ALUMINUM SMELTER – Joint venture to build Alcan smelter in South Africa

MONTREAL - SNC-LAVALIN, MURRAY & ROBERTS and HATCH have created a joint venture that has signed a contract with ALCAN for the front-end engineering and design (FEED) and engineering, procurement and construction management services (EPCM) for the first phase of Alcans Coega aluminum smelter project in Port Elizabeth, South Africa. The contract is valued at more than US$100 million.

The project has an estimated total cost of US$2.7 billion for two phases. Upon completion of this first phase, the smelter will have an initial capacity of 360,000 t/y. The second phase will double annual production.

While the value mentioned above of the joint ventures contract is for the first phase of the project, the second phase is also included in the contract. The FEED is expected to take nine months to complete and will provide firm cost estimates and a critical path for construction, pending the notice to proceed from Alcan.