MONTREAL, Sept. 30, 2015 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) announced today that it has exercised its option to divest its five percent ownership interest and the balance of its loans in the Ambatovy Nickel Joint Venture Project, a laterite nickel mine operation and a hydrometallurgical processing plant in Madagascar, to Sumitomo Corporation, an existing partner, for a cash consideration of approximately CDN$600 million.
The Company was initially awarded an EPCM contract for the Ambatovy nickel and cobalt operation in 2007. The mine―the largest capital project in Madagascar's history―has a capacity to annually produce 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt and 210,000 tonnes of ammonium sulphate fertilizer for a minimum of 29 years. On September 21, 2015, the Ambatovy project achieved financial completion. Accordingly, SNC-Lavalin has chosen to exercise its put option and has received its proceeds.
"We are pleased to have been involved in building the Ambatovy operation with our joint venture partners these past seven years and helping this unique mining project achieve crucial key milestones over this time," said Robert G. Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. "With nickel being the country's largest export, Ambatovy will continue to contribute to the country's future growth and generate long-term economic and social benefits for the people of Madagascar."
"This divestiture process is another step forward in executing our Company's strategic plan to monetize certain assets within the Infrastructure Concession Investments portfolio," said Neil Bruce, Chief Operating Officer, SNC-Lavalin Group Inc. "Ambatovy is a perfect example of how we successfully leveraged our operational and investment capabilities for the mining sector."
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's employees are proud to build what matters. Our teams provide EPC and EPCM services to clients in a variety of industry sectors, including oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com
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