Project Completion Report

Project Summary Client: WorleyParsons / FMG Contract No.:510P PU-PC-0059 PROJECT DELIVERABLESTARGETACTUAL SafetyNil LTINIL ScopeFabricate and supply two dust collection and disposal systems including associated tippler cell plate work As per target SchedulePC 28/10/2011PC 24/02/2012 Budget$9,869,999$11,191,043 Margin$2,241,014 (22.7%)$4,138,308 (36.9%) Quality (NCR)01 Customer Satisfaction Score80% or above>80%

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

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

Project Overview

Design

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

Fabrication – In House Baghouse Lower wall seals Lower ring seals Upper ring seals Fan access platform Top SectionMid Section

Fabrication – In House Lower Wall Seal HoppersLower ring seal Upper Ring Seal

Fabrication – In House Fan Access Platforms

Fabrication – Sub Contractor Shedder panelsArch Engineering Push air wallsArch Engineering Slurry hoppersArch Engineering Batch hopper & chutesArch Engineering Hood wallPhillips Engineering Trunnion wallPhillips Engineering Dirty & clean air ductSabre Ventilation & pressurisation ductUnique Metals FansTurbo Air PumpsMining & Hydraulic CompressorsSullAir Australia ConveyorsSanwest Rotary & slide valvesAnsac Structural steelFremantle Steel Surface treatmentFerogalv Cape Novacoat DRA

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

Fabrication – Sub Contractor Slurry Hopper - Arch Batch Hoppers - ArchChutes - Arch

Fabrication – Sub Contractor Dirty Air Duct - Sabre Trunnion Wall - PhillipsHood Wall - Phillips Clean Air Stack - Sabre

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

Fabrication – Sub Contractor Conveyors - SanWest Pump – MHSCompressor - SullAir Rotary/Slide Valves - Ansac

Project Pictures – Commissioning Pre-Assembled Plate Work Trunnion LevelTippler Cell

Project Pictures – Commissioning Installed Wall & Lower Ring Seals Ground Level OverviewInstall of Tippler Cell

Project Pictures – Commissioning Upper Level Construction

Project Pictures – Commissioning TU602 System

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

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

Project Summary Schedule

Project Summary Schedule

Project Summary Schedule

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

Project Summary Budget and Margin

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

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

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

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

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

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

Project Summary Communications Comments Internal Sub contractor Client Site

Project Summary Client Satisfaction

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

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