Fluor Joint Venture Awarded Engineering, Procurement and Construction Management Services Contract for BHP’s Olympic Dam Smelter & Refinery Expansion Project in South Australia
Fluor (NYSE: FLR) has announced a joint venture contract with Hatch for BHP's Olympic Dam Smelter & Refinery Expansion Project in South Australia. The contract covers engineering, procurement and construction management (EPCM) services, with Fluor's portion to be recognized in Q4 2024.
The project aims to support BHP's goals of increasing production to more than 500,000 tonnes of refined copper cathode by the early 2030s, with potential growth to 650,000 tonnes from the mid-2030s. The contract execution will be staged, pending BHP's final investment decision expected in the first half of 2027.
The expansion project aligns with strategic objectives to secure local supply of mined materials, reduce overseas dependence, and implement sustainable production technologies. Fluor, with its 34,000 employees and $15.5 billion revenue in 2023, will leverage its expertise in engineering and construction services for this significant mining infrastructure project.
Fluor (NYSE: FLR) ha annunciato un contratto di joint venture con Hatch per il progetto di espansione della fonderia e raffineria Olympic Dam di BHP in Australia Meridionale. Il contratto copre i servizi di ingegneria, approvvigionamento e gestione della costruzione (EPCM), con la parte di Fluor che sarà riconosciuta nel quarto trimestre del 2024.
Il progetto mira a supportare gli obiettivi di BHP di aumentare la produzione a oltre 500.000 tonnellate di catodi di rame raffinato entro l'inizio degli anni '30, con una potenziale crescita a 650.000 tonnellate a partire dalla metà degli anni '30. L'esecuzione del contratto sarà suddivisa in fasi, in attesa della decisione finale di investimento di BHP, prevista per la prima metà del 2027.
Il progetto di espansione è in linea con gli obiettivi strategici per garantire un approvvigionamento locale di materiali minerari, ridurre la dipendenza dall'estero e implementare tecnologie di produzione sostenibili. Fluor, con i suoi 34.000 dipendenti e 15,5 miliardi di dollari di fatturato nel 2023, sfrutterà la propria esperienza nei servizi di ingegneria e costruzione per questo significativo progetto di infrastrutture minerarie.
Fluor (NYSE: FLR) ha anunciado un contrato de empresa conjunta con Hatch para el proyecto de expansión de la fundición y refinería Olympic Dam de BHP en Australia del Sur. El contrato abarca servicios de ingeniería, adquisiciones y gestión de la construcción (EPCM), con la parte de Fluor a ser reconocida en el cuarto trimestre de 2024.
El proyecto tiene como objetivo apoyar las metas de BHP de aumentar la producción a más de 500,000 toneladas de cátodos de cobre refinados para principios de la década de 2030, con un potencial crecimiento a 650,000 toneladas a partir de mediados de la década de 2030. La ejecución del contrato se llevará a cabo en etapas, a la espera de la decisión final de inversión de BHP, que se espera para la primera mitad de 2027.
El proyecto de expansión se alinea con los objetivos estratégicos de asegurar el suministro local de materiales mineros, reducir la dependencia del exterior e implementar tecnologías de producción sostenibles. Fluor, con sus 34,000 empleados y 15.5 mil millones de dólares en ingresos en 2023, aprovechará su experiencia en servicios de ingeniería y construcción para este importante proyecto de infraestructura minera.
플루어 (NYSE: FLR)는 호주 남부의 BHP 올림픽 댐 제련소 및 정제 확장 프로젝트를 위해 해치와 공동 투자 계약을 발표했습니다. 이 계약은 엔지니어링, 조달 및 건설 관리 (EPCM) 서비스를 포함하며, 플루어의 부분은 2024년 4분기에 인식될 예정입니다.
이 프로젝트는 BHP의 목표인 2030년 초까지 정제된 구리 음극 500,000톤 이상 생산 증가를 지원하며, 2030년대 중반부터 650,000톤으로의 성장 가능성을 염두에 두고 있습니다. 계약 이행은 2027년 상반기에 예상되는 BHP의 최종 투자 결정에 따라 단계적으로 진행될 예정입니다.
확장 프로젝트는 광산 자원의 지역 공급 확보, 해외 의존도 감소, 지속 가능한 생산 기술 구현이라는 전략적 목표와 일치합니다. 2023년에 3만 4천명의 직원과 155억 달러의 수익을 기록한 플루어는 이 중대한 광산 인프라 프로젝트를 위해 엔지니어링 및 건설 서비스에 대한 전문성을 활용할 것입니다.
Fluor (NYSE: FLR) a annoncé un contrat de coentreprise avec Hatch pour le projet d'agrandissement de la fonderie et de la raffinerie Olympic Dam de BHP en Australie-Méridionale. Le contrat couvre les services d'ingénierie, d'approvisionnement et de gestion de la construction (EPCM), avec la part de Fluor qui sera reconnue au quatrième trimestre 2024.
Le projet vise à soutenir les objectifs de BHP d'augmenter la production à plus de 500 000 tonnes de cathodes de cuivre raffinées d'ici le début des années 2030, avec une croissance potentielle à 650 000 tonnes à partir du milieu des années 2030. L'exécution du contrat se fera par étapes, en attendant la décision finale d'investissement de BHP, prévue pour le premier semestre 2027.
