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Is pleased to offer the following BUDGET Proposal to:
FKC‐LAKE SHORE
Proposal No: 141005A‐BD‐00‐SC 1695 Allen Road, 47710‐3394
P.O. Box 6690, 47719‐0690
Presented to: Mr. Guillermo Bagioli
Evansville, IN
Presented by: Mr. Jose Montoya
TEL: 812.426.2741
FAX: 812.425.3186
www.frontierkemper.com
FKC‐LAKE SHORE HERBY CERTIFIES THAT THE PRODUCTS DESCRIBED HEREIN WERE PRODUCED IN COMPLIANCE WITH ALL
APPLICABLE REQUIREMENTS OF SECTIONS 6, 7, AND 12 OF THE FAIR LABOR STANDARDS ACT, AS AMENDED, AND ALL
APPLICABLE REGULATIONS AND ORDERS OF THE UNITED STATES DEPARTMENT OF LABOR ISSUED UNDER SECTION 14 THEREOF.
TABLE OF CONTENTS
Budget Pricing .................................................................................................................................................... 3
Vertical Belt System ........................................................................................................................................... 4
Engineering and Design ...................................................................................................................................... 4
Vertical Belt System ....................................................................................................................................... 4
Design Data ........................................................................................................................................................... 5
Belt Data ............................................................................................................................................................... 5
Vertical Belt Machine ............................................................................................................................................ 6
Controls Componentry .......................................................................................................................................... 7
Controls House ...................................................................................................................................................... 8
Field Services Mechanical and Electrical ............................................................................................................... 9
Additional Services ................................................................................................................................................ 9
Option #1 Belt Return Spillage Conveyor ....................................................................................................... 10
Option #2 Automatic Bearing Grease Lubrication system ............................................................................... 10
Exemptions and Clarifications ........................................................................................................................... 11
Terms and Conditions ....................................................................................................................................... 12
2
FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
BUDGET PRICING
FKC‐LAKE SHORE, HEREBY OFFERS TO FURNISH THE NAMED BUYER THE PRODUCTS AND/OR SERVICES DESCRIBED BELOW AT THE PRICE(S) AND
TERMS AS INDICATED. THIS OFFER IS SUBJECT TO THE TERMS AND CONDITIONS OF THIS PROPOSAL. FKC‐LAKE SHORE MAKES NO WARRANTIES
OTHER THAN THAT REFERRED TO IN THIS PROPOSAL.
DESCRIPTION PRICE
FKC‐Lake Shore would like to offer you our quote for the following equipment and services.
Vertical Belt Mechanical & Structural Components $770,000
Vertical Belt – Flexowell 1400 mm $660,000
Control System $270,000
Controls House $30,000
Field Supervision Services Mechanical and Electrical $90,000
Installation Hydraulic Belt Clamp Prep and Rental $30,000
Additional Services (Project Management, Quality Control, Documentation, etc.) $70,000
FCA Incoterms 2010 (Shipping Point) Total $1,920,000 USD
Optional Equipment and Services
#1 Belt Return Spillage Conveyor $130,000 USD
#2 Automatic Bearing Grease Lubrication System $60,000 USD
Excluded items that can be supplied if required:
Price breakdowns are for evaluation purposes and do not represent piece meal pricing.
These prices are valid for a period of 90 days from the date of this proposal. Please note, the materials market is
volatile, FKC-Lake Shore reserves the right to review and adjust its material cost to minimize the impact of the market
at time of purchase.
3
FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
VERTICAL BELT SYSTEM
ENGINEERING AND DESIGN
FKC‐Lake Shore will provide the necessary engineering to design, and supply this custom vertical
conveyor system. The engineering will be self‐performed by our experienced in‐house design staff.
The specifications below are intended for bid purposes only and are based on preliminary design
calculations. The final design could vary to some degree, but would certainly meet the design
specifications. Because this system will be custom designed, we will work closely with you as the client
to ensure you have input in the design process.
A project manager will be assigned to this project and will be the point of contact to simplify the
communication stream and to ensure client satisfaction throughout the design/build process.
