SNC Lavalin J.V. to Build Alcan's Aluminium Smelter in South Africa

SNC-Lavalin and its partners, Murray & Roberts and Hatch, have as joint venture partners signed a contract with Alcan Inc., valued at more than US$100 million, for the front-end engineering and design (FEED) and engineering, procurement and construction management services (EPCM) for the first phase of Alcan's Coega Aluminium Smelter Project in Port Elizabeth, South Africa. Upon completion of this first phase, the smelter will have an initial capacity of 360,000 tonnes/yr.

While the total value of the contract is for the first phase of the project, the second phase, which would bring aluminum production to an estimated 720,000 tonnes/yr, is also included in the contract. The FEED is expected to take nine months to complete and will provide firm cost estimates and a critical path for construction, pending the Notice to Proceed from Alcan. The project has an estimated total cost of US$2.7 billion for both phases.

"SNC-Lavalin has been involved in the engineering and construction of every major aluminum smelter in southern Africa in the last 15 years, and we are the world leader in this field," said Pierre Duhaime, Executive Vice-President, SNC-Lavalin Group Inc. "We are all looking forward to working with Alcan and, once again, our work on this project will reflect our commitment to our core values of health and safety, a sustainable environment and the well being of local communities."

"Over its more than 100 years as South Africa's leading construction and engineering group, Murray & Roberts has made a significant and continuous contribution to the socio-economic and infrastructure development of the country and the region," said Brian Bruce, Group Chief Executive, Murray & Roberts. "Our scale, experience and presence is an essential factor in procuring the appropriate resources, skills and partnerships to deliver such world-class projects as the Coega Aluminium Smelter."

"As South Africa's leading EPCM firm, Hatch is very proud to have been awarded the Coega smelter project with our joint venture partners. Together with the Alcan and Coega Aluminium teams, we will build on the success of our other recent major smelter assignments around the world," said Joe Lombard, Hatch's Global Managing Director, Light Metals.

SNC-Lavalin is one of the leading groups of engineering and construction companies in the world, a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. With over 15,000 employees, the SNC-Lavalin companies have offices across Canada and in 34 other countries around the world, and are currently working in some 100 countries.

Murray & Roberts is South Africa's leading engineering, contracting and construction services company, with a focus on the industry & mining, oil & gas, power & energy, building and infrastructure markets in Africa, Middle East, Southeast Asia, Australasia and North America. The company offers civil, mechanical, electrical, mining and process engineering; general building and construction; materials supply and services to the construction industry; and management of concession operations.

Hatch is a global EPCM firm dedicated to the metals, energy and infrastructure sectors, with more than 8,000 employees in 80 offices on six continents. Hatch has played key roles in aluminum facility design, construction and upgrades in Canada, the US, Australia and South Africa for more than 25 years.

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Posted 06/08/07

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