TMX group

Feb. 10, 2011 (Canada NewsWire Group) --

MONTREAL, Feb. 10 2011 /CNW Telbec/ - SNC-Lavalin is pleased to announce that it has signed a contract for the implementation of the first phase of the Cerrejon Coal Mine Project in Colombia.  SNC-Lavalin, in a 50/50 joint venture with partner Sinclair Knight Merz (SKM), will provide engineering, procurement, construction management and pre-commissioning services to expand the mine facilities and infrastructure including rail and port facilities at Puerto Bolivar.

"The project not only further strengthens our delivery expertise in the coal sector but also enhances our presence in Colombia," said Feroz Ashraf Executive Vice-President, SNC-Lavalin Group Inc.  "Furthermore, given our recent acquisition of Itansuca in Colombia, with over 1,000 employees, we are well-positioned to serve our clients in the fields of energy, infrastructure, oil and gas and mining and metallurgy."

Santo Rizzuto, SKM's Senior Vice-President and General Manager, Mining and Metals, noted that the project represented a major opportunity for the company to work with existing clients in an expanding region.

"SKM has a long history of working in coal in the Bowen Basin in Queensland, Australia, and, combined with our growing presence in South America, the Cerrejon project will enable us to bring our skills and experience in engineering and project delivery to this important project and region," said Rizzuto.

The mine currently produces 32 million tonnes per year of thermal coal for export to the world market. This project will raise the exported volume of coal to 40 million tonnes per year with a planned future upgrade to increase the total output to 60 million tonnes per year.

The total project value for Phase 1 is more than $1billion of which the value under the joint venture's management is approximately $370 million.

SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. In business since 1911, the Company celebrates its 100^th anniversary in 2011. www.snclavalin.com.

SKM is a leading projects firm, with global capability in strategic consulting, design and delivery. It operates in three mega regions: Asia Pacific, The Americas and EMEA (Europe, Middle East & Africa), deploying some 6,500 people from more than 40 offices while serving the Buildings and Infrastructure, Mining and Metals, Power and Energy and Water and Environment sectors. www.globalskm.com