The government of Québec has announced C$185-million in financial assistance to privately-owned BlackRock Metals to support the construction of an openpit mine that will produce iron, vanadium and titanium near Chibougamau, in the Nord-du-Québec region.
This financial assistance will also support setting up a secondary processing plant in the Grande-Anse sector of the industrial port area of Saguenay, the government said in a media statement this week.
The project represents investments valued at nearly C$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 government financial support includes an equity investment, through Capital Mines Hydrocarbures of C$85-million in the capital of BlackRock Metals, a C$50-million loan from Investissement Québec, acting as agent for the government, as well as a C$50-million loan granted by Ressources Québec from its own funds.
The government will also provide $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 mine and plant.
Québec Deputy Premier Dominque Anglade, who is also the Economy Minister, commented that the BlackRock Metals project would enhance the potential of the Nord-du-Québec region and strengthen the province’s expertise in second-stage ore processing.
TSX-listed VanadiumCorp, which owns the Lac Dore vanadium project, which is adjacent to BlackRock Metals’ permitted mining project, welcomed the investment by the Quebec government in the region.