On December 21, SNC-Lavalin, one of the leading Canadian engineering and construction groups, announced the signing of a contract with Mauritania-based Société Nationale Industrielle et Minière (SNIM) to provide engineering, procurement and construction management services (EPCM) for an iron ore concentrator project near Zouerate, Mauritania.
The project in question, the Guelb II Iron Ore Project, is adjacent to SNIM's existing iron ore operations in the region, and is expected to contribute an additional four million metric tons of iron ore concentrate annually. The total capital investment for the new facilities is estimated at US$630 million.
The government of Mauritania owns approximately 78 percent of SNIM, with the balance being held by various institutions and other investors. SNIM produced close to eleven million metric tons of iron ore products in 2008.
According to SNC-Lavalin executive vice president Feroz Ashraf, "We are very pleased to be working with SNIM again, and to have this opportunity to continue building on our strong relationship, and to leverage SNC-Lavalin's expertise in iron ore and in executing projects with challenging logistics. This project is a key element to SNIM's expansion strategy in the iron ore sector and will bring further opportunities to the local community."
Procurement activities in relation to the project have begun, and construction is scheduled to begin in 2010 with an expected completion date in early 2013.
"This contract is indicative of SNC-Lavalin's growing market share in the iron ore sector and further demonstrates our proven capabilities in executing projects in French-speaking Africa," commented Luc Bélanger, vice president of SNC-Lavalin's Montreal-based mining and metallurgy division, which is leading the project.