CALGARY, ALBERTA - Aug. 29, 2011 /CNW/ - 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, visitwww.newalta.com.
This press release contains forward-looking information. More particularly, this press release contains forward-looking information relating to anticipated capital requirements, operating success, potential revenue, start date and duration of the contract, expected continued demand for our services, and our business prospects, strategy and anticipated growth of our onsite business. Although Newalta believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because Newalta can give no assurance that it will prove to be correct. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include: the successful execution of the contract; costs associated with the contract; general market conditions of the industries we service; strength of the oil and gas industry; changes to regulatory requirements affecting the oil and gas industry and oil sands operations in particular, and future capital needs. Readers should also be aware that the forward-looking information is affected by the risk factors described in Newalta's annual information form and those set forth from time to time in Newalta's other continuous disclosure filings with Canadian securities regulatory authorities, which are available under Newalta's SEDAR profile at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.