space Press Releases, News Stories

Stephen McDougall, The Record (Sherbrooke, Canada)

The ban was imposed in 1997 after French government officials and scientists argued asbestos use was causing an estimated 1,950 deaths per year. The Canadian government opposed the ban and asked the WTO to overrule it, claiming it was an unfair trade practice. The fibre is used in fire retardant, insulation, cement and auto products. Some forms are known to cause asbestosis, a lung-scarring disease, and mesothelioma, a rare-form of lung cancer. Chrysotile asbestos, which is mined in Quebec, is considered by industry and government officials to be the least harmful form.

Coulombe said the ban meant 12,000 fewer tons of JM Asbestos fibre were exported. But it took another year and a major recession in Asia to force the mine to lay off 160 employees. Coulombe argued asbestos markets in Europe were already saturated and future sales would have been stagnant anyway. ``Most of their major projects were already finished and it was a good time for the politicians to call for a ban,'' he said.

``They were so afraid of lawsuits, they had to show they could take action and at the same time promote local industry which makes more expensive and less durable products to replace asbestos-based materials.'' But Coulombe admits the ruling does not help his company get financing for an underground shaft his company is building near its open-pit mine. The $130 million project was supposed to have been completed this year, but has been slowed down by a lack of financing by a syndicate led by the Caisse de Depot. The Caisse, a provincial crown corporation that manages the province's public pension fund, was supposed to have loaned the company $45 million over a year ago but delayed its decision because the asbestos markets were weak. Caisse spokeswoman Suzanne Brochu had told the Record it would decide on a refinancing package this past June. Last week, she said the decision has been delayed again until September.

Coulombe believes the Caisse is waiting to see what the federal government will do in response to the WTO ruling. He said government departments dealing with international trade will not resume work until Sept. 18.

``Bankers and financial houses are always skeptical about the asbestos marketplace. They always need proof that the risk is not too high for them. We can't avoid that.''

The underground mine is now expected to be completed in 2002. Coulombe said the tight financial situation also causes stress for mine workers who have been put on advance warning of layoff only to see the final day of their jobs postponed because sales of the fibre did not drop off as expected.

``We have no choice,'' said Coulombe. ``Under union agreements, we have to give our workers three months notice before they are laid off. If the market remains stable, they can keep their jobs a little longer. If the market goes down, we have to be ready to cut costs, or else the banks say we are not good managers.''

Presently, some 30 employees have been given such notices, but union president Rodrigue Chartier said the scheduled layoffs at the end of July have been postponed until September. Coulombe still believes the Asian and African markets will pick up steam in the coming years as improvements in regional economies mean more infrastructure building involving fibre reinforced cement. The company forecasts an Asian economic upswing by 2004. He adds the present ruling has not stopped the company from coming up with new uses for the fibre. Some ideas include fibro-cement posts for Hydro-Quebec, fibre-backed paper that can be used for printing or electrical wire insulation but will not burn, and shingles that can be used as photo-electric cells and generate electricity from the sun.

``We want to create niche markets that need our fibre. Our mine has a capacity of 600,000 tons per year, but we are only mining about 140,000 tons, so there is a lot of potential if we can promote the safe and practical uses of our product,'' he said. In Thetford Mines, newly-appointed Liberal Senator Raymond Setlakwe said the ruling did not surprise anyone.

He said the town of 18,000 people has broken free of its total dependence on the three mines that provide over 1,000 jobs for the area.

``The economic strength of the Beauce region, which is right next to us, is spilling over into our territory,'' he said. ``We now have more small and medium-sized companies that are providing steady employment. The mines are still the biggest source of jobs and we are not pleased with the WTO ruling, but we are managing well.''

Both Setlakwe and Coulombe believe the federal government should appeal the ruling, if not for the asbestos industry, then for the country's other natural resources.

``We knew the cards were stacked against us when it came to asbestos, and the government knew this as well, but it fought the ban because of the threat to Canada's other mining and resource industries,'' said Setlakwe. ``If Europe can ban one of our natural products, what is to stop it from banning others.'' Coulombe believes European politics, and not health, had a lot to do with the ban.

``The unions there are thrilled with this ban,'' he said. ``Now that they spent all these years putting asbestos in buildings, they can spend the coming years convincing society they should be hired to tear it out because it's unsafe. That provides jobs and keeps politicians happy.'' Representatives of Greenpeace and other environmental groups opposed to the use of asbestos could not be reached for comment at press time.