VALE AWARDS MAJOR CONTRACT FOR LONG HARBOUR PROCESSING PLANT

TORONTO, May 26, 2011 /CNW/ - Vale has awarded a two-year $600 million contract to KBAC Constructors, a Kiewit - BMA - G.J. Cahill Partnership to provide mechanical, piping, electrical and instrumentation services for the construction of the Long Harbour Processing Plant in Newfoundland and Labrador.

KBAC is a partnership of Peter Kiewit Infrastructure Co., BMA Constructors - a Black & McDonald-Alberici Joint Venture and G.J. Cahill & Company (1979) Limited.

"The mechanical, piping, electrical and instrumentation services contract is the largest single contract that we have awarded to date on the Long Harbour construction project and one of the largest supplier contracts awarded at Vale," said John Pollesel, Chief Operating Officer for Vale's Base Metals Business in North Atlantic. "The partners in the KBAC partnership have been working with us over the last year and we are very pleased to see them come together in a partnership to work on this part of the project."

Mr. Pollesel went on to say that "the mechanical, piping, electrical and instrumentation services contract award is an excellent example of the kind of business arrangements that Vale has been able to forge using international, national and local companies to support the Long Harbour project. To date, we have awarded contracts valued in excess of $1.5 billion of which 90% has been awarded to local companies who are providing construction and support services at the Long Harbour site. This is a significant achievement for Vale that will result in considerable benefits flowing to the Province of Newfoundland and Labrador over the next few years as we prepare for operations."

The construction program at Long Harbour is an integral part of Vale's $10 billion capital investment program in Canada which was announced in November 2010. The Long Harbour Project represents a US$2.8 billion investment by Vale in a processing plant that will utilize hydrometallurgical technology developed by Vale in Canada with support from Industry Canada's Technology Partnerships Program. The Long Harbour Processing Plant will generate 10 million person-years of employment during the construction phase of the project which is scheduled to be completed in February 2013. Once in operation, the Long Harbour Processing Plant will have a permanent workforce of 475.

About Alberici
Alberici Constructors, Ltd. of Burlington, Ontario, is a wholly-owned subsidiary of Alberici Corp., a major industrial construction firm based in St. Louis, Missouri. Alberici has averaged $1 billion in revenue in the last three years from North American operations. Alberici performs heavy infrastructure projects in the mineral processing, power generation, water treatment and marine markets. Alberici also fabricates and erects structural steel for projects throughout North America.

About Black & McDonald
Black & McDonald Limited is a diversified, privately-owned Canadian contracting company operating across Canada and in selected global markets for 90 years. The company provides a full range of electrical, mechanical, utility, and maintenance services to commercial, industrial, institutional, and government markets. Black & McDonald is registered and licensed to do business in all provinces and territories, operating 24 offices in Canada and the U.S.A., with over 3,500 employees. The Newfoundland and Labrador office has been operating continuously since 1973.

About Cahill Group
The Cahill Group of Companies is a leading Mechanical, Piping, Electrical and Instrumentation company within Atlantic and Western Canada. Cahill is active in the Oil and Gas, Institutional, Power Generation, Mining and Water Treatment markets; has offices in Newfoundland and Labrador, Nova Scotia, New Brunswick and Alberta; and employs over 200 full-time staff with a peak workforce in excess of 1,200 tradespeople. Cahill is ISO 9001-2008 registered and maintains exceptionally high QHSE standards.

About Kiewit  
With its roots dating back to 1884, the employee-owned company operates through a network of offices in Canada, the United States, and abroad. The company established itself in Canada in the early 1940s and continues to build upon its commitment to being a local Canadian contractor with extensive experience in every Province.  Kiewit offers construction and engineering services in a variety of markets including shipbuilding, offshore platforms, transportation, water/wastewater, heavy civil, power, oil, gas and chemical, building and mining.  In addition to transportation, heavy civil, industrial and mining projects, Kiewit's Canadian portfolio includes designing and building waste-to-energy, hydroelectric and co-generation plants, along with related infrastructure.  With 2010 revenues of almost $10 billion, Kiewit's workforce includes approximately 10,300 salaried and hourly staff along with more than 14,400 craft workers.

SOURCE Vale Limited

For further information:

 
Cory McPhee
Vice-President, Corporate Affairs
Vale
416.361.7669
cory.mcphee@vale.com
Bob Carter
Manager, Corporate Affairs
Vale, Newfoundland and Labrador
709.758.8895
bob.carter@vale.com

 

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