Alliance Magnesium (AMI), a privately-owned company based in the Montréal area of Canada, has updated the progress on financing for its magnesium project in Québec.
AMI will produce an envisaged 50ktpy of magnesium metal from about 800Mt of serpentine tailings (23.3% MgO) generated during many years of asbestos mining in Québec, using a patented electrolytic process and hydroelectric power. Construction is to begin in 2020 with first production the following year and full production reached in 2024.
With a total price tag of C$600M, the project seems to be attracting public and private support and financing at an encouraging rate. On March 13th, AMI announced that it has so far obtained an investment of C$13.4M from the government of Québec, along with a C$12.5M loan, C$16.7M from the Japanese company Marubeni, C$12M from Sustainable Development Technologies Canada (Federal government), C$3M from Transition Énergétique Québec, and C$10M from Fondaction (a Québec pension fund). On top of that comes the news that AMI has secured a senior loan of C$50M from a US financial institution. A total of nearly C$145M has thus been raised so far.
With strong support clearly coming from government and the financial world, this project looks set to come to fruition, producing ‘green’ magnesium at a rate comparable to the existing large operations in China and elsewhere. It also marks the re-birth of the Canadian primary magnesium industry, which was largely wiped out by Chinese competition about a decade ago.
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