Quebec grants Alliance Magnesium nearly $31 million for Danville commercial demonstration plant
The Quebec Government has granted $30.9 million in financial assistance to Alliance Magnesium for the establishment of a commercial demonstration plant for the production of magnesium from asbestos mining residue. The project, valued at a total of $104.9 million, will be built in Danville and create 63 jobs.
Sherbrooke MNA, Minister of the Family and Minister responsible for the Estrie region,. Luc Fortin, accompanied by Richmond MNA and Parliamentary Assistant to the Prime Minister (Youth Component), Karine Vallières, made the announcement on Tuesday.
The commercial demonstration plant will test and improve certain aspects of Alliance Magnesium technology, in addition to commercially producing
11,700 metric tons of magnesium per year. This phase is essential to verify the viability of the 50,000 metric tonne commercial plant, planned for 2022.
The government contribution consists of a $17.5 million loan and a $13.4 million equity investment in the company.
"The technology developed by Alliance Magnesium offers a sustainable solution for recovering tons of asbestos mining waste accumulated in the region,” Fortin said. “We are proud to support the completion of this innovative project that will support the retention of young workers by providing them with attractive career opportunities, which will certainly have a significant impact on the regional economy."
"Two years after setting up its pilot plant in Danville, Alliance Magnesium is now ready to take a new step, the establishment of a commercial demonstration plant to validate its new magnesium production technology here in Danville,” added Vallières. “I am very proud that our government is investing in this sustainable project for the Les Sources region, both for the creation of many quality jobs and for the recovery of tailings from our mining heritage."
Alliance Magnesium is a Québec company incorporated in March 2003 with headquarters in Brossard. In recent years, the company has invested nearly $16 million in the development of its commercial magnesium manufacturing project using asbestos waste.
Magnesium and alloys containing magnesium are used in many economic sectors to lighten structures and industrial components. In particular, the transport sector has significant potential in this regard.