DMC Mining Services Signs Potash Project Contract
TORONTO, ONTARIO -- (Marketwire) -- 12/16/10 -- DMC Mining Services ('DMC'), the 100% owned mining services subsidiary of Quadra FNX Mining Ltd. (TSX: QUX) ('Quadra FNX'), is pleased to announce that it has signed a contract to develop two new mine shafts at BHP Billiton's Jansen Potash Project near Saskatoon, Saskatchewan. The total value of the contract is estimated at approximately US$400 million. Over the five year contract period DMC is expected to receive a combination of fixed and variable fees based on a percentage of the total contract value. The ultimate margin DMC will earn on the project is dependent on certain performance criteria including safety, schedule and costs.
William (Bill) Shaver, President & CEO of DMC comments: 'DMC will use the world's most advanced shaft sinking techniques and technology to support construction of the first greenfield potash mine built in Saskatchewan for decades. We believe that the combination of BHP Billiton and DMC brings a formidable team with both companies aspiring to complete the project with Zero Harm to our employees, the environment and the host communities, while using leading industry practices and shaft sinking technologies. This alignment of values, combined with the strong technical skills at both companies, will give the project teams a unique opportunity to create a new paradigm in potash shaft sinking and mining.'
About BHP Billiton and the Jansen Project:
BHP Billiton is the world's largest diversified natural resources company with more than 100 operations in 25 countries. BHP Billiton has significant positions in major commodity businesses, including aluminium, energy coal and metallurgical coal, copper, manganese, iron ore, uranium, nickel, silver and titanium minerals, and has substantial interests in oil, gas, liquefied natural gas and diamonds.
About DMC:
DMC is a 100% owned division of FNX Mining Company Inc., a wholly owned subsidiary of Quadra FNX Mining Ltd. DMC's principal activities consist of contract mining, mine shaft sinking, lateral mine development, mine construction, civil underground construction and raise-boring and Alimak raising. These services are provided primarily in Canada (including the Canadian Arctic) and the United States, but DMC has also been active in Venezuela, Australia, Papua New Guinea, Ireland, Honduras, Mexico and Turkey. As part of the normal course of business, DMC regularly sources new clients and new contracts to replace expiring contracts and management continues to pursue new opportunities on an ongoing basis.
DMC's office is located at Suite 200, 9555 Yonge Street, Richmond Hill, Ontario, Canada L4C 9M5.
Contacts:
DMC Mining Services
William (Bill) Shaver
President and CEO
905-780-1980
Quadra FNX
Nawojka Wachowiak
Investor Relations
416-642-9209