News Summary

Asbestos Corporation Limited has filed for protection under the CCAA amidst ongoing public health concerns and economic transitions in Asbestos, Quebec.

Asbestos Corporation Limited Seeks Protection as Controversy Surrounds Historic Mining Town

In a significant turn of events on May 6, 2025, Asbestos Corporation Limited (ACL) announced that it has sought protection under the Companies’ Creditors Arrangement Act (CCAA). This bold move is expected to reshape not only the company but the entire township of Asbestos, Quebec, a community long affected by the legacy of asbestos mining.

The Once Mighty Asbestos Industry

The small mining town of Asbestos holds a dark and controversial history, once being home to the world’s largest asbestos mine, the Jeffrey Mine, which closed its doors in 2012. This closure followed growing concerns over the toxic nature of asbestos and its considerable health risks. The toxin is now known to be linked to severe diseases including lung disease and mesothelioma, significantly impacting public health in Quebec.

Economic Repercussions

As a direct result of the mine’s shutdown, the population of Asbestos plummeted from over 10,000 in the 1970s to just over 7,000 in 2012, creating economic turmoil. Unemployment soared to alarming rates, with figures showing 12.4% in 2011, though there has been slight improvement reported recently, dropping to 7.6% by 2016. This turmoil has been compounded by the town’s haunting name, which has posed barriers for local businesses trying to operate in neighboring markets, especially the U.S.

Shifts in Economic Landscape

In response to this economic upheaval, local initiatives have emerged to diversify the economy. A prime example is the establishment of Moulin 7 microbrewery, which launched operations in 2014. By selling products with names inspired by the mining heritage, such as “Mineur” (Miner) and “La Ciel Ouvert” (The Open Sky), the brewery has created approximately 19 jobs and is poised to increase production by 30% in the coming year.

Moreover, various initiatives are brewing within Asbestos, including a new regional processing center for duck production that is expected to generate over 150 jobs, and the thriving Mont Gleason ski resort, which employs more than 250 individuals during the winter season.

Exploring New Frontiers

Even more interesting, the town is looking beyond traditional industries to build a sustainable future. Initiatives such as exploring the potential for re-mining tailings for valuable chemicals have begun to take shape, particularly focusing on extracting magnesium branded under a new project by Alliance Magnesium. This initiative could yield about 70 new jobs if they successfully transition from pilot to commercial production.

Concerns Linger