations regarding environmental impact; number 32
bis of the Organic Law for Public Federal Administration and number 60 of
SEMARNAP's internal regulations, the General Direction for Ecological Balance
and Protection to the Environment considers the San Xxxxx Project to be
ACCEPTABLE ACCORDING TO LEGAL RULES and has resolved THE CONDITIONAL
AUTHORIZATION of It's development and subject to the following
TERMS
FIRST.- MINERA SAN XAVIER, S.A. DE C.V. is authorized in the matters of
Environmental Impact and Risk, the Land Rezoning of a desert forest area as well
as the preparation, development, maintenance, abandonment and reclamation of
the site over a surface of 373.39 ha out of 469.9854 ha that have been leased
for the development of the "Cerro San Xxxxx" Mining - Metallurgical project of
open pit and heap leaching operations that will treat gold - silver ore,
approximately located at the intersection of the following geographic
coordinates: 22(degree)13' North Latitude and 100(degree) 49' West Longitude, 20
kilometers northwest of the City of San Xxxx Potosi, in the Cerro San Xxxxx
Municipality, State of San Xxxx Potosi, The project can be described as follows:
1. Mining - Metallurgical project to be initiated with the open pit
exploitation of rock material at a large scale, followed by a mixed
metallurgical process that will include the preparation of mined-out
material (crushing, screening and transport), a hydro-metallurgical stage
known as heap leaching and chemical precipitation or "Xxxxxxx-Xxxxx" and
smelting in rotary furnaces to finalize with the production of metallic
concentrate known as dore. The project also includes the following;
2. Development over an area of 373.39 hectares in the municipality of Cerro
de San Pedro, including:
SURFACE
DESCRIPTION (Hectares
----------- ---------
Mine area (Open Dit) 67.58
Crushing station 3.53
Dumps 178.00
Leach pad (Phase 1) 30.15
Leach pad (Phase 2) 31.35
Leach pad (Phase 3) 36.94
Four solution ponds 1.00
Recovery plant 3.50
Office building 0.04
Lab 0.03
Storehouse 0.11
Conveyor belt 0.75
Access roads 10.58
Magazines 0.68
Relocation of La Zapatilla 9.15
TOTAL 373.39
3. Approximately 117 million tonnes of fragmented waste rock in different
sizes, will be disposed of in the waste dump site, covering a surface of
approximately 16.78 ha and 30 m high.
4. Approximately 77 million tonnes will be deposited in the heap pads
reaching a final height of 65 m at the end of the mine life.
5. The conveyor belt system installed between the pit and heap pads will be 2
Km long.
6. During a period of eight years; 117 million tonnes of waste and 77 million
tonnes of ore with, an average of 0.67 grams per tonne (g/t) gold and 25
(g/t) silver will be produced.
7. The heap leaching process through ore piles with gold and silver contents,
will be made with a solution carrying 0.5 g/lt, of sodium cyanide.
8. Production will be at a 32,000 tonnes per day or 9.92 million tonnes per
annum (t/a).
9. A metallic alloy of gold and silver known as dore, will be produced at a
rate of 144,000 kg per year.
10. The project will have a maximum storage capacity of 200 tonnes of sodium
cyanide, and 250,000 liters of diesel in several tanks.
11. The project will have barren, intermediate, pregnant and barren solution
ponds with a capacity of 13,757 m(3),13,757m(3) and 8,139 m(3),
respectively.
12. There will be an additional over-board and fresh water pond with a 43,275
m(3) pond.
13. Clearing of the vegetation cover will require the rescue of all
individuals of species with some protection status, amenable to relocation
and/or it's use in the reclamation process, following the
NOM-059-ECOL-1994 official standard.
Clearing and stripping of the mine area will cover an extension of 67.58
ha while the heap pads will cover 98.43 ha. Waste material will be hauled
by trucks to the waste dump area, located to the east and northeast of the
pit over an area of 178 ha.
The open cut mine will be located in the southeastern slope of the SAN
PEDRO hill. The pit will be exploited in 10 m benches for both ore and
waste material, with the use of drilling equipment, hydraulic shovels and
large tonnage off-road dump trucks to haul ore and waste.
14. Mining of the gold and silver ore deposit will be made by open pit
standard methods, while the recovery process will be made through the heap
leaching method with the use of low concentration - sodium cyanide
solutions and a "Merrill Crowe" plant that uses zinc powder to precipitate
metals for later refining in a rotary smelting furnace. The main
exploitation activities will be:
a) BLASTING.- Bench drilling will be blasted with the use of an
ammonium nitrate and diesel mixture and an approximate consumption
of 0.170 Kg per tonne. Ignition will be made with the use of cord,
fuse and retardants to control the blast sequence and have a more
efficient breaking of the rock.
b) TRANSPORT.- Rock material will be shoveled in large tonnage off-
road dump trucks by means of two or three hydraulic 17 m(3) shovels
and a 16 m(3) front end loader.
c) CRUSHING. - Ore will be crushed 80% to less than 140 mm with a
giratory crusher, piled in a 158,000 t stock pile approximately 100
m in diameter and 47 m in height. Ore will be transported through a
conveyor belt to the secondary and tertiary crushing stations where
more than 80% will be reduced to less than 12.7 mm in size.
Depending on some of the leaching characteristics of the ore, this
might not go through the secondary and/or tertiary crushers.
d) HEAP LEACHING.- Ore material will be piled up on top of the heap pad
in 5 m benches to build a final pile approximately 65 m high. Once
in the pad, the ore will be sprayed with a Sodium Cyanide solution
with a 0.5g/lt concentration pumped from the barren solution pond
through a piping system at a 0.204 liters per min./m(2) rate.
The solution will go through the ore pile, leaching contained metals
and will collect at the bottom of the pile over an impermeable
polyethylene base. The pregnant solution will be conducted to a rich
solution pond for further treatment in the processing plant, or to
the intermediate pond where it will be recycled to the heaps to be
enriched.
e) RECOVERY AND REFINING OF MINERALS.- The metallurgical recovery
process will involve the following activities:
- Ore crushing.
- Mineral leaching with low concentration cyanide solutions.
- Recovery of solutions in solution ponds.
- Recovery of gold and silver values and smelting.
Once gold and silver have been extracted, the barren solution will
be pumped to an intermediate solution pond to be reconditioned in
it's sodium cyanide concentration and pH, before recycling to the
heap pads.
All solutions will be recycled within an impermeable, confined
environment with neither discharges nor contact with the exterior,
with the purpose of eliminating any possibility of soil pollution
and avoid loosing the metal contents of the solution.
15. SECONDARY ASSOCIATED PROJECTS.- These include the construction of office
buildings, demolition and removal of all buildings and structures, water
and electrical power line construction and access road.
a) RELOCATION OF THE LA ZAPATILLA AND CERRO DE SAN PEDRO COMMUNITIES.-
Construction of a new population center for the La Zapatilla
inhabitants and for the Cerro de San Pedro inhabitants in case
they decide it so, process that will be carried out once the Company
has covered all other requirements.
b) MAGAZINE AND ACCESS ROAD CONSTRUCTION.- It will follow all
specification established by the Ministry of National Defense for
this type of facilities.
c) ACCESS ROADS.- Access roads to different operation areas will be
graded with an average width of 12 m, appropriate for the
circulation of mining and hauling equipment. During construction
and operation, the roads will be continuously watered to avoid dust
Generation.
d) POWER LINE CONSTRUCTION.- Electrical power will be obtained from a
primary CFE net to a transformer in the Cerro de San Pedro area that
will regulate voltage and provide service to the mine. An average
annual consumption of 55 MKwh is estimated for an installed capacity
of 7,000 Kwh.
e) WATER PROVISION.- All water required for dust suppression in roads,
for heap pads and ponds, etc., will be subject to the authorization
and granting of water rights by the National Water Commission.
SECOND.- This authorization is valid for a period of twelve years. Activities
during the first eight years will include mining and processing of ore as well
as the execution of a Monitoring Program and the following four will conclude
with the monitoring program, the neutralization of ore in the heap pads and
finalize the reclamation of the site.
This time limit will begin the following day of receipt of this authorization
and can be prorogued, following the judgment of this Ministry, as long as MINERA
SAN XAVIER, S.A. DE C.V. submits its request to this General Direction of
Ecological Ordinance and Environmental Impact before thirty days of the
expiration date. A copy of the last compliance of conditions report should be
attached and validated by the Environmental Protection Federal Attorney
(PROFEPA) in the State and by the different committees that will be created for
the purpose of providing a follow-up to the project.
THIRD.- MINERA SAN XAVIER, S.A. DE C.V. is subject to comply with all conditions
included in Article 21 section II of the Regulations of the General Law of
Ecological Balance and Environment Protection, regarding environmental impact,
in the case it decides not to proceed with the development of activities
referred to in this resolution. This General Direction of Ecological Ordinance
and Environmental Impact will determine the necessary measures to be followed to
avoid any negative modifications to the environment..
FOURTH.- MINERA SAN XAVIER, S.A. DE C.V. should submit previous notification to
this General Direction, of any changes to the project as stated in the
Environmental Impact Statement (General mode), Risk Analysis (Detailed Risk
Analysis mode) and Supplementary Information submitted, including future
expansions, to determine adequate actions according to the existing
environmental legislation.
It is strictly forbidden to perform preparation and construction activities
other than those specified in this authorization.
FIFTH.- According to Article 35 of the General Law of Ecological Balance and
Environment Protection, this resolution refers to the environmental aspects of
activities and works described in Title First of the same of the CERRO SAN PEDRO
PROJECT; it is the obligation of MINERA SAN XAVIER, S.A. DE C.V., to permit and
obtain other authorizations, concessions, licenses, permits and others
considered as requisite to perform and operate ail works, among which the
required permit to Change of Use from Forestry and Preferentially Forest
Characteristics, is included.
It is of its most critical responsibility the validity of all civil, mercantile
and labor agreements that have been signed to operate within the Law, as well as
its compliance and legal consequences that will be applied by the Ministry of
Environment, Natural Resources and Fisheries and/or other federal, state or
municipal authorities.
SIXTH.- The construction, operation, maintenance, closure and abandonment of the
CERRO SAN PEDRO project, shall be subject to the description made in the
Environmental Impact Statement (General mode); Risk Analysis ( Detailed Risk
Analysis mode) and its annexes and project maps submitted by MINERA SAN XAVIER,
S.A. DE C.V. as well as all measures of this resolution according to the
following
C O N D I T I O N S
1. GENERAL
MINERA SAN XAVIER, S.A. DE C.V., shall:
1. Guarantee through a bond, insurance or other similar instruments, the
proper compliance with all conditions referred to in this resolution and
the reclamation of the project area or the attention to any contingency.
