) recently received a contract from Crosslands Resources, an
Australian mining company, to conduct a study regarding the
feasibility of the Jack Hills Expansion Project located in
Western Australia. The contract will be booked in Fluor's first
quarter of fiscal 2013. However, the financial details of the
contract were not disclosed.
The iron ore mine located at Jack Hills, operated by
Crosslands Resources is owned by the Mitsubishi Development Pty.
Ltd.(100% subsidiary of the Mitsubishi Corporation. )
As per the terms of the contract, Fluor will be responsible
for analyzing, upgrading and finalizing the initial analysis of
the extensive expansion project of Iron Ore Mine conducted by the
Strategic Asset Review department of Fluor. The iron mine at Jack
Hills currently produces 1.8 million tones of direct shipping
iron ore annually. Through this expansion, Mitsubishi expects to
produce 61 million tones of feed ore to produce magnetite iron
ore concentrate, annually.
FLR is optimistic about this contract and expects it to boost
its Metal and Mining business included under its Industrial
Infrastructure segment. In the last quarter (fourth quarter
2012), Fluor's Industrial and Infrastructure segment reported a
strong growth in its mining and metals business line, driven by
which the segment posted a 26% year over year revenue growth. The
market for metals and mining continues to look strong for the
upcoming quarters as well, pouring new contracts into Fluor's
Fluor currently has a Zacks Rank #3 (Hold). A few other
industry participants worth considering at this point of time
include Tyco International Ltd. (
), Chicago Bridge & Iron Company N.V. (
) and AECOM Technology Corporation(
) all having a Zacks Rank #2 (Buy).
AECOM TECH CORP (ACM): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
FLUOR CORP-NEW (FLR): Free Stock Analysis
TYCO INTL LTD (TYC): Free Stock Analysis
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