BHP has awarded Fluor a project and construction management services contract at the South Flank iron ore project in the Pilbara region of Western Australia.
The work is being performed from BHP’s Perth office, with the two companies managing the project together as an integrated team. A contract value has not been revealed.
BHP approved a $US184 million investment in the development of the South Flank project in June. The project has been flagged as a potential replacement for the company’s ageing Yandi iron ore operation.
The initial funding for the $US3.2 billion project was expected to create hundreds of construction jobs and provide opportunities for WA suppliers.
Full development of the South Flank project would generate thousands of construction jobs.
Fluor Mining and Metals president Tony Morgan said the company was enthusiastic about the opportunity to support BHP on this important project.
“We are delighted that BHP has recognised that Fluor’s execution capabilities and experience will help them develop this project successfully,” Morgan said.
According to Fluor, the project will draw on its worldwide capabilities and resources.
Fluor will work with BHP to optimise the feasibility study design with a focus on execution readiness and capital efficiency.
A decision to move forward with the execution phase of the project is expected in mid-2018.