The type and amount of required guarantees will be according to
technical-economic studies that will evaluate and insure the attention to
accidents, health and environmental risks, reclamation plans and programs,
as well as the compliance with all conditions to which the project is
subject to, considering each and every one of the stages mentioned in the
Environmental Impact Statement (General mode); Risk Analysis and
supplementary information submitted. Results of this evaluation as well as
the amount and type of guarantees shall be submitted to this General
Direction in original and three copies for approval.
Within THREE MONTHS of receiving this authorization, the PROMOTER shall
submit its proposal for a first guarantee or insurance in which the
preparation stage is included, at least, with the following stages being
conditioned, to the presentation of their corresponding guarantees or
insurance; this proposal will be evaluated by this General Direction and
once accepted, will be sent to PROFEPA for it's follow-up with copies to
the corresponding SEMARNAP and PROFEPA Delegations in the State of San
Luis Potosi.
2. Establish a Supervision Program in which a responsible (entity or person?)
be assigned to the project, with good technical capabilities to identify
critical environmental and risk aspects, to make decisions, define
strategies or modify negative activities. It will create, furthermore, an
internal Group of Environmental Vigilance that will be responsible, at all
moments of watching the compliance with all Project's terms and conditions
It will submit the aforesaid program to PROFEPA with copies to this
General Direction and the SEMARNAP and PROFEPA Delegations in the State of
San Luis Potosi, within a THREE MONTH period of time after reception of
this document.
3. Promote the formation and support of a Technical-Scientific Group that
will provide follow-up to those commitments defined during the evaluation
and resolution process of the CERRO SAN PEDRO project, for this purpose,
the recommendations pointed out in Term number Seven of this
authorization, might be considered.
4. Previous to any activity in the area to be affected, carry out the rescue
and relocation of all wild flora and fauna individuals present on site,
that are considered with any state of preservation, following standards of
the Official Mexican Standard NOM-059-ECOL-1994 and, after that, consider
all other flora species, parts of them, seeds, trees or brushes that can
be used in the reclamation of the project. Other species different to
those existing in the project site, can not be used for reclamation
purposes since they would be considered exotic. This activities based on a
Protection Program that should be carried, out based on existing field
studies and new sampling in the area.
5. Relocate all plants in final or temporary locations according to the
Protection Program. At the end of the relocation, submit to this General
Direction a map where relocation sites are marked along with a listing of
species and the total number of individuals of each species relocated.
Determine the preservation areas in conjunction with Municipal and State
authorities, in a place feasible for this purpose and where the risk of
individuals being affected by other activities does not exist.
6. Determine and outline an area where a botanical garden can be established
with the purpose of collecting all representative vegetation of the CERRO
SAN PEDRO site and to promote training courses and diffusion of actual
mining activities, the importance of preserving natural systems and the
alteration of natural ecosystems due to these activities.
7. Determine and an area where future activities will not affect the
establishment of a green house and where vegetation individuals that will
be used in the reclamation process can be reproduced from seeds. This will
be initiated at the beginning of project activities, considering the long
life cycles of desert species.
8. Notify to its workers of general dispositions and sanctions defined by
laws in the matters of wild flora and fauna protection; within SIX MONTHS
of receiving this authorization, send to this General Direction, with
copies to the SEMARNAP and PROFEPA Delegations in the State, a list of
actions that will be carried out to guarantee that the workers will
respect legal ordinances with the final purpose of protecting wild flora
and fauna, including those under any protection status in the area of
influence of the project.
9. Hiring local inhabitants will be preferred with the purpose of avoiding
negative social economic impacts due to the demand of goods and services
and channel out the economic flow derived from the project to the local
population.
10. Previous to the start-up of project activities, to obtain required
permits, licenses, authorizations and concessions, among others:
Authorization of the National Water Commission to use underground water
and transmission of water rights according to existing regulations; water
will only be extracted to substitute that evaporated in the process and
only domestic waters will be allowed to be discharged. Other
authorizations are as follows:
- Authorization for the change of use of forestry land (land
rezoning).
- Use of soil license issued by a local authority.
- Environmental License.
- Residual water discharge.
- La Zapatilla town relocation permit.
- Construction License. ,
- Authorization to store and handle explosives, issued by the Ministry
of National Defense.
- Authorization for not hazardous solid waste disposal.
Copies of these authorizations, once obtained, should be sent within
THIRTY DAYS, to this General Direction, with copies to the SEMARNAP and
PROFEPA Delegations in the State.
11. Maintain construction and operation equipment in the best possible working
conditions during the different stages of the project and establish a
systematic monitoring program, in such a way that the following Official
Mexican Standards are met:
a) NOM-041-ECOL-1993, that refers to the maximum allowed levels of
polluting gases from the exhaust of automobiles driven with
gasoline.
b) NOM-045-ECOL-1993, that refers to the maximum levels of smoke
opacity allowed from the exhaust of automobiles driven with diesel
fuel oil.
c) NOM-080-ECOL-1994, that refers to the maximum levels of noise
allowed.
d) NOM-001-SEMIP-1994. That refers to installations that provide
electrical power, as published in the Official Gazette October 10,
1994.
12. Previous to the start-up of project preparation or any other activities,
to promote necessary permits to relocate the inhabitants of the Cerro San
Pedro and La Zapatilla communities, as well as any other that might be
affected by the project, as needed. This should be done with the
permission of all local people, Municipal, State and Federal Governments
according to applicable legislation.
13. Follow lines of action regarding the adequate disposal of different types
of wastes generated during the different stages of the Cerro San Pedro
project:
a) Domestic solid wastes (mostly organic matter) will be located in
capped containers strategically located in the areas of generation.
Final disposal will be periodical where local authorities decide, to
avoid its dispersion and generation of noxious fauna
b) Other solid waste, like empty bags, paper, cardboard, glass, wood,
saw dust, plastic, metal parts, etc., susceptible to recycling will
be channeled through those companies that provide recycling
services.
c) Other materials generally used for construction, installation,
equipment tests and maintenance, like: paintings, greases solvents
and spent acids, as well as their containers, tow and papers
impregnated by the former, will be considered as hazardous wastes,
according to the Official Mexican Standard NOM-052-ECOL-1993, and
have to be collected and stored following the Regulations of the
General Law of Ecological Balance and Environment
Protection-referring to hazardous wastes and later sent to
recycling, incineration and/or confinement to authorized facilities
authorized by this Ministry, after notification to this General
Direction and to PROFEPA in the corresponding official forms.
14. Establish the limitation of its environmental responsibility along with
this Ministry and the State Health Department, concerning possible future
damages based on existing environmental characteristics already
established and future data that will be gathered on site. The following
should be established:
a) Area included within the environmental and health characterizations.
b) Natural environment characteristics that will be defined taking into
account those that might be affected by mining activities and
possible contingencies.
c) Health characteristics that will be determined for those inhabitants
in the project area according to the area already defined for such
studies, taking into account those physiological factors that might
be altered by mining related activities,
d) Estimated degree of soil, water and air pollution, making reference
to current concentrations of pollutants in both surface areas and at
depth.
e) Sampling of pollutants (heavy metals in general) in flora and fauna,
considering the study area, those parameters that might be affected
by mining.
Technical personnel assigned to this task by the Company, along with
municipal, state and federal authorities will determine the scope of
this analysis and the best way of doing it. Results shall be
submitted to the Vigilance Committee.
Those Official Mexican Standards that might be applicable should be
considered, such as the Official Mexican Standard NOM-048-SSA1-1993
that establishes the normalized method to evaluate health risks as a
consequence of environmental agents, among other.
A guideline or protocol that will include the aforesaid, should be
submitted to this General Direction for evaluation, with copies so
the corresponding SEMARNAP State Delegation
as well as to the Technical - Scientific Committee in a period of time
that shall not exceed of six months from the moment this authorization is
received and, once accepted to PROFEPA for follow-up. All analysis that
the Company ought to submit to comply with all environmental aspects,
shall be carried out in certified laboratories belonging to the National
System of Testing Laboratories (SINALP).
15. Previous to the start-up of project preparation or any other activities,
submit to this General Direction detailed Engineering of proposed works
that will guarantee the compliance, without restrictions, of all
environmental conditions established in this resolution, with quality
control annex information of programs that shall establish all measures to
be taken during the construction process in the development of this
project.
16. Establish adequate restrictive and informative signals to the general
population, that will establish the works that the Company will carry out
in that site.
17. Follow all regulations established by the Ministry of Labor and Social
Prevision and comply without restriction with the Program of Health and
Safety.
18. Perform maintenance and/or repair of the equipment in a shop that will be
impermeable (floor) and equipped to collect waste greases and lubricants.
Wastes generated in this area shall be stored in properly marked cans that
should be delivered to be handled and disposed of by a properly authorized
company.
19. Establish a compromise with this General Direction to certify, with the
use of best standards, the quality of each and every one of the phases of
the project, including detailed engineering of construction, operation and
monitoring, contingency response, detoxification and reclamation as well
as those services that will be used, such as the chemical analysis
laboratories. The Company might decide to establish an Environmental
Management Voluntary Program in which a System of Environmental
Administration will be included and will comply with quality standards
such as ISO 14000, Integral Responsibility or a Total Quality Program.
It is strictly forbidden to MINERA SAN XAVIER, S.A. DE C.V.;
20. The use of chemical products and/or burning for vegetation clearing
activities.
21. Illegal capture and sale of terrestrial and/or aquatic wild flora and
fauna species with emphasis in those species approved for hunting
activities and those included in the NOM - 059-ECOL-0994. MINERA SAN
XAVIER, S.A. de C.V. will be responsible of any environmental wrong doing
by its workers and will be subject to judiciary dispositions established
by the law in this matter.
22. Opencast disposal of domestic sewage and industrial waste waters.
23. Maintenance and repair of equipment and machinery outside of those
established places conditioned for that purpose.
24. Abandonment or burial of hazardous wastes such as cloths and tows soaked
in lubricant oils or greases, containers, packaging material and others
along access roads or any other parts of the project.
25. Change the trace of existing roads without previous notification, analysis
and authorization.
26. Opencast disposal of any type of trash; this shall be hauled to those
sites indicated by municipal authorities.
27. The lighting of bonfires or explosives outside the areas designed for this
purpose.
28. The construction of permanent camps; only temporary camps will be allowed,
trying to diminish their area to a minimum and to locate them in places
that have already been altered by previous activities. .
