Port and railway for north Baffin?

A study done for the Baffinland Iron Mines Corp. suggests that within six or seven years, six railway trains a day, running along a 93-kilometre track, would transport iron ore from Baffinland’s Mary River deposit to a deep-sea port at Milne Inlet on North Baffin.

The scoping study, done by a company called Aker Kvaerner, looks at the financial and logistical issues that Baffinland must deal with before moving on to a full-blown feasibility study for the development of its massive iron ore deposit at Mary River.

The study concludes that Mary River contains enough high grade iron ore to sustain an open-pit mine for at least 34 years, starting in 2011. The study also predicts that the company could achieve a 15 per cent rate of return on the project, and recoup its initial investment within six years.

The mine’s estimated start-up cost is a whopping $1.5 billion.

At the deep-sea port, which would likely be built at Milne Inlet, iron ore would be transferred by huge bulk-ore-carrying transport ships, then moved to Europe.

Baffinland, in a press release issued this week, say they will finish an environmental impact study and an Inuit impact and benefits agreement by the end of 2007.

After that work is done, they’ll be able to submit the project to the Nunavut Impact Review Board to begin a lengthy environmental review process that would lead to permitting and licencing of the mine.