International news within the industry of mining and metal, May, 22 2019
Latest News

Industrial conglomerate SNC Lavalin declare profit warning again

Lavalin mining project Goldcorp Eleonore. Photo: Goldcorp
Lavalin mining project Goldcorp Eleonore. Photo: Goldcorp
Published by
Markku Björkman - 15 Feb 2019

Canadian industrial conglomerate SNC Lavalin once again wins on Monday after the company's mining and metallurgical operations in Latin America were forced to re-evaluate problems related to "unexpectedly bad environmental and safety conditions" and "underperforming suppliers", the company writes in a press release.

The core business is therefore expected to incur a loss of up to 350 million Canadian dollars, in addition to the already announced 1.24 billion profit-warned for January 28.

At the latest profit warning, the company's share collapsed about 20 per cent on the Toronto stock exchange, which meant the worst trading day in the company's history. Monday's stock market fall is broadly comparable to the profit warning amount, as the share falls around 6 per cent.

Also in January, the weakening of earnings was stated to be related to "serious problems" in the mining operations and write-downs, which were made for the company's energy business branch.

The latter was due to a diplomatic cold shower that hit the company's operations in Saudi Arabia this summer. After Canada's Foreign Minister Chrystia Freeland demanded that a detained Saudi human rights activist be released, Saudi Arabia's response was to terminate business contracts with Canadian companies.

Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat
Cobalt mine in Democratic Republic Congo. About half of all mined cobalt comes from DRC, mainly from the province of Katanga. The mining takes place close to towns and villages. Local communities regularly are cut off from their farmland and water sources near mines, without having had a say in the matter. There are several examples of forced relocations of entire villages. Inhabitants of the village Kishiba, for example, were forced to move to make way for Frontier, a cobalt and copper mine. Their new homes in Kimfumpa lack the most basic of services such as clean water, fertile farmland, schools and health care. Photo: ECCJ Secretariat

Chinese control half of the Congo's cobalt