II. SITE PREPARATION AND CONSTRUCTION
MINERA SAN XAVIER, S.A. DE C.V, SHALL:
29. Before clearing activities, carry out the rescue of those individuals of
flora and fauna on site belonging to the listing of species subject to
protection according to the NOM-059-ECOL-94 and to the general conditions
established in this document. In the case of local fauna, to rescue those
individuals living in burrows in the areas to be affected and that due to
their slow movement characteristics or physiological requirements can not
re-establish on their own.
For this effect, consider these activities within the Protection Program
referred to in the General Condition number 4, with the participation of
highly specialized technical personnel. This program should clearly
indicate a list of species included, the scope and timetable of
activities, techniques to be used in the rescue, relocation sites and
actions to be taken to insure the survival of those individuals to be
relocated.
Such a program should be submitted along with preliminary results, as
mentioned in the condition of reference, within SIX MONTHS from the date
of authorization. This program should also include all areas authorized to
install project infrastructure and later submit annual reports of advance
activities and partial results, including photographic annexes and/or
video tapes that will show the most relevant aspects of the stage
developed.
30. Install a system of floating plastic balls and nets to scare birds away
from ponds and heap pad areas, as well as any site where solutions can
attract wild fauna.
31. Provide with alternate sources of fresh water that can be used by local
wild fauna.
32. Outline and respect a safety buffer zones, one surrounding the town and
the other surrounding the pit to prevent from any disturbance to the
people as established by the National Coordination of Historic Monuments
of the National Institute of Anthropology and History. This area can be
modified by the authorities after evaluation, if causes of merit are
present, considering:
a) Construction of a protection fence in those operation areas where
most risk exists, particularly in the heap pad and pond areas.
b) A blasting safety zone.
c) A perimeter protection zone of the Cerro San Pedro town.
33. Perform all vegetation and soil clearing in a gradual manner to allow the
departure of local fauna inhabitants and their later resettlement in
adjacent areas.
34. Recover and store in a pre-defined site, all material derived from the
clearing of the site that may be used in the reclamation and reforestation
of the area. It should be noted, during development of these activities,
that this material does not block natural water courses.
35. Brush that will not be rescued, or that may not be of any use to locals,
will be chopped and mixed with soil to be used in later reclamation and
re-vegetation activities
36. Plant residues that may not be of any use can be disposed of in the waste
dump zone with the purpose of avoiding additional damage to the flora and
fauna of the site.
37. Office buildings, store houses, laboratory, shops and magazines will be
installed trying to preserve as much as possible of the original tree and
brush individuals of the area. Therefore, those areas where infrastructure
will be built, clearing should be selective and disturbance should be
restricted to the areas needed for buildings and access roads.
38. Drainage works should be built in such manner that the construction and
rehabilitation of access roads will not modify the existing natural
drainage pattern.
39. Within SIX MONTHS of receiving this resolution the following information
should be submitted to this General Direction:
a) Techniques and systems that will be used with the purpose of keeping
local wild fauna, including birds, away from solution ponds; this
should include the installation of a protection fence in those
operation areas where most risk exists, particularly in the heap pad
and plant areas. It should also deter domestic fauna from invading
operation areas.
b) Modification to the pregnant and barren solution ponds to be
included within the area that will be impermeable with a high
density polyethylene layer to diminish the risk of leakage and
accidents due to the fall of wild fauna or workers in the cyanide
solutions.
c) Technical design specifications and construction of the impermeable
system in heap pads and ponds, according to selected methods. Mean
life and factory guaranty of the system as well as conditions that
should be met.
d) The surface of agricultural land that will be affected according to
official records and project works, as well as compensation plans
agreed with owners.
e) Detailed design of automated transport systems, where particle
emission and dust contention systems to keep fugitive particles
down, are included.
f) Enough portable sanitary toilets should be installed and properly
maintained, to cover the needs of workers and personnel during
different project phases.
g) Drainage works should be built in such manner that under no
circumstances contaminated process waters might reach the existing
natural drainage pattern (particularly the San Pedro creek).
40. Design an Integral Monitoring Program that will provide attention to Risks
and Contingencies derived of cyanide and metal pollution of soils and air;
this program should be submitted for evaluation to this General Direction
before the operation stage and establish it once approved, considering:
a) Construction of a series of monitoring wells to favorable depths
that will detect any horizontal flow of cyanide-rich solutions, both
in the heap pad area and its surroundings. Actions that will be
taken in case solutions are detected, should be indicated.
b) Actions that will be taken in case of leakage and/or spill of
cyanide solutions from the ponds.
c) Install cyanide gas detection alarms in those process areas where
solutions are prepared.
d) Actions that will be taken in case hydrocyanic acid gases, above
standards recommended by existing health regulations, are detected.
e) Response to medical emergencies.
f) Design of an operations manual in case of accidents, based on
existing SCT guidelines relative to the transport of hazardous
materials in the State of San Luis Potosi, attaching general
information of the company that will be in charge of these
activities providing assurance of valid authorizations. This manual
should consider the handling of Sodium Cyanide and its containers
within premises.
g) Location of antidote equipment against intoxication, in a the
necessary quantity to cover the possible needs of operation
personnel and general population.
h) Calendar of tactical contingency exercises, following the Prevention
of Accidents Program that will be requested later in matter of
risks.
i) Monitoring well calendar of readings and records.
41. Submit a program and calendar of activities for training courses in safety
matters and the use of equipment required for the attention, prevention
and control of leakage, fire, spills and/or explosions.
42. Build heap pads following strictly the design and characteristics
established in the Environmental Impact Statement and Risk analysis
submitted and using proposed liners or better ones.
43. Build and install infrastructure, as authorized in this resolution,
following strictly submitted detailed engineering information.
44. Build one overflow pond that will be impermeable, using the same liner
system as proposed for the heap pads.
45. Guarantee that the project will count with drainage works, built in such
manner that under no circumstances contaminated process waters might reach
the existing natural drainage pattern, considering the possible storm
effects.
46. Carry out digging, leveling, compaction and land filling necessary for the
preparation stage of the project, developing necessary engineering works
to avoid the disturbance of the natural drainage.
47. Obtain necessary construction materials from authorized sites.
48. Establish a barrier in the waste dump area with upstream and downstream
monitoring wells for immediate detection of any possible acid drainage
generation.
It is strictly forbidden to MINERA SAN XAVIER, S.A. DE C.V.:
49. Clearing of vegetation outside the areas required for project development.
50. Burning and abandonment of clearing debris in the project area or adjacent
areas, water courses and/or places where wild flora and fauna might be
affected.
51. The use of chemical products and/or burning for vegetation clearing
activities; these activities should be made by mechanical and manual means
within the project site.
III. OPERATION AND MAINTENANCE STAGES
MINERA SAN XAVIER, S.A. DE C.V. shall:
52. Follow the mining plan submitted in previously mentioned documents.
53. Watch over, through A MONITORING PROGRAM during the piling up of waste
dumps, that:
a) Slope stability is guaranteed for a long period of time.
b) Slope of the waste dumps should allow soil concentration to avoid
air and water erosion and make the re-vegetation process easier.
c) Channel drainage to control rain waters, diminishing erosion effects
and dirt transport to ADJACENT AREAS, is made.
d) All proposed measures with the purpose of eliminating the generation
of acid solutions derived of existing sulfide material and later
weathering, are carried out.
e) Waste material is not transported to adjacent areas.
Submit the program to this General Direction within a period of time
not longer than six months from the moment of reception of this
document to be approved and to be followed-up by PROFEPA. This
Program should have the support of a prestigious Academic
Institution.
54. Carry out mining in the pit area according to a Pit Slope Stability
Program that should be submitted to this General Direction within a period
of time not longer than six months from the moment of reception of this
document. Furthermore, channel drainage to control rain waters diminishing
erosion effects in adjacent areas, should be included.
55. Use of explosives following the handling, transport and storage procedures
established by the Ministry of National Defense
56. Verify that explosive charges used in mining operations will not exceed,
at any moment, safety specifications that might cause health damage to
adjacent communities derived of over pressure and noise levels. Blasting
operations shall be carried out during day shifts, exclusively.
57. Verify through direct inspection and monitoring stations the presence of
dust from mine and waste dump operations in both, plant and open areas;
characterization of dust contents shall be made according to existing
standards and control measures shall be established following a
Characterization and Dispersion of Dust and Air Contaminants study tat
will provide technical specifications of the gas monitoring system, as
well as treatment of smokes and gases and will provide generation
estimates and define dispersion patterns.
A data base with chemical analysis of samples from atmosphere monitoring
readings, shall be submitted every six months and shall include
bio-availability results to define health hazards derived of dust and
gases, with the purpose of establishing protection measures.
Additional environmental controls and definition of the number and
location of monitoring stations shall be defined and technically designed,
to insure that air readings will be representative.
A detailed analysis of water-based dust suppression systems shall be
appended, where favorable and unfavorable aspects of their use are
analyzed, considering also the use of wind-breaking tree curtains and/or
local vegetation.
These measures shall be submitted to this General Direction with copies to
PROFEPA and to the corresponding SEMARNAP and PROFEPA Delegations in the
State of San Luis Potosi within a six month period once project operation
is initiated.
58. Develop a plan in which all potentially acid generating material will be
mixed with limestone to be neutralized.
59. isolate those rock areas in the pit that might be potentially acid
generating, using different methods like cement covering, among others.
60. Comply with existing regulations regarding the production of gas emission
from fixed sources due to the emission of gases in the smelting, retort
and lab areas, A gas monitoring system should be included with results
sent to PROFEPA and copies to this General Direction and corresponding
SEMARNAP and PROFEPA Delegations in the State of San Luis Potosi within a
period of time that shall not exceed of three months once project
operation is initiated.
61. Handle and dispose of recovered arsenic following existing regulations for
this effect.
62. Once pilot plant tests are finished, submit mass balance results for the
following metals: Pb, As. Hq and Mn These results should be submitted one
month after the first year of operation. ' .
63. Carry out dynamic tests to predict detoxification and determine the risk
of acid generation at the end of the rinsing process of heap pads.
64. Handle cyanide solutions independently, for each leaching phase.
65. Use of pumping systems with easy-access for operation and maintenance
purposes, considering the different leaching phases and the modification
of the pregnant pond within the leaching pad.
66. Develop and submit a barren sodium cyanide solution spraying system that
will allow water savings
67. Carry out, during the first two years of operation, kinetic tests to
evaluate the handling of leached material residues including, in addition
to acid drainage parameters (pH, conductivity, SO, Fe, Ca, Mg) the
following metals: Lead, Arsenic, Copper, Zinc, Manganese and Mercury,
submitting these results to this General Direction to be submitted in a
yearly basis.
