FLSmidth awarded huge copper project in Peru

Company Announcement to the Danish Financial Supervisory Authority No. 32-2008, 30 June 2008

FLSmidth has signed its biggest minerals contract ever with Southern Copper Corporation for the dry processing of 100,000 tonnes of ore per day for its Peruvian Tia Maria copper leaching project. The contract worth over USD 250 million (DKK 1.2bn) includes design, engineering, equipment supply, spare parts and commissioning. The greenfield copper plant will be located near Arequipa in southern Peru some 1,000 kilometres southeast of Lima.

FLSmidth will mainly contribute materials handling and crushing equipment to the project. The scope of supply includes a complete gyratory crusher station, an overland conveyor, a secondary/tertiary crushing plant, an ore spreading system to form the leaching pads, and a large bucket wheel reclaimer.

The principal owner of Southern Copper Corporation is Grupo Mexico SA de CV who is the third largest copper producer in the world.

"This is our largest minerals contract ever. This extremely important order solidifies FLSmidth's expansion into the fast growing materials handling business. It also demonstrates our growing market position in complete systems offerings and our customers' acceptance of novel solutions," Group Chief Executive Officer Jørgen Huno Rasmussen comments.

The order will contribute beneficially to FLSmidth's earnings until the plant's scheduled commissioning in late 2010.

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