CALGARY – Newalta Corp. (TSX:NAL) has been awarded a $60 million contract from Syncrude Canada Ltd. to process oil sands mature fine tailings for a demonstration project.
The three-year contract applies to Syncrude’s oil sands mine operations near Fort McMurray, Alta.
The two companies have been working together for two years in trial projects to prove the application of centrifugation for processing mature fine tailings, a dense mixture of clay, silt and water resulting from the processing of oil sands.
Operations involving about 30 Newalta workers are expected to begin next June with revenue averaging about $20 million per year for about six months of seasonal work.
Newalta’s capital investment for the contract is estimated to be between $25 million and $30 million.
It will design, build and operate a commercial-scale centrifugation demonstration plant to process the tailings.
Newalta helps customers recycle and recover products from industrial residues. It has a network of more than 80 facilities across Canada and also operates at customers’ facilities.
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