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Escondida Norte & E3 Project

Escondida Norte & E3 ProjectThe Escondida Norte & E3 Project was designed to supplement existing mine facilities with a new materials handling system, which included a new primary crusher station, overland and distribution conveyors and surge and distribution silos. This new system allowed the client to deliver a maximum of 8,800 tph to the existing Escondida process facilities, and to maintain capacity at the site. An electrical substation was built, and expansions of the heavy equipment workshop, wash bay, bischofita plant, roads and offices were also undertaken.

As the project developed, the scope was changed to include the E3 conveyor pushback project. This construction project allowed synergies with the Norte construction team and, by combining common functions, reduced costs for the client. The objective was to push back the conveyors that carry the ore to the process plant to allow the expansion of the original Escondida Pit.  It included the construction of two new parallel 1.2 km conveyors, the extension of several existing conveyors – with tie-ins to new conveyors.

Scope of Services:
Hatch was contracted to provide full EPCM services for the original project, and for the additional E3 scope change. Hatch was responsible for the basic engineering review, detailed engineering, and procurement and construction management up to and including the pre-commissioning of the project’s systems. Hatch formed part of the owner’s team and worked with the client in an integrated office for the duration of the project.

Project Highlights:

  • The project was delivered with exceptional HSEC performance, on budget, and with a fast production ramp up, allowing the owner’s team to deliver on schedule;
  • BHP Billiton noted that Hatch’s excellence in implementation of fatal risk control protocols helped them to achieve the best project result across all projects being implemented by BHP Billiton in Chile at the time;
  • Procurement procedures, supported by Hatch’s Integrated Project Administration System (iPAS) were noted for their excellence and efficiency. In every one of the three client corporate audits of the project, Hatch’s project management systems obtained the highest score. The client said that Escondida was “one of the best implementations” ever seen;
  • 92% of purchase orders for equipment and supplies were awarded to local suppliers;
  • The HSEC management plan was of a very high standard. There was a constant presence on site of representatives from the client, Hatch, subcontractors and government supervision entities. The project achieved a 98% safe behaviour rating during project execution; 
  • Benefits to the local community: An organ donor campaign was run, with more than 1000 staff participating;
  • Support was also provided to charitable institutions and was acknowledged by the client as a success of the project; and,
  • The E3 project was completed ahead of schedule.

Project Safety
According to the President of Minera Escondida*, his evaluation on the execution of this project was “…very positive, considering that the project finalized a month before program and in safety a final value of 2.2 in the Lost Time Injury Frequency Rate was obtained. These results are quite good in an operation of this nature and of such size…”

Project Cost: US$200 million includes only Hatch’s scope

Client: Minera Escondida Limitada

Location: Escondida Mine, Antofagasta, Chile

Start: July 2003

Completion: September 2005


* Interview published in Mineria Chilena Magazine, February 2006.

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