Company puts off port and railway construction for Arctic Canadian mine project

A dump truck at Baffinland Iron Mines Corp.'s Mary River project, located 160 kilometres south of Pond Inlet, Nunavut, on northern Baffin Island. (Baffinland Iron Mines Corp.)Plans to use Milne Inlet to ship ore seasonally

Baffinland Iron Mines is now proposing a phased approach to its plans for the Mary River mine in Canada’s eastern Arctic territory of Nunavut, saying the project has become difficult to finance in the current global market.

The company sent a letter to Nunavut regulators Thursday outlining its revised plans. They include putting off the construction of the port at Steensby Inlet, and the railway connecting the mine to the port.

Instead, Baffinland is proposing the company use the existing port at Milne Inlet, and a tote road to the mine site in its initial phase.

The ore will then be shipped from Milne Inlet, only during the open water season.

Plans for year-round shipping using icebreakers, have been put off along with the port at Steensby Inlet.

The company expects to move about 3.5 million tonnes of ore per year during the initial phase.

The original plan was to move about 18-million tonnes per year, through Steensby Inlet and Foxe Basin.

Baffinland blames tight global financial markets for the change of plans and it says the phased approach will generate revenue sooner, and give time to prepare for an expansion of the project.

The company said it still plans to develop the railway and port at a later date.

The Nunavut Impact Review Board issued a project certificate for the Mary River project in late December.

Baffinland is now asking the NIRB to amend the certificate, to allow the new plan.

Related Link:

Nunavut braces for massive Mary River mine, CBC News

For more northern stories from CBC News, click here

CBC News

For more news from Canada visit CBC News.

Do you want to report an error or a typo? Click here!

Leave a Reply

Note: By submitting your comments, you acknowledge that Radio Canada International has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Radio Canada International does not endorse any of the views posted. Your comments will be pre-moderated and published if they meet netiquette guidelines.
Netiquette »

Your email address will not be published. Required fields are marked *