Fluor JV wins BHP contract

A joint venture between Texas-based engineering and construction group Fluor Corporation and Sinclair Knight Merz has extended its relationship with BHP Billiton, winning new contracts, primarily for the expansion of BHP's Jimblebar iron ore mine.

The Fluor and SKM joint venture, known as FAST, has provided engineering, procurement, construction management and commissioning services for BHP Billiton's iron ore projects since 2001.

Fluor said in a statement that work was already under way on the Jimblebar expansion, which was announced by BHP in March this year.

The project will continue to be led from the FAST JV headquarters in Perth.

"Fluor and the FAST JV have been part of this project from the very beginning and we are honoured to be chosen to support the next stage of this strategic initiative," said Fluor industrial business group executive Dwayne Wilson.

"Fluor's long-term presence in Australia combined with our substantial global mining experience positioned us well to support this project."

Fluor, which is the majority partner in the FAST joint venture, said in a statement it had booked approximately US$3 billion for the Jimblevar project and additional work in its first quarter results.

Jimblebar is part of BHP's plan to increase iron ore production from 140 million tonnes to 240 million tonnes by 2013 across its seven Pilbara mines.

The mine project is one of three developments announced in March, including port and rail upgrades, which collectively are budgeted to cost US$7.4 billion.