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A company operating in the Sudbury area has gone bankrupt, despite a $4.3-million infusion from the provincial government in 2013. That information came to light after the Ontario Ministry of Environment and Climate Change revealed last week that Mohawk Garnet Inc. was fined more than $300,000 for discharging a harmful contaminant — in this case, dust.
It’s unclear, however, whether the fine will ever be paid, since Mohawk Garnet, which operated on the Wahnapitae First Nation near Capreol, appears to have no money.
“It’s disappointing this company has gone out of business,” said Norm Miller, a Conservative Parry Sound MPP and critic for Ministry of Natural Resources and Forestry. “This is further proof that the Liberal government’s Northern Growth Plan that was implemented in 2011 is just not working.”
The situation “raises questions about what sort of due-diligence did the government do on this specific loan,” said Miller. “We’re talking loan or grant or accommodation. It’s a lot of money, $4.3 million.” Mohawk Garnet could not be reached for comment.
The Northern Ontario Heritage Fund Corporation, which provided $4.3 million to Mohawk Garnet in 2013, said in a statement the investment consisted of a $500,000 grant and $3.8-million loan.
“While all conditions related to the grant were met before the funds were released to the company, changes in the global market in the years after the investment was made, and other factors, unfortunately forced them to wind down operations in the early spring of 2016,” according to the NOHFC.
For the rest of this article: http://www.thesudburystar.com/2017/07/24/mine-company-goes-belly-up