Canada Government Approves Baffinland Mary River Iron-Ore Project

   By Paul Vieira 
 

OTTAWA--The Canadian government announced Monday approval of Baffinland Iron Mines Corp.'s Mary River project, an iron-ore mine in northern Canada that is estimated to generate at least 18 million tons of the metal a year once up and running.

The decision from the Canadian minister of Aboriginal Affairs and Northern Development emerges a few months after the environmental regulator in the Canadian territory of Nunavut, where the Mary River site is located, said the project could go ahead so long as Baffinland addresses 184 terms and conditions related to potential environmental hazards and adverse socioeconomic effects.

Gregory Missal, Baffinland's vice president of corporate affairs, said the Toronto company--70% owned by ArcelorMittal (MT) and 30% by Iron Ore Holdings (IOH.AU)--was "very pleased" with the Canadian government's ruling, about four years after it first sought permission to develop Mary River. However, Mr. Missal said the company now has to enter a new stage of obtaining permits from Nunavut and Canadian government officials.

He said Baffinland will have a clearer picture as to when work can begin on Mary River in roughly six months.

The Baffinland proposal the Canadian government approved involves conventional open-pit mining of iron ore at a rate of 18 million tons a year over a projected 21-year lifespan, and the construction of a road, a railway, a deep-water port and mine site infrastructure. According to Baffinland, Mary River is one of the largest and richest undeveloped iron-ore projects in the world.

Write to Paul Vieira at [e-mail]

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