DANVILLE, QUE. — Quebec manufacturer Alliance Magnesium has announced it is has closed on $145 million in funding for construction of a magnesium plant in the MRC des Sources region of southeastern Quebec.
The plant will produce primary magnesium ingots from serpentine and secondary magnesium tailings from recycled scraps. Magnesium is lighter than steel and aluminum and is used in manufacturing in the transportation sector including transportation electrification. It’s also used in aluminum alloys.
A March 13 release stated construction of a smelter will begin this spring and will take one year, with the rest of the plant to follow with completion targeted for a year later. It’s estimated 100 workers will be employed during the construction phase.
Funds are being contributed by the government of Quebec ($13.4 million), the Japanese company Marubeni ($16.7 million), Fondaction ($10 million) and the company’s shareholders.
In addition, a loan of $50 million was obtained from an American lender and the Quebec government is also lending $12.5 million.
Sustainable Development Technologies Canada and Transition Energetique Quebec are also participating with contributions of $12 million and $3 million respectively.
Alternative Capital Group Inc., one of Alliance Magnesium’s shareholders, acted as Alliance Magnesium’s advisor in the structuring of the transaction.
The statement said the magnesium will be produced with less greenhouse gases than Chinese manufacturers, currently the world’s leading producers.
“We are very proud to take this important step in creating jobs in a high-tech sector and developing our know-how in the production of this critical and strategic material in the most responsible way for the industry,” said Joel Fournier, Alliance Magnesium president and chief technology officer, in the statement.
“Marubeni is actively involved in this project, in collaboration with a strong management team and complementary partners. Magnesium is an indispensable raw material, as is aluminum, and its market is very promising. We are expanding our operations in Quebec, and our wish is to contribute even more to the province’s economy,” said Taichi Kuribayashi, president of Marubeni Canada.
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