Mining giant has a 70% stake in the project, expected to be operational by 2016.
May 22, 2012
by The Canadian Press
MONTREAL: SNC-Lavalin Inc. has received the green light to go ahead with work on a mining contract worth about US$355 million in fees for a group led by the Montreal-based engineering and construction giant.
The overall cost of the Cobre Panama copper project in Panama will be about US$6.2 billion, including US$3.2 billion of infrastructure to be overseen by the SNC joint venture group.
SNC has a 70% interest in the joint venture and is partnered by GyM S.A., a member of Grana y Montero Group, and Techint International Construction Corp., each with a 15% interest.
The contract is with Minera Panama S.A., a subsidiary of Toronto-based Inmet Mining Corp., to provide detailed engineering, procurement and construction management services for the project infrastructure component of the project.
The contract covers infrastructure related to an open pit mine, including supporting infrastructure related to concentrator and processing facilities, transmission lines, roads, bridges, camps and port facilities, SNC said in a news release.
“This is a tremendous opportunity for SNC-Lavalin to work with its joint venture partners, Inmet, MPSA and local stakeholders, to design and build the project infrastructure for this world-class copper mine in Panama,” said Feroz Ashraf, executive vice-president, SNC-Lavalin Group Inc.
Detailed engineering and procurement is to begin immediately and infrastructure construction activities are already in progress at the site, SNC said.
The project is scheduled to be operational in 2016 and the mine is expected to have a life of about 30 years.
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.
With offices across Canada and in more than 35 other countries, it is currently working on projects in about 100 countries around the world.
©The Canadian Press