Fluor Receives Notice to Proceed for Ivanhoe Mines Project in Mongolia
Fluor Corporation announced today that the company has reached an agreement with Ivanhoe Mines Ltd. to move forward with full-scale work at its gold and copper mine development project in southern Mongolia. Fluor's scope of work will include overall program management (PM) as well as engineering, procurement and construction management (EPCM) for select portions of the construction of the Oyu Tolgoi mining complex. Fluor booked approximately $1 billion into backlog for the project during the second quarter of 2010.
Beginning in late 2005, under direction from Ivanhoe, Fluor carried out a strategic planning review of the integrated development plan (IDP-05) for the Oyu Tolgoi project including a strategic assessment of the concentrator facilities development. Since completion of that work, Fluor has continued to be involved in the project providing site support services and preliminary engineering in preparation for the commencement of full-scale construction. Now, with a definitive agreement in place, Fluor will be in charge of overall PM as well as EPCM-related services for the ore processing plant and mine-related infrastructure such as roads, water supply, a permanent airport and administration buildings.
The Oyu Tolgoi project is located in the South Gobi region of Mongolia. The mine is expected to produce 1.2 billion pounds of copper and 650,000 ounces of gold annually for the first ten years. The Mongolian Government holds a 34 percent interest in the Oyu Tolgoi project with Ivanhoe Mines controlling the remaining interest.
"We are gratified to see the Oyu Tolgoi project reach this important milestone," said Dwayne Wilson, group president of Fluor's Industrial business. "We have been engaged with Ivanhoe for many years on this project and our team is eager to participate in full-scale, site-wide work that began earlier this year."
Fluor will execute the engineering for the project from its Vancouver, Canada and Beijing, China offices with operations being managed on-site in Mongolia. The project is currently underway with engineering expected to reach completion in the first quarter of 2011 and construction completion scheduled for 2013. At peak construction, the project will employ approximately 2,500 local workers. Over the anticipated 59-year life of the mine, the project will provide an important source of state revenue and long-term employment for the people of Mongolia.
(NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in the fields of engineering, procurement, construction, commissioning, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and had revenues of $22 billion in 2009.
(NYSE, NASDAQ & TSX: IVN) is an international mining company with operations focused in the Asia Pacific region. Assets include the company's 66% interest in the world-scale, Oyu Tolgoi copper-gold mine development project in southern Mongolia; its 57% interest in Mongolian coal miner SouthGobi Resources (TSX: SGQ; HK: 1878); an 81% interest in Ivanhoe Australia (ASX: IVA), a copper-gold-uranium-molybdenum-rhenium exploration and development company; and a 50% interest in Altynalmas Gold Ltd., a private company developing the Kyzyl Gold Project in Kazakhstan. Ivanhoe Mines' shares are listed on the New York, NASDAQ and Toronto stock exchanges under the symbol IVN.
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