May 21 2010
ARCADIS (EURONEXT: ARCAD), the international consultancy, design, engineering and management services company, announced today that its affiliated company in Brazil, ARCADIS Logos, has signed a US$ 80 million contract with Samarco, a company owned by VALE and BHP, to provide project management services for the realization of a pelletizing plant project (the P4P project).
With a total investment of about US$ 2.8 billion, the project aims to increase the installed capacity of the Ubu Pelletizing Complex up to 30 million tons per year.
The P4P project comprises the construction of a new iron ore plant, in the state of Minas Gerais, and a new pelletizing plant integrated into an iron ore stockyard, in the state of Espirito Santo. The two sites will be linked by a pipeline with a total length of 400 km, as part of the P4P project. The project will be implemented in two phases with a total duration of almost four years. The first phase, from May to December 2010, will focus on the consolidation of the feasibility studies and will represent approximately 5% of the total contract value. The start of the second phase is conditional to approval by the shareholders (VALE and BHP) in December 2010. The second phase will entail implementation of the project and is expected to be completed by December 2013 with the start-up of the pelletizing operation. ARCADIS Logos will provide project management and consulting services for Samarco with a team of approximately 230 people on four job sites.
"Our long term experience in managing projects in the mining sector and our performance during the implementation of the Samarco 3rd pelletizing project are the main reasons for ARCADIS Logos to be chosen for this prestigious assignment. The contract gives continuity to our long term successful partnership with Samarco and reinforces the good relationship between ARCADIS Logos and its customers." said Manoel Antonio A. Avelino da Silva, CEO of ARCADIS Logos.