SNC-Lavalin debooks Cobre Panama Project

Apr 02, 2013, 17:54 ET from SNC-LAVALIN

MONTREAL, April 2, 2013 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) has been informed that First Quantum Minerals (FQM) recently acquired a majority stake in Inmet Mining Corporation (Inmet), giving the company control over the Cobre Panama project.  FQM typically directs and executes its projects on an internal direct-hire basis, with additional external expertise brought on only as required.

Subsequent to this acquisition, a joint venture led by SNC-Lavalin International Co. Inc., a member of SNC-Lavalin Group Inc., and including GyM S.A. and Techint International Construction Corp, has received a notice of suspension from Minera Panama S.A. (a subsidiary of Inmet) related to the majority of the work to be performed under its EPCM contract for the balance of plant of the Cobre Panama copper mine. The joint venture has also received a notice of termination from Minera Panama S.A. in relation to the engineering and procurement services to be performed under the agreement in relation to the process plant.

Until a notice of resumption (if any) is received with respect to the suspended work, the residual value of SNC-Lavalin's portion of the contract will be debooked from its backlog in the first quarter of 2013. The value of the suspended and terminated work was worth approximately $120 million in anticipated services revenues.

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.