EPCM CONTRACT – SNC-Lavalin to build copper mine in Spain

SPAIN - SNC-LAVALIN of Montreal has won the EPCM contract for the Cobre Les Cruces copper mine and refinery near Gerena. The contract is world $35.0 million. The SX/EW plant will have a designed capacity of 72,000 t of copper cathode annually.

Work is already underway, reports the engineering firm, for start-up in early 2008.

Toronto-based INMET MINING owns 70% of La Cruces, one of the world's highest grade, unmined copper deposits. Proven and probable reserves are 17.6 million tonnes grading 6.2% Cu. Average metallurgical recovery is anticipated to be 92.4%. Initial capital costs are pegged at $577.5 million. Unit cash operating costs will be US$0.50/lb.

The Las Cruces technical report prepared in 2005 is available in English and Spanish at www.InmetMining.com.