VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 19, 2005) - Finning International Inc. ("Finning") (TSX:FTT) announced today that its Canadian division has been awarded a contract to supply all on-site power generation equipment for De Beers Canada Inc.'s Snap Lake underground diamond mining project in the Northwest Territories. The total contract value is approximately C$16 million.
Under this two-year contract, Finning Power Systems will provide prime and auxiliary generator sets, ancillary equipment, control systems and enclosures to produce approximately 21MW of electricity for the mine (roughly enough to power 20,000 homes). Specifically, Finning will provide:
- Four - Cat 3616 diesel generator sets, which will be installed in a main powerhouse facility provided by De Beers. Heat recovered from these generators will be used to heat the mine's domestic hot water requirements, provide space heating, and some process loads. The Caterpillar 3600-series generator sets are scheduled to be delivered on the 2007 ice road.
- Three - Cat 3516 diesel generator sets, each in an Arctic enclosure custom built by Finning. This auxiliary powerhouse will provide power to the mine during the construction phase and backup and peak load power requirements after the mine is operational. The Caterpillar 3500-series generators are scheduled to be delivered on the 2006 ice road.
"While in its early stages of development, the Canadian diamond mining industry is experiencing dramatic growth, and Finning is strategically positioned to play a major role in its future development," said Doug Whitehead, president and CEO of Finning International Inc. "This is the third Canadian diamond mine for which Finning will design and supply power generation and heat recovery equipment and systems."
"We are proud to have been selected by De Beers Canada to serve the Snap Lake Project," said Ian Reid, president of Finning (Canada). "This is just the start of what we hope will be a long and rewarding relationship with DeBeers. The experienced Finning team, combined with Caterpillar equipment, provides a complete customer solution for the Snap Lake mine's power generation needs."
The Snap Lake Project, located in the Northwest Territories, is wholly owned by De Beers Canada Inc. and, once constructed, will be the first entirely underground diamond mine in Canada. Construction on the Snap Lake Project began with the opening of the winter road in February 2005. The mine will be operational in 2007.
Finning has a rich history in Canada's north. Sales and service offerings to northern customers were first introduced in the mid-1950s to meet the demands of the conventional oil and gas sectors, forest industries and mining sectors in the northern regions of B.C. Today, Finning employs more than 600 people at 11 northern locations from Fort McMurray to locations as far north as Inuvik. Finning is one of the single largest employers in the north.
Finning International Inc. is one of the world's largest Caterpillar equipment dealers. The Company sells, rents, finances and provides customer support services for Caterpillar equipment and engines in Western Canada, the U.K., and South America (Argentina, Bolivia, Chile and Uruguay). Finning also owns Hewden, the largest equipment rental business in Europe. Headquartered in Vancouver, British Columbia, Canada, Finning International Inc. is a widely held, publicly traded corporation, listed on the Toronto Stock Exchange (symbol FTT). For additional information please visit our website at www.finning.com.
This release may contain forward-looking statements and information, which reflect the current view of Finning International Inc. with respect to future events and financial performance. Any such forward-looking statements are subject to risks and uncertainties and Finning's actual results of operations could differ materially from historical results or current expectations. Finning assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein do not materialize.
Refer to Finning's annual report, management information circular, annual information form and other filings with the Ontario Securities Commission and Toronto Stock Exchange for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements contained in this report.
FOR FURTHER INFORMATION PLEASE CONTACT:
Finning International Inc.
Vice President, Investor Relations
(604) 331-4899 (FAX)