68. Consider the possibility of decreasing the amount of fresh aquifer water
used in the process by substituting with treated water or mine water from
old shafts. It will be necessary, in the last case, to carry out chemical
analysis to verify metal contents and determine its possible use.
Such a proposal should be submitted to this General Direction within a
period no longer than three months after this document is received.
69. Install a back-up electrical system with purpose of making sure of the
continuous operation of the solution recycling pumping system during
operation.
70. Consider the adoption of measure that would allow mining operations in
parallel with normal activities of local inhabitants, namely, access and
circulation.
71 Keep background levels of contaminants within limits defined by baseline
studies before operations; in case some contamination is produced due to
normal operations or as a result of a contingency, reclamation to restore
original parameters should be carried out.
72 Comply with all preservation ordinances regarding historical monuments and
sites, established by the National Institute of Anthropology and History
in San Luis Potosi.
MINERA SAN XAVIER, S.A. DE C.V. will not be able to:
73. Obstruct natural water courses with any type of material.
74. Extract water from unauthorized sources.
IV. ABANDONMENT AND RECLAMATION
MINERA SAN XAVIER, S.A. DE C.V. shall:
75. Submit a General Plan of Site Reclamation to this General Direction within
a period of time not longer than TWELVE MONTHS from the moment of
reception of this document and once approved, to PROFEPA, where the
following items should be included:
a) Specific Reclamation Plans and Programs, where time frames, costs,
activities, techniques, etc., that guarantee the reclamation of the
site at short, medium and long ranges, are discussed
b) Reclamation activities considered, from the beginning of project
development.
c) Activities considered to handle leached residues and residual
solutions before rehabilitation and abandonment, with the purpose
of eliminating all compounds of the Cyanide, chemical family (free
cyanide, hydrocyanic acid, cyanide-metal complexes, thiocyanates,
cyanates, etc.) and those compounds derived of cyanide destruction
(ammonia, nitrates, nitrites, etc.) to reach concentrations allowed
by existing regulations.
d) Chronic risk, cascade effect or cumulative impacts and affectation
ratios.
e) Rescue and preservation of physical and biological resources that
can be used in reclamation activities.
f) Pit, waste dump and heap pad slope stability.
g) Heap pile neutralization studies.
h) Re-vegetation of those areas disturbed by project development.
i) Removal and final disposition of those structures that will not
serve a purpose after the project's life.
j) Restoration or, given the case, compensation of disturbed areas by
project development.
k) Projected and specific actions considered for the mine's closure of
operations.
76. To provide compensation by the loss of vegetation cover caused by the
development of the project, contact and coordination with the General
Direction for Restoration and Soil Conservation of the Under Ministry of
Natural Resources and with SEMARNAP's Federal Delegation in the State of
San Luis Potosi, should be made, to develop a Reforestation Program to be
submitted to this General Direction within a period no longer than six
months after this document is received.
This program should include all requirements established in both, the
Authorization for Change in Forest Land Use issued by SEMARNAP's Federal
Delegation in the State of San Luis Potosi and the following points
included in the Environmental Impact Statement:
a) List of native species to be used (with common and scientific
names). The introduction and use of exotic species like eucalyptus
(Eucalyptus sp.), casuarina, (Cassuarina sp.) and Tamarix sp. should
be avoided.
b) Location map with areas to be reforested.
c) Density of reforestation by unit-area.
d) Nursery techniques and/or places where plants will be obtained.
e) Maintenance and protection activities proposed, including four years
at least, after closure.
f) Places where seeds and/or small plants to be used in the
reforestation process, will be obtained,
77. Provide treatment to all piles of leached ore and to the sodium cyanide
solution considering the detoxification of metals like Pb, As, Hg, and Mn,
by establishing an adequate program where the best available techniques
and elements are used.
78. Control and restore any aquifer contamination in case this is caused by
company activities.
V. ENVIRONMENTAL MONITORING
MINERA SAN XAVIER, S.A. DE C.V, shall:
79. Identify all Manganese (Mn) mineral specimens and compounds and define
their dissolution activity during the process, closure and reclamation
of the mine site.
80. Develop a working plan that will allow a continuous environmental
evaluation of the project site and of all mining and processing
activities, to identify on time, any unforeseen direct or indirect
impacts, or to establish corrective measures for those impacts that may
not be significant.
81. Design and carry out the following environmental monitoring with an
ecological protection objective in mind:
a) erosive processes in the project site,
b) Vegetation health of plant transplant relocation sites.
c) Botanical classification of those areas selected for reclamation,
during the process and once plants are established.
d) Detailed chemical and physical analysis of soils.
e) Presence and behavior of wild fauna within the previously mentioned
relocation areas.
The monitoring process should be carried out every six months starting one
before the initiation of any activity on site and summarizing collected
data in a yearly report to be submitted to PROFEPA with copies to this
General Direction and corresponding SEMARNAP and PROFEPA Delegations in
the State of San Luis Potosi.
In the case that some of the controlled parameters suffers any
modification from it's previous condition, this shall be analyzed; if any
negative disturbance is defined, corrective measures must be taken to
establish values back to their original background.
The Company shall inform of any negative disturbances immediately to
PROFEPA, (with copies to this General Direction and the SEMARNAP
Delegation in the State) and will also inform of the return to normal
conditions. In case normal conditions can hot be re-established within
three months, all project activities shall be suspended and reclamation
activities initiated.
82. Carry out a water quality monitoring program. It is the responsibility of
the Company to define the number and exact location of monitoring
stations, with the sole objective of timely detecting any changes in the
physical, chemical and biologic characteristics of the water. The analysis
of these results will provide exact information of possible changes and if
these are directly related to activities in the project (with source
identification) or to any other foreign cause.
83. Develop a Water Monitoring Program which should include the following
information:
a) Criteria considered to establish the number and location of
monitoring stations.
b) Map with the exact location of monitoring stations.
c) Parameters to be controlled and frequency of sampling in the case of
physical, chemical and biological parameters.
d) Detailed description equipment and techniques to be used.
e) Assay result analysis proposal.
This Water Monitoring Program shall be submitted to this General Direction with
copies to PROFEPA and to the corresponding SEMARNAP and PROFEPA Delegations in
the State within an eight month period once this resolution has been received..
84. Establish a Company Environmental Control Program (Vigilance] and a
dedicated group that will be responsible of complying with the Terms and
Conditions to which the project has been subject.
85. Establish and carry out a Permanent Environmental Monitoring Program with
the purpose of timely detecting the presence of any polluting element
(mercury, lead, cyanide, manganese and other) that might cause an
environmental contingency in the area. It should also consider actions
that would help to stabilize lead, arsenic and manganese during the
leaching, detoxification and reclamation stages.
All monitoring Programs shall be included in a single General Monitoring Program
that shall be submitted to this General Direction for evaluation within a period
not longer than one year once this authorization has been received and once
approved, copies should be sent to PROFEPA and to the corresponding SEMARNAP and
PROFEPA Delegations in the State for follow-up.
VI ENVIRONMENTAL RISK MATTERS
MINERA SAN XAVIER, S.A, DE C.V. should:
1. Build the project facilities (leaching area, solution ponds, and metals
recovery plant) based on the measures and especifications stated in the
risk analysis submitted.
2. For compliance with Article 147 of the General Law of Ecological Balance
and Environment Protection to design an Accident Prevention Program,
that shall meet the following conditions:
a) It should be made previous to the initiation of operations and
active in a time period no longer than three months from start; for
this, the company should submit to the General Direction of
Materials, Hazardous Waste and Risky Activities of the National
Institute of Ecology, and the Federal Attorney for Environmental
Protection, within sixty natural days, from the reception of this
resolution document, the program to carry out these activities, as
well as periodic progress reports.
b) Once the program for Accident Prevention (PPA), is active it should
be upgraded permanently, having the obligation of informing annually
to the General Direction of Materials, Hazardous Waste and Risky
Activities of the National Institute of Ecology, about the
programming for carrying out such actualization,
c) The General Direction of Materials. Hazardous Waste and Risky
Activites of the National Institute of Ecology, could request the
presentation of an Accident Prevention Program, whenever it
considers it convenient, to be submitted and under consideration and
approval from the Accident Prevention Programs Analysis and
Approval Committee (COAAPPA), which is integrated by several
Ministries.
Also, as a complement from the third issue of the guide mentioned
previously, it is necessary to request the Risk Analysis results
format.
To obtain the PPA guide and the suplementary format to the third
issue of the guide, consult the INE's webpage through internet:
http//xxx.xxx.xxx.xx/xxxxxx/xx/xxx/xxxxxxx.xxx.
Such PPA, should contain a plan for the immediate attention to any
spills that could cause soil and underground pollution, according to
the sustance spilled, the response actions, as well as the
contaminated soils proper treatment. Also, it should include the
especific procedures for alert the project's neighboring population,
protect them from open cut mining operations like fly-rock, noise
emissions, and vibrations.
88. Warrant that at any time, the explosive material loads used during the
mining operations don't exceed the quantities that could affect human
settlements, by noise levels and seismic effects.
For this purpose, it should submit to the General Direction of Materiasl,
Hazardous Waste and Risky Activities of the National Institute of Ecology,
previous to the project operations startup, the information that justifies
the relocation of human settlements surrounding the project's influence
area, based on the risk analysis (Attach a map showing the location and
population density of the new settlements).
Also, a permanent monitoring of the physical properties of buildings
considered as national monuments, should be done, in order to warrant that
they will not be affected by the project's exploitation activities; if
not, it should look for another alternative or suspend activities.
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
89. Conduct blasting in mining operations exclusively during daylight
hours, based on the provisions of the Risk Study.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 45 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
90. Present to the General Office of Materials, Residues and Risk
Activities of the National Ecology Institute, prior to commencing
operations, the scheduled preventive maintenance program for the
contaminant processing and control equipment, emphasizing the safety
devices and firefighting system.
The maintenance work undertaken in accordance with the indicated
program must be entered in a logbook.
91. Before commencing project operations, install alarms to detect
hydrocyanic acid in the solution preparation area, based on the
provisions of the risk study presented.
The foregoing will also be taken into account for the sodium cyanide
storage area.
Regarding the foregoing, before commencement of operations the
information demonstrating compliance must be presented to the General
Office of Materials, Residues and Risk Activities of the National
Ecology Institute; also, the criteria used to locate the sensors and a
schematic showing distribution of the system must be attached.
