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NUNAVUT
Baffinland Iron Ore Mines Corp. will be equally shared between ArcelorMittal and Nunavut Iron Ore, if arrangements go according to plan in the coming weeks.

Joe Tigullaraq, Northern affairs manager for Baffinland Iron Mines Corp., and Michael Anderson, vice president of Baffinland, speak at the Nunavut Impact Review Board final hearing for Baffinland's Mary River iron ore project, on July 16. - photo courtesy of Baffinland Iron Mines Corp.

On Dec. 13, ArcelorMittal SA Ltd. announced Nunavut Iron Ore Acquisition Inc., a subsidiary of Iron Ore Holdings, agreed to increase its interest in Bafflinland to 50 per cent from 30 per cent and thus increase its share of funding for development of the Mary River Iron Ore Project.

The two companies are expected to complete arrangements early this year.

The decision follows in the wake of federal approval for the multi-billion-dollar Mary River Project Dec. 3.

"This has been an excellent month for the Mary River Iron Ore Project," stated Tom Paddon, president and chief executive officer of Baffinland, in a news release announcing the agreement. "Two important milestones have been achieved. (On Dec. 3) Minister Duncan announced federal approval of the Mary River Iron Ore Project. Now, with these arrangements, we have secured additional shareholder support for the project."

In addition to the 50 per cent interest ArcelorMitall will still hold in the project, it will also retain marketing and operator rights.

Currently, Baffinland is working on attaining permits and authorizations for the Mary River Project, and expect to have them completed by early to mid-2013, said Gregory Missal, head of corporate affairs for Baffinland Iron Mines Corp. in an earlier interview with News/North.

Once that phase is completed, construction – to take place over the next four years -- will begin on such projects as a port at Steensby Inlet and a 149-km railway from Steensby Port to the mine site. Approximately 2,000 employees will be on site at any given time during construction.

Baffinland first started searching for a strategic development partner for the $4-billion mine project in 2009, with Arcelor Mittal and Nunavut Iron Ore entering into a joint bid for control of Baffinland in 2010.

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