4
FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
VERTICAL BELT SYSTEM
DESIGN DATA
Metric Tons per Hour 500
Material Type Mine Spoil
Material Density 1.6 MT/m³
Maximum Material Size 200 mm
Belt Speed 2.09 m/s
Angle of Loading Point 0°
Angle of Incline 90°
Angle of Discharge 0°
Conveyor Configuration “S” Shape
Total Vertical Lift ≈ 100 m
Length of Loading Area ≈ 5 meters
Length of the Discharge Section ≈ 5 meters
Moisture Content Dry
Material Temperature Ambient
Design Guidelines OSHA, NEC
ED
De
BELT DATA
Flexowell® Belt: F 400 ES
o Base Belt: XST 2500
o Cleat Type: TC‐G 360
o Cleat Distance: 500 mm
o Overall Belt Width: 1400 mm
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
VERTICAL BELT MACHINE
FKC‐Lake Shore proposes to provide a Vertical Belt System to convey ore as described under the design
data sections.
Equipment Features
One (1) Drive Unit Pulley Assembly
o 1.6 m Diameter
One (1) Drive System
o One (1) Gear Reducer with Backstop
o One (1) Drive Motor
o One (1) HS Coupling with Brake Disc
Disc Brakes with Hydraulic Unit
o One (1) LS Coupling
One (1) Tail Take‐up Pulley Assembly
o 1.6 m Diameter
One (1) Bottom Deflection Disc Wheel Assembly
o 1.6 m Diameter
One (1) Bottom Deflection Bend Pulley Assembly
o 1.6 m Diameter
One (1) Top Deflection Roller Curve Assembly
o Ten (10) Rollers
One (1) Top Deflection Disc Wheel Assembly
o 1.6 m Diameter
One (1) Pocket Beater Assembly
Carrier Idlers
Impact Idlers
Guide Idlers
Belt Scrapers
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
Machine Equipment Structure
o FKC‐Lake Shore will provide a machine structure. The machine structure is to be
supported from the customer provided mine foundation. Access to the machine
structure service walks will be by the customer provided mine access.
Structural Framing per AISC
Service Walks complete with Safety Hand Railing
OSHA Service Access Ladders
o Finish Paint per Customer’s Specification
Manual Grease Lubrication System
o Upper Drive Section Lube System
o Lower Tail Take‐up Section Lube System
Roller Curve Bearings Lube Grease Lines
Impact Idler Lube Grease Lines
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
CONTROLS COMPONENTRY
Equipment Features
One (1) PLC control system
o Auto Mode
Interlocks for related Mine System Conveyors
Upstream and Downstream
o Manual Mode
o Main Control Cabinet
HMI Touch Screen
VFD Control
Modem
o Service Push Button Stations
Upper Machine Structure Location
Lower Machine Structure Location
o Pull Cord Safety E‐Stops
o Belt Slip Protection
o Vertical Belt Alignment
o Conveyor Start Warning Signal
Warning Horn
Beacon
Shop testing will not be possible, but field start‐up and commissioning support is included.
CONTROLS HOUSE
FKC‐Lake Shore proposes to provide the following Controls House to house Main System Control Panel.
Service Features
2.4 m Wide x 2.4 m High x 3.0 m Long Modular Controls House
o HVAC
o Lights
o Lighting Panel
o Access Door
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
FIELD SERVICES MECHANICAL AND ELECTRICAL
FKC‐Lake Shore proposes to provide installation supervision, start‐up support, commissioning, and
training services for the equipment it provides.
Service Features
Vertical Belt Conveyor Equipment
o Installation Supervision
o Start‐up Support
o Commissioning
o Training
o Not to exceed Three (3) Weeks of
Mechanical Services
o Not to exceed Two (2) Weeks of
Electrical Services
Travel and Living Expenses Included
Hydraulic Belt Clamp Rental
ADDITIONAL SERVICES
List of Services
Project Management
Quality Control
CD Copy of System Documentation
o PDF General Arrangement Drawings
o Spare Parts Listing
o Owner’s Manual
Translation to Spanish where possible
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
OPTION #1 BELT RETURN SPILLAGE CONVEYOR
FKC‐Lake Shore proposes to provide a Belt Return Spillage Conveyor.
