Death of SNC-Lavalin workers points to risks companies face abroad
Last Updated: Wednesday, August 20, 2008 | 4:57 PM ET
The Canadian Press
Wednesday's car bombings in Algeria, which killed a dozen Algerian employees of Montreal-based engineering firm SNC-Lavalin Inc., highlight the increasing risks Canadian companies face as they expand their international operations in war-torn or politically troubled regions.
SNC-Lavalin, Canada's biggest engineering company, operates around the world, including in volatile parts of Africa, the Middle East and Asia.
"SNC-Lavalin would like to extend its deepest sympathies to the families of the victims and to those who are currently being treated in a local hospital," the company said in a news release Wednesday.
"SNC-Lavalin is proud of its longstanding relationship with the people of Algeria and of the many projects we have carried out together over more than 30 years. We continue to work closely with Algerian authorities to ensure the safety and security of all our personnel."
SNC-Lavalin is not the only well-known Canadian company operating in Algeria, a North African country that has seen numerous incidents over the years involving extremists who have resorted to bombings and other forms of violence.
First Calgary Petroleums, an Alberta-based oil and gas company, has been advancing a major natural gas development project in Algeria for years in partnership with the local government.
Most Canadian companies operating abroad have had no difficulties and have worked with local partners to advance their business.
But some have faced major hurdles. These companies include:
Crystallex Inc., a Toronto-based gold producer, has been trying for years to develop the Las Cristinas gold mine in Venezuela, a socialist country that has been nationalizing many foreign assets. Las Cristinas has been dogged by uncertainty, first over its ownership and later about whether the government of Hugo Chavez would nationalize the mining sector or allow the project to go ahead.
Gabriel Resources, a Toronto mining company, has struggled as it tries to develop a troubled gold project in Romania, where it faces opposition from environmental groups. The company is also in a tax dispute with Romanian authorities.
Garda World Security Corp., a provider of armoured cars and cash-handling and security services with 50,000 employees, has had four of its workers kidnapped in Iraq.
Agrium Inc. (TSX:AGU), a Calgary-based fertilizer producer, has sold most of the $1.4 billion US nitrogen plant it was jointly building in Egypt after environmental opposition to the project. Agrium could write off as much as $280 million US in the project.
Centerra Gold Corp., an international gold company controlled by uranium giant Cameco Corp., is trying to negotiate a new operating deal for its Kumtor mine in Kyrgyzstan in Central Asia. The company has booked a $42.2 million charge for the value of shares it expects to issue as part of any future settlement with the Kyrgyz government.
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