Baffinland cuts salaries
Cites low iron ore prices as reason for dropping wages by 10 per cent
Karen K. Ho
Northern News Services
Monday, October 5, 2015
MITTIMATALIK/POND INLET
Baffinland Iron Mines has confirmed that it is reducing salaries as a result of low prices for iron ore.
Jeff Palosaari operates an excavator on Baffinland Iron Ore Corporation's Mary River iron ore mine project. The company is citing the slump in the price of iron ore as the reason it is temporarily reducing salaries. - photo courtesy of Baffinland Iron Mines Corp.
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Spokesperson Mary Carey said in an e-mail that the company is experiencing the challenge of ramping up production while global prices for iron ore are at historical lows.
In her written statement, she called the decision to temporarily reduce salaries across the company's workforce "difficult but necessary."
"This is one of a series of measures designed to improve the cost competitiveness of the operation," she said. "We continue to execute a cost-reduction plan and have announced a strengthening of the site management team. Baffinland has one of the largest highest quality iron ore resources in the world and we remain committed to the success of this project."
The company recently sought approval for the next step of its Mary River mine project in the territory, which would see 12 million tonnes of iron ore shipped during an extended season of 10 months per year using icebreakers that would clear a path off the coast of Pond Inlet.
Mary River officially started hauling ore in the third quarter of 2014, bringing it to the Milne Inlet port, where it was stockpiled and awaiting open-water season to transport to the European market. That shipping began last month.
That phase of the project was known as the "early revenue phase" and was approved in mid-2014, with plans to ship up to 3.5 million tonnes of iron ore per year with barges to be used only during the open-water season.
The Nunavut Impact Review Board got in touch with interested parties for their input on whether those groups felt that a review for the second phase of the project was required, and the answer that came back was yes.
Baffinland has already gone through two environmental assessments with the review board already.
However, the impact review board stated Baffinland must undergo the regulatory process because "the proposed project activities and amendments have not, to date, been subject to impact assessment by the board and also have not been subject to full public technical review, public comment or approval by the various responsible authorities."