92. Adequately delimit the storage and processing areas of the entire
plant; similarly, it will have signs and posters referring to the
danger of the materials being handled, in visible places and forms.
The areas where dangerous liquid materials are handled (storage and
processing) must be provided with a spill capture and recovery system.
Dangerous materials in the storage site must be properly labeled and
identified, respecting chemical incompatibilities that may exist
between them.
In addition, the firefighting system equipment will be appropriately
identified and located, in order to have easy access to it in case of
emergency.
Regarding the foregoing, information demonstrating compliance with the foregoing
provisions (including a photographic annex) must be presented to the General
Office of Materials, Residues and Risk Activities of the National Ecology
Institute prior to commencing operations.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 46 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
93. Install a low pH sound alarm system, located in strategic points where
sodium cyanide solution is used, for redundant prevention of the
possible formation of hydrocyanic acid.
94. Install a retaining dike for atmospheric tanks that store diesel, which
must be constructed of impermeable material, with a capacity of not
less than 1.1 times the volume of the largest tank, with a wall height
not greater than 1.5 meters and minimum separation between the wall of
the tank and the dike of one half the diameter of the tank; in
addition, it must have a recovery system for spills and the pumping
system must be located outside the retention area.
95. Have operating and safety manuals located in the various areas of the
project, which must be available at all times for consultation by the
corresponding personnel. These manuals must contain, among other
things, the information described below:
a) Safety data sheets for all hazardous materials used in the
project.
b) Explosives handling.
c) Startup of the plant.
d) Normal shutdown.
e) Emergency shutdown.
f) Startup after a shutdown of short duration.
g) Maintenance, including work permits, decontamination prior to
maintenance, etc.
h) Startup after maintenance.
i) Predictable abnormal situations, in case of failure of
auxiliary services.
j) Operating conditions during a shutdown.
96. In the handling of dangerous residues generated as a result of project
operations, as well as maintenance operations in the facilities, comply
with the corresponding provisions of the General Law of Ecological
Equilibrium and
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 47 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
Environmental Protection, its Regulations regarding Dangerous Residues,
as well as the applicable rules in effect regarding the matter.
97. When for any reason there are spills, leaks, discharges or flows of
dangerous materials during project operations, give immediate notice of
the events to the General Office of Materials, Residues and Risk
Activities of the National Ecology Institute, which notice must be
confirmed in writing within the three days following the day of
occurrence of the events, so that it will be in a position to order or,
if applicable, promote before the competent authorities the application
of appropriate safety measures, without prejudice to the measures
applied by other authorities.
98. Install, prior to commencing operations, monitoring wells at strategic
places in the leaching area, solution ponds and processing area, in
order to detect any possible contamination of the groundwater mantels
caused by project activities; for this purpose, there must be a logbook
recording the result of monitoring at those wells, as well as a
scheduled testing program. Annex the criteria used to fix their
location.
99. Prior to commencing project operations (if applicable), implement the
recommendations in the risk study presented, principally as regards the
following points:
a) Periodically undertake geological mapping of the banks to
prevent areas of structural weakness.
b) Install safety valves to stop the pumping of sodium cyanide
solution upon detecting increased flow and variations in the
control gauges.
c) Constant supervision throughout the impermeable areas.
100. Conduct safety audits, prior to startup and placement in service of the
project facilities, in order to review the conditions of the various
areas: processes, auxiliary services, storage, transportation, disposal
and treatment of residues; as well as safety systems and devices.
The aspects that must be considered are, among others:
a) Review of design and construction rules and specifications of
the equipment and facilities (passageways, access and
maneuvering routes, processing equipment, storage tanks,
pumping capacity, etc.).
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 48 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
b) The existence and application of procedures and programs to
guarantee the appropriate operation and maintenance of the
facilities (manuals with operating procedures for each area of
the project, shutdown, startup and emergencies, preventive
maintenance, etc.).
c) The implementation of systems for identification and
codification of equipment (identification of tubing, tanks,
transportation units, etc.).
d) The programs for verification or testing to certify the
overall quality and mechanical strength of equipment
(certification of accessories and connections, hydrostatic and
pneumatic tests, etc.).
e) Program for review of the various safety systems, as well as
the programs for calibrating instrumentation and control
components (firefighting system, safety valves, nozzles and
alarms, etc.).
f) Availability of equipment necessary for personal protection and
first aid.
g) Measures and systems for the disposal and/or treatment of waste
generated within the facilities.
h) Vulnerability of the area (irregular human settlements, housing
areas, protected natural areas, etc.).
It is appropriate to note that special emphasis must be placed on those
areas that are at greatest risk, in accordance with the results of the
study presented.
Based on the foregoing it must present, for consideration of the
General Office of Materials, Residues and Risk Activities of the
National Ecology Institute, the corresponding report and, if
applicable, information regarding performance and/or scheduling for
implementation of the recommendations arising therefrom. In addition,
the safety audits must the regularly performed once normal operations
of the project commence, considering the foregoing and presenting later
reports annually.
SEVENTH.- In order to ensure that, through the actions undertaken at the project
site, Minera San Xavier, S.A. de C.V. maintains harmony and good relationships
with society, it must take into account the following
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 49 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
RECOMMENDATIONS:
1. Assist in the structuring of the Scientific Technical Committee
mentioned in Condition 3, which will have the following composition and
functions:
a) The Committee will be comprised of Academics and technicians,
of broad and recognized moral reputation.
b) It will assist in the technical monitoring of the conditions,
resolutions and commitments to which this authorization is
subject.
c) It will analyze and issue its technical opinion regarding the
manner and terms in which the actions taken by the Promoter
satisfy its commitments.
d) It will have Regulations or another system governing its
operations and functioning, which will be determined by the
members themselves.
e) It will assist the Citizens Committee with the technical data
necessary for its information.
f) It will maintain objectivity and impartiality in all
situations, however complex this may be.
g) The committee will only assist in the observation of
compliance with agreements and state its position regarding
technical and environmental aspects of the project, for which
reason the financial and political options thereof are beyond
its purpose.
The rules for operations of the Committee will take into account the aspects
related to its operation, the most appropriate technical profile of the
participants, the form of participation, the working mechanisms, and the sources
of financing, as well as the use of electronic means for the exchange of
information, avoiding duplication of efforts with other departments.
It will consider having the participation of the authority and enterprise (legal
representative of the company and personnel of PROFEPA), in a manner that allows
timely suggestion and agreement on modifications, or even suspension of work, if
there is a risk to the ecological balance of the area, or in the event of
possible effect on plant specimens and animals under a protected regime.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 50 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
The Committee will define its activities within the framework of applicable
legislation, in accordance with the exercise of the powers given to it and
without prejudice to those of other authorities.
Specifically, when conducting the required validation studies, it will see to it
that the enterprise undertakes the studies and validates them in advance with
one or more bodies, whether they are certified laboratories or specialists in
the matter, as the case may be.
Opinions of this Committee will be given without prejudice to the provisions of
the General Law of Ecological Equilibrium and Environmental Protection and the
legislation applicable to the matter, the propriety of their application being
determined in exercise of the powers of inspection and oversight of this
Ministry.
2. Promote, in coordination with the State Government, a Citizens
Committee to monitor agreements and commitments, which may have the
following characteristics:
a) Be comprised of Citizens of proven morality and objectivity.
b) Maintain its objectivity in all situations, however complex
that may be.
c) Be prepared to give its opinion and request opinions from any
organization or person as may be appropriate.
d) Assist in the monitoring of the agreements and commitments of
the proponent.
3. Foster and develop productive activities for, among others, the social,
economic, cultural, historical, heritage and health benefit of the
inhabitants of the community of San Pedro and of San Luis Potosi, in
coordination with the municipal, state and federal governments.
4. Conduct all activities inherent in the project with absolute
transparency and under the strictest mechanisms of quality control,
coordinating with the corresponding governmental agencies.
5. Support the activities for restoration of the historical heritage of
the municipality of Cerro San Pedro, in coordination with the local
authorities and the National Institute of Anthropology and History.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 51 of 55
[emblem] NATIONAL ECOLOGY INSTITUTE
GENERAL OFFICE OF ECOLOGICAL
MINISTRY OF THE ENVIRONMENT, CODIFICATION AND ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT
D.O.O.DGOEIA.- 001130
6. Prior to the commencing its operations, undertake a status study that
determines the current status of health prevailing in the population
and communities near the project site, considering the possibility of
monitoring it through later studies, based on a protocol establishing
the following:
a. The area covered by the environmental and health status.
b. The parameters of the natural environment the status of which
is determined, considering those that may be affected by the
mining activities and possible contingencies.
c. The health parameters the status of which is determined for
the inhabitants of the project site in accordance with the
area defined for the studies, considering those physiological
factors that may be altered by reason of the mining
activities.
d. The estimated degree of contamination of soil, water and air.
Determining the values of current concentrations of
contaminants, for both surface and underground areas.
e. A sample of contaminants (heavy metals in general) in plants
and animals. Considering the area of the study, and those
parameters that may be affected by mining activities.
Because seeing to the well being of citizens is within the scope of authority of
the Ministry of Health and Social Security, it is recommended that the company
carry out these activities.
7. Within a maximum term of one year, present to this General Office for
its consideration a proposal of the values of maximum permissible
levels of arsenic, manganese, mercury, lead and ...
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 52 of 55
Cyanide in the air, water and soil, as well as the emissions from
established sources, by which it should adjust its operation.
For this it should refer to the current Official Mexican Norms, or to
other international Normativity that could be applied, detailing the
criteria used for the proposal elaboration, according to the kind of
project and particular conditions of the location.
The company will comply with the Official Mexican Norms that are
published during the project's active life.
8. Submit a proposal, that will facilitate the development of a reclamation
plan, establishing a location, with an area defined by the company with
the purpose of keeping it as protection, that will give confidence to the
integration of prevention, mitigation and compensation of biotic impacts
in the Arroyo de San Pedro basin where the project is located.
9. Carry out periodical environmental audits, carried out by an authorized
company. The results of those audits should be submitted to this General
Direction for information, and to the PROFEPA for its analysis, evaluation
and corresponding follow-up, according with whatever this organization
establishes.
EIGTH.- Any modifications to statements in the reference Information both in the
operations and the safety systems, capacity, or other, should be notified to the
General Direction of Materials, Hazardous Waste and Risky Activities of the
National Institute of Ecology, so that it will provide resolutions in its
competence area.
