Tag Archives: SNC-Lavalin

SNC-Lavalin to manage construction of Coeur’s Rochester silver-gold mine expansion

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SNC-Lavalin has been awarded a $30 million contract by Coeur Rochester Inc, a wholly-owned subsidiary of Coeur Mining, to provide construction management services for the Plan of Operations, Amendment Number 11 (POA 11) expansion project, at Coeur’s Rochester mine near Lovelock, Nevada, USA.

The contract commenced in the December quarter and is estimated to be completed by the end of 2022. This win is aligned with SNC-Lavalin’s new strategy moving forward in the Services segment, it said.

The POA 11 expansion project includes the construction of a new crushing plant, including a primary, secondary and tertiary crushing circuit (high pressure grinding rolls), a new heap leach pad (272 Mt), a new Merrill-Crowe process plant (62,509 litres/min), and upgrades to existing electrical utility system infrastructure, including a new substation and power distribution lines.

Coeur says this will more than double planned annual crusher throughput capacity from around 12.7 Mt to over 25.4 Mt, post-expansion. This will see average annual silver and gold production total over 8 Moz and some 80,000 oz, respectively, for the initial 10 years, post-expansion

SNC-Lavalin said: “This mandate is well aligned with our expertise in silver, gold and base metal project delivery as well as our commitment to delivering real value to our clients.”

SNC-Lavalin’s offices in Reno, Nevada, and Toronto, Ontario, will continue to support the construction management phase of the project. In addition, a team based locally at the site will manage construction-related activities.

César Inostroza, Senior Vice-President, Mining & Metallurgy, SNC-Lavalin, said: “SNC-Lavalin’s Mining & Metallurgy strategic plan is gaining traction with this mandate. It is an example of the mining services work that our team is winning across our core geographies, including the USA. SNC-Lavalin and Coeur continue to foster a strong relationship that finds and executes services solutions to create world-class operations

“This award is a testament to the continued partnership between SNC-Lavalin and Coeur. It leverages our knowledge of the Rochester mine and engineering expertise from the previous phase of this project and expands our work in the US.”

Terrence FD Smith, Coeur’s Senior Vice President and Chief Development Officer, added: “The strong business partnership between Coeur and SNC-Lavalin will help ensure a robust project delivery for Rochester, paving the way for improved performance in the future.”

Since approval of the initial Plan of Operation in 1986, the Rochester mine has undergone periodic mine plan amendments to support development projects and continued operations. The POA 11 proposes another mine life extension, which is expected to maintain the current workforce and support full production activities at Rochester until 2033.

SNC-Lavalin delivering on new strategy with Rochester POA11 project win

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SNC-Lavalin says it has been awarded a contract to provide engineering, procurement and overall project management services for the Rochester POA11 project in Nevada, USA, by Coeur Rochester Inc, a wholly-owned subsidiary of Coeur Mining.

This phase of the project is estimated to be complete by October 2020, according to the company.

The project is anticipated to include a 20 Mt/y crushing plant, including a primary and secondary crushing circuit as well as a high pressure grinding roll circuit, a 13,750 gpm (52,049 litres per minute) Merrill-Crowe process plant, a new substation with power distribution and new heap leach pad.

Since approval of the initial plan of operation in 1986, the Rochester Mine has undergone periodic mine plan amendments to support mine development projects and continued operations. The mine plan amendment (termed Plan of Operations Amendment Number 11, or simply ‘POA 11’) proposes another mine life extension, which would maintain the current workforce and operate the mine at full production until 2033, SNC-Lavalin said. Coeur says it expects to produce 27,000-33,000 oz of gold and 4-5.5 Moz of silver in 2020.

The Rochester POA11 project is located 160 km northeast of Reno near Lovelock, Nevada. The Rochester mine is an open-pit operation that produces silver and gold. Mining methods include typical open-pit techniques where ore and waste rock are drilled, blasted, crushed, loaded and hauled to either leach pads (ore) or rock disposal sites.

This mining and metallurgy contract win is aligned with the company’s new strategy moving forward towards engineering services and greater growth, SNC-Lavalin said.

The Montreal-based company will provide overall project management services and integrate the engineering performed by various service providers under one set of specifications, procurement policies, standards, systems and procedures, it said. Services will be provided out of its offices in Toronto, Canada, with local support from the Reno, Nevada, branch. This mandate will include additional support such as public consultations, community engagement and working with the local community to address any impacts on the public, housing and accommodations during the project period.

