‘A hit to SNC’s reputation’: Chilean state-owned miner fires embattled company, adding to its woes

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The incident underscores just how much of SNC’s expansive business is connected to government-funded contracts

As it battles federal criminal charges in Canada, Montreal-based SNC-Lavalin Group Inc. has found itself in a dispute with yet another government entity — the Chilean state-owned copper miner Codelco.

“Having a contract terminated by the world’s largest copper miner is a clearly a hit to SNC’s reputation within the mining industry,” Yuri Lynk, an analyst with Cannacord Genuity Corp. wrote on Tuesday. “It is extremely rare for a project sponsor to cancel a contract … especially so close to completion.”

Now, as SNC looks to shift more into decommissioning nuclear sites in the U.S. and Canada and clean energy projects, it is increasingly threatened by a potential criminal conviction in Canada on charges it paid millions of dollars in bribes to Libyan government officials in exchange for lucrative contracts there.

“There will be a wide range of approaches that different governments take, but there will undoubtedly be some governments for which a conviction or perhaps even a deferred prosecution agreement could disqualify a company,” she said. Mora Johnson SNC chief executive Neil Bruce has said a conviction would likely bar his company from bidding on federal contracts in Canada, which would limit its ability to work here.

 

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Not enough brIbe money offered and paid. Come on, SNC-L get with the program and don't be so 'cheap'.

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