TORONTO (miningweekly.com) – Quebec-focused Orbite Aluminae was on Thursday granted a C$4-million non-interest bearing repayable financial contribution from Canada Economic Development's Quebec Economic Development Programme.

The Federal Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec Denis Lebel said the federal government actively supported business projects, such as the one being carried out by Orbite, in order to ensure sustainable and job-creating growth.

“These investments in Cap-Chat will generate major positive social and economic benefits for the surrounding area as well as for the entire Gaspesie region," Lebel said in his speech at Orbite's technology development centre in Laval, Quebec.

The contribution is interest free, repayable in ten consecutive equal twice-yearly instalments starting 24 months after Orbite’s high-purity alumina (HPA) production plant had been completed.

"We are very thankful for the confidence and financial commitment provided by the agency, which will be dedicated to the purchase and installation of our alumina calcinator, a key element in our HPA production facility. We are especially pleased that the announcement is taking place at our technology development centre, where our state of the art technologies are developed and validated,” Orbite COO and executive VP Glenn Kelly said.

In a separate news release on Wednesday, Orbite said it still expected to complete the HPA plant within a 12-month execution timeline, after it recently secured $56-million in capital funding. Orbite last year fell victim to a budget blowout while constructing the 3 t/d second phase of its HPA plant.

Orbite outlined a phased construction plan, which entailed a design review of the HPA facility that was expected to be complete by April, an ordering and delivery period of six to seven months for long-lead items, and a two- to three-month installation/construction and start-up period.

Engineering firm Seneca, previously involved in the design, construction and operation of Orbite's pilot facility, and Groupe Alphard, responsible for construction management of the HPA facility, were selected by Orbite as project engineers.

Orbite’s TSX-listed shares on Thursday rose 9.09% to C$0.36, after having dropped 88% in the past year, down from C$2.73 apiece in January 2013.