Newalta Corporation Awarded $60 Millon Contract to Process Oil Sands Mature Fine Tailings

abarrelfull wrote on 31 Aug 2011 08:41
Tags: canada oil-sands services

Latest News

• Want a weekly review of refining news?

• This Week in Refining
• RSS Feed

Newalta Corporation ("Newalta") (TSX:NAL) today announced that it has signed a contract with Syncrude Canada Ltd. ("Syncrude") to process mature fine tailings ("MFT") for a demonstration project. The contract is over a three-year period at Syncrude's oil sands mine operations near Fort McMurray, Alberta. It follows Newalta and Syncrude working together for two years in trial projects to prove the application of centrifugation for processing MFT.

Newalta expects to commence operations for this contract on June 1, 2012 with revenue averaging approximately $20 million per year over three years. Operations will be seasonal and are expected to average approximately six months per year. Newalta's capital investment for the contract is estimated to be between $25 million and $30 million. The contract's operations will involve 30 Newalta people. Under the terms of the contract, Newalta will design, build and operate a commercial-scale centrifugation demonstration plant to process MFT.

"This contract is an exciting opportunity to showcase our onsite services expertise and help Syncrude meet their environmental objectives in a cost-effective manner," said Craig Wilkie, Executive Vice President of Newalta. "The contract with Syncrude builds on our current base of eight contracts including customers that are using Steam Assisted Gravity Drainage (SAGD) production."

Newalta provides cost-effective solutions to industrial customers to improve their environmental performance with a focus on recycling and recovery of products from industrial residues. These services are provided both through our network of more than 80 facilities across Canada and at our customers' facilities where we mobilize our equipment and people to process material directly onsite. Our customers operate in a broad range of industries including the oil and gas, petrochemical, refining, lead, manufacturing and mining industries. The company has delivered strong, profitable growth for over 15 years and has established a leadership position in the industry with talented people, efficient and safe operations, innovative approaches and high ethical standards. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

• Newalta Corporation Awarded $60 Millon Contract to Process Oil Sands Mature Fine Tailings

---