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Pivately-owned Alliance Magnesium has received C$12-million in funding from the federal government to support the second phase of demonstrating its technology to extract magnesium from asbestos tailings.

The announcement by International Development Minister Marie-Claude Bibeau on Friday comes in the same week that Environment and Climate Change Minister Catherine McKenna announced the final regulations banning asbestos and products containing it. The regulations, which will come into effect at December 30, exempts asbestos-mining residues.

“Asbestos production is banned in Canada. However, investments such as the one in Alliance Magnesium are key to Canada’s transition to a greener economy. The federal government’s support for the company’s production of magnesium from asbestos tailings will contribute to regional economic diversification efforts in the RCM des Sources and will benefit its residents,” said Bibeau.

Alliance Magnesium’s process recycles tailings from mining activity to produce magnesium metal, demand of which is driven by automotive manufacturing. It has successfully built a demonstration plant and is now advancing its first commercial phase at its facility in Danville, Quebec. The company is aiming to produce primary and secondary magnesium totalling 11 700 t/y to sell into the North American and European markets.

Commenting on the financial contribution from the federal government, Alliance Magnesium president Joël Fournier said in a news release that it showed that the government recognised the value of the company’s work in reducing greenhouse gasses in the transportation and light metal alloy industries.

“Not only does our reclamation of mining waste technology have the potential to generate international interest, but it also complies fully with sustainable development, environmental protection and population health and safety policies,” he commented.

The C$12-million federal funding is being provided by Sustainable Development Technology Canada, which works with Canadian companies to bring clean technologies to the market.

In August, the Quebec government provided Alliance Magnesium with C$30.9-million, C$17.5-million of which is a loan and the balance an equity stake.

On Friday, RightOnCanada founder Kathleen Ruff criticised the exemption of mining residues from the final asbestos regulations, stating that the federal government had ignored Quebec health experts’ advice on the exploitation of asbestos waste.

• [Editor:tianyawei]