Quebec to sell stake in Asbestos

After pumping hundreds of millions of dollars into Quebec’s asbestos industry over the years, provincially owned Societe Nationale de l’Amiante (SNA) says it intends to sell its interest in one of Quebec’s main producers, Asbestos Corp. (TSE).

SNA has asked certain investors who are familiar with the mining industry to make an offer for its 54.6% interest in the company.

In 1986, the Quebec government paid $80 per share, or $170 million, to buy into Asbestos Corp. Since then, the share price has plummeted to under $10, a reflection of hard times for asbestos producers.

But the industry may be in the midst of a turnaround. In 1990, Asbestos Corp. lost only $68,000, compared with more than $5 million in 1988. In the first nine months of 1991, it broke even.

SNA says it would assume responsibility for any liabilities associated with Asbestos Corp. if a sale could be made.