Equipment
Bulk‐Flow Spillage Return Conveyor
o Caterpillar Drive Unit
o Conveyor Chain with Flights
o Conveyor Track
3/8” HR Plate Spillage Chute
Controls
Installation Services
o Start‐up and Training
OPTION #2 AUTOMATIC BEARING GREASE LUBRICATION SYSTEM
FKC‐Lake Shore proposes to provide the following.
Equipment Features
Auto Grease Lubrication System
o Upper Drive Section Lube System
o Lower Tail Take‐up Section Lube System
o Central Station
Timer Controlled
Line Strainer
Tubing and Fittings
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
EXEMPTIONS AND CLARIFICATIONS
1. No enclosure is included to protect the vertical belt machine from the effect of outdoor
elements.
2. The vertical belt machine structure is to be supported from the customer provided mine
foundation. Access to the machine structure service walks will be by the customer provided
mine access.
3. Dust control equipment and ductwork, fire protection equipment are not included.
4. Owner will run and connect primary power into the FKC‐Lake Shore provided control panels.
5. Utility Provisions are not included.
6. FKC‐Lake Shore will place a mechanical and controls start‐up supervisor on site following vertical
belt installation.
7. Equipment warranty will apply only to FKC‐Lake Shore new fabricated or new purchased
product, any customer provided components are as is.
8. Taxes, Duties, Permits and/or Licenses are not included.
9. This project is bid non‐union.
10. Drawings submitted for approval must be returned within seven working days to avoid delays to
the schedule.
11. Equipment, components, and services not specified in this proposal are excluded.
12. This proposal represents our understanding of what is being requested. If certain other
conditions or requirements are necessary and have not been addressed in this quotation, please
contact FKC‐Lake Shore. It remains the liability of the buyer to determine if this quotation fulfills
the end customer’s requirements.
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
TERMS AND CONDITIONS
1. SCOPE OF AGREEMENT AND SCHEDULE. FKCI (FKC-Lake Shore) will deliver the products
("Products") and/or perform the services ("Services") as described herein (including those on any specifically-
referenced attachment sheet) and shall strive in good faith to meet the schedule as described herein or in an
attachment sheet that is specifically so referenced to this proposal:
2. PRICE / COMPENSATION SCHEDULE. Buyer shall pay FKCI the amounts invoiced
according to the payment terms set forth above within thirty (30) days of receipt of FKCI's invoice. Interest
will be due and payable on delinquent payments at the rate of 18% per annum or the maximum allowed by
law.
3. REPRESENTATIVES. The signatures of both parties in this document and/or the fact that Buyer
permitted FKCI to supply the products or services described in this document shall constitute the agreement of
the parties to all terms and conditions contained within this Agreement. The representatives executing this
Agreement or others agreed upon by the parties in writing shall have authority to bind the party he/she represents
to all decisions and actions required under the Agreement.
4. INTEGRATION OF THE AGREEMENT. This Agreement represents the entire and integrated agreement
between Buyer and FKCI and supersedes all prior negotiations, representations and agreements, either written or
oral. No modification, alteration, addition or change in the terms hereof shall be binding on the parties unless it is
expressed in writing and duly executed by both parties. The contract price shall be adjusted in accordance with
changes in the scope of the work or the schedule. This Agreement and each provision are for the exclusive benefit
of the Buyer and FKCI and not for the benefit of any third party.
5. INDEMNITY. To the fullest extent permitted by law, each party (the "Indemnitor") shall defend, indemnify and
hold harmless the other party, its agents, assigns, officers, director and officials (the "Indemnitees") from and
against all claims, damages, losses and expenses, including attorneys' fees, for bodily injury and property damage
to the extent such claims, damages, losses, or expenses result from or arise out of the negligent acts or omissions
or intentional misconduct of the Indemnitor or anyone employed directly or indirectly by the Indemnitor or anyone for
whose acts or omissions the Indemnitor may be liable.
6. ACCESS. Buyer shall provide FKCI with reasonable access to the work site so that FKCI can perform the
Services in a timely and uninterrupted fashion.
7. SAFETY. FKCI specifically disclaims any authority over or responsibility for the safety of any persons involved
with the performance of the Services except that of FKCI’s employees, consultants, and subcontractors.
