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MITTIMATALIK/POND INLET
A project with a price tag three times the size of Nunavut's GDP has passed an important step toward realization.

The Mary River project camp can accommodate approximately 100 people and is open year round. There are currently six to seven people at the camp for care and maintenance over the winter. - NNSL file photo

On Dec. 3 the federal government gave its approval to Baffinland Iron Mine Corp.'s Mary River Project, located 160 km south of Pond Inlet, based on a recommendation from the Nunavut Impact Review Board.

"I think it's a really positive signal for investors," said Tom Hoeffer, executive director of the NWT and Nunavut Chamber of Mines. "Nunavut has got a tremendous mineral potential. One of the best in the world, same as the NWT. Every time we see a positive decision being made on proposed projects it helps send that signal.

"Nunavut is open for business."

From here, the project will work with the Nunavut Impact Review Board to acquire necessary permits and licences, as well as finalize an Inuit Impact Benefit Agreement with the Qikiqtani Inuit Association.

"It's a very important step," said Gregory Missal, head of corporate affairs for Baffinland Iron Mines Corp. "It essentially represents the transition of the approvals ... from the environmental assessment phase to the permitting or regulatory phase.

"The next milestone will be getting these permits and authorizations in place over the coming months. We're hopeful we'll be able to do that by early- to mid-2013."

After that, Baffinland will embark on approximately four years and $4 billion in construction, requiring about 2,000 employees on the site at any given time, Missal said.

Two major construction projects for the Mary River Project are a port at Steensby Inlet and a 149-km railway from Steensby Port to the mine site.

Both are vital to Baffinland's plan to ship iron ore to predominately European markets year-round.

The approved project will produce 18 million tonnes of iron ore annually from one of nine known deposits on Baffinland-owned titles. The deposit which will be in production, referred to as Deposit 1, has a mine life of approximately 21 years.

Missal said the other deposits are not developed or understood enough to know if they will be brought to production in the future, and if they are, they would need to go through full environmental assessment and approval first.

Regardless, the NIRB review application states "mine infrastructure will be at 30 million tonnes annually so production from Deposits No. 2 and 3 could be accommodated with only minor expansion to the existing mine infrastructure."

Last week, the price for iron ore was at $120 US per tonne.

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