Fluor has won an EPCM contract from Debswana, a joint venture of the Government of Botswana and De Beers, to execute the Jwaneng Cut 8 diamond project. After successfully completing the feasibility study for the company earlier in 2009, Fluor was awarded the procurement and construction management phases of the project, valued at around $450 million in the last quarter of 2009. The project name ‘Cut 8′ refers to the current open-pit mine, which is being expanded to facilitate access to the kimberlite ore at greater depths.

Jwaneng produced 13.7 Mct from 15.7 Mt of ore in 2008. Production varies, according to the mining plans, of between around 12.5 to 15 Mct/y. Jwaneng is currently an open-pit mine, but plans to move to an underground operation in ten years. This will begin a new chapter at Jwaneng mine, and extend the life of the operation by another ten to 15 years. The mine is located on three pipes in Botswana (Centre North & South pipes) with an average grade of 150 ct/ht, and a smaller satellite pipe averaging 25 ct/ht.

Jwaneng Cut 8 is at the forefront of a number of projects being developed by Fluor as part of a portfolio which includes a new diamond processing plant at the Orapa diamond mine and the expansion of the Morupule coal mine. Dwayne Wilson, Group Executive of Fluor: “Fluor has a long and successful track record of providing both technical and EPCM services to the diamond industries in Botswana, South Africa, Australia and Canada. This award is indeed a major step in continuing our strategic relationship with one of our key clients as well as enabling Fluor to position itself for future mining projects in the region.”

To facilitate the successful development of all projects in the region, Fluor has registered an office in Botswana. The Cut 8 project alone will generate employment for around 1,400 Botswana citizens supported by Fluor’s Johannesburg, South Africa office.