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MADAGASCAR: Construction start-up on planned $852,000,000 nickel mine development project is tentatively scheduled to begin by mid-2007, SNC-LAVALIN INC. [Canada] Order #: 128406.

Article Excerpt
PROJECT OVERVIEW:

An international consortium recently signed a shareholders agreement regarding the development of the Ambatovy nickel project located 80 kms east of the capital of Madagascar, Antananarivo. The partners in the planned undertaking and their respective shareholdings include Canada-based DYNATEC CORP. (40%) and SNC-LAVALIN (5%) in conjunction with SUMITOMO CORP. of Japan (27.5%) and KOREA RESOURCES CORP. (KORES) of South Korea (27.5%). The latter is a joint venture held by DAEWOO INTERNATIONAL CORP., KEANGNAM ENTERPRISES LTD. and STX CORP.

In so doing, DYNATEC is expected to apply its extensive hydrometallurgical experience as project operator. SNC will bring its leading expertise in the engineering and construction of major mining projects and substantial knowledge of Ambatovy, having coordinated the project's feasibility study. As a result, the partnership awarded SNC the engineering, procurement and construction management (EPCM) contracts for the project.

Ambatovy is considered to be among the largest nickel projects under development in the world. Estimated proven and probable reserves amount to125 million tonnes at approximately 1.04% nickel and 0.099% cobalt using a 0.8% nickel cut-off grade. The Project will consist of: - An open-pit mining operation; - An ore preparation plant at the mine site; - The delivery of slurried laterite ore via pipeline; - A process plant and refinery located a few kms from the Port of Toamasina.

Product output will consist of 60,000 tons per year (t/y) of nickel, 190,000 t/y of ammonium sulphate and 5,600 t/y of cobalt. It is anticipated that Ambatovy will be placed near the bottom of the industry cost curve based...

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