SNC-LAVALIN awarded multi-year project Hub contract

Thursday, Mar 24, 2011

SNC-Lavalin (SNC:TSX) is pleased to announce that it has signed a multi-year Hub contract with BHP Billiton for the execution of potash projects to be developed and built mainly in Saskatchewan. SNC-Lavalin was selected through a competitive process involving other Tier 1 global engineering and construction companies. The Hub involves the establishment of a project execution centre where SNC-Lavalin, in partnership with BHP Billiton, will apply uniform standards and leverage efficiencies in the execution of projects in various stages of development.

SNC-Lavalin’s mandate includes management of the Hub program and the execution of feasibility studies in the Hub office. It also includes the engineering, procurement and construction management (EPCM) for the projects once they are approved by BHP Billiton following the study phases. The projects may include any project to be developed in BHP Billiton’s Diamonds and Specialty Products Customer Sector Group.

Initially, SNC-Lavalin will complete the Definition Phase (typically known as a feasibility study) for Jansen Phase 1, located near Lanigan, Saskatchewan, for a production capacity of two (2) million tonnes/year. EPCM execution is expected to follow in 2012, once BHP Billiton receives the necessary external permits and approves the implementation phase. The full Jansen project is being designed to produce approximately eight (8) million tonnes/year of potash, and development is expected to occur in three phases. Other infrastructure and related projects include the development of port facilities on the west coast of the USA.

“We are excited to be selected as BHP Billiton’s partner to support the growth of its Diamonds and Specialty Products Division, which includes the development of its potash projects,“ said Feroz Ashraf, Executive Vice-President, SNC-Lavalin Group Inc. “We have worked with BHP Billiton over the past 25 years on overseas projects, and have jointly developed good community and sustainability programs; this is a great opportunity for us to do the same in Saskatchewan and other regions in Canada.”

“This year marks SNC-Lavalin’s 100th anniversary and we are extremely proud to celebrate this important milestone with such a significant contract award in Saskatchewan. This award is further recognition of our global expertise in potash combined with our strong Canadian roots and presence in Saskatchewan,” added Ashraf.

SNC-Lavalin looks forward to assisting BHP Billiton in its potash and other prospective Hub project development plans.

Source: SNC-Lavalin