Benzinga | Nov 4, 2021 12:14PM EDT

Fluor Reports Its Joint Venture With Petrosea Wins Contract To Install Grinding Mill At Grasberg Copper, Gold Mining District, No Terms Disclosed

Fluor to construct new mill as mine transitions from open pit to underground mine

IRVING, Texas--(BUSINESS WIRE)-- Fluor Corporation (NYSE:FLR) announced today that its joint venture with Petrosea -- Fluor Petrosea Joint Organization (FPJO) -- has been selected by PT Freeport Indonesia to install a new grinding mill at its Grasberg copper and gold mining district in Papua, Indonesia. Fluor booked its undisclosed portion of the contract in the third quarter of 2021.

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An aerial view of the Grasberg copper and gold mine in Papua, Indonesia (Photo: Business Wire)

FPJO will construct a third semi-autogenous grinding (SAG) mill adjacent to the existing milling facilities as the mining district continues to ramp up underground production primarily from the Deep Mill Level Zone and Grasberg Block Cave mines following completion of mining in the open pit in 2019. With the additional SAG mill, the milling capacity will be approximately 240,000 tonnes per day.

"Fluor has built several expansions at Grasberg as well as other major projects in Indonesia since the 1980s," said Tony Morgan, president of Fluor's Mining & Metals business. "We value the trust we have earned over the decades with the Freeport team and are proud to expand our global footprint in the industry as a solutions provider for the global copper demand."

The Grasberg project is located in the remote highlands of the Sudirman Mountain Range on the western half of the island of New Guinea.

Fluor's Perth, Australia office will lead the project with support from Fluor's offices in Jakarta and Vancouver.

Construction is scheduled to begin later this year and be completed in 2023.