Jacobs Wins EPCM Contract for Oyu Tolgoi Underground Project
By Business Wire News
By Business Wire News
Jacobs Engineering Group Inc. (NYSE:JEC) announced today it signed a contract with Oyu Tolgoi LLC to provide engineering, procurement and construction management (EPCM) services for the next stage in the development of the Oyu Tolgoi copper and gold mine in Mongolia, the Oyu Tolgoi Underground Project.
The Oyu Tolgoi mine is located in the South Gobi region of Mongolia, approximately 550 kilometers south of the capital Ulaanbaatar. The investment by Rio Tinto, the Government of Mongolia and Turquoise Hill Resources was approved in May, and necessary permits have been formally granted.
Jacobs is responsible for EPCM services to implement the materials handling systems for the new underground mine and associated surface and underground infrastructure. The project is being delivered over a five- to seven-year period and is expected to provide substantial employment and business opportunities in Mongolia.
In making the announcement, Jacobs President and CEO Steve Demetriou said, “We are very proud to be associated with what is a landmark project for Oyu Tolgoi, Mongolia and the global mining landscape. The Oyu Tolgoi Underground Project is one of the largest mining projects worldwide. We are excited at the opportunity to contribute significant value to our client and the nation of Mongolia.”
First draw bell production from the underground mine is expected in 2020.
Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services.
Statements made in this release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current estimates and expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2015 Form 10-K, and in particular the discussions contained under Items 1 – Business, 1A – Risk Factors, 3 – Legal Proceedings, and 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations. We do not undertake to update any forward-looking statements made herein.
Jacobs Engineering Group Inc.
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