Skanska to build concentrate transport for BHP's Escondida

Thursday, April 11, 2013

Australian diversified resource giant BHP Billiton (NYSE: BHP) has awarded Swedish construction firm Skanska a contract to build a pipeline for concentrate transport in northern Chile's region II, Skanska said in a statement.

The contract will be carried out by a special purpose company formed by Skanska Chile and local company Conduto. The total amount of the contract is US$112mn, of which Skanska's share is 60% or US$67mn.

Skanska will be responsible for the pre-construction and construction of the pipeline to move minerals from the Escondida mine, located 170km from Antofagasta city, to Coloso port.

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Work has started and is estimated to be completed in the first quarter of 2014.

BHP Billiton has a 57.5% stake in Chile's Escondida, the world's biggest copper mine.