César Inostroza, Senior Vice-President, Mining & Metallurgy, SNC-Lavalin, said: “As a first project with Coeur Mining, we look forward to building a long-term relationship and supporting our client to develop their silver and gold mine in Nevada.

“This mandate is well aligned with our services-based strategy for mining and metallurgy projects. This is one of multiple mining projects we have recently been awarded in the US market, and we see great potential in expanding our capabilities in the region. We look forward to contributing to our client’s project success through our extensive technical and project experience.”

SNC-Lavalin to lead on engineering, procurement for NMG’s graphite plant build

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Nouveau Monde Graphite has awarded SNC-Lavalin, in partnership with Seneca and Boucher-Lachance Architects, the contract for detailed engineering and procurement services for the construction of its concentrator as part of its Matawinie graphite project, in Quebec, Canada.

Engineering work is already underway to complete priority activities by the end of the December quarter of 2019, including the process review, a Class 2 estimate, and a risk and opportunity assessment to optimise infrastructure design and generate savings, NMG said.

In 2015, Nouveau Monde discovered a graphite deposit on its Matawinie property, located in Saint-Michel-des-Saints, 150 km north of Montréal. It completed a feasibility study in 2018, which revealed strong economics with projected high-quality graphite concentrate production level of 100,000 t/y over a 26-year period.

Eric Desaulniers, President and CEO of Nouveau Monde, said: “With an impressive track record in concentrator design, procurement and project management in Quebec, the selected firms will facilitate the commissioning of commercial operations to supply the market with high-quality graphite.”

The entire project will be carried out in virtual design & construction (VDC), enabling integrated and dynamic modelling of the building information modelling (BIM) engineering for the concentrator, according to NMG.

“This innovative platform will facilitate the transfer from engineering to construction and then to operation,” the company added.

NMG’s master team, part of the management team and composed of senior specialists with several decades of experience each, will act as experts to validate the engineering, the procurement strategy and the technical specifications for the equipment, it said.

The engineering work will also take advantage of process optimisations identified at the Matawinie demonstration plant (pictured), which has been operational for one year. With a few hundred tonnes of graphite concentrate produced to date, the operation has demonstrated exceptional ore quality and a high-performance process to achieve a graphite purity of 97% on average and up to 99% for the largest flakes, according to NMG.

Nouveau Monde leverages this production, which is segregated into several granulometric categories ranging from flakes of more than 0.3 mm (+50 mesh) to the finest products of less than 0.1 mm (-150 mesh), to supply potential customers with samples so they can test the concentrate and confirm their commercial intentions. The demonstration plant will also be the preferred training platform for future Nouveau Monde employees to accelerate the start-up of operations thanks to process knowledge and hands-on experience with similar equipment.

Desaulniers concluded: “Nouveau Monde’s mining project has really taken off in recent months now that we have a solid foundation for our Matawinie graphite project. Our demonstration plant has validated the effectiveness of our treatment process, which is now being optimised by our team of experts in anticipation of the commercial plant. Next year promises more achievements as we complete the design of our operation, reserve key equipment and crystallise our customer base.”

SNC-Lavalin’s Resources segment in line for reorganisation

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SNC-Lavalin Group says it is exiting lump-sum turnkey (LSTK) contracting and will reorganise its Resources (Oil & Gas and Mining & Metallurgy) and Infrastructure Construction segments into a separate business line following continued poor performance.

The company, which earlier this year stopped bidding on all future mining EPC projects, said it was also exploring all options for its Resources segment, particularly its Oil & Gas (O&G) business, including transition to a services-based business or divestiture. SNC-Lavalin’s Resources division reported negative EBIT of C$256.6 million ($195.4 million) in 2018.

“The decision to reorganise the company will allow SNC-Lavalin to focus on the high-performing and growth areas of the business, which will be reported under SNCL Engineering Services,” the company said, adding that it will fulfil the contractual obligations of its current LSTK projects and then be reorganised as SNCL Projects.

The reorganisation and exiting from LSTK contracting is the first step of the new strategic direction for the company that is focused on de-risking the business and generating more consistent earnings and cash flow, SNC-Lavalin said.

Ian L Edwards, Interim President and Chief Executive Officer, said: “LSTK projects have been the root cause of the company’s performance issues. By exiting such contracting and splitting it off from what is otherwise a healthy and robust business, we are tackling the problem at the source and, as a result, we expect to see a material improvement in the predictability and clarity of our results.

