Reuters are reporting that the Caisse de depot et placement du Quebec has announced that it will take control of a major cement project in Quebec hit by massive cost overruns, and has agreed to a new C$250 million (US$192.56 million) round of financing to complete it.
Caisse announced it would invest an additional C$125 million with funds managed by BlackRock Alternative Investors, which is also investing C$125 million.
A spokesman for the Caisse said the McInnis Cement project faced between C$400 and $450 million in cost overruns.
The change will give the Caisse a controlling stake in Beaudier Ciment, the controlling shareholder of McInnis.
The project was launched in 2014 with the target of producing up to 2.5 million tpy of cement. It was backed by the Quebec government that contributed C$350 million in investment and loans.
Beaudier contributed C$150 million to the project.
Edited from source by Joseph Green. Source: Reuters