NUNAVUT
Baffinland is stopping to take a breath and is proposing a new approach to the development of its Mary River Project. In turn, communities are weighing the pros and cons of having more time before the project reaches its maximum scale.
A sealift arrives at the Baffinland Iron Mines Corporation Mary River iron project at Milne Inlet. - photo courtesy of Baffinland Iron Mines Corporation
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"There is a general feeling that (communities) want to see something happen now," said Greg Missal, vice-president corporate affairs for Baffinland. "So thankfully, by coming up with this early revenue phase and concept, it allowed that to happen and it allows things to start happening on the ground this year. "
In a letter to the Nunavut Impact Review Board, Baffinland Iron Mines Corporation stated the world financial environment and the project's large capital costs made the project difficult to finance.
As a result, Baffinland returned to the idea of an "early revenue phase," which had been included in its draft environment impact statement in 2011. For the company to go back to that phase, however, would require an amendment to its project certificate which was awarded Dec. 28 by the review board.
While the change does not require a review, one may occur if a high level of concern for the change is raised by affected parties.
Under the new plan, production will start at 3.5 million tonnes of iron ore per annum and the company will only ship during the open-water season.. The currently approved plan calls for 18 million tonnes of iron ore to be shipped year-round from a new port at Steensby Inlet.
The biggest hurdle in Baffinland's currently approved plan was a massive $4-billion construction phase which included a 149-km railway and a port at Steensby Inlet. Now, neither project will take place until after the early revenue phase, should it be approved.
Baffinland asserts it will see the project through to its full potential and that this plan simply allows the company to bypass the immense capital cost hurdle and start building revenue sooner.
Communities toured
Baffinland representatives toured Iqaluit, Pond Inlet, Iglulik and Hall Beach last week to talk with communities about the proposed changes.
Hall Beach economic development officer Shelly Brake said Hall Beach community members appreciated the communication and is glad at least some work on the project would begin this year.
"The community doesn't seem to mind too much," Brake said. "They're still going to be hiring some people and they know that when they do get the funding there will be more going ahead.
"There was disappointment, of course, from Baffinland and (community members), but they also know what it's like when you're trying to get funding."
Brake said some community members have completed heavy equipment training in anticipation of the project starting and others are waiting for training funds to be available in the new fiscal year to follow suit.
Lucie Idlout, economic development officer for Iglulik, stated the reactions among
Iglulingmiut include those who are anxious to get started, those who are relieved to hear the project would ultimately reach its maximum scale, and those who are glad to have more time before the project reaches its higher level of production.
"I think there is a general sense of relief over the likely reduction in environmental impacts since shipping will now only take place over 70-80 days during the summer instead of being year-round," Idlout stated in an e-mail to News/North. "Hopefully that means reduced numbers in whale strikes and other effects on marine mammals and, temporarily at least, reduced impacts on the environment in general with the railway's construction also being on hold."
Idlout stated the community has eight heavy equipment operators ready to go and residents are looking to take advantage of spin-off business opportunities once mine activity picks up.
