SNC-Lavalin-LED joint venture awarded contract to execute EPCM services on Cobre Panama project

MONTREAL, May 22, 2012 /CNW Telbec/ - A joint venture led by SNC-Lavalin (TSX: SNC) (70%), and including GyM S.A. (a member of Graña y Montero Group) (15%) and Techint International Construction Corp (15%), has received Full Notice to Proceed from Minera Panama S.A. (MPSA), a subsidiary of Inmet Mining Corporation of Canada, for a contract to provide detailed engineering, procurement and construction management (EPCM) services for the project infrastructure component of the Cobre Panama copper mine in Panama. The joint venture's scope of services is approximately US$355 million in fees, and covers project infrastructure estimated at US$3.2 billion. The overall capital cost of the project is estimated at US$6.2 billion.

The EPCM contract covers infrastructure related to an open pit mine: supporting infrastructure related to concentrator and processing facilities, transmission lines, roads, bridges, camps and port facilities.

"This is a tremendous opportunity for SNC-Lavalin to work with its joint venture partners, Inmet, MPSA and local stakeholders, to design and build the project infrastructure for this world-class copper mine in Panama," said Feroz Ashraf, Executive Vice-President, SNC-Lavalin Group Inc. "This award builds on our 20-year relationship with Inmet, and reflects their continuing confidence in our ability to carry out challenging and prestigious projects for them. We look forward to executing this major project in Panama."

Detailed engineering and procurement will commence immediately and infrastructure construction activities are already in progress at the site. The project is scheduled to be operational in 2016, and the mine is expected to have a life of approximately 30 years.

SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. www.snclavalin.com.

SOURCE SNC-LAVALIN

Copyright 2012 Canada NewsWire