IPP&T Magazine Online

New investment raises total commitment to $1.3B for open pit mine

August 27, 2018  

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VanadiumCorp Resource Inc. is applauding yesterday’s announcement outlining a $185 million investment in the Blackrock Metals project, and .

“Our government is proud to promote the success of this major BlackRock Metals investment project, which will enhance the mining potential of the Nord-du-Québec region and strengthen Québec’s expertise in second-stage ore processing in the region,” said Dominique Anglade, Deputy Prime Minister, Minister of the Economy, Science and Innovation and Minister responsible for the Digital Agenda Saguenay-Lac-Saint-Jean. “We are taking a concrete step to ensure the implementation of energy infrastructure in the Grande-Anse sector, in order to stimulate the realization of projects that, like this one, bring significant benefits to the industrial port zone.”

VanadiumCorp owns 100 per cent of the Lac Dore Vanadium Project adjacent to Blackrock Metals permitted mining project near Chibougamau, Que.

Québec is providing a total of $185 million in financial assistance to BlackRock Metals to support the construction of an open pit mine of iron, vanadium and titanium near Chibougamau, in the Nord-du-Québec region. This financial assistance is also aimed at setting up a secondary processing plant in the Grande-Anse sector of the industrial port area of Saguenay.

The project represents investments valued at nearly $1.3 billion and will create more than 800 jobs during the construction of the mine and mill. Some 200 jobs will also be created during the operation of the mine, while the operation of the processing plant will result in the creation of about 300 jobs.

The above government financial support includes an equity investment, through Capital Mines Hydrocarbures, of $85 million in the capital of BlackRock Metals, a $50 million loan from Investissement Québec, acting as agent for the government, as well as a $50 million loan granted by Ressources Québec from its own funds.

In addition, the government is providing $63 million in financial assistance to Port Saguenay Developments, a subsidiary of the Saguenay Port Authority, to ensure the implementation of the energy infrastructure necessary for the implementation of BlackRock Metals, which could be favorable to the attraction of new businesses in the Grande-Anse sector of the Saguenay industrial-port zone.

“The establishment of energy infrastructure in the Grande-Anse sector and the completion of the BlackRock Metals investment project will, I am convinced, contribute to the success of the industrial-port zone set up in Saguenay within the framework of the Maritime Strategy,” said Jean D’Amour, Minister Responsible for Maritime Affairs and Minister responsible for the Bas-Saint-Laurent region. “I also invite other companies to take advantage of this industrial-port area to realize projects that will improve their competitiveness and contribute to the growth of the local and regional economy.”