PT Newmont Nusa Tenggara Batu Hijau Copper and Gold Mine - EPC

Historic Project: Groundbreaking Work From Earlier in Fluor’s History

Client: P.T. Newmont Nusa Tenggara

Location: Sumbawa, Indonesia

Business Segment: Urban Solutions

Industry: Mining & Metals

Map showing the location of PT Newmont Nusa Tenggara Batu Hijau Copper and Gold Mine - EPC

Executive Summary

Fluor performed engineering, procurement and construction (EPC) on the world's largest greenfield mining project at the time on the remote island of Sumbawa in Indonesia with no infrastructure and a sparse and unskilled workforce amid economic and political turmoil.

Client's Challenge

P. T. Newmont Nusa Tenggara (PTNNT) is an Indonesian company 80% owned by a partnership of Newmont and Sumitomo Corporation of Japan. P. T. Pukuafu Indah, a local mining company, holds 20%.

PTNNT wanted to build a copper and gold mine on Sumbawa Island in Indonesia, which was devoid of infrastructure and lacked a skilled workforce to complete the project. In addition, Indonesia was faced at the time with economic and political turmoil.

PTNNT contracted with us to support an optimization study to refine project concepts and to perform EPC on the mega-project.

Fluor's Solution

We completed this complex project by using a multi-office execution approach and segregating the mega-project into five manageable segments: port, power plant, concentrator, mine and township. We also closely aligned with PTNNT as a partner to deliver this challenging project.

A major design challenge was the availability of fresh water on the island to handle the demands of the processing plant. Our engineers designed and tested a seawater system to ensure that all equipment used at the mine was compatible with the seawater conditions.

During construction, the workforce peaked at more than 14,000 personnel from diverse cultures and backgrounds. In addition to the economic and political unrest at the time, the logistics of feeding and housing the number of personnel and the families of expat employees on the island presented a challenge. The neighboring island of Lombok was used to provide accommodations.

Fluor and PTNNT provided extensive training to all workers, including safety orientation training in both Bahasa Indonesian and English. Training centers were set up throughout the project site and customized training sessions were provided for the duration of the project.

Fluor and PTNNT also spent more than $5 million on community development projects that included childcare centers, support of new local businesses and a program to reduce malaria in the local villages.

Conclusion

Despite the many challenges and obstacles, we delivered the Batu Hijau project to PTNNT one month ahead of schedule and approximately $100 million under budget. The successful project continues to exceed expectations.

The success of the project was due to the commitment and partnership approach of both Fluor and PTNNT.

All team members established project goals early in the schedule and worked throughout the project to ensure that the goals were achieved.

The Batu Hijau project stands as one of the most successful projects in our storied history of more than a century.