NINTH.- MINERA SAN XAVIER, S.A. DE C.V., should comply with the Federal Law for
Monuments and Archeological, Artistic and Historical Zones, as well as the
General Law of National Goods, with the objective of preserving the historical
wealth existing in the zone, and therefore, previous to any activity will have
to have the corresponding authorization, given by the corresponding authority,
respecting at all times, the conditions established by the corresponding
resolution.
TENTH.- MINERA SAN XAVIER, S.A. DE C.V. should develop and submit to this
General Direction within a period of six month from this document reception,
copy of the preservation and monitoring program for the historical monuments
described by the environmental impact statement.
ELEVENTH.- MINERA SAN XAVIER, S A DE C.V. should develop and submit to this
General Direction, for those terms and conditions that require it and, in an
annual format, a report of compliance. The reports should be supplemented by
photographic and/or video attachments.
The reports should be submitted to this General Direction and to the Federal
Attorney for Environmental Protection, sending copies to the SEMARNAP and
PROFEPA corresponding delegations.
TWELVETH.- MINERA SAN XAVIER, S.A. DE C.V. should communicate in writting to the
Federal Attorney for Environmental Protection, sending corresponding copies to
this General Direction of Ecological Ordinance and Environmental Impact, and to
the SEMARNAP and PROFEPA delegations at the San Luis Potosi state, the startup
date of authorized works, within the following fifteen days from the startup. In
the same way, it will communicate the termination day of such works within the
following fifteen days this happens.
THIRTEENTH.- The authorization issued to Minera San Xavier, S.A. de C.V., is
personal. In case of pretending to transfer the rights and obligations contained
in this document, it will submit a request in writting to this authority, which
will determine its validity, end, if proper, will authorize the transference.
FOURTEENTH.- All the acts that are carried out contrary to the especifications
of this authorization will be void.
FIFTEENTH.- Minera San Xavier, S.A. de C.V., will be the only responsible of
carrying out the necessary works and permits to mitigate, restore, and control
all of the adverse environmental impacts related with to the development and
operation of the authorized works, that haven't been considered in the
Environmental impact Statement, in its general mode and the other reference
documentation.
For this reason, the Promoter will be the responsible before the Federal
Attorney of Environmental Protection in case of any wrongdoing in Environmental
Impact matters, that the company or its personnel could commit; the mentioned
above will obey strictly the terms and conditions mandatory under the present
resolution.
If the works, during its different stages, cause damages that alter the
ecological balance, it can be demanded its suspension and the installation of
the mitigation and/or compensation programs.
SIXTEENTH.- The Ministry for Environment, Natural Resources and Fisheries will
be able to evaluate one more time the Environmental Impact Statement, in its
general mode, and the reference documentation, or request additional
information, if it considers it necessary, in the terms stated by the Article 23
of the corresponding regulation, with the purpose of revalidating the
authorization given here, modify it, suspend or revoke it, if the ecological
balance were in danger or unsuspected damages to the environment happened.
SEVENTEENTH.- The Promoter will keep at the project location, the corresponding
copies of the Environmental Impact Statement, in its general mode, the Risk
Analysis in its Detailed Risk Analysis mode, the Technical Justification Study,
Additional Information and the working maps, as well as the present
authorization, with the purpose of showing them to the corresponding authority
that might request it.
For the authorization of further works within the Cerro San Pedro municipality,
the Promoter will have to give reference to this resolution with the purpose of
considering the "sinergy" impacts that could be created.
EIGHTEENTH.- The violation to any of the resolution terms and/or the project
modification from the conditions expressed in the documentation submitted, could
invalidate the present authorization, without affecting the application of the
penalty, as proposed by the General Law or Ecological Balance and Environmental
Protection, and other regulations that apply.
NINETEENTH.- The Environmental, Natural Resources and Fishing Ministry, through
the Federal Attorney of Environmental Protection, will surveill the compliance
of the terms established by the present instrument, as well as the proper
ordinances on Environmental Impact matters. For this it will exert, among
others, the abilities given by Article 20 of the General Law of Ecological
Balance and Environmental Protection regulation, on Environmental Impact
matters.
Hoping that all of the actions stated here in benefit of the environment, are
complied with, receive my regards.
RESPECTFULLY
"SUFRAGIO EFECTIVO, NO REELECCION"
DIRECTOR GENERAL
PEDRO ALVAREZ ICAZA LONGORIA
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
Mexico, D.F. on SEPTEMBER 3, 2001
ENG. WILLIAM COPELAND DODGE VELASCO
GENERAL MANAGER AND ATTORNEY-IN-FACT OF
MINERA SAN XAVIER, S.A. DE C.V.
JOAQUIN PARDAVE No. 492
FRACCIONAMIENTO TANGAMANGA,
SAN LUIS POTOSI, C.P. 78280, S.L.P.
TEL. (48) 11-89-16; FAX: (48) 11-33-82
This document is issued by reference to official communication
D.O.O.DGOEIA.-01130 of February 26, 1999, by means of which the then General
Office of Ecological Classification and Environmental Impact, now the General
Office of Environmental Impact and Risk, resolved to conditionally authorize, in
terms of environmental impact and risk, the "CERRO SAN PEDRO" project, promoted
by MINERA SAN XAVIER, S.A. DE C.V., located in the Municipality of San Pedro,
State of San Luis Potosi, and
WHEREAS:
1. On April 26, 2001, the then General Office of Ecological Classification
and Environmental Impact received an unnumbered communication dated the
25th of the same month and year, through which MINERA SAN XAVIER, S.A.
DE C.V. asked to modify the "CERRO SAN PEDRO" project. The requested
modifications were:
a) A change in the mineral conveyor belt route, with an option of
using 172-ton transport trucks on the same route.
b) Relocation and modification of the leaching piles.
c) Location of maintenance shops.
d) Relocation of pulverizers.
e) Two sterile material piles instead of one.
2. On July 6, 2001, there was a technical meeting at the facilities of
this General Office, to clarify various inaccuracies regarding the
requested modifications, and the information presented by the company.
Participating in the meeting were Eng. Luis Felipe Medina Aguirre,
representing MINERA SAN XAVIER, S.A. DE C.V.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 1 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
and officials from the Environmental Impact Office, it being agreed
that the company would clarify in writing aspects related to:
a) The change of the conveyor belt route and the parallel road
for the transport of minerals in trucks, indicating dust
management and the areas that would be occupied.
b) Intersection of the highway and the haulage road.
c) Modification of administrative offices.
d) Proposal of a guarantee of restoration of the area occupied by
the administrative offices.
e) List of doubts delivered by the Environmental Impact Office
during the meeting.
3. On July 19, 2001, this Office received an unnumbered communication of
the 13th of the same month and year, by which MINERA SAN XAVIER, S.A.
DE C.V. presented, in writing, the clarifications discussed in the July
6, 2001, meeting.
and,
IT RESULTING:
I. That as a consequence of the proposed modifications, other changes
arise that are a part of the general adaptation, authorization for
which was requested in the unnumbered communication of July 13, 2001,
from MINERA SAN XAVIER, S.A. DE C.V., consisting of:
------------------------------------------------------------------------------------------------------------
ITEM ORIGINAL MODIFICATION
------------------------------------------------------------------------------------------------------------
Leaching areas 98.44 hectares 88.45 hectares
------------------------------------------------------------------------------------------------------------
Recovery plant 3.50 hectares 0.18 hectares
------------------------------------------------------------------------------------------------------------
Cut 67.58 hectares 63 hectares
------------------------------------------------------------------------------------------------------------
Internal roads, surface water diversion Not contemplated 29.39 hectares
channel, parking, etc.
------------------------------------------------------------------------------------------------------------
Location of administrative offices Next to the leaching areas Next to the recovery plant
------------------------------------------------------------------------------------------------------------
Membranes to make the leaching piles and LDPE (Low-density HDPE (High-density
areas impermeable polyethylene polyethylene)
------------------------------------------------------------------------------------------------------------
Breaking plant (3.53 hectares) On a site used only for Located in "terrero" 2,
the plant. optimizing land use.
------------------------------------------------------------------------------------------------------------
[handwritten after final row: no breaker]
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 2 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
II. That the original route of the conveyor belt followed the curving
course of the old railroad tracks, currently in ruins, with a length of
2 km and an area of 0.75 hectares, also affecting a large part of the
10.58 hectares of 12 meter-wide access roads.
The alternative route consists of two consecutive straight segments,
the total length of which would be 1690 m, 40 m wide, covering a
surface of 6.76 hectares. Of the 40 m of width, 10 m would be occupied
by the conveyor belt and the rest by a road for maintenance and repair
of the belt, and for optional transport in trucks. It also would affect
9.5 hectares for cuts and maneuvers during construction, for a total of
16.26 hectares.
III. That the company justified its requests regarding modification of the
conveyor belt and the transport of mineral in trucks, on the following:
1. The original proposal makes it more difficult to establish a
parallel road to allow maintenance and repair activities on
the conveyor belt, and to leave open the option of
transporting stony material in trucks. On the contrary, the
alternative route facilitates the creation of this road.
2. The straight design of the new proposal facilitates
maintenance and operation of the conveyor belt, which would be
complicated by the original curving path. It also facilitates
the intersections with the public road and the stream.
3. The new route will not affect the ruins of the past century.
4. The current prices of gold would not make it viable to
pulverize all of the mineral, because the extra recovery of
metal that would be obtained would be less than the additional
cost of pulverization. Because the conveyor belt cannot
transfer very large rocks, it is essential to the company to
be able to transport these materials in trucks to the leaching
areas.
5. The calculations of dust emissions demonstrate that the
transfer of uncrushed material in trucks moving on moist
surfaces will produce less dust suspension than crushed
material transported by belts.
6. The channel of the San Pedro stream will be respected by
construction of a bridge with masonry walls and a reinforced
concrete slab.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 3 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
IV. That in the July 6, 2001, meeting, it was mentioned that MINERA SAN
XAVIER, S.A. DE C.V. had contemplated constructing an underpass at the
intersection of the haulage road with the Cerro San Pedro-San Luis
Potosi highway, to avoid interference with traffic on the highway.
Nevertheless, in the documentation received on June 19, 2001, the
company did not refer to this work and stated that it contemplated the
following:
1. Traffic using the Cerro de San Pedro road would have
preference. [handwriting: intersection]
2. Installing appropriate signals/signs.
3. Having personnel to assist the transport trucks and the
traffic on the road to Cerro de San Pedro.
4. The transport of minerals to the leaching areas will only
occur 6 days per week.
5. All safety measures necessary for the correct functioning of
this intersection will be taken into account.
