UPDATE 1-SNC-Lavalin wins engineering contract for Quebec diamond project

Mon Jul 21, 2014 8:54am EDT

Related Topics

(Adds details, background, shares)

July 21 (Reuters) - Canada's SNC-Lavalin Group Inc said it won a contract from Stornoway Diamonds Inc to provide engineering and other services for a project in the James Bay region of Quebec.

SNC, Canada's biggest engineering and construction company, said the cost related to the scope of services at the Renard Diamond project was estimated to be more than C$425 million ($395.6 million).

SNC said it expected annual ore production at the project, which started in 2012, to exceed 2.16 million tons, with average diamond production anticipated at 1.6 million carats per year.

The company will provide engineering, procurement and construction management services for the mineral processing plant, a liquid natural gas power plant and other on-site utilities.

SNC said in June that it would buy engineering group Kentz Corp in a 1.16 billion pound deal to expand its high-growth and high-margin operations in the oil and gas industry.

SNC's shares closed at C$56.28 on the Toronto Stock Exchange on Friday. The stock has risen about 18 percent this year to Friday's close. ($1 = 1.07 Canadian dollars) (Reporting by Sneha Banerjee in Bangalore; Editing by Maju Samuel and Kirti Pandey)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.