SNC-Lavalin-led joint venture awarded contract for Cobre Panama process plant

Thursday, Nov 15, 2012

A joint venture led by SNC-Lavalin International Co. Inc., a member of SNC-Lavalin Group Inc. (TSX: SNC), and including GyM S.A. and Techint International Construction Corp, has been selected by Minera Panama S.A. (MPSA), a subsidiary of Inmet Mining Corporation of Canada, to proceed with detailed engineering, procurement and construction of the process plant at the Cobre Panama project in Panama.

The engagement will be performed in two phases. Under the first phase, the joint venture has been instructed to proceed with the detailed engineering and procurement of the plant. In the fourth quarter of 2013, upon satisfactory advancement of detailed engineering, the joint venture will be instructed to proceed with the construction of the facility.

The process plant will be designed to treat a nominal throughput of 160,000 tonnes per day using two grinding lines, each with a capacity of 80,000 tonnes per day. The ore feed rate is expected to increase to 240,000 tonnes per day after the ninth year of operation, allowing MPSA to maintain concentrate production levels despite a falling head grade.

“We are very pleased with the confidence that Inmet continues to demonstrate in our commitment to their project,” said Dale Clarke, Executive Vice-President, SNC-Lavalin Group Inc. “SNC-Lavalin has industry leading expertise in the copper sector, and we are proud to put it to work for Inmet at their world-class Cobre Panama mine.”

The detailed engineering and procurement of equipment for the process plant has begun. The Cobre Panama project is scheduled to be operational in 2016 and is expected to have a life of approximately 30 years.

The SNC-Lavalin-led joint venture was awarded the infrastructure component of the project earlier this year.

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. www.snclavalin.com.

Source: SNC-Lavalin