Bateman Engineering N.V. ('Bateman Engineering' or the 'Company')

Award of US$36m construction contract for Ambatovy Project 

Bateman Engineering is pleased to announce that it has been awarded a contract for the construction of the sulphuric acid facilities at the Ambatovy nickel project in Madagascar. The US$36 million Fixed Price Lump Sum Contract covers the erection and commissioning up to handover for hot commissioning of two 2,750 tonnes per day sulphur burning acid plants.

This construction contract follows the award, in August 2007, of a US$100 million contract from the Ambatovy nickel project for engineering of and procurement for the plants. The process engineering during this phase was undertaken in collaboration with the Canadian technology company Noram Engineering and Constructors Limited ('Noram') who are the holders of the acid plant process technology, and with whom Bateman Engineering has entered into a long term Technology Licence Agreement.  

The 5,500 tonnes per day facility will comprise a shared sulphur melting and storage area and two independent sulphur burning acid plants. Construction and commissioning of the first acid plant is due to be completed by the end of September 2009, and of the second acid plant by the end of December 2009.

Commenting on the award, Eddie du Rand, Group CEO of Bateman Engineering, said:

'The award of the construction portion of the project to establish sulphuric acid facilities at Ambatovy follows the successful completion of the engineering and procurement phase of the project and is testimony to the confidence Bateman Engineering has engendered in the client .This is particularly pleasing as this contract provides us with a state-of-the-art reference plant for our re-entry into this significant utility market.'

 ENQUIRIES:                                                                                                                             7 October 2008

Note for editors: 

Bateman Engineering is a technology-driven engineering-project house serving the minerals and metals industries worldwide. Bateman Engineering's shares (BATE.L) are traded on AIM, a market of the London Stock Exchange.