First Quantum Minerals Ltd. (TSX: T.FM, Stock Forum) has suspended engineering contracts with SNC-Lavalin Group Inc. (TSX: T.SNC, Stock Forum) and other partners at the massive Cobre Panama copper project, according to a published report.
First Quantum acquired the property as part of its $5.1-billion takeover of Inmet Mining Corp. (TSX: T.IMN, Stock Forum).
The value of the work SNC-Lavalin was contracted to do was estimated to be worth approximately $120 million, which the company said will be debooked from its backlog in the first quarter of 2013.
A Canadian Press report said the remainder of the work will now be taken over by First Quantum.
In a press released issued on Tuesday, First Quantum said 93% of Inmet’s shares have been tendered into its offer and it will now proceed to acquire the balance of the shares not already tendered.
First Quantum fell 3.8% to $17.97, leaving the company with a market cap of $8.6 billion, based on 476.3 million shares outstanding. The 52-week range is $24.90 and $16.46.
SNC was down 2% at $41.55, leaving the company with a market cap of $6.3 billion, based on 151.4 million shares outstanding. The 52-week range is $49.85 and $34.36.