Bloom Lake mine in Fermont | Ottawa has the power to say no to Quebec

The Legault government may have said yes to the project to expand the Bloom Lake iron mine, of which it is itself a shareholder, but the last word belongs to Ottawa. Result: the first shovels have not been given and no timetable has been set.

Julien Arsenault
The Press

Last March, by decree, Quebec allowed Quebec Iron Ore (MFQ) to store mine tailings in nearby lakes to extend the life of the project. But the game is not over. The green light from the Trudeau government is essential to move forward.

Without fanfare, Champion Iron, parent company of MFQ, recently told investors that it needed to obtain this “final clearance”.

Since the project — which received a very unfavorable opinion from the BAPE — will have an impact on fish habitat, Ottawa has its say and must deem the mining company’s compensation plan acceptable. This document has just been transmitted, according to Kaitlin Power, press attaché to the federal Minister of the Environment, Steven Guilbeault.

This is not the first time that the Trudeau government could come and play spoilsport, even if this time the survival of an endangered species is not at stake. Last year, for example, Ottawa had torpedoed the Laurentia port terminal project in Quebec. In Montreal, federal authorization is required to allow the Port of Montreal to build a container terminal in Contrecœur.

In this context, Champion recently registered with the Federal Registry of Lobbyists. Its chief executive, David Cataford, spoke with officials as recently as May 13, according to public information.

Quebec has not commented on the Trudeau government’s evaluation process.

Essential enlargement

The second phase of the Bloom Lake mine, located on the North Shore, is in production. MFQ wants to extract 15 million tons of high quality iron annually. But to extend the life of the project, an economic engine for the Côte-Nord, the company must expand the mining tailings pond – sand and silica.

To achieve this, MFQ wants to dump hundreds of tons of mine tailings into eight lakes, including one with an area of ​​88 hectares, which was of concern to the Bureau d’audiences publiques sur l’environnement (BAPE). MFQ proposed a mitigation plan to improve the project and the Legault government demanded compensation estimated at 20 million for the damage caused to the environment.

While awaiting the opinion of Ottawa, the operator of the mining complex is playing it safe.

“Although the steps surrounding the construction of the required infrastructures, which are not connected to waterways, could be started now, MFQ recommends first of all to finalize the analysis of the file at the federal level”, indicates its door. -speaker, Noémie Prégent-Charlebois.

“Quebec must not be in the pay of the federal government”

Among environmentalists, who would like to see the Legault government reconsider its decision to authorize the project, we intend to put pressure on Ottawa, according to Ugo Lapointe, co-founder of the Coalition Quebec better mine.

“It’s clear that we’re going to push,” he said on the phone. But if there had been refusals in the past, we would have had a little more hope. The federal government can technically block the project, but it has never refused a request of this kind made by a mining company for 20 years. Quebec must not be in the pay of the federal government. »

The Quebec state is Champion’s second largest shareholder. Through Investissement Québec, its financial arm, it owns about 8.4% of the company, according to data from the firm Refinitiv. Champion posted net profits of $522.5 million for the year ended March 31, up 13%. The company says it paid about $306 million in mining royalties and mining taxes last year. There are approximately 1,000 workers at the mining complex.