Maritime Iron’s acquisition of the pig iron processing facility in Belledune, Canada could be stalled after New Brunswick (NB) Power ceased further negotiations with the company on providing power to the project.
The company attributes the sudden halt in discussion to the potential impact of the facility’s power requirements on NB Power’s system capacity. However, it has proposed options to work through the issue to mitigate these risks including an offer to purchase Belledune Generating System.
The firm also pointed out that it understands the closure of the facility in 2030, because of federal regulations, could leave NB Power in heavy debt. However, Maritime Iron could help alleviate that debt and reduce the power company’s interest payments if it were allowed to purchase and run the facility during this time period.
In a letter to the New Brunswick’s premier Blaine Higgs, Maritime’s chairman and chief executive officer, Greg McKenzie, stressed on the importance of the project. He wrote that its successful implementation would contribute close to $1.5bn to the province’s finances through income taxes and corporate affairs and increase the rate of employment in the province.