Holt says there’s ‘no deal locked in’ for explosives factory

**New Brunswick Premier Clarifies Status of Proposed Explosives Facility**

*Fredericton, N.B., August 29, 2026* – New Brunswick Premier Susan Holt said on Wednesday that no formal agreement has been reached to locate a large explosives manufacturing plant in the province’s north, despite recent statements from the project’s proponents indicating that New Brunswick had been selected for the development.

At a press conference in Fredericton, Holt indicated that discussions with Canadian firm Nalagx, which is partnered with French company Eurenco – a leading European producer of propellants and explosives – are ongoing but have not progressed beyond preliminary conversations. “There is no deal in place. There is no deal locked in,” Holt said. She added that the government is conducting due‑diligence assessments of the potential community, economic, and environmental impacts and that First Nations and local communities are being consulted.

**Company Claims and Government Letter**

Nalagx CEO and former Quebec MP Patrick Gagnon told *Brunswick News* on Tuesday that the province had committed to provide 1,500 acres of Crown land west of the Port of Belledune for the facility. Gagnon described a first phase valued at C$600 million, which would employ 500 workers during construction and 250 workers in operation. He said the project aims to expand to a C$2 billion footprint, employing up to 1,000 workers, and that an operating partner would be announced within the next few months.

A letter dated July 30, 2026, from Natural Resources Minister John Herron to Nalagx described the project as a “potential positive development for New Brunswick’s continued economic growth.” The letter identified 1,500 acres of Crown land as a “potential lease area” for the proposed facility and indicated that the land would be held in reserve for up to two years, contingent on Nalagx meeting key milestones, including securing an operating partner by December 31, 2026.

**Timeline and Consultation**

According to Gagnon, an environmental impact assessment and a consultation period with First Nations and local stakeholders will precede construction, which is slated to begin in mid‑2027. The construction phase is projected to last three years, with the plant potentially becoming operational in 2029‑2030.

Chief Terry Richardson of the Pabineau First Nation has publicly expressed support for the prospective project, noting the potential economic benefits for the community and the nearby village of Belledune. Port of Belledune CEO Denis Caron was also present at a meeting between Nalagx and Eurenco in France earlier this year.

**Government Position**

Premier Holt emphasized that the province has not transferred any Crown land and that no contract or commitment has been made. “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,” she said.

The premier’s remarks contrast with the earlier letter from Minister Herron, which suggested that the land had been earmarked for the project. Holt clarified that the government’s approach remains cautious, pending the fulfillment of project milestones and comprehensive assessments.

**Background**

The proposal follows announcements in November 2025 that two companies had partnered to develop an “industrial campus in Canada,” which would include energy materials plants. The project has been a focus of Premier Holt’s recent outreach, including a trip to Europe in April 2026 where she met with Eurenco officials and expressed interest in locating the facility at Belledune.

As of now, the status of the explosives plant remains in the discussion phase, with no binding agreement between Nalagx and the New Brunswick government. Further updates are expected as the parties work toward meeting the stipulated milestones.

Article and image source: tj.news