Marine Recycling has received a new contract for the disposal of the Royal Canadian Navy’s (RCN) former Iroquois-class destroyer, HMCS Athabaskan.

The deal is valued at $5.74m and has been awarded by Public Services and Procurement Canada.

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Marine Recycling will be responsible for the towing of the navy vessel to the contractor’s facility located in Sydney, Nova Scotia, as part of the arrangement.

The scope of the project also includes the demilitarisation of equipment, remediation of hazardous waste and recycling of any remaining materials.

"Our government is ensuring that these historically significant vessels are disposed of in an environmentally responsible manner, while creating jobs and bringing economic opportunities to communities across Canada."

Public Services and Procurement Canada Minister Carla Qualtrough said: “Our government is ensuring that these historically significant vessels are disposed of in an environmentally responsible manner, while creating jobs and bringing economic opportunities to communities across Canada.”

HMCS Athabaskan is currently docked at Canadian Forces Base Halifax and is expected to be dismantled by July next year.

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Sydney-Victoria (Nova Scotia) member of Parliament Mark Eyking said: “This announcement is good news for Marine Recycling and the Canadian marine industry as a whole.

“This contract also benefits our local economy as we are expecting to sustain approximately 30 jobs in the region.”

The vessel’s retirement forms part of Canada’s wider National Shipbuilding Strategy (NSS), which is focused on renewing and upgrading the RCN fleet.

HMCS Athabaskan represents the last of the four Iroquois-class destroyers to be removed from service with the Canadian Navy.

The destroyers are slated to be replaced by up to 15 Canadian Surface Combatants.

The delivery of the first ship is expected to be carried out in the mid-2020s.