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Alana Wilson is senior research analyst in the Fraser Institute’s global centre for mining studies www.miningfacts.org
Canada’s mining industry is globally competitive, and has long succeeded without much in the way of government subsidies. It even thrived in the last recession by responding to market demand. Yet instead of letting markets drive mining investment in Quebec, the provincial government is bailing out the asbestos industry using taxpayer money — and this for a product that is harmful to human health.
In recent years, market demand for chrysotile asbestos produced in Canada shrunk dramatically which lead to a halt of chrysotile mining. But instead of letting mines stay closed, taxpayer funds will reopen an unprofitable chrysotile mine.
Quebec Premier Jean Charest recently approved a $58 million loan to allow the closed Jeffrey asbestos mine to reopen. Even before the announced bailout, the mine struggled and operated infrequently in recent years. All other Canadian asbestos mines have closed; the last one was shuttered in November.
The demise of Canada’s asbestos industry reflects a declining demand for asbestos, driven by health concerns.