Newmont TS Solid-Fuel Power Plant - EPC

Newmont Mining contracted with Fluor for engineering, procurement, construction and commissioning of a new 242-megawatt coal-fired power plant in northeastern Nevada. Because Fluor delivered the project five weeks before the contract deadline, Newmont was able to produce reliable power, realize power cost savings at its Nevada mines, and generate power revenue earlier than anticipated.

Project Management Institute (PMI) awarded Fluor "2009 Project of the Year Award" for work performed on the Newmont project. The PMI award is the organization's highest honor and was supported by Newmont's project manager.

POWER Magazine named the Newmont power project a "Top Plant" in 2009 for its many innovations and state-of-the-art technologies.

The TS Power Plant project received Fluor's Hugh Coble Project Excellence Award in 2008. The award is based on outstanding performance in several areas; including safety, value creation, and Client and community relations.

Client's Challenge

Rising energy costs represent approximately a quarter of the cost of gold production at Newmont's various Nevada mine sites. Following a series of power options studies, Newmont selected a PRB coal-fired plant and Fluor as a strategic partner for the EPC (engineering, procurement, and construction) contract.

Several challenges were apparent, such as a lack of available housing, limited supply of craft resources, cold weather impacts, and high transportation costs. Local employment levels at the surrounding mines were high, reducing the availability of local labor.

Newmont also required the completion of several infrastructure additions. This included a new rail loop to accommodate the incoming Powder River Basin Coal deliveries, a five-mile transmission line, and a two-mile raw-water HDPE pipeline.

Fluor's Solution

Fluor performed EPC services at the plant site in Dunphy, Nevada. The project consisted of a 242-megawatt (gross) coal-fired boiler, steam turbine generator, dry scrubber, baghouse, selective catalytic reduction system, carbon injection systems, cooling tower, and 100-acre evaporation pond.

Fluor's scope of work included implementing world-class design features such as a leading edge DCS system and advanced-cycle design steam temperatures. Fluor mitigated challenges by driving a culture of proactive and continuous risk assessment. This approach enabled the team to continually identify and mitigate various risks throughout execution.

Consequently, the project achieved 4.4 million safe work hours.

Nevada's Safety Consultation and Training Section (SCATS) awarded the prestigious Safe Partner Award to Fluor for the TS project in 2007.

Fluor achieved substantial completion of the project five weeks ahead of Newmont Mining's contract deadline. Moreover, the project completed successful performance tests in April, enabling Newmont to declare commercial operation of the plant on May 1, 2008.

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Conclusion

Fluor's early delivery of the TS Power Plant enabled Newmont Mining to begin power production and revenue generation earlier than anticipated.

Despite cold winters, sparse housing, and a workforce shortage, Fluor managed to deliver the project to a valued Client ahead of schedule and with a government-lauded safety record. Newmont Mining was also impressed with Fluor's commitment to project quality and safety. Newmont's project manager acknowledged Fluor's performance as “a shining example of dedication in achieving Client satisfaction.” Newmont subsequently presented Fluor with a recognition and appreciation award for outstanding performance.