Mining sector economics appear to be on the rise, with Fluor Corp. announcing construction contracts for what owners and observers say are multibillion-dollar copper and iron ore projects in Peru and Australia. But global trade uncertainties are keeping the mining resurgence shaky.
Fluor announced on Aug. 8 notice to proceed on an EPC contract to build the Quelleveco copper mine in southern Peru, an estimated $5.3-billion project that mining unit President Tony Morgan said would tap one of the world’s largest undeveloped copper deposits. The open-pit mine was approved on July 26 by the board of developer Anglo-American plc after Mitsubishi Corp. agreed to a 40% stake. It is set to produce 300,000 tonnes of copper per year, beginning in about 2022. Fluor did not disclose the contract amount, but industry analyst Jamie Cook, a Credit Suisse managing director, said in a research note that the “scope could be at least half” of the project amount. Fluor has managed site development since 2014.