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KBR Awarded Contract for Construction of Iron Ore Mine in Australia

KBR KBR announced today that it has been awarded a contract to provide engineering, procurement management and construction management (EPCM) for the Hope Downs 4 iron ore mine in remote Western Australia. The scope of the project is valued at $1.285 billion USD. The project is part of a joint venture between Rio Tinto - the world's second largest iron ore producer - and Hancock Prospecting. Rio Tinto will develop and operate the Hope Downs 4 mine as manager of the joint venture, for which KBR completed both the preliminary and final definitive engineering studies.

KBR will provide design, engineering, procurement management, project and construction management for the 15 million dry tonnes per annum (Mtpa) mine, which is located 620 miles (1000km) north of Perth, the capital city of Western Australia. Construction is scheduled to begin in February 2011, subject to regulatory approvals and be completed in early 2013.

KBR has already completed Hope Downs 1 Stage 1, in 2008, and Stage 2 in 2009. The scope of the Hope Downs 4 project includes:
  • Ore processing plant sized to accept 220t capacity haul trucks with ore crushing, scrubbing and screening processes designed to meet stringent product export requirements
  • Bulk fuel, lubricant and explosive facilities to support ongoing mining activities
  • Stockpile stacking, reclaiming and train export facilities to transport product to Rio Tinto port facilities at Dampier and Cape Lambert
  • Construction of temporary and permanent accommodation including power, water and communications infrastructure
  • Administration, warehousing and workshop building facilities to support mine operations and maintenance requirements.
"KBR is pleased to continue to be involved in the development of the Hope Downs ore deposits. This project builds on KBR's track record for safely delivering major iron ore mine projects in the remote and challenging Pilbara region," said Colin Elliott, President, KBR Infrastructure and Minerals. "We are also focused on strategies which will drive efficiencies both in the engineering and construction aspects of the project to mitigate impact from anticipated construction activity in the region."

KBR (NYSE: KBR) is headquartered in Houston, Texas, also known as the energy capital of the world. The Company employs over 50,000 people worldwide in locations that include the U.S., Australia, Africa, the U.K., Asia and the Middle East. KBR delivers a wide range of services through its Downstream, Gas Monetization, Infrastructure and Minerals, International Government and Defense, North American Government and Defense, Oil and Gas, Power and Industrial, Services, Technology, and Ventures business segments, and differentiates itself as a technology-driven engineering, procurement and construction (EPC) company.

Published 15/09/2010

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