Latest chapter in huge Arctic mine project

The ongoing controversy over a huge iron ore mine in Canada’s Arctic has apparently entered a new, and perhaps final phase this month.

The huge mine operator wants to expand operations and has hinted that if the expansion is not approved, then the mine might be shut down in 2022.

The ‘Baffinland’ Mary River mine site and Milne Inlet port in northern Baffin Island is majority owned by a Texas-based equity firm with the remaining shares owned by European steel giant, ArcelorMittal. After years of exploration, development and lengthy approvals process, it began operations in 2015, shipping some 3.5 million tonnes of ore during the summer open water season, mostly to Europe..

In 2018, Baffinland received tentative approval to develop plans towards doubling its output to six million tonnes, The so-called Phase-2 development would involve the building of a 110 kilometre railway line across the island to a new port and vastly increase the number of ships travelling through Arctic waters to some 168 trips during the short season from July to October/November. Output would increase to 12 million tonnes, with further increases possible

But there has always been controversy from many local Inuit about the environmental effects of dust, and noise from the operation and especially shipping, potentially negatively affecting both land and marine animals upon which many Inuit depend. The idea of a vast increase in mining and shipping has only heightened concerns.

• RCI: Feb 9/21: Arctic mine protests spread throughout Nunavut
• RCI: Apr 22/20: Greenland wants its say in huge Canadian Arctic mining project

Baffinland for its part said it was developing monitoring plans which would detect any negative effects on animals such as narwhal and seals, along with efforts to reduce dust.

Baffinland Iron Mines president and CEO Brian Penney said during the hearings that the mine, which employs about 1,200 people, mostly at the mine site, “is one of the most environmentally sustainable iron ore operations in the world”. He added that it has contributed over $1.6 billion to the regional economy since 2015. He also said that Phase-2 would contribute billions more during the mine’s service life to the region, and in taxes to the territorial and federal governments.

Nunatsiak News reports the latest move came on April 30 when Penney sent a letter to employees saying that the mine could be mothballed next year. He cited a decision by shareholders not to invest more money in the mine because of delays in approval for expansion, and the concern for a potential downturn in the price of iron ore.

The article quotes Penney saying that Phase-2 developments, “would be necessary to ensure the mine’s ongoing viability in the future.”. Penney is also quoted saying contractor equipment involved in Phase-2 development would be sent back out this season and only materials essential to current operations would be brought in.

Earlier this year the Nunavut Impact Review Board (NIRB) heard from all sides on the Phase-2 project and will make a recommendation to Canada’s Northern Affairs Minister who will then decide whether approve or reject the mineès Phase-2 proposal.

It is not known how this latest information may affect official decisions about the mine’s operation and future.

Additional information-sources

• Baffinland: website
• Nunatsiak News: J George: May 4/21: Mary River Mine could be mothballed, Baffinland president warns
• North of 60 Mining News: R Ragsdale: Apr 30/21: Operator proposes min expansion
• CBC: N Murray: Apr 13/21:Wildlife concerns still lingering as public hearings into Baffinland’s expansion resume
• CBC: B Brown: Mar 3/21: Nunavut court grants mining company injunction against blockade protesters