Argyle Diamond Mine Expansion

Rio Tinto engaged LogiKal to assist with the recommencement of the Argyle Underground Project in 2012. Initial focus was on a program review to determine implications on the revised Estimate for the project following some further delays and a change in construction methodology. Approval to proceed was obtained and LogiKal took on the Planning and Project Controls function from the EPCM who was struggling to retain the confidence of Rio Tinto and injected a more structured process. The outcomes were more reliable information at the meetings and increase in the amount of focus on program and challenge by the PMO on performance against the schedule. LogiKal maintained a presence on site at the mine as well in head office and successfully delivered a much-improved controls function for the project. Further work: Following a series of disputes with the contractors LogiKal brought in Claims specialists to assist with determining the validity of claims and working with the Legal team. Lessons Learned: Rio Tinto chose to engage a large commercial/contract admin team to manage the various contract packages – there was a missed opportunity to adopt a progress measurement approach to contract management, this would have reduced the contract admin team significantly and increased accountability and ownership for the onsite management team and reduced disputes with contractors. An EPCM provided project controls teams struggle to act impartially when highlighting the progress and reasons for delays and tend to muddy the waters rather than enable the client to act as quickly as they need.