Global Mining Projects

Location Arizona and Latin America

Client Freeport-McMoran Mining Company

Services Project Management, Project Monitoring

Project Value N/A

Hill provided project controls, cost estimating, consulting, staffing, and analysis services for various copper and gold mining projects across Freeport-McMoRan’s portfolio. A major project Hill supported was the Morenci porphyry copper open pit mine and processing facility located at Morenci in Greenlee County, southeast Arizona. Morenci is one of North America’s largest producers of copper and one of the largest open-pit mines in the world. Hill is also providing estimating staff at the company’s headquarters in Phoenix, AZ.

At Morenci, Hill worked with the Engineering-Procure-Construct (EPC) contractor’s planning/scheduling and estimating team to provide an independent third-party review and assessment of the overall project schedule and cost estimate and to conduct a project risk analysis at a critical stage to support the approval decision to fund and complete the project. The EPC contractor’s overall project estimate was more than $2.3 billion. However, Hill’s detailed review uncovered mistakes and inappropriate and incorrect assumptions and bases in the estimate. The contractor corrected these items and the project cost was re-estimated to just over $1.9 billion, representing a more than 17% decrease. The project was approved and funded to complete based on this revised estimate.

In addition, Hill’s work with the EPC contractor’s planning and scheduling team resulted in a revised and updated schedule that was more accurate and predictable. The team adjusted critical paths for each building for the project. In addition, Hill augmented the client’s project team to provide construction management, project control, cost estimating, cost management and control, contract administration, and contract management services.

Hill performed a detailed review that uncovered mistakes, and inappropriate and incorrect assumptions and bases in the contractor estimate. The contractor corrected these items and the project cost was re-estimated to just over $1.9 billion, representing a more than 17% decrease.

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