“Going forward, the reorganisation will allow us to focus on leveraging growth opportunities and end-to-end project management capabilities that we have in SNCL Engineering Services, delivering consistent earnings and cash flow, with a leaner capital structure, to our shareholders.”

In March, SNC-Lavalin confirmed a $260 million engineering, procurement and construction contract with Codelco at Chuquicamata, in Chile, had been cancelled following a dispute.

 

SNC-Lavalin wins EPCM contract for NEXA Aripuanã polymetallic project

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SNC-Lavalin has been awarded an engineering, procurement and construction management (EPCM) contract from NEXA Resources for its majority-owned Aripuanã zinc-copper-lead project in Mato Grosso, Brazil.

The Montreal-based professional services and project management company will deliver EPCM services for the project out of its Belo Horizonte office, in Brazil, and will include all operations required for copper, zinc and lead ore processing, including crushing, grinding, flotation, thickening, filtration and storage of concentrates and tailings, as well as load out of the final concentrated products and all related surface infrastructure, it said. The mandate also includes waste backfill, mine ventilation, and mine dewatering.

The Aripuanã project is an underground polymetallic mine and concentrate processing facility to extract zinc, copper and lead. Once completed, it will have an anticipated mine life of 13 years and a processing capacity of 1.8 Mt/y of ore per year, according to SNC-Lavalin.

The project’s zinc process flowsheet has been developed by considering conventional technologies for treatment, including sequential flotation for the recovery of zinc, copper, and lead as separate concentrates, according to NEXA.

SNC-Lavalin said the project will rely on “data-centric engineering” for development and design, and the use of immersive technologies for training operations personnel.

Work has begun and is slated for completion by the beginning of 2021.

Maria de Lourdes Bahia, General Manager of SNC-Lavalin Brazil, said: “Our Mining & Metallurgy sector has a long history in reimbursable EPCM services, and this award is testament to our continued recognition in this model of project delivery.

“This mandate is well aligned with our services-based strategy for mining and metallurgy projects. We look forward to continuing our trusted relationship with NEXA Resources in the successful execution of the project.”

Codelco terminates SNC-Lavalin contract at Chuquicamata

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Codelco has terminated its contract with SNC-Lavalin following a dispute related to a copper project the engineering firm was working on for the mining company.

SNC-Lavalin, which confirmed the news in a press statement, said Codelco had also initiated a drawdown on its approximately $42 million in bank guarantees.

News of a problem with one of SNC-Lavalin’s mining and metallurgy contracts came to light earlier this year, when the Canada-based company said an unfavourable cost reforecast related to a project would affect its 2018 financial results.

The two parties were unable to agree on a way forward for the project and, following further discussions, agreed to settle the dispute through an accelerated arbitration process. SNC-Lavalin said at the time that it expected to make significant recoveries in the future, but it would in the meantime continue to work on the project, which it expected to complete by the end of the June quarter.

Codelco said the $260 million engineering, procurement and construction (EPC) contract for the building of two new acid plants at the Chuquicamata smelter, in Chile, had been terminated due to a serious breach in the contract milestones.

“Among the non-compliances, are the delay in payments to its subcontractors, delays in the execution of the project and problems in the quality of the works, among others,” Codelco said in a news release translated from Spanish.

SNC-Lavalin, which earlier this year stopped bidding on all future mining EPC projects, said it was “appalled and surprised” by the decision taken by Codelco.

“We had reached an agreement in good faith on February 1, 2019, regarding the full completion of the project and a process for a fast track dispute resolution of previously announced unresolved issues through accelerated arbitration.”

The company said as it was nearing the end of the project completion, Codelco’s actions would put the completion and commissioning date further at risk.

“We believe that this termination is unwarranted and in breach of good faith agreements reached by the parties. It should be noted that Codelco has reached this decision after SNC-Lavalin openly informed Codelco of the status of the execution of the works, as requested by Codelco, which showed delays caused by site conditions that were the responsibility of Codelco, and the poor and unjustified acts by the main construction subcontractors,” SNC-Lavalin said.

SNC-Lavalin said it was now demobilising the job site and assessing the legal and financial impact of Codelco’s decision and preparing the dispute resolution actions to “recover as much as possible of the previously announced losses that are due directly to our client and to poor sub-contractor performance”.