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AMEC Awarded Oyu Tolgoi Underground Mining Project in Mongolia

AMEC AMEC has been commissioned by Oyu Tolgoi LLC to undertake the feasibility study for Lift 1 of the underground Hugo North block cave operation of its copper and gold mining project in Mongolia.

Oyu Tolgoi is the world's largest undeveloped copper-gold project and is located in the South Gobi region of Mongolia, approximately 80 kilometres north of the Mongolia-China border. When Oyu Tolgoi moves into full production, it will be one of the world's top three copper-gold mines.

The value of AMEC's contract has not been announced.

Over the next 25 months, AMEC will work with Oyu Tolgoi's engineering team to develop designs, specifications, cost estimates and a construction schedule for an 85,000 tonnes-per-day block cave operation.

Neil Bruce, Executive Director of AMEC, said:

"This contract is a great example of AMEC working for a key customer in the important underground mining sector, a core activity in our Vision 2015 business strategy."

Matt Gili, Chief Operating Officer for Oyu Tolgoi said:

"The high grades of the underground mine make its design a crucial part of realising the value from the project over the long term, for all stakeholders. We look forward to working with AMEC and its partners in delivering this value."

Bob Stanlake, President of AMEC's Mining & Metals business added:

"Being selected to perform the Oyu Tolgoi feasibility study is an important step in AMEC's strategy to become a preferred global supplier of underground study and EPCM services in the mining sector. Oyu Tolgoi recognises the value of our skills and practical experience along with strong performance in previous study work for them."

To support in the delivery of this complex project, AMEC has partnered with RSV of South Africa for shaft engineering, AC-Tek for dynamic simulation of underground conveyors and Analytical Laboratory Consultants for laboratory service design.

Published 16/11/2010

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AMEC's global Mining & Metals business has developed some of the most challenging projects in the world. AMEC is recognised for a unique combination of excellent project delivery, industry leading mining and process technical expertise, and full project life-cycle capability. AMEC is an industry leader in a broad range of commodities from base and precious metals, to diamonds, iron ore, coal, uranium and fertilizers.

OYU TOLGOI LLC is building and will operate the Oyu Tolgoi copper-gold project in southern Mongolia, which will be Mongolia's largest copper and gold mine. Oyu Tolgoi is scheduled to begin commercial production in 2013. Oyu Tolgoi is a strategic partnership between the Government of Mongolia, which owns 34%, Ivanhoe Mines, which owns 66%, and Rio Tinto.

Oyu Tolgoi is committed to implementing best-practice environmental management, applying modern extraction and processing technology and ensuring the health and safety of its employees. The company works closely with local people in contributing to the development of sustainable communities and preserving customs and cultural heritage.

AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world's natural resources, nuclear, clean energy, water and environmental sectors. With annual revenues of over £2.5 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. The company employs some 23,000 people in around 40 countries worldwide.

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