Fluor awarded construction contract for BHP’s South Flank project in Western Australia


US-based engineering services firm Fluor has been selected to provide project and construction management services at Anglo-Australian multinational mining company BHP Billiton’s South Flank iron ore project in the Pilbara region of Western Australia.

Under the terms of the contract, the project will be jointly managed by the two companies.

The parties will work together to optimise the feasibility study design that will focus on execution readiness and capital efficiency.

Fluor will report the undisclosed contract value in Q3 of this year.

"This work will advance potential first ore from South Flank, while we further optimise the full development and progress external and internal approvals.”

Fluor’s mining and metals business president Tony Morgan said: “We are extremely enthusiastic about the opportunity to support BHP on this very important project and we look forward to continuing our long and successful relationship with BHP.”

The project is expected to be submitted to the BHP board of directors in mid-2018, and the first ore production is set for 2021.

In June, BHP approved $184m in initial project funding to replace the company’s 80Mtpa Yandi mine, which will reach the end of its life by the mid-2020s.

BHP Minerals Australia operations president Mike Henry said: “As well as supporting our current operational requirements, this work will advance potential first ore from South Flank, while we further optimise the full development and progress external and internal approvals.”

For the financial year ending June, the company’s iron ore production stood at 231Mt, marking a 4% increase in comparison to last year.


Image: BHP’s Western Australia iron ore operations. Photo: courtesy of BHP.