Le projet d'expansion s'inscrit dans des objectifs stratégiques de sécuriser l'approvisionnement local en matériaux extraits, de réduire la dépendance extérieure et d'implémenter des technologies de production durables. Fluor, avec ses 34 000 employés et 15,5 milliards de dollars de revenus en 2023, mettra à profit son expertise en ingénierie et en services de construction pour ce projet d'infrastructure minière significatif.
Fluor (NYSE: FLR) hat einen Joint-Venture-Vertrag mit Hatch für das Erweiterungsprojekt der Olympic Dam Schmelze und Raffinerie von BHP in Südaustralien angekündigt. Der Vertrag umfasst Ingenieurdienstleistungen, Beschaffung und Bauleitung (EPCM), wobei Fluors Anteil im vierten Quartal 2024 anerkannt wird.
Das Projekt zielt darauf ab, BHPs Ziele zur Steigerung der Produktion auf mehr als 500.000 Tonnen raffinierten Kupferkathoden bis Anfang der 2030er Jahre zu unterstützen, mit einem potenziellen Wachstum auf 650.000 Tonnen ab der Mitte der 2030er Jahre. Die Vertragsausführung erfolgt gestaffelt, abhängig von der endgültigen Investitionsentscheidung von BHP, die in der ersten Hälfte des Jahres 2027 erwartet wird.
Das Erweiterungsprojekt passt zu den strategischen Zielen, die lokale Versorgung mit abgebauten Materialien zu sichern, die Abhängigkeit von Übersee zu verringern und nachhaltige Produktionstechnologien zu implementieren. Fluor wird mit seinen 34.000 Mitarbeitern und einem Umsatz von 15,5 Milliarden Dollar im Jahr 2023 sein Fachwissen im Ingenieur- und Bauwesen für dieses bedeutende Bergbauinfrastrukturprojekt nutzen.
- Secured major EPCM contract for BHP's Olympic Dam expansion project
- Contract value to be recognized in Q4 2024
- Project supports significant production growth potential (500,000+ tonnes by early 2030s)
- Strategic positioning in critical minerals and sustainable production sector
- Contract execution dependent on BHP's final investment decision in 2027
- Contract value undisclosed
Insights
The EPCM contract award for BHP's Olympic Dam expansion marks a strategic win for Fluor, strengthening its position in the critical minerals processing sector. While the contract value remains undisclosed, several factors underscore its significance:
The project's scope aligns with three major industry trends:
- The global push for domestic processing capabilities to reduce reliance on foreign refineries
- Growing demand for refined copper driven by renewable energy and EV sectors
- The shift towards sustainable production technologies in mining operations
The phased execution approach, with final investment decision expected in H1 2027, demonstrates sophisticated risk management. This structure allows for better cost control and optimization of engineering solutions before full-scale implementation. The potential production increase of 150,000 tonnes of refined copper (from 500,000 to 650,000 tonnes) represents a significant capacity expansion that could generate substantial recurring revenue for Fluor through the construction and optimization phases.
For Fluor's business outlook, this contract provides enhanced revenue visibility into the late 2020s and early 2030s, supporting the company's long-term growth strategy in the mining & metals sector. The partnership with Hatch also brings complementary expertise, potentially strengthening Fluor's competitive position for future large-scale mining projects.
This contract award strengthens Fluor's already robust $25.8 billion backlog (as of Q3 2024), with the initial revenue recognition starting in Q4 2024. The phased structure of the contract presents several financial advantages:
- Reduced execution risk through staged implementation
- Improved working capital management
- Enhanced revenue predictability through the project lifecycle
Against Fluor's $15.5 billion annual revenue backdrop, this project reinforces their Mining & Metals segment's growth trajectory. The contract's structure aligns with Fluor's strategic focus on maintaining margin discipline while pursuing large-scale, complex projects. The joint venture approach with Hatch also optimizes resource allocation and risk sharing, potentially supporting higher project margins.
The timing is particularly advantageous, coinciding with increased global investment in critical minerals infrastructure. This positions Fluor to capitalize on similar opportunities in the growing market for sustainable mining and processing facilities.
(L-R) Tina Armstrong, Hatch, Global Managing Director, Metals; Rashpal Bhatti, BHP, Global Procurement Officer; and Harish Jammula, Fluor, President, Mining & Metals (Photo: Business Wire)
“We are excited to support BHP on their growth plans to increase production of refined copper cathode in South Australia,” said Harish Jammula, President of Fluor’s Mining & Metals business. “Accelerated expansion of the downstream processing sector is increasingly important to secure local supply of mined materials, become independent of overseas supply and drive sustainable production technologies.”
The contract will be executed in stages as BHP progresses towards a final investment decision on the smelter and refinery expansion, currently expected in the first half of 2027, and through to subsequent construction.
This phased strategy aims to support BHP’s assessment of the pathway to increase production in
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 34,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250131153595/en/
Brett Turner
Media Relations
864.281.6976
Jason Landkamer
Investor Relations
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Source: Fluor Corporation
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