AMEC Awarded De Beers EPCm Contract for Snap Lake in Canada

AMEC has been awarded a Cdn $38M contract to provide detailed engineering, procurement and construction management services for Snap Lake, De Beers' first diamond mine in Canada. The capital value of the project is Cdn $636 million.

The scope of work will include the underground mine, primary crusher and ore transport conveyor, process plant, shops and service building, accommodations complex, water treatment, diesel power, airstrip, and other support infrastructure. Snap Lake's timing and logistics are driven each year by an eight-week transportation window during which an ice road is used to deliver the bulk of equipment, materials and supplies to the site. Preliminary site development began in 2004 and was followed with board approval on May 10 for full funding of construction. The project is scheduled to start up in late 2007.

"AMEC is excited to be involved in De Beers' first diamond mine in Canada," said Bob Stanlake, Vice President and General Manager, Mining & Metals. "Through our alliance with De Beers, AMEC has been able to help take them from exploration to project development and continue to work with them to advance other projects throughout Canada."

Snap Lake, located in the Northwest Territories, will be the first fully underground diamond mine in Canada and the first kimberlite dyke to be mined by De Beers. The project ore will be brought to the surface for processing at a rate of 3,000 tonnes per day.

"AMEC has been involved with the project since the beginning, has proven northern experience and has provided De Beers with outstanding service. We are pleased to continue our alliance partnership with AMEC as we take Snap Lake through construction", says Doug Scott, Senior Vice President, Canadian Projects, De Beers Canada.

AMEC's work on this project dates back to 1998 for Winspear Resources, which De Beers acquired in 2001. An extensive sampling and test mining program, supported by AMEC, is being wound up by the project team and preliminary construction work has commenced.

As part of the AMEC / De Beers alliance, additional work this year has included an advanced study of the Gahcho Kué mine in the Northwest Territories and assistance with the Fort à la Corne deposit in Saskatchewan. AMEC environmental specialists have also provided geotechnical, environmental assessment and permitting assistance to the Victor and Gahcho Kue projects.

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Posted 19/05/05

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