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FLSmidth signs maintenance contract in Mexico

17.04.2008
Company Announcement to the Danish Financial Supervisory Authority No. 17-2008, 17 April 2008

FLSmidth Minerals has signed a five year contract worth USD 45m with Minera Peñasquito for the integral maintenance services of their greenfield, 130,000 ton per day lead-zinc sulphide concentrator plant located in the state of Zacatecas, Mexico. The contract also includes for FLSmidth to take responsibility for the commissioning, start up and expansion of the mineral processing complex.
To perform these services, FLSmidth will provide highly qualified maintenance specialists who will ensure that the experience and technology FLSmidth has developed over the years in other maintenance contracts, primarily at Minera Los Pelambres and Collahuasi in Chile, will be utilised at the new plant.
 
The first group of technicians will start in April of 2008 followed by a second, larger group for first phase of the lead-zinc concentrator in September of 2008. The full force of up to 150 people will be on site when the second phase of the concentrator line enters into operation which is expected in 2010.
 
Minera Peñasquito, owned by Gold Corp, a Canadian based Mining Company will be the largest lead-zinc concentrator in the world, when in full operation in 2010.
 
FLSmidth Minerals has supplied the concentrator plant which, besides two SAG mills and two ball mills, includes the world's largest complete flotation plant as well as all the tailings and concentrate dewatering equipment. For further equipment details, please see Company Announcement no. 29-2007.
 
"FLSmidth was selected as the provider of these services due to the experience obtained in Chile as well as being the Original Equipment Manufacturer (OEM) provider of the major processing equipment within the concentrator process. This, once again, demonstrates the forte of the One Source - One Partner concept," 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.
 
 
For further information about FLSmidth, please visit www.flsmidth.com.
 
Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations