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By
Reuters
Published
Sep 14, 2010
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KBR gets $1.29 bln contract for Rio Tinto mine

By
Reuters
Published
Sep 14, 2010

Sept 14 - U.S. engineering company KBR Inc (KBR.N: Quote) said it had been awarded a $1.29 billion contract for an Australian iron ore mine by a joint venture between Rio Tinto (RIO.L: Quote) (RIO.AX: Quote) and Hancock Prospecting.



KBR said it will provide design, procurement management, project and construction management for the 15 million dry tonnes per annum (mtpa) Hope Downs 4 mine in western Australia, adding that construction is to begin in February 2011.

The company said it had completed engineering studies for the project, which mining giant Rio Tinto will develop and operate as manager of the joint venture.

In a bid to diversify away from dwindling military contracts that have been a major part of its business, KBR has set its sights on a handful of sectors with good growth prospects, like infrastructure for mining, oil and gas exploration, power generation, among others. [ID:nN23249689]

Shares of the Houston, Texas-based company, which have risen about 27 percent since early July, were up 1 percent at $24.52 in early morning trade Tuesday on the New York Stock Exchange.

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