Suppliers Roundup (November 22, 2004)

Epcor to clean up Britannia

Edmonton-based Epcor Water Services, a division of the Epcor Group (EPE.PR.A-T), will design, build and operate a contaminated water treatment plant at the site of the past-producing Britannia mine, 55 km north of Vancouver, B.C., on Howe Sound.

Plant design work is expected to begin later this year, with construction slated for completion by the end of 2005.

“This is one of the most contaminated sites on the west coast and we are committed to cleaning it up,” says George Abbott, the province’s minister of sustainable resource management. The project is part of the British Columbia government’s rehabilitation plan for the Britannia Beach area, a popular historical site on the Sea-to-Sky Highway, between Vancouver and Whistler.

Previously one of the largest copper mines in the North America, Britannia ran from 1904 until 1974. The mine produced 50 million tons of ore, including copper, zinc, lead, gold and silver.

When exposed to oxygen and water, the mine’s runoff produces a mild sulphuric acid solution. The acid leaches metals out of tailings, with rain and snow carrying the discharge to Howe Sound. Consequently, a 2-km zone of marine habtat has been contaminated.

During the previous two years, remediation work at Britannia focused on capturing and redirecting surface runoff and contaminated groundwater, removal and placement of contaminated soils, and construction of an access road on which the water treatment plant will be built.

For the project, Epcor has proposed a high-density lime sludge process, which has proved effective in treating contaminated mine discharge. Epcor will work with Lockerbie Stanley, Stantec Consulting and BioteQ Environmental Technologies in the design, engineering and construction of the project.

A long-term contract with Epcor, still to be negotiated, will include financing and performance measures designed to make the firm accountable for meeting environmental and regulatory requirements.

“We’re confident this facility will enhance the marine ecosystem of Howe Sound and help preserve its natural environment for future generations,” says Steve Stanley, president of Epcor Water Services.

Epcor has assets worth more than $4 billion and provides water services to more than 900,000 people in Edmonton and 45 other communities.

Alcoa, BHP Billiton sell metals arm

Aluminum giant Alcoa (AA-N) and mining titan BHP Billiton (BHP-N) have agreed to sell their equity interests in Integris Metals to metals distributor Ryerson Tull for US$410 million in cash plus assumption of Integris’s debt, which is about US$250 million.

Alcoa and BHP Billiton each own half of Integris Metals. The transaction is expected to be completed by early 2005, subject to regulatory approval.

Alcoa and BHP Billiton agreed to sell Integris because it was not a core part of either business.

Integris Metals, which processes and distributes metals, was formed in late 2001 through the combination of Reynolds Aluminum Supply Co. and North America Metals Distribution, the metals distribution businesses of Alcoa and BHP Billiton, respectively. Integris Metals has roughly 2,400 employees.

In August, Alcoa and BHP Billiton announced that Integris Metals had filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of its shares. Ryerson Tull bought Integris after the IPO.