V. That the transport of stony material in "off-road" trucks would
increase disturbances to residents of the area, especially if the
transport crossed the road that connects the town of Cerro de San Pedro
and the City of San Luis Potosi at kilometer 1.9.
VI. That the constant demonstrations of people opposing development of the
project involve concerns about affects to the quality of life of
residents.
VII. That the project originally contemplated the installation of four
leaching piles, which were to be located at a site adjacent to the
access road to the town of Cerro San Pedro, occupying an area of 1
hectare. In addition, the original site is at a higher altitude than
that of the leaching areas.
The proposed alternative contemplates only two piles, one for high
concentration and the other for overflow, occupying a combined area of
4.33 hectares, dispensing with the low and intermediate concentration
piles which will be replaced by a 2000 m3 tank, decreasing the area
exposed to evaporation. On the other hand, the new location of the
leaching piles is not adjacent to the access road and is at a point
lower than the natural terrain, which does not make it more susceptible
to capturing rain run-off, because the site is protected by a diversion
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 4 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
channel for rain run-off, and the leaching perimeter is designed to
contain the worst precipitation event registered in the last 100 years.
VIII. That item b) of Condition 39 of official communication
D.O.O.DGOEIA.-01130 of February 26, 1999, provides that within a
maximum term of six months counted from the date of receipt of the
resolution, the company must present A modification of the design of
the high and low concentration piles, so that it will be possible to
include them in the area made impermeable by the high-density
polyethylene layer in the leaching area, and thereby diminish both the
risk of leaks, and the risk of accidents from the fall of wild animals
or workers into the cyanide solutions.
IX. That the company justified its request for modification of the design
and location of the piles based on the following:
1. Decreasing the number of piles facilitates protection of wild
animals and the establishment of strict safety measures, which
would bring it into compliance with item b) of condition 39.
2. High and low density membranes are appropriate for the
project, but the company is more familiar with the former.
3. The new site avoids considerable movement of materials, which
will allow it to achieve the necessary differentiation of the
levels of the leaching areas and piles.
4. Moving the piles away from the access road to the town
decreases the risk of accidents and, in general, the concerns
of the residents.
5. The decrease of the number of piles does not imply risks of
leaks or spills from overflows, because they are of greater
capacity, without implying an increase in production levels.
X. That the authorization in official communication D.O.O.DGOEIA.-01130 of
February 26, 1999, does not contemplate the installation of a
maintenance shop, but Condition 18 of the official decision provides
that the company must "Undertake maintenance and/or repair of the
machinery and equipment, within an area defined as a shop, with an
impermeable surface, equipped for the recovery of used grease and
lubricants. Residues produced in this area must be stored in properly
labeled drums, which will be delivered for handling and final
disposition to duly authorized companies".
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 5 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
XI. That in order to comply with condition 18, MINERA SAN XAVIER, S.A. DE
C.V. intends to install a shop with an area of 0.271 hectares,
including the 0.11 hectares destined to storage, on a site located near
the recovery plant and the administrative offices. The surface area of
the shop will be impermeable and equipped for recovery of grease, fuel
and lubricants.
XII. That the creation of a single pile was originally contemplated, which
would occupy 178 hectares, and MINERA SAN XAVIER, S.A. DE C.V. stated
that the creation of two piles in place of one would facilitate
connection with the new route of the conveyor belt, would decrease the
distances for transporting sterile material, and would result in the
area affected being reduced to 143.51 hectares.
XIII. That the site originally planned for the pulverizers is within the new
route of the conveyor belt, for which reason a new site is proposed,
maintaining the original characteristics, but reducing the area
involved from 0.68 hectares to 0.56 hectares.
XIV. That MINERA SAN XAVIER, S.A. DE C.V. believes that it is of the highest
importance to it that the offices be located near the recovery plant,
to offer services such as water, electricity, drainage and security.
The offices will consist of a 200 m2 building, calculating the
restoration cost for that area at $1,724.23 dollars, which includes
restoration of the access road.
Based on the foregoing, and on Article 8 of the Political Constitution of the
Mexican United States, Article 25 fraction III of the Internal Regulations of
SEMARNAT, Article 16 fraction X of the Federal Administrative Procedure Law,
Article 30 third paragraph of the General Law of Ecological Equilibrium and
Environmental Protection, and Article 28 of the Regulations of the General Law
of Ecological Equilibrium and Environmental Protection, regarding Environmental
Impact Evaluation, this General Office within the Scope of official
communication D.O.O.DGOEIA.-01130 of February 26, 1999,
RESOLVES:
FIRST.- To acknowledge as having been attended to, the unnumbered document of
April 25, 2001, sent to the then General Office of Ecological Classification and
Environmental Impact by MINERA SAN XAVIER, S.A. DE C.V., described in Whereas
Clause I of this official communication, to have been attended to.
SECOND.- To authorize the modifications described in Whereas Clause I of this
official communication, except that the road parallel to the conveyor belt will
have a width of 11 meters, for purposes of maintenance. This General Office may
authorize expansion of
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 6 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
this road to 40 meters, when the company provides the information to evaluate
the environmental impact that would result, it being necessary to present:
1. A description of measures for protection of components of plant life
that may be affected by development of the road, and the related
animals.
2. The design of the work proposed to ensure that the "off-road" 172-ton
capacity trucks do not affect the Cerro San Pedro-San Luis Potosi
highway, so as to prevent possible effect on the environment.
3. A copy of the approval issued by the Honorable Constitutional City
Council of Cerro San Pedro and of the Ministry of Communications and
Transport, regarding this work and the crossing of the road by the
aforementioned trucks.
4. The design of the bridge work by which the "off-road" trucks will cross
the San Pedro stream, with the preventive measures necessary to avoid
deterioration of the banks of the streambed.
THIRD.- To indicate that the authorization of the cited modifications will be
effective provided that, when implementing them, MINERA SAN XAVIER, S.A. DE C.V.
is subject to the Terms and Conditions established in official communication
D.O.O.DGOEIA.-01130 of February 26, 1999, as well as the following:
1. To apply measures so that suspended particle emissions produced by
pulverization, the operation of the conveyor belt and the transport of
stony material to the leaching areas, do not affect the environment, or
the inhabitants of Cerro San Pedro, through sprinkling of the materials
and transportation surfaces, using biodegradable additives that allow
greater efficiency in the use of the liquid.
2. To use specimens of Equinocactus plantyacanthus found in the area of
the new route of the conveyor belt in the recovery and relocation
operations established in Conditions 4 and 5 of official decision
number D.O.O.DGOEIA.-01130 of February 26, 1999.
3. To incorporate the modifications authorized in this official
communication in the guarantees or insurance established in Condition 1
of official communication D.O.O.DGOEIA.-01130 of February 26, 1999, in
order to guarantee proper performance of the conditions and restoration
of the project area, and to attend to contingencies.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 7 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
FOURTH.- To notify MINERA SAN XAVIER, S.A. DE C.V. of this Resolution by any of
the legal means contemplated in Article 35 and related and applicable provisions
of the Federal Administrative Procedure Law.
FIFTH.- Notify this to the Office of the Federal Prosecutor for Environmental
Protection.
Awaiting full performance of the actions contemplated for the project in
question, for the benefit of the environment, please accept my cordial
greetings.
SINCERELY
EFFECTIVE SUFFRAGE, NO REELECTION
THE GENERAL MANAGER
[illegible signature]
J. RICARDO JUAREZ PALACIOS
cc: BIOLOGIST RAUL E. ARRIAGA BECERRA.- Undersecretary of Management for
Environmental Protection, SEMARNAT.-Hand delivery.
cc: ATTORNEY JOSE IGNACIO CAMPILLO GARCIA.- Federal Prosecutor for
Environmental Protection.- Periferico Sur No. 5000, 5th Floor, Col.
Insurgentes Cuicuilco, C.P. 04530, Mexico, D.F.- For his information.-
Hand delivery.
cc: ENGINEER JOSE LUIS LEYVA ASTUDILLO.- Federal Delegate of SEMARNAT in
San Luis Potosi.- Av. Industrias and Eje Zona Industrial, C.P. 78090,
San Luis Potosi.
cc: ENGINEER JOSE LUIS MEDINA GARCIA.- Federal Delegate of PROFEPA in San
Luis Potosi.- Av. Industrias and Eje 106 Zona Industrial, C.P. 78090,
San Luis Potosi.
cc: HONORABLE OFFICE OF THE MUNICIPAL CHAIRMAN OF CERRO SAN PEDRO, SAN LUIS
POTOSI.- Known domicile.
cc: Master of Sciences MARGARITA CASO CHAVEZ.- Director of Environmental
Impact.- Hand delivery.
cc: Chronological file of the General Office of Environmental Impact and
Risk.
cc: Key Files: 1165VUS2001, DIA/380/2001 and DGIRA/0101431.
cc: ATTORNEY ENRIQUE PROVENCIO DURAZO.- Chairman of the National Ecology
Institute.- Hand delivery.
cc: MASTER ANTONIO AZUELA DE LA CUEVA.- Federal Prosecutor for
Environmental Protection.- Periferico Sur No. 5000, 5th Floor, Col.
Insurgentes Cuicuilco, Coyoacan, C.P. 04330, D.F.
cc: ENGINEER DAVID ATISHA CASTILLO.- Secretary of Ecology and Environmental
Management of the Government of the State of San Luis Potosi.-
Government Palace.- Known Domicile.
cc: ATTORNEY VICTOR RAMIREZ NAVARRO.- Assistant Prosecutor for Natural
Resources of PROFEPA.- Periferico Sur No. 5000, 5th Floor, Col.
