AMEC Selected to Deliver Ontario's First Diamond Mine

AMEC has been awarded the Cdn $65 million engineering, procurement and construction management contract for the Victor Diamond Mine in Northern Ontario, Canada. The Victor Diamond Mine will be the first diamond mine in Ontario and De Beers' second mine in Canada. The capital cost of the mine is Cdn $982 million.

"AMEC is excited to play a significant role in Ontario's first diamond mine," said Bob Stanlake, Vice President and General Manager, Mining & Metals. "Through our alliance with De Beers, AMEC has been able to assist the company in moving their Canadian projects to development.

"De Beers has recently received ratification of the Impact Benefit Agreement with the Attawapiskat First Nation and approval of the Comprehensive Study Environmental Assessment by the Federal Minister of Environment. The project will provide sustainable, long-term employment for First Nation communities and other communities in northern Ontario, approximately 600 workers during construction and 400 employees during production.

"The Victor Mine project represents a major investment for De Beers," said Jeremy Wyeth, Vice President of De Beers Canada and project executive responsible for the Victor Mine. "AMEC has played an invaluable role through the permitting stage and we're pleased to continue our successful alliance partnership as we move forward with construction of the Victor Mine.

"Production from the diamond mine is scheduled to start in late 2008. Site facilities will include an open pit mine, a processing plant capable of treating 2.65 million tonnes per year, workshops, a warehouse, offices, a fuel storage facility, a pit dewatering system, an accommodation complex and an airstrip. An added challenge is that overland road access to the property is limited to a period of two months each year via a 400 km winter road.

AMEC's involvement with the project began in 2002 when the company undertook the pre-feasibility study. A subsequent detailed feasibility study followed for this 7,250 tpd open-pit diamond deposit near the western shore of James Bay. In November 2002, AMEC signed an alliance agreement with De Beers to become their preferred supplier for engineering, consulting and project/construction management services in Canada.

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Posted 15/09/05

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