Asbestos residue: Quebec could lose nearly $40 million due to Tirgo’s difficulties

The Quebec government could lose nearly $40 million due to the financial difficulties of Tergeo Minéraux, a company formerly known as Alliance Magnésium, which has just sought refuge from its creditors.

A Montreal company wanted to convert asbestos waste into magnesium using a relatively low-pollution process.

However, Tergeo’s projects were suddenly slowed down by the government and Hydro-Québec which, last month, rejected its application for electricity supply, a reference to the application the company filed on Tuesday in Superior Court.

Recall that for several months, the Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, has been making decisions on electricity supplies of 5 megawatts or more.

Layoffs

In mid-August, Tergeo suspended activities at its casting center in Val-des-Sources (asbestos), in Estrie, resulting in the layoff of 70 workers. The company then cited financing problems.

Tergeo is drowning in $100.1 million in debt. The company owes $37.2 million to Quebec and $62.9 million to private investors.