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Baffinland Iron Mines says it can move forward with construction of the Steensby component of its Mary River iron ore mine on Baffin Island, after receiving “all relevant authorizations.”
The project would allow the company to ship more iron ore from its existing Mary River mine, by building a railway south to a proposed port at Steensby Inlet.Â
In a news release Thursday, Baffinland said “the completion of Inuit consultations supporting the issuance of all key regulatory authorizations required to begin construction” of Steensby.
“It’s a very important milestone and it reflects the years of collaboration with Inuit, government of Nunavut, government of Canada, Qikiqtani Inuit Association and regulators,” said Paul Quassa, a former Nunavut premier who is now an adviser to Baffinland.
Quassa said construction on the project will create around 600 jobs, more than double the number of staff the company laid off in 2024.
“We are trying to get Inuit to work for Baffinland,” he said. “And certainly … there’s probably over 200 Inuit employees right now. We hope to increase that.”
He said there are “quite a few” permits required for the project, particularly for the railway, which required authorization from Fisheries and Oceans Canada, the Canadian Transportation Agency, and Crown-Indigenous Relations and Northern Affairs.
In regulatory filings with the Canadian Transportation Agency, Baffinland said 149-kilometre line is needed to keep shipping costs down as the company aims to boost production from 3.5 million tonnes of ore per year to six million. One-kilometre long trains would make 6.5 round trips between the mine and the port every day.
Wildlife impacts feared
The mine’s expansion has been controversial. In 2021, hunters blockaded the mine to protest the expansion plans saying Inuit concerns weren’t being heard.
Peter Kulchyski, a professor with the department of Indigenous studies at the University of Manitoba, and a technical adviser to hunters and trappers in Igloolik and Sanirajak, said many of those concerns remain.
He said the population of caribou on Baffin Island has grown since the Mary River mine was approved and declining sea ice are pushing walruses on land more often. That, he said, raises the chances of conflicts between trains and animals.
“We want to just see really what its impact is going to be, and maybe have an ability to make some changes to the design of the project, if we can do that, or have the possibility that we say, ‘No, it looks like it’s going to be too environmentally consequential, and we don’t want it,'” he said.
The Mary River mine sits on northern Baffin Island, about 175 kilometres from Pond Inlet.
Baffinland said construction is expected to begin later in 2026, depending on financing and construction agreements.
It said it’s aiming for “substantial” completion in three more years.