MONTREAL, Jan. 31 /CNW Telbec/ - Regarding the participation of Balcorp Limited on the Trade mission to
India organized by the Government of Quebec and the Montreal World
Baljit S. Chadha arrived in Montreal in 1973 as a university student.
He graduated from Concordia University and in 1976 started Balcorp, an
import-export business. Balcorp's head office has always been located
in Montreal. The company today has offices in New Delhi and Mumbai,
India. It actively trades in minerals, food products, aerospace
products, and biopharmaceutical products, among others.
For the past fifteen years, Baljit Chadha has been at the forefront of
the effort to increase trade between Quebec and India. He has worked
with all governments at the provincial and federal levels to that end.
He has participated in the negotiation of trade agreements. In 2006,
he represented the Quebec association of Manufacturers and exporters in
Kolkata where he signed, on their behalf, a Memorandum of understanding
with the Confederation of Indian Industries. He also played an
important part in the opening of the Canadian Consulate General in
Chandigarh. He has himself participated, or has delegated a
representative, to several of the trade missions organized by those
In the context of the current trade mission, he has delegated Mr.
Harshal Owalekar, a 28-year old university graduate he hired three
months ago to promote business development. The participation of
Balcorp to this mission furthers two ends: first, to actively support
the Government of Quebec and the business people from Quebec as they
meet with their Indian counterparts and second, to further its own
business development by creating new links between Quebec and India.
There is no link between this trade mission and the ongoing
negotiations regarding Jeffrey mine.
As for the negotiations surrounding the 58 M $ loan guarantee for the
Jeffrey mine has been in a difficult financial situation for years. To
get it back on its financial feet, it needs to convert to an
underground operation and to increase exports. This requires
investments. About a year ago, the government offered the mine a 58 M
$ loan, providing that the present owners come up with 15 M $; they
were unable to do so and were therefore set to close. Up to that
point, Baljit Chadha was unaware of the details of these events.
Balcorp has been a client of Jeffrey Mine for over 15 years. In the
summer of 2010, Baljit Chadha was informed that Mine Jeffrey may file
for bankruptcy. Because he believed in the future of the world market
for chrysotile, Baljit Chadha felt that he could bring together a group
on international investors to buy the mine. Only at that time was
Baljit Chadha introduced to the government of Quebec by Mine Jeffrey as
the new owners, with whom the government should continue the
Rather than get a direct loan from the government, the consortium agreed
that the government provide a guarantee for a 58 M $ loan to be
provided by a private bank. Further, the consortium has offered to
invest in the mine up to 25 M $ of its own funds, instead of the 15 M $
requested, which are at risk and will be lost should the mine
eventually close. This a much better arrangement for the government
than what it had previously offered to Mine Jeffery. No deal has yet
been concluded as it is subject to the standard approvals and
completion of the due diligence process about the project being
financially sound and viable.
Moreover, it is true that Baljit Chadha hosted an event for the Quebec
Liberal party in September of 2009, as was confirmed by a
representative of this Party. This occurred a year before he became
aware that the mine was to finally close. There are no links whatsoever
between those events.
"Balcorp has been an active player in the economy of Quebec for three
decades. I have personally put a great deal of effort into building
strong economic ties between Quebec and the world's second largest
emerging economy, India. The consortium I represent is willing to
invest in the future of Quebec. We strongly believe we can transform
Jeffrey mine into a thriving company" concluded Mr Chadha.
SOURCE Jeffrey Mine
For further information:
Guy Versailles, ARP
(514) 744 2142 OR (514) 386 9774