SNC Lavalin Signs EPC Contract For New Aluminum Smelter

SNC-Lavalin has signed a contract with state-owned Qatar Petroleum and Hydro Aluminium a.s. to carry out the engineering, procurement and construction (EPC) of the Services' Area and Potroom Building of a new aluminum smelter (Qatalum) in Mesaieed, Qatar.

The contract is valued at approximately US$700 million, a major portion of which will consist of an agreed lump sum at the end of the front-end engineering and development (FEED) phase of the project. As per the terms of the agreement, the FEED engineering services are already underway and are expected to be completed by November 2007. Construction on the Services Area and Potroom Building will begin immediately afterwards, with completion scheduled before the end of 2009.

"We are very pleased to be working with Qatar Petroleum and Hydro and to have this opportunity to put our recognized expertise in smelter design and construction at the disposal of Qatalum," said Pierre Duhaime, Executive Vice-President, SNC-Lavalin Group Inc., in charge of worldwide mining and metallurgy operations. "The combination of low cost and significant resources of natural gas in Qatar coupled with Hydro's technology and operation experience, make it an ideal location for a new aluminum smelter."

Potrooms are a key part of the aluminum smelting process. Once SNC-Lavalin has completed its work of constructing the new potroom building, rows of large process pots will then be completed under separate tenders and contracts, along with other process areas.

"This contract reflects confidence in our expertise in the construction of aluminum smelters," said Adrian Owens, Vice-President and General Manager of SNC-Lavalin's Aluminum Division.

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Posted 24/11/06

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