QIKIQTANI/BAFFIN ISLAND
Baffinland Iron Mines Corp. is looking to ship ore up to 10 months of the year through the sea channel on north Baffin Island separating Pond Inlet from Bylot Island, 40 km to the North.

A group of workers at Baffinland's Mary River mine site on Aug. 17. Many more trucks, drivers and workers could soon be needed at the mine and port if a recent project amendment passes regulatory hurdles over the coming year. - photo courtesy Baffinland Iron Mines Corporation Amendment could mean more jobs The proposed Mary River project certificate amendment would mean an increase in production, road traffic, infrastructure, and hiring at both the mine site and at Milne Inlet. The project is currently approved to mine and ship up to 4.2 million tons per year of iron ore through the Milne port. Baffinland is now looking to ship an additional 7.8 million tons per year, bringing the annual total to 12 million tons. The capital investments would involve increasing the truck fleet, expanding the tote road between Mary River and Milne Inlet, twinning bridges, building special ice-breaking ore carriers, increasing fuels storage and expanding worker accommodations at both the mine site and Milne Inlet. Two ice management boats would be brought in for use at the port as the shipping season through the northern route would be extended, running from June until March, and would see approximately 150 transits of the passage, including ore carriers, freight and fuel vessels. Specially built ice-breaking, self-unloading ore carriers would be used during frozen-over months. The ore carriers would meet with traditional vessels in Greenland waters where the cargo of iron ore would be transferred for transport to its unspecified European destinations. Mine site accommodations for extra workers are expected to more than double to 500 from the current 210 beds. Worker accommodations at Milne Port will increase to 400 from the current 120. Ore haul trucks will more than triple to 75, meaning there could be up to 300 round trips per 24-hour period between the mine and Milne Inlet. Baffinland has requested that the amendment for increased tonnage and winter shipping through the northern channel to be effective for 21 years. In documents filed with the Nunavut Impact Review Board, Baffinland indicated the company still expects to have financing in place to begin the four-year railway construction project by 2021.

To do this, the company has filed an application with the Nunavut Impact Review Board asking for an amendment to its Mary River mine project certificate.

The company needs to extend its shipping season because it wants to almost triple the amount of ore it produces at Mary River and ships out of Milne Inlet.

Under the company's current project certificate, up to 4.2 million metric tons of ore were to be shipped out of Milne Inlet during the summer open water season only.

Under the proposed amendment, Baffinland would increase its production and ship up to 12 million metric tons of ore out of Milne Inlet by expanding existing infrastructure and bring in two specially built ice-breaking ore vessels to bust ice and transport ore during winter months.

According to Baffinland's application, the increase in production is part of a continued phased approach to mine development against the backdrop of a difficult metals market, which has seen the price of iron ore drop by approximately 40 per cent over the past year.

The drop in value means the company cannot yet proceed with construction of a rail line to Steensby Inlet, something which the company now says would cost more than $5 billion.

The possibility of extending the shipping season through the use of ice breakers has drawn the attention of the Qikiqtani Inuit Association (QIA), which represents the 13 Baffin Island communities and includes Pond Inlet.

"We were very surprised," said Olayuk Akesuk, QIA member for Cape Dorset and QIA major projects portfolio manager. "It's part of the impact benefit agreement that there should not be year-round shipping in that area."

The significance of the channel separating Pond Inlet from Bylot Island to the north is that it is an important hunting ground for local Inuit.

"They'll be breaking ice and that's the hunting area for people in Pond Inlet," Akesuk said. "(Residents) use it a lot during the winter."

The negotiated impact benefit agreement calls for a new agreement to be drawn up if year-round shipping were to be introduced, although this new proposal technically limits shipping to 10 months of the year.

Ryan Barry, executive director with the Nunavut Impact Review Board, said whether close to year-round shipping will trigger the need for a new agreement is something the QIA will have to determine, but he wouldn't be surprised if it did.

"Anytime there is an amendment proposed to a major development project that has an IBA, often those benefits agreements are revisited in light of the amendments to see if they are still sufficient," Barry said. "The most significant change in terms of environmental impact would be (the) close to year-round shipping."

Next, Barry said the Nunavut Planning Commission (NPC) will consider Baffinland's proposal to see if it conforms with the North Baffin Regional Land Use Plan.

If it is found to be conforming, it will fall to the Nunavut Impact Review Board to consider the proposal and make a recommendation the federal minister of Aboriginal Affairs and Northern Development Canada, who will approve or reject the proposal in light of the board's findings.

If the NPC determines the application is non-conforming, the commission could reject it. If the application is rejected, Baffinland could still apply to the federal government to have the decision overturned.

"That's within the minister's discretion, to essentially override that decision if it were made," Barry said.

Barry said that if it falls to the review board to make a recommendation, it could take up to 10 months for the board to prepare its report and make a recommendation to the federal government.

Baffinland was not available for comment before press time.