8. WAIVER OF DAMAGES AND LIMITATION OF LIABILITY. BUYER AND FKCI EACH WAIVE ANY CLAIMS
AGAINST EACH OTHER FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR SIMILAR
DAMAGES THAT MAY ARISE OUT OF OR RELATE TO THIS AGREEMENT. IN NO EVENT SHALL FKCI'S
LIABILITY TO BUYER ARISING OUT OF OR RELATED TO THE SALE OF THE PRODUCTS OR THE
PERFORMANCE OF THE SERVICES EXCEED 50% OF THE PRICE OF THE PRODUCTS AND/OR THE
COMPENSATION PAID TO FKCI FOR THE SERVICES.
9. ENVIRONMENTAL INDEMNIFICATION. To the extent not caused by the negligent acts or omissions of
FKCI, its subcontractors of any tier, and the agents, officers, directors and employee of each, Buyer shall
indemnify and hold harmless FKCI, its subcontractors of any tier, and the agents, officers, directors, employees of
each from and against any and all claims, damages, losses, costs and expenses, including but not limited to
attorney’s fees, arising out of or relating to the performance of the Services in any area affected by a pre-existing
hazardous substance or material. To the fullest extent permitted by law, such indemnification shall apply
regardless of the fault, negligence, breach of warranty or contract or strict liability of Buyer. Buyer shall be and
remain the designated generator of any hazardous substance or material as defined in the United States Code
Title 42 Chapter 103, Comprehensive Environmental Response, Compensation, and Liability Act, known as
CERCLA.
10. DELAYS. FKCI shall not be liable for any delays that are due to any cause other than FKCI's negligence or
fault.
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741
Tetra Tech Metalica
Proposal No. 141005A‐BD‐00‐SC
November 6, 2014
Terms and Conditions Continued
11. WARRANTIES. FKCI warrants that the Products shall be free from significant defects in material and
workmanship for a period of one (1) year from the date of receipt by Buyer.
FKCI further warrants that it is competent to perform and complete the Services. FKCI SPECIFICALLY
DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. FKCI FURTHER DISCLAIMS ALL
EXPRESS AND IMPLIED WARRANTIES THAT THE PRODUCTS OR SERVICES ARE DELIVERED FREE OF
ANY RIGHTFUL CLAIM OF ANY THIRD PERSON WITH RESPECT TO THE INFRINGEMENT OF ANY
PATENT, TRADEMARK, TRADE NAME, COPYRIGHT OR TRADE SECRET.
12. TECHNICAL INFORMATION. Any sketches, models or samples submitted by FKCI shall remain the property
of FKCI and shall be treated by Buyer as confidential information unless FKCI has agreed otherwise in writing. No
use or disclosure of such sketches, models, samples, or any design or production techniques revealed thereby,
shall be made without the express written consent of FKCI.
13. DISPUTE RESOLUTION. If a dispute arises out of or relates to the Agreement or the alleged breach thereof,
the Chief Executive Officers of each of the parties to the dispute shall meet to compromise or settle the dispute
before recourse to any other form of dispute resolution. If the dispute is not resolved by such discussions, either
FKCI or Buyer may request in writing within thirty (30) days of such a meeting that mediation under the Construction
Industry Mediation Rules of the American Arbitration Association be conducted before recourse to any other form of
dispute resolution. The parties agree to commence such mediation within thirty (30) calendar days of the filing of the
request. If mediation fails or is not requested by either party, the dispute shall be settled by binding arbitration in
Evansville, Indiana held in accordance with the Construction Industry Rules of the American Arbitration Association
then in effect. Each party shall bear its own costs in connection with any mediation, arbitration or other dispute
resolution proceedings.
14. TERMINATION FOR BREACH. Either party may terminate this Agreement upon seven (7) days’ written
notice, if the other party materially breaches its terms through no fault of the initiating party.
15. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Indiana.
16. PURCHASE ORDER WITH INCONSISTENT TERMS. If this Proposal / Agreement is accepted by Buyer via a
Purchase Order (or other document with inconsistent terms) and FKCI does not specifically agree in writing to these
inconsistent terms, all such inconsistent terms shall be deemed to be expressly rejected by FKCI and shall not be
considered a part of this Agreement.
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FKC‐Lake Shore • 1695 Allen Road • Evansville, IN 47710 • 812‐426‐2741