An aerial view of Milne Inlet on North Baffin, September 2013. The company says it needs to increase extraction and ship ore 10 months a year to be viable

An aerial view of Milne Inlet on North Baffin, September 2013. The company says it needs to increase extraction and ship ore 10 months a year to be viable.
Photo Credit: Baffinland Iron Mines

Update on Arctic Iron ore mine

There are new developments in the ongoing saga of a huge iron ore mine in the Arctic.

The federal minister of Aboriginal Affairs and Northern Development, Bernard Valcourt, has bypassed the Nunavut Planning Commission (NPC) decision against an expansion of shipping by the mine.

Baffinland Iron Mines Corp operates an iron ore extraction mine in the northern part of Baffin Island.  They have requested to increase extraction amounts and shipping from the ice-free months to 10 months a year.

Baffinland-controversy.

The NPC said that goes against the North Baffin Regional Land Use Plan, and breaking the ice to allow massive ships to travel through the region would disrupt wildlife which needs the ice, and traditional Inuit hunting and travel. In April they rejected the request.

Heavy equipment works halfway up the deposit at the Baffinland Iron Mine site at Mary River in 2014
Heavy equipment works halfway up the deposit at the Baffinland Iron Mine site at Mary River in 2014 © Baffinland Iron Mines

In light of the NPC rejection of the mine’s PhaseII plan, Baffinland asked the minister for an exemption from the NPC decision.

Nunavut Premier Peter Taptuna has said that delaying the project would negatively affect about 260 jobs in the region and potential future benefits.

“We must consider not only the risks of proceeding, but also the risks of not proceeding ” Minister Bernard Valcourt

In response to the Premiers concern, the federal ministert said, “This concern is particularly acute if, as suggested by Baffinland, the economic viability of the existing Baffinland project depends on the Phase II project proposal. We must consider not only the risks of proceeding, but also the risks of not proceeding.”

boriginal Affairs Minister Bernard Valcourt granted the iron ore mine an exemption from the Nunavut Planning Commission's decision against breaking winter ice for an increased shipping season
Aboriginal Affairs Minister Bernard Valcourt granted the iron ore mine an exemption from the Nunavut Planning Commission’s decision against breaking winter ice for an increased shipping season © Chris Wattie/Pool/The Canadian Press

 Minister Valcourt granted the exemption in a letter on July 13.  .

Surprise development

One day after Minister Valcourt’s letter stating reasons for exempting the mine project from the NPC decision, another letter was sent to the NPC. This one saying the government will be sending in auditors to look at the commission’s financial affairs.

The independent firm KPMG will be sent to conduct the audit.

The chairman of the NPC Board of Directors, Hunter Tootoo says the audit is unnecessary adding , “We submit our work plan and budget on an annual basis. And they approve it every year. But if they want to come in and do it all over again,. that’s their prerogative. We have nothing to hide.”

He also said he can’t speculate as to why the government wants to review the NPC finances.

Baffinland’s request now goes to the Nunavut Impact Review Board for an environmental and socio-economic study before giving a yes or no recommendation to the Minister to allow the project and shipping expansion

Categories: Economy, Environment & Animal Life, Indigenous, International, Politics
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