Major U.S. engineering and
construction group, 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 $1 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 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.