Jacobs Receives Contract From Codelco For Sustaining Capital Services In Chile

Jacobs Engineering Group Inc. (NYSE:JEC) announced today that it was awarded a contract from Codelco’s Radomiro Tomic Division for sustaining capital services for its Radomiro Tomic (RT) copper mine in Calama, Antofagasta, Chile.

The three year contract has a potential value of $27 million. With this award, Jacobs establishes an office in Calama and expands its operational presence in Chile’s primary mining region in the north of the country.

Under the terms of the contract, Jacobs is providing engineering, procurement, construction management, commissioning, and start-up support for an annually approved portfolio of projects related to the current operations of Codelco’s RT copper mine. RT is an oxide ore open-pit mine located approximately 1,040 miles from Santiago, Chile at over 9,800 feet above sea level in the desert area of the Andes Mountains. Its plant capacity is designed to produce 300,000 metric tons per year of cathode copper.

Jacobs is currently performing Phase II of the RT Sulphides Project which includes the provision of engineering services for an anticipated 200,000 metric tons per day (mtpd) Cu-Mo (Copper-Molybdenum) concentrator plant that processes the sulphides copper ore reserves of the RT Mine. Jacobs also performed Phase I of the RT Sulphides Project, providing EPCM services for the installation of a semi-mobile primary crushing plant at the RT Mine and an overland conveyor and coarse ore stockpile to feed the existing concentrator facilities at the nearby Chuquicamata Mine.

In making the announcement, Jacobs Executive Vice President Andrew Kremer stated, “We are very pleased to receive this award from Codelco, and look forward to further strengthening the solid relationship we have established with them through our previous and ongoing work at the RT mine.”

Codelco, the National Copper Corporation of Chile, is the world leader in copper production and is an autonomous company owned by the Chilean State.

Jacobs is one of the world's largest and most diverse providers of technical, professional, and construction services.

Statements made in this release that are not based on historical fact are forward-looking statements. We base these forward-looking statements on management’s current estimates and expectations as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2012 Form 10-K, and in particular the discussions contained under Items 1 - Business, 1A - Risk Factors, 3 - Legal Proceedings, and 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations. We do not undertake to update any forward-looking statements made herein.

Copyright Business Wire 2010

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