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Foster Wheeler Receives Feasibility Study Contract from Karnalyte Resources

Foster Wheeler AG, (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded a feasibility study contract by Karnalyte Resources Inc. for the Wynyard Carnallite Potash Project in Saskatchewan, Canada.

The study will consider initial production of 500,000 tons per year and expansion of the facility to two million tons per year within five to six years. The Wynyard facility is expected to recover high purity potassium chloride from potash ore deposits. The potassium chloride will be used to produce potash fertilizer.

The value of the contract was not disclosed. The award will be included in the company’s first-quarter 2011 bookings.

Foster Wheeler will also coordinate preparation of the overall Environmental Impact Statement, which will advance concurrently with the feasibility study. GeoEngineers Inc. will perform environmental and geotechnical engineering services for the study. ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH of Erfurt Germany will perform mining engineering services for the underground mining portion of the study.

“This award is strategically important for us because it expands upon our mining-related expertise in the Global E&C Group. We see this as a growth area in which we plan to leverage and grow our capabilities,” said Umberto della Sala, chief executive officer, Foster Wheeler AG.

Source: http://www.fwc.com/

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