New Brunswick offers land for proposed explosives factory

New Brunswick is exploring the potential development of a new explosives factory in the northern community of Belledune, offering a 1,500-acre parcel of land to defense company Nalagx. Natural Resources Minister John Herron described the project as a "potential positive development for New Brunswick’s continued economic growth" in a letter to the company's CEO.

Nalagx intends for the factory to produce TNT, used in artillery and drones, and propellant, aiming to "restore resilience to the defence supply chain and to secure critical capabilities for the next generation of NATO and allied forces." The company's website also notes potential applications for mining, quarrying, and large-scale industrial rock fragmentation.

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a potential positive development for New Brunswick’s continued economic growth.

The offered land is strategically located near roads, rail infrastructure, and the Port of Belledune, which Denis Caron, president and CEO of the Belledune Port Authority, highlighted as providing strategic access to European markets and Canada's NATO allies. This positioning is seen as crucial for supporting transatlantic defense and security supply chains.

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Our location also provides strategic access to European markets and Canada’s NATO allies, creating opportunities to support increasingly important transatlantic defence and security supply chains.

However, Premier Susan Holt clarified that the deal is in its earliest stages, with no contract or commitment from the government. She stressed the importance of including local communities and First Nations leadership in the consultation process. Nalagx hopes for full production by 2030, with environmental assessments and consultations beginning later this year.

The land offer is contingent on Nalagx securing a credible operating partner by December 31. The company previously had a letter of intent with Eurenco, Europe's top explosives maker, but they parted ways. Nalagx has since announced a partnership with American-based Union Technologies.

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There is no contract, there is no commitment on our government’s part. We are exploring an opportunity in its earliest stages and we are including the communities and the First Nations leadership in and around the potential area in question.