Montreal company to manage $2-billion Vale project in Sudbury – Star Staff (Sudbury Star – March 6, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

SNC-Lavalin Group Inc of Montreal won a contract to manage the modernization of Vale’s nickel smelter complex in Sudbury.

SNC did not say Monday how much the Vale contract was worth, but analysts estimated it to be about C$200 million over three years.

A construction and engineering company, SNC-Lavalin Group Inc. will oversee the $2-billion environmental upgrade at the smelter, known as the Clean AER (Atmospheric Emissions Reduction) Project.

The firm said it will work with local contractors. The project is expected to reduce emissions of sulphur dioxide by 70% from current levels, and cut dust and metal emissions by up to 40%.

Construction work on the project is to begin in April 2012 and be completed near the end of 2015.

In an earlier statement, John Pollesel, Chief Operating Officer, Vale Canada Limited and Director of Base Metals for Vale’s North Atlantic operations, said “this project is an important undertaking and will utilize the latest technological innovations available to us to retrofit our smelter complex.

“We are creating a new legacy through this project – cleaner air for Sudbury, Ontario and Canada. It’s a proud day and great news for all of us who work, live, and raise families in this wonderful community.”

Vale said last month, when it announced it was going to proceed with the work, had already invested heavily in the project, spending some $100-million on research and development over the past four years in preparation for final project approval.

Project Director Dave Stefanuto says the Clean AER Project will be huge in both scope and logistical execution.

“During the overhaul, the smelter will continue to operate regularly,” said Stefanuto. “We have already put a lot of time, energy, and resources into planning to ensure safety and efficiency,and now we’re ready to begin construction.”

The Clean AER Project will require “an incredible amount of resources,” Vale said in a release. The Brazilian-based company said the retrofit will require about eight million person-hours of additional labour, with 1,300 workers on-site during peak construction.

SNC will be responsible for project management, engineering, procurement and construction management under the services contract with Vale.