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FLSmidth Group lands largest Minerals order to date

30.11.2006
Message to the Copenhagen Stock Exchange, No. 35 - 2006, 30 November 2006

FFE Minerals, the FLSmidth Group's mining and minerals systems arm, has been awarded a contract for over USD 90m to supply critical process machinery for a ferronickel facility to Companhia Vale do Rio Doce (CVRD), the Brazilian mining giant. The USD 1.3b Onca Puma facility, which is to process ferronickel from lateritic ores based on FFE Minerals short kiln technology, is to be built in the Paragominas state in northern Brazil.
The project, which will be carried out in cooperation between FFE Minerals' Brazilian office and the American head office, includes the following principal machinery: complete pyro systems with two rotary dryers and two of the world's largest rotary kilns, ABON primary crushers and a complete coal grinding plant. In addition, several FLSmidth subsidiaries will be participating in the project, notably FLSmidth Airtech with electrostatic precipitators and bag filters, Pfister with coal distribution systems, and FLSmidth Brazil with the electrical engineering for the entire pyro plant.      
 
The facility, which is expected to be ready for operation in the fourth quarter of 2008, will feature optimised technology based on pilot plant trials undertaken at the FFE Minerals USA test centre in the spring of 2004. Additionally, the experience and fuel efficiency achieved with short kiln technology in two similar ferronickel projects paved the way for FFE Minerals winning the contract.
 
The order will contribute beneficially to FLSmidth's earnings until the plant is commissioned in 2008.
 
"This Brazilian project, The FLSmidth Groups hitherto largest minerals contract, and recent orders including lime reburning kilns for companies in Indonesia and Sweden, bring the value of orders received by FFE Minerals in Pyroprocessing Technology over the past months to more than USD 120m. The orders clearly document FFE Minerals' strong position on the booming global minerals market.
With the strong growth of the global Minerals sector, and with its increasing focus on complete project packages FFE Minerals expects to strengthen its position in this significant market," Group CEO Jørgen Huno Rasmussen comments.
 
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Please address any questions regarding this announcement to Group Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at +45 36 18 18 00.
 
Yours faithfully
Torben Seemann Hansen