Quebec won't fund graphite mine project tied to Pentagon; locals claim 'victory'

This week, the Quebec government rejected Lomiko Metals Inc.'s application for public funding, a decision many say reflects the will of the people who live near the proposed site for the graphite mine in the Laurentians region of Quebec.

After years fighting against the opening of a mining project with ties to the Pentagon, Louis Saint-Hilaire is breathing a sigh of relief.

That's because this week, the Quebec government rejected the mining company's application for public funding, a decision Saint-Hilaire says reflects the will of many of the people who live near the proposed site in the Laurentians region.

"It's a big victory for us, but it's not a total victory," he said in an interview Wednesday.

Lomiko Metals Inc., a mining company based in Surrey, B.C., wants to mine graphite -- one of the world's most sought-after minerals -- at a site near Duhamel, Que. Initially, residents' main fear was about the potential harm to the environment.

But in May, the company announced it received a grant of $11.4 million from the U.S. Department of Defence and another $4.9 million from Natural Resources Canada to study the conversion of graphite into battery-grade material for powering electric vehicles. People started to worry that the graphite could end up in American military equipment.

Yet despite investments from Ottawa and Washington, D.C., Quebec Minister of Natural Resources Maite Blanchette Vezina says the provincial government has decided not to throw its support behind Lomiko.

"In this case, the company's request for financial assistance … did not meet current criteria, particularly with regard to social acceptability. Consequently, no financing has been granted for this application," Blanchette Vezina said in a statement.