SNC-Lavalin awarded EPCM contract by Codelco in Chile

Oct 11, 2012, 10:02 ET from SNC-Lavalin

MONTREAL, Oct. 11, 2012 /PRNewswire/ -- SNC-Lavalin (TSX: SNC) has been awarded a contract by the Chuquicamata Division of Codelco Chile to provide overall project management, as well as detailed engineering, procurement and construction management (EPCM) services, for the upgrade of the concentrators at their Chuquicamata mine in Chile. This award follows the initial feasibility study completed by SNC-Lavalin in the first half of 2012.

The scope of the EPCM contract is to upgrade the secondary and tertiary pebble crushing system at their processing facility, allowing it to process 104,000 tonnes of ore per day (2,200 tonnes per hour with 80% utilization). This will be achieved by improving feeders, conveyors, classifiers and crushing units. The total capital cost of the scope under SNC-Lavalin's management is estimated at US$120 million.

"This project is an excellent example of a sustaining capital project for an existing client," said Dale Clarke, Executive Vice-President, Global Mining & Metallurgy, SNC-Lavalin Group Inc. "Codelco is one of our most valued and long-standing clients, and we appreciate the confidence they have placed in us for the delivery of key sustainable projects in their capital investment program."

Detailed engineering and early construction work on the pebble crushing system are already in progress. The project is scheduled for mechanical completion by the end of the third quarter of 2013.

SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently working in some 100 countries.

For further information:

Leslie Quinton
Senior Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
514-390-8000, ext. 7354

Denis Jasmin
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-390-8000, ext. 7553