American Iron and Metal in Saint John will be allowed to keep operating until at least June 8.
The Department of Environment issued an amended order on Thursday, granting the company another three months of operation.
But the company must keep following strict conditions set out in the original order issued in early December.
“The department will continue to monitor the AIM operations for this period to ensure that the new management plan addresses issues with its operation to the department’s satisfaction,” said the department in a statement on Thursday.
The recycling facility was shut down by the department in late November after a series of explosions.
It was allowed to resume operations for a 90-day trial period on December 5, but only if it followed a number of conditions.
The company has to report all explosions to the proper officials and must take steps to eliminate them.
“AIM is in continuous contact with the New Brunswick Department of Environment and Local Government as the company works toward a long-term renewal to operate, including air and water management issues,” the company said in a statement on Thursday.
AIM said it is also working on implementing innovative technologies to greatly reduce what it calls “contained bursts of energy” at the site.