SNC-Lavalin wins $92 million contract for Rio Tinto Alcan smelter in Australia

MONTREAL - Rio Tinto Alcan has awarded joint venture led by engineering giant SNC-Lavalin (TSX:SNC) a $92 million contract for upgrades at its Boyne aluminum smelter in Australia. The contract with Sinclair Knight Merz will provide engineering, procurement and construction management services for the major sustaining projects at the smelter in Gladstone, Queensland. It follows a detailed feasibility study completed by the joint venture last December. The project includes the replacement of two carbon baking furnaces and the replacement of cranes and runways on two reduction lines. "This contract is further confirmation of SNC-Lavalin's worldwide leadership in managing large aluminum smelter projects," Pierre Duhaime, SNC-Lavalin's executive vice-president, said in a release Thursday. SKM and SNC-Lavalin have long histories working with Rio Tinto. "We have worked with Rio Tinto in iron ore, coal, copper and bauxite in Australia, Chile, Peru and, more recently, in Guinea, West Africa, and this latest commission demonstrates the continuing growth of our relationship," added Santo Rizzuto, general manager of Sinclair Knight Merz. Work is underway and is expected to be completed by the second quarter of 2011. SNC-Lavalin is a leading global engineering and construction company that operates in about 100 countries. On the Toronto Stock Exchange, SNC's shares gained 50 cents at $50.50 in early Thursday trading. --- The Canadian Press