POND INLET — Federal cabinet ministers have denied a request to expand an iron ore mine on the northern tip of Baffin Island.
Northern Affairs Minister Dan Vandal issued a letter to the Nunavut Impact Review Board Wednesday saying Baffinland Iron Mines Corporation’s proposal should not proceed at this time.Sign up to receive daily headline news from Ottawa Citizen, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.
Baffinland has said the expansion is needed to “effectively compete in the international iron ore markets.” It said iron ore prices are subject to significant fluctuation and the railway would reduce transportation costs. The company said the expansion would also address concerns raised by Inuit in affected communities by reducing dust, emissions and waste.
“I think that’s a reflection of what was a thoughtful and well laid out decision by the review board, which was also the culmination of an extremely long hearing process with tremendous participation from communities,” he said. “This is some of the most important narwhal habitat in the world,” he said. “It’s not like there are all kinds of other places where this species is congregating, this is really an ecological focal point.”Article content
Residents, governments and other organizations that have supported the expansion, however, have highlighted benefits like jobs, training, and promised infrastructure investments in several communities. Baffinland also promoted those benefits. It said the expansion would be associated with an estimated $2.4 billion in royalties.Article content
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