TORONTO, December 17, 2010 announced today the approval of increased capital costs for the budget of US$ 4.76 billion, which includes a contingency of US$50 million. fund its 40% share of the capital cost increase During second -quarter 2010, the construction of the power plant, which was being executed under a turn-key contract, was identified as having high potential for delay in completion. slower construction progress management and engineering personnel and is the major contributing factor to the higher expected capital cost. During third control of construction of the power plant.
Ian W. Delaney, Chairman and CEO of Sherritt commented facet of this Project and I am confident the required steps have been taken to keep it on track to produce metal by the summer projection is 5%, we felt the steps taken were designed, and that we can ramp up production at a rate which will enable nickel to be delivered to customers as early as possible.”
Substantial progress has been made in the Project in recent weeks. To date, of the plant modules in the design, elements which have been commissioned feed tanks, port, ammoni a handling and storage, coal transfer system, systems as well as associated electrical substations 2010, building an ore stockpile plant in early 2011.
About Sherritt
Sherritt is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and electricity. It also licenses its proprietary technologies to other metals companies. Sherritt’s common shares are listed on the Toronto Stock Exchange unde For further information, please contact: Investor Relations Telephone: 416-935-2451 Toll-Free: 1-800-704-6698 Email: [email protected] www.sherritt.com NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Provides Update on the Ambatovy Project, 2010 –Sherritt International Corporation the approval of increased capital costs for the Ambatovy, which includes a contingency of US$50 million.
fund its 40% share of the capital cost increase directly.
quarter 2010, the construction of the power plant, which was being executed key contract, was identified as having high potential for delay in completion. construction progress on the power plant attracted additional costs in terms of management and engineering personnel and is the major contributing factor to the higher During third -quarter 2010, Sherritt and the EPCM contractor assumed control of construction of the power plant.
an W. Delaney, Chairman and CEO of Sherritt commented , “We have thoroughly reviewed every facet of this Project and I am confident the required steps have been taken to keep it on track summer of 2011. While the variance from our o steps taken were necessary to ensure that the plant will operate as designed, and that we can ramp up production at a rate which will enable nickel to be delivered to customers as early as possible.”
Substantial progress has been made in the Project in recent weeks. To date, of the plant modules in the design, 17 have been turned over to the commissioning teams. Key which have been commissioned , or are being commissioned, handling and storage, coal transfer system, acid plants, and water associated electrical substations . The mine has been in operation since July 2010, building an ore stockpile that will be utilized during the startup of the ore preparation is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and electricity. It also licenses its proprietary technologies to other metals companies. Sherritt’s common shares are listed on the Toronto Stock Exchange under the symbol “S”
- 30 - For further information, please contact: NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Provides Update on the Ambatovy Project Corporation (“Sherritt”)(TSX:S) Ambatovy Project to a total, which includes a contingency of US$50 million. Sherritt intends to quarter 2010, the construction of the power plant, which was being executed key contract, was identified as having high potential for delay in completion. The additional costs in terms of management and engineering personnel and is the major contributing factor to the higher quarter 2010, Sherritt and the EPCM contractor assumed e have thoroughly reviewed every facet of this Project and I am confident the required steps have been taken to keep it on track While the variance from our o riginal capital necessary to ensure that the plant will operate as designed, and that we can ramp up production at a rate which will enable nickel to be delivered Substantial progress has been made in the Project in recent weeks. To date, of the 56 process have been turned over to the commissioning teams. Key include the autoclave acid plants, and water. The mine has been in operation since July the startup of the ore preparation is a diversified natural resource company that produces nickel, cobalt, thermal coal, oil, gas and electricity. It also licenses its proprietary technologies to other metals companies. r the symbol “S”.