O.T. Main Contract Jacobs Engineering wins main contract to build $5.3B Mongolian mine
Jacobs Engineering (NYSE:JEC) says it has been awarded the main contract to build the $5.3B Oyu Tolgoi underground copper and gold mine in Mongolia.
JEC is responsible for engineering, procurement and construction management services to implement the materials handling systems for the new underground mine and associated surface and underground infrastructure.
Development of the underground mine, which was delayed in 2013 because of disputes with Mongolia's government, is key to operator Rio Tinto's (NYSE:RIO) copper growth ambitions; ~80% of the mine's value resides in the underground, with copper grades ~3x higher than the open pit, which already is in production.
Oyu Tolgoi is a partnership between Rio Tinto, Turquoise Hill Resources (NYSE:TRQ) and the Mongolian government.