Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Quebec government is expected to make a decision within a few weeks on whether to grant loan guarantees to a consortium of investors seeking to re-open the Jeffrey asbestos mine.
The lead investor, Montreal-based Balcorp. Inc., is trying to raise $25 million from the private sector to help secure a $58 million loan guarantee from the province, Canadian Press reported back in August.
If successful, the investors would purchase the Jeffrey Mine, which has operated infrequently in recent years.
The mining of asbestos in Canada, and its export to developing countries, has come under frequent criticism because exposure to the substance is known to cause cancer and serious lung diseases.
CBC reports today that Balcorp. President Baljit Chadra has been invited to meet with asbestos disease victims and their families, who oppose asbestos mining.
Canadian Press reported Balcorp. spokesman Guy Versailles saying that fears about asbestos are “entirely overblown” and the substance is still highly sought in countries like India.
CP says if the restart goes ahead, Jeffrey is expected to run for another 25 years and create 500 jobs in an economically depressed area east of Montreal. The only asbestos mine currently operating in Canada is in Thetford Mines, Quebec.
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Inforeading
Asbestos is Hazard!!! Asbestos is made up of microscopic bundles of fibers that may become airborne when distributed. These fibers get into the air and may become inhaled into the lungs, where they may cause significant health problems.