MITTIMATALIK/POND INLET - While industry members and financial analysts anxiously await the outcome of a bidding war for Baffinland Iron Mines' Mary River iron ore project, one company in Pond Inlet is simply wondering where it will fit in once the dust settles.

Baffinland Iron Mines employees George Kunnuk of Pond Inlet, left, and Jonathan Flarthy of Iqaluit explore the sights near Baffinland's Mary River iron ore project, located 160 km south of Pond Inlet. - NNSL file photo

For many years, Toonoonik Sahoonik Co-op Ltd. has provided food and laundry services to Baffinland, developer of the Mary River project, located 160 km south of Pond Inlet.

Aside from keeping several co-op employees busy, the activity at Baffinland also typically generates four additional jobs at the co-op during the height of the exploration season, which starts in April or May.

"If there's more people working from Pond Inlet, then the co-op will benefit from the money that's coming back into the town," said Louise England, the co-op's general manager. "If the co-op store benefits from that money coming into the town, then that money goes back to all the members of the co-op, and there are roughly 950 members of this co-op.

"It's a win-win for everybody."

But which company will be in a position to contract the co-op for its services this year is anyone's guess at this point.

At the close of 2010, Nunavut Iron Ore Acquisition Inc. raised its offer to buy Baffinland by five cents to $1.45 per share, an offer valuing Baffinland at $570 million.

That offer bested a previous one made by ArcelorMittal, the world's largest steelmaker, by $20 million.

Regardless of which suitor wins the heart of Baffinland shareholders, England said the co-op's history with Baffinland must not go forgotten.

"We were negotiating for a new contract with Baffinland all of last year but we never did get one, so we worked on the same contract that we always have. The contract with Baffinland has not changed," she said.

"Having said that, we're watching very carefully to see who the new owners are. We're very interested because, of course, Pond Inlet and the co-op have a lot to gain and perhaps a lot to lose."

Pond Inlet residents have also expressed keen interest in the project's future, she said.

"It's being watched very carefully by the citizens of Pond Inlet, and there have been some public meetings and they've been asking some very good questions, brought up some very good concerns."

Jaykolasie Killiktee, mayor of Pond Inlet, could not be reached for comment by press time. Neither could Richard McCloskey, acting president of Baffinland.

Representatives from the exploration company have visited England's office at the co-op to discuss the raging battle for Mary River and what it may mean for the co-op.

England said she's been assured the winning company will likely retain some Canadian Baffinland staff, who in turn will bring with them knowledge of the co-op's past business relationship with Baffinland.

"My personal hope is that they don't get too big that they overlook (us)... They have certain obligations to this community and we're all just going to, gently at times – if we need to – remind them that they have to keep up with those obligations."

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