Source: mineweb                              Date: 27 July, 2010

Major U.S. engineering and construction group, Texas-based Fluor Corporation, has announced that it has reached an agreement with Ivanhoe Mines to move forward with full-scale work at the latter's Oyu Tolgoi project. 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 huge mining complex, which will work one of the world's largest known copper- gold deposits. As a result, Fluor has booked approximately USD1 billion into backlog for the project during the second quarter of 2010.

Beginning in late 2005 Fluor has already 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.

"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 under way with engineering expected to reach completion in the first quarter of 2011 and construction completion scheduled for 2013.