DAILY NEWS Oct 1, 2015 4:17 PM - 0 comments

NICKEL: SNC-Lavalin to sell Ambatovy share for $600M

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MADAGASCAR – SNC-Lavlin of Montreal has elected to sell its 5% share in the Ambatovy laterite nickel joint venture to Sumitomo Corp. for $600 million. Sumitomo will now enjoy a 32.5% interest in the project. The balance is held by Sherritt International Corp. (40%) and Korea Resources Crop. (27.5%).

SNC won an engineering, procurement and construction management contract for the Ambatovy project in 2007. The $4.6 billion undertaking, the largest capital project in Madagascar's history, has a capacity to produce 60,000 t/y of refined nickel, 5,600 t/’y of refined cobalt and 210,000 t/y of ammonium sulphate fertilizer for a minimum of 29 years.

On Sept. 21, 2015, the Ambatovy project achieved financial completion. Accordingly, SNC-Lavalin has chosen to exercise its put option and has received its proceeds.

Sherritt is the operator of the joint venture, and more information about it is posted at Sherritt.com

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