Baffinland backs out of 2012 pre-mine development plan

Baffinland Iron Mines Corp., developer of the massive Mary River iron deposit on north Baffin Island, said Dec. 14 they’ve decided to back away from a big pre-construction scheme planned for the 2012 sealift season.

Baffinland submitted their pre-development plan to the Nunavut Impact Review Board on Sept. 15.

Under it, the company would have used dozens of sealift sailings this coming summer to pre-position construction materials, fuel, vehicles, explosives, accommodation for hundreds of workers, and other equipment to prepare for the eventual construction of a mine, once the project is approved by regulators and governments by the end of 2012.

“The success of a project such as Mary River therefore is highly dependent on being able to carry out sufficient pre-development (such as early staging of equipment and materials and other preparatory work) one full shipping season ahead of when construction is scheduled to start,” the company said in its application.

The company said that because the shipping season available to them is only about 10 weeks long, such pre-development work is essential.

The company would have sent about 22 sealifts into Steensby Inlet, the site of a proposed port and another 18 to 20 sealifts into Milne Inlet, which is connected to the Mary River mine site by a tote road.

The massive plan would have included preparation for construction of an airstrip at Steensby Inlet in 2013.

At the mine site itself, the company would move enough material to construct a camp for 1,000 workers.

Under its development schedule, Baffinland hopes to receive all licence and permits, including approval by Aboriginal Affairs and Northern Development Minister John Duncan, by the third quarter of 2102.

But after stakeholders, including a long list of government agencies, filed questions and objections to its pre-development plan, Baffinland decided to withdraw its application for approval.

“In view of stakeholders’ comments, on Nov. 24, 2011, Baffinland indicated to the NIRB that it would scale back the PDW program,” Baffinland told the NIRB.

This, in turn, led to a “complete review and reassessment of the scope of the proposed PDW [pre-development plan], ” Baffinland said.

At the same time, Baffinland insists it’s still fully committed to the Mary River project.

On Dec. 9 NIRB sent Baffinland a list of 356 points, as part of the pre-hearing decision’s “commitment list,” the company would have to address in its final environmental impact statement.

In its Sept. 15 application for permission to do pre-development work, Baffinland has asked the NIRB for an exemption under the Nunavut Land Claims Agreement that allows certain types of pre-development work to be done.

The company also said the impact of its pre-development plans are already listed in the draft environmental impact statement for the project.

But after looking at Baffinland’s proposal, government agencies asked numerous questions, including questions about whether the proposal amounted to the start of mine construction prior to the issuance of approvals by regulators.

And various parties said the scope of the pre-development work could have a significant effect on the environment.

“The activities proposed by the proponent particularly related to construction have potential to result in permanent effects, and some of these may be difficult to reverse in a reasonably short period of time,” the Government of Nunavut said in a Nov. 4 submission.

The GN asked that numerous elements of the plan be removed, including construction of the 1,000 worker camp and the installation of electrical generators at the mine site.

The GN also suggested that only a small airstrip, capable of handling only Twin Otter aircraft, be constructed at Steensby Inlet.

And the Qikiqtani Inuit Association said it is impossible for them to decide right now if the pre-development work should be exempted under the land claims agreement.