Governments pledge $272 million to fund Selkirk silica sand processing plant

A multi-million dollar plant that will process Manitoba silica sand to create glass for solar panels will receive a big chunk of funding from multiple levels of government.

Canada Premium Sand Inc. (CPS), the company behind the Selkirk-area facility, said both the Manitoba and federal governments have pledged $272 million in financial assistance to build the plant.

Of that, $72 million will come from the province in non-dilutive financial support. About $32 million will be used to cut capital costs, and $40 million will come in the form of a low-interest loan.

The feds are kicking in $100 million of non-dilutive financial support.

The company also hopes to get up to $100 million through the federal Indigenous Loan Guarantee Program “with the potential to facilitate a meaningful ownership position in the CPS project for participating Indigenous groups,” the company said in a news release.

CPS said it is in discussions with Manitoba Indigenous groups to explore investments in the project.

The company said it also qualifies for existing provincial tax incentives and economic development programs ringing in at about $60 million in benefits over the project’s lifespan.

CPS president and CEO Glenn Leroux said the governments’ combined financial support means the remaining private capital needed to fund the plant’s construction is reduced from $880 to potentially $608 million - the majority of which could come in the form of long-term debt.

“Having received the federal and provincial indications of financial support, we can advance our project financing with the goal of putting shovels in the ground in 2025,” he said.

Plant could create hundreds of jobs

The Selkirk plant would process Manitoba silica sand extracted near Hollow Water and Seymourville to make 800 tonnes of ultra high-clarity, low-carbon patterned solar glass a day.

It will be used to make solar panels across North America, quashing the need to import the glass from other countries.

In February, the Kinew government dismissed a regulatory appeal against the plans, which has already been granted an environmental license.

The province noted the plant will create 250 jobs in Selkirk, 30 in Hollow Water, and another 600 to 700 in construction.

Hollow Water First Nation and Seymourville also have agreements in place with CPS, which includes environmental oversight and possible revenue sharing.

Still, the project has faced opposition from area residents and environmental advocates.

Camp Morning Star filed an appeal, citing health and safety concerns with the plans.

The Kinew government said it took its time to review the appeal, while consulting experts. The premier said the plans include remediation work.

The province said shovels could be in the ground for the mine in the summer and for the Selkirk plant next year.

- With files from CTV’s Jeff Keele