The Mary River Project
The proposed Mary River project expects to produce 18 million tonnes of direct-shipping iron ore per year and operate for at least 25 years. European steel mills will be the primary destination for the ore. The project and its infrastructure will also provide a foundation for potential future production increases after 2014.
Preliminary project plans may be modified in response to ongoing baseline and technical studies, stakeholder input, regulatory decisions, market analysis and project financing.
The following descriptions assume for ease of reading that the project will be approved and constructed according to the current preliminary plans.
By the end of 2007, Baffinland anticipates releasing its definitive project feasibility study and will have submitted regulatory applications and a formal project description of the proposed works to regulators. Regulatory review of the proposed project will be subject to the requirements of the Nunavut Land Claims Agreement (“NLCA”) and the Canadian Environmental Assessment Act (“CEAA”).
Concurrently with the initiation of the regulatory review process, Baffinland plans to continue exploration and geotechnical drilling and environmental, socio-economic and other studies. Amendments will be required to existing licenses and permits in order to execute these currently planned programs. In addition, a 250,000 tonne bulk sample program is underway at Mary River and scheduled for completion in 2008. Combined, the results of these programs will provide additional information for detailed project engineering and regulatory permitting activities.
In 2006 Baffinland began negotiations for an Inuit Impact and Benefit Agreement (“IIBA”) with the Qikiqtani Inuit Association (“QIA”) under the terms of the NLCA. An IIBA deals primarily with training and employment initiatives, the identification of business opportunities, environmental and socio-economic mitigation, the development of community communication channels, and defines a company’s responsibilities in maximizing benefits to the beneficiaries of the NLCA. The finalization of an IIBA is required prior to the development of the Mary River Project.
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The Mary River iron ore is a direct-shipping ore, and full-scale operations on-site will consist of open pit mining using conventional truck and shovel technology followed only by crushing and screening of the iron ore into two size fractions. No additional processing will be required, and no tailings generated. The screened iron ore will be transported southwest over a rail link to a port operation at Steensby Inlet, where it will be loaded year-round onto project-dedicated ice-strengthened ore carriers for shipment primarily to European steel makers. Market vessels may also be chartered during the open-water season to supplement the dedicated shipping fleet.
All technologies proposed for the Mary River project are proven and used safely and efficiently in similar applications.