The Canadian Government is evidently in the business of subsidizing multi-billion dollar corporations, provided they align with current government climate goals. Last night, the Minister of Environment and Climate Change, Steven Guilbeault, announced that the government would be investing in IAMGOLD (TSX: IMG) and their Cote Gold operations in Ontario.
The investment will see taxpayers provide up to $1.48 million to the gold miner for the purchase of electric-powered dewatering pumps and mobile lighting towers, which will replace diesel-powered equipment currently in use at the new mine. The funding will also be used to upgrade the mine sites electrical infrastructure to support the new equipment, alongside an aggregate crusher that was previously powered by a diesel generator.
Funding from the project is expected to come from the Low Carbon Economy Fund. It’s expected that the investment will eliminate 7,500 tonnes of carbon dioxide equivalent emissions in 2030.
READ: IAMGOLD Posts Seven-Fold Increase In Earnings In 2024, Thanks To Westwood And Gold Prices
“This investment will allow us to reduce our reliance on diesel while modernizing our pit pumping with infrastructure powered by low-carbon electricity. These upgrades align with our long-term vision of improving energy efficiency, reducing our carbon footprint, and enhancing the overall reliability of our operations,” commented Bryan Wilson, VP and General Manager of the Cote Gold mine.
IAMGOLD in 2024 posted net earnings of $847.8 million, alongside net cash from operating activities of $486.0 million.
IAMGOLD last traded at $8.33 on the TSX.
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