Fluor Australia wins key South Flank role for BHP

02 August, 2017

US-based Fluor Corporation will oversee construction of BHP’s giant South Flank iron ore project in the Pilbara after winning the key Project Construction Management services contract.

The company’s local subsidiary Fluor Australia has been awarded the “full scope” of PCM services for South Flank, according to the ICN Gateway procurement website.

One of the world’s biggest engineering, procurement, construction and maintenance companies, Fluor is based in Irving, Texas, but has a Perth office on St Georges Terrace.

BHP said recently it expected to submit South Flank, forecast to cost $3-4 billion, for board approval in the first half of next year.

In the meantime, the global miner has approved $244 million in initial funding, to be used primarily for the expansion of accommodation facilities.

If approved, South Flank – a replacement for BHP’s 80Mtpa Yandi mine – is predicted to create several thousand construction jobs, hundreds of ongoing operational jobs and continued opportunities for local businesses.

BHP Minerals Australia Operations President Mike Henry Henry spoke at a Perth function in June and said the company was keen to engage with local suppliers, though only those who could offer “true value-add”.

BHP has been reaching out to businesses on the ICN Gateway website since April, when it listed the initial South Flank work packages.

“BHP is seeking expressions of interest from suitably qualified contractors to gain an understanding of the capacity and capability of available contractors for the proposed project,” the company says on the ICN website.

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