Vale has awarded a two-year $600 million contract to KBAC Constructors, a partnership to provide mechanical, piping, electrical and instrumentation services for the construction of the Long Harbour Processing Plant in Newfoundland and Labrador. KBAC is a partnership of Peter Kiewit Infrastructure Co., BMA Constructors (a Black & McDonald-Alberici Joint Venture) and G.J. Cahill & Co. Ltd.
"The mechanical, piping, electrical and instrumentation services contract is the largest single contract that we have awarded to date on the Long Harbour construction project and one of the largest supplier contracts awarded at Vale," said John Pollesel, chief operating officer for Vale’s Base Metals Business in North Atlantic. "The partners in the KBAC partnership have been working with us over the last year and we are very pleased to see them come together in a partnership to work on this part of the project."
He went on to say that "the mechanical, piping, electrical and instrumentation services contract award is an excellent example of the kind of business arrangements that Vale has been able to forge using international, national and local companies to support the Long Harbour project."
The construction program at Long Harbour is an integral part of Vale’s $10 billion capital investment program in Canada which was announced in November 2010. The Long Harbour Project represents a US$2.8 billion investment by Vale in a processing plant that will utilize hydrometallurgical technology developed by Vale in Canada with support from Industry Canada’s Technology Partnerships Program. The Long Harbour Processing Plant will generate 10 million person-years of employment during the construction phase of the project which is scheduled to be completed in February 2013. Once in operation, the Long Harbour Processing Plant will have a permanent workforce of 475.