BOISE – A Canadian-based mining company hopes to take advantage of the 2009 federal stimulus act to help it start digging cobalt in central Idaho by 2012.
Formation Metals Inc. aims to benefit from $46.7 million in tax-exempt bonds from two county industrial development corporations.
The bonds, authorized by the state of Idaho, were part of the 2009 federal stimulus bill.
Mari-Ann Green, Formation’s chief executive officer, said Idaho’s backing of the project is great news.
The bonds’ tax-exempt provisions make them more attractive to investors, who won’t have to pay tax on interest they earn for investing in the mine.
Lemhi County Commission Chairman Rick Snyder said these federal incentives will help create jobs in a region where the economy has struggled after another mine and timber mill closed in the 1990s.