Fluor to expand Debswana diamond mine in Botswana

Fluor (FLR-N) has been awarded a US$450-million contract to expand the Jwaneng Cut 8 diamond mine in Botswana.

The Jwaneng Cut 8 project is operated by Debswana Diamond Company, a joint venture between the government of Botswana and De Beers.

The engineering, procurement and construction management (EPCM) contract follows Fluor’s recent completion of a feasibility study for Debswana in 2009. The expansion is expected to create 1,400 jobs.

“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,” said Dwayne Wilson, group executive of Fluor in a statement. “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.”

As part of the expansion, Fluor will relocate and rebuild the existing infrastructure at Jwaneng Cut 8.

Fluor has registered a new off

ice in Botswana to help with local operations. In addition to the Jwaneng Cut 8 expansion, the company is building a new diamond processing plant at De Beer’s Orapa diamond mine and expanding the company’s Morupule coal mine.

In March, an employee crashed a dump truck into one of the manager’s offices underground at Jwaneng. According to the Botswana Gazette, the employee was upset about Debswana’s planned Operations Review, which will lay off 1,278 employees in stages throughout 2010. No one was injured and security personnel arrested the employee. He was suspended from work.

Fluor is headquartered in Irving, Tx. In 2009, the company reported revenues of US$22 billion.