Insurgentes Cuicuilco, Coyoacan, C.P. 04330, D.F.
cc: DOCTOR CRISTINA CORTINAS DE NAVA.- General Director of Materials,
Residues and Risk Activities.- In response to her Attentive Note SRA.-
630/96.- Hand delivery.
cc: ATTORNEY JOSE LUIS LEYVA ASTUDILLO.- Delegate of SEMARNAP in San Luis
Potosi.- Perfecto [Illegible] 101, Fraccionamiento Tangamanga, San Luis
Potosi, S.L.P.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 8 of 9
[emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT, GENERAL OFFICE OF ENVIRONMENTAL
NATURAL RESOURCES AND FISHING IMPACT AND RISK
S.G.P.A.DGIRA.- 003310
cc: ENGINEER JOSE LUIS MEDINA GARCIA.- Delegate of PROFEPA in San Luis
Potosi.- Av. Industrias 11, San Luis Potosi, S.L.P.
cc: ATTORNEY ALFREDO DOMINGUEZ DOMINGUEZ.- Head of the Legal Affairs Unit
of the National Ecology Institute.- Hand delivery.- In response to
Memorandum D.O.O.UAJ.203.- 055/99 of February 3, 1999.
cc: BIOLOGIST LIGIA BUTRON MADRIGAL.- Director of Environmental Impact.-
Hand delivery.
cc: HONORABLE OFFICE OF THE MUNICIPAL CHAIRMAN OF CERRO SAN PEDRO, SAN LUIS
POTOSI.- Known domicile.
cc: Chronological file.
cc: Files: 97M0074, 98VUV4333, 99VUV0042, 99VUV0189 and 99VUV285.
cc: File for public consultation. National Ecology Institute document
center. Archive: C:\MARTIN\SANXAVIER\RESOLSNXAV
[Illegible initials and signatures]
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 9 of 9
[Emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT GENERAL OFFICE OF ENVIRONMENTAL
AND NATURAL RESOURCES IMPACT AND RISK
S.G.P.A.DGIRA.- 000877
Mexico, D.F. on APRIL 2, 2002
ENG. WILLIAM COPELAND DODGE VELASCO
GENERAL MANAGER AND ATTORNEY-IN-FACT OF
MINERA SAN XAVIER, S.A. DE C.V.
JOAQUIN PARDAVE No. 492
FRACCIONAMIENTO TANGAMANGA,
SAN LUIS POTOSI, C.P. 78280, S.L.P.
TEL. 01 (444) 811-89-16; FAX: 811-33-82
This document is issued by reference to official communication
D.O.O.DGOEIA.-01130 of February 26, 1999, by means of which the then General
Office of Ecological Classification and Environmental Impact, now the General
Office of Environmental Impact and Risk, resolved to conditionally authorize, in
terms of environmental impact and risk, the "Cerro San Pedro" project, promoted
by Minera San Xavier, S.A. de C.V., located in the Municipality of San Pedro,
State of San Luis Potosi, and
W H E R E A S :
I. On April 26, 2001, the then General Office of Ecological Classification
and Environmental Impact received an unnumbered communication dated the
25th of the same month and year, through which Minera San Xavier, S.A.
de C.V. requested authorization to modify the "Cerro San Pedro"
project, the modifications including a change in the route of the
mineral transport belt and the construction of a 40 meter wide road
parallel to the new route for optional transport of materials in 172
ton trucks.
II. On September 3, 2001, by means of official communication
S.G.P.A.DGIRA.-03310, this General Office of Environmental Impact and
Risk granted authorization to Minera San Xavier, S.A. de C.V. to make
the intended modifications in the "Cerro San Pedro" project,
restricting the width of the indicated road to 11 meters, because
information was lacking to evaluate the environmental impact that would
be caused by "off track" trucks continually crossing the Cerro San
Pedro-San Luis Potosi highway.
III. In the Second Resolution in official communication S.G.P.A.DGIRA.-03310
of September 3, 2001, this General Office indicated to Minera San
Xavier, S.A. de C.V. that it should present additional information to
evaluate the increase of the
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 1 of 5
[Emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT GENERAL OFFICE OF ENVIRONMENTAL
AND NATURAL RESOURCES IMPACT AND RISK
S.G.P.A.DGIRA.- 000877
width of the road referred to in the preceding whereas clause from 11
to 40 meters.
IV. On October 25, 2001, this General Office of Environmental Impact and
Risk received the unnumbered communication of the 3rd of the same month
and year, by means of which Minera San Xavier, S.A. de C.V. requested
the increase of the width of the road parallel to the transport belt,
presenting the information required therefore.
I T R E S U L T I N G :
I. That this General Office of Environmental Impact and Risk, in response
to the requests presented, again reviewed the file corresponding to the
"Cerro San Pedro" project, for the purpose of resolving as appropriate,
finding that:
a) The total length of the road is 1690 meters and the width
would be 40 meters, covering an area of 6.76 hectares. In
addition, it would imply affecting 9.5 hectares for cuts and
maneuvers during construction, giving a total of 16.26
hectares.
b) The company justified and supported the request to expand the
road parallel to the transport belt based on the need to carry
uncrushed rock in trucks to the leaching areas.
c) Calculations of dust emissions, presented by the company on
July 19, 2001, by means of an unnumbered communication, showed
that the transfer of the uncrushed material in trucks
traveling over moist surfaces would generate less suspended
dust in the environment than would crushed material
transported on belts.
d) The channel of the San Pedro stream will be respected, by
construction of a bridge with masonry walls and a reinforced
concrete slab.
e) The intersection of the haulage road with the Cerro San
Pedro-San Luis Potosi highway will have an underpass to avoid
interference with traffic on the highway.
f) The banks of the road will be constructed of rocky material
with a slope of 1.5:1 to assure stability.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 2 of 5
[Emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT GENERAL OFFICE OF ENVIRONMENTAL
AND NATURAL RESOURCES IMPACT AND RISK
S.G.P.A.DGIRA.- 000877
g) Cuts in solid rock will have slopes of at least 0.5:1 to
ensure stability.
h) Rainwater drainage will be controlled with berms and gutters
on one side of the road, preventing erosion damage.
II. That the Honorable City Council of San Pedro granted the Construction
License to Minera San Xavier, S.A. de C.V. to make the underpass at the
intersection of the haulage road with the Cerro San Pedro - San Luis
Potosi highway, which indicates that the Municipality has no problem
with that work.
Based on the foregoing, and as a result of evaluation of the request, and based
on Article 8 of the Political Constitution of the Mexican United States, Article
32 bis fractions II and XI of the Organic Law of Federal Public Administration,
Articles 2 fraction XIX, 17 fraction XXIII, and 25 fractions I and III of the
Internal Regulations of the Ministry of the Environment and Natural Resources,
and Article 16 fraction X of the Federal Administrative Procedure Law, and
Article 28 of the Regulations of the General Law of Ecological Equilibrium and
Environmental Protection, regarding Environmental Impact Evaluation, this
General Office of Environmental Impact and Risk, within the scope of official
communication D.O.O.DGOEIA.-01130 of February 26, 1999.
R E S O L V E S :
FIRST.- To acknowledge as having been attended to the request in the unnumbered
writing of October 3, 2001, sent to this General Office of Environmental Impact
and Risk by Minera San Xavier, S.A. de C.V., described in Whereas Clause IV of
this official communication.
SECOND.- To authorize the expansion from 11 to 40 meters of the road parallel to
the transport belt and the transport of materials in 172 ton capacity trucks,
provided that in doing so Minera San Xavier, S.A. de C.V. is subject to the
Terms and Conditions established in official communication D.O.O.DGOEIA.-01130
of February 26, 1999, as well as the following:
1. To keep the surface of the material haulage road authorized in this
official communication moist.
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 3 of 5
[Emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT GENERAL OFFICE OF ENVIRONMENTAL
AND NATURAL RESOURCES IMPACT AND RISK
S.G.P.A.DGIRA.- 000877
2. It must monitor and apply preventive maintenance to the work related to
the underpass that will be located at the intersection of the haulage
road with the Cerro San Pedro-San Luis Potosi highway and the bridge
over the San Pedro Stream, in order to guarantee that there is no
negative environmental impact on surrounding vegetation resulting from
landslides, collapses or accidents.
3. To perform the recovery and relocation activities established by
Conditions 4 and 5 of official decision D.O.O.DGOEIA.-01130 of February
26, 1999, as stated in its unnumbered communication of October 3, 2001,
for the area that will be occupied by the expansion of the road and the
authorized underpass work, for which reason qualified personnel of the
company must:
a) Recover all specimens of Mammiliaria candida ("viejito
blanco") and Echinocactus platyacanthus ("biznaga de lana")
included in NOM-059-ECOL-1994, as well as those individual
plants that by reason of their size and diameter can be
recovered.
b) For the specimens to be recovered, determine the orientation
to the sun, as well as their relationship to other plants,
respecting those conditions when transplanting (principally
cactus).
c) Dig to the necessary depth, to avoid damaging the roots of the
plant to be recovered.
d) In the case of animals, recover those that have underground
burrows in the areas to be affected, and by reason of their
characteristics of slow movement or physiological requirements
cannot relocate by themselves, including individuals in
species included in NOM-059-ECOL-1994, such as Buteo
jamaicencis (red-tailed hawk), Gopherus xerobastes berlandieri
(desert tortoise), Masticophis flagellum (coachwhip snake),
Pitouphis deppei ("Mexican pine snake"), and Crotalus
scotulatus (Mojave rattlesnake).
e) Locate the burrows, visibly marking their location.
f) Supervise the removal, to be accomplished unidirectionally and
gradually, allowing the departure of the animals and their
readjustment in bordering sites.
g) At the end of the recovery and relocation, the company must
prepare a report of what plants and animals were subject to
the aforementioned
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 4 of 5
[Emblem] SUBMINISTRY FOR MANAGEMENT OF
ENVIRONMENTAL PROTECTION
MINISTRY OF THE ENVIRONMENT GENERAL OFFICE OF ENVIRONMENTAL
AND NATURAL RESOURCES IMPACT AND RISK
S.G.P.A.DGIRA.- 000877
activities, indicating the number of specimens of each
species, and the horizontal location of the origin and
relocation sites.
h) Monitor the survival of the removed plant specimens, and if
there is less than 80% in a period of two years, the company
must reintroduce specimens of the same species, at least 5
years old, guaranteeing their survival during the first two
years after planting, respecting the requirements of each
species regarding orientation to the sun, and relationship to
other species. The specimens necessary for the reintroduction
must be acquired from existing nurseries or, in their absence,
from production in a nursery established by the company.
THIRD.- To exhort Minera San Xavier, S.A. de C.V. to faithfully comply with the
Terms and Conditions established in official communication D.O.O.DGOEIA.-01130
of February 26, 1999, which authorized, in terms of environmental impact,
implementation of the "Cerro San Pedro" project, located in the municipality of
[illegible] in the state of Sonora.
FOURTH.- To notify Minera San Xavier, S.A. de C.V. of this Resolution by any of
the legal means contemplated in Article 35 and related and applicable provisions
of the Federal Administrative Procedure Law.
Awaiting full performance of the actions contemplated for the project in
question, for the benefit of the environment, please accept my cordial
greetings.
SINCERELY
EFFECTIVE SUFFRAGE, NO REELECTION
THE GENERAL MANAGER
[illegible signature]
J. RICARDO JUAREZ PALACIOS
ccs on the reverse...
"Cerro San Pedro"
Minera San Xavier, S.A. de C.V.
Page 5 of 5
