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AMEC Awarded Contract for Cerro Negro Norte Iron Ore Project in Chile

AMEC AMEC has been awarded an engineering, procurement and construction management (EPCM) contract by Compañía Mínera del Pacífico S.A., a member of Grupo CAP, for its US$574 million Cerro Negro Norte iron ore project near Copiapó in Chile.

The value of AMEC's contract has not been announced.

The award strengthens AMEC's position in the expanding global iron ore industry. AMEC will play a vitally important part in developing the 27,000 tonnes per day operation. When completed, the mine will produce four million tonnes of iron ore concentrate annually over a period of 19 years. Work on the project will begin immediately and commissioning is scheduled to start in the first quarter of 2013. AMEC will execute the project from its 1,000-person-strong Santiago operation.

"I am delighted that AMEC's experience and excellent track record in large EPCM projects has led to this new contract, which confirms our position as one of the leading project delivery companies in Chile," said Simon Naylor, President of AMEC's Natural Resources business in the Americas. "Mining is a key sector for AMEC and South America an important growth region for our Vision 2015 strategy."

Pierino Venturini, Executive Vice President, Mining Projects of Compañía Minera del Pacífico S.A. stated, "We are very pleased to be working with AMEC at our Cerro Negro Norte project. AMEC provided a very comprehensive proposal and execution plan and made available a highly experienced team."

Published 18/02/2011

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AMEC (LSE: AMEC) is a focused supplier of high-value consultancy, engineering and project management services to the world's natural resources, nuclear, clean energy, water and environmental sectors. With annual revenues of over £2.5 billion, AMEC designs, delivers and maintains strategic and complex assets for its customers. The company employs some 23,000 people in around 40 countries worldwide.

AMEC's global Mining & Metals business develops some of the most challenging projects in the world. AMEC is recognised for a unique combination of excellent project delivery, industry leading mining and process technical expertise, and full project life-cycle capability. AMEC is an industry leader in a broad range of commodities from base and precious metals, to diamonds, iron ore, coal, uranium and fertilizers.

AMEC has been established in Chile since 1999, providing engineering services to mining and forestry industries. Today AMEC is one of the largest project delivery firms in Chile with over 1,000 employees. Based in Santiago, we provide engineering consulting services in various areas, including mining infrastructure, energy and fuels.

Compañía Mínera del Pacífico S.A. was formed in 1981 as a result of an organic restructuring of Compañía de Acero del Pacífico S.A. (today CAP S.A.). Compañía Mínera Minera del Pacífico S.A., CAP Minería, is the owner and successor of the exploitation of the mining deposits originally belonging to CAP S.A. These deposits are: Los Colorados, El Algarrobo, El Romeral and other iron ore mining claims in Chile's Antofagasta, Atacama and Coquimbo regions.

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