A proposed railway and many more cargo ships are the major concerns Baffinland Iron MinesSA国际影视传媒� CEO Brian Penney is hearing about in relation to the minerSA国际影视传媒檚 phase two expansion proposal, which would increase shipping to 12 million tonnes per year.
Penney said thereSA国际影视传媒檚 misconceptions that the railway would reduce jobs for Inuit. He said there are only three or four existing Inuit truck drivers who go back and forth on the tote road from the mine to the port. However, Inuit represent close to 40 per cent of truck drivers at the mine site and the number of trucks at Mary River will rise dramatically if phase two proceeds.
SA国际影视传媒淎nyone that drives a truck is going to be trained on driving trains,SA国际影视传媒� the CEO said. SA国际影视传媒淚nuit employment is only going to grow at Baffinland under all scenariosSA国际影视传媒� weSA国际影视传媒檙e going to continue to build skills within the communities, to build skills that will make the workforce of the future for Baffinland. And hopefully someday Baffinland will be run by Inuit, totally.SA国际影视传媒�
The companySA国际影视传媒檚 phase two expansion proposal would see a 110-km rail line stretching north from Mary River to Milne Inlet. The trains would pull up to 176 rail cars carrying iron ore. Baffinland is also seeking to retain approvals for a second 150-km rail line that would run south to Steensby Inlet. The latter route would represent a further expansion over the next several years.
In regards to shipping, Penney noted that Baffinland transported a record 5.1 million tonnes of iron ore last year. That entailed seventy-one voyages by cargo ships. He insisted that there were no significant repercussions for marine life, but Penney acknowledged that having shipping more than double through phase two brings uncertainties.
SA国际影视传媒淭hatSA国际影视传媒檚 a tough one,SA国际影视传媒� he said. SA国际影视传媒淲e have lots of science that states that we are not impacting (aquatic life)SA国际影视传媒� in all the years weSA国际影视传媒檝e never had one interaction with marine wildlife, zero. We have lots of monitoring programs on an annual basis.SA国际影视传媒�
He added that traditional knowledge is also being incorporated in studies. If caribou are impacted in the Eclipse Sound area, Baffinland is prepared to compensate hunters and trappers, said Penney.
Having the support of the surrounding communities and the Qikiqtani Inuit Association (QIA) is critical for Baffinland. But even with the renegotiation of the QIASA国际影视传媒檚 Inuit Impact Benefit Agreement (IIBA) in October, which brought about greater benefits and more training initiatives for Inuit, Penney isnSA国际影视传媒檛 certain of a QIA endorsement.
SA国际影视传媒淚SA国际影视传媒檓 expecting the QIA to do the responsible thing for their communities and to protect the environment, and ISA国际影视传媒檓 confident that we will deliver on all that. As such, they will support (phase two),SA国际影视传媒� he predicted. SA国际影视传媒淚tSA国际影视传媒檚 a rare expansion that actually provides a lower environmental footprint when complete.SA国际影视传媒�
Penney pointed to improved dust suppression and lower fuel use as examples of how Baffinland will reduce pollution at Mary River, 160 km south of Pond Inlet.
Levi Barnabas, a member of the QIASA国际影视传媒檚 executive committee whoSA国际影视传媒檚 responsible for the Mary River file, was non-committal about the Inuit organizationSA国际影视传媒檚 position on phase two.
SA国际影视传媒淨IA will present its views on the project during this formal review process. QIASA国际影视传媒檚 views will be based on the application presented by Baffinland,SA国际影视传媒� Barnabas stated.
He expressed positive sentiment in regards to the recently enhanced IIBA, however.
SA国际影视传媒淨IA feels that this work has improved clarity of responsibilities and can better focus on delivery of benefits to Inuit,SA国际影视传媒� said Barnabas. SA国际影视传媒淨IA is confident that there is renewed commitment toward training, including improved clarity on short and long-term goals and planning.SA国际影视传媒�
In the Nunavut legislative assembly on Feb. 28, Economic Development Minister David Akeeagok offered encouraging, although qualified, sentiment.
SA国际影视传媒淎t this time, since (BaffinlandSA国际影视传媒檚 phase two proposal) is still under review, we canSA国际影视传媒檛 state that we are in a position to say one way or another. Nevertheless, we do support it in principle,SA国际影视传媒� said Akeeagok. SA国际影视传媒淥n a personal level, I support this idea but know there needs to be a thorough review and especially if the plans are solidly based on facts during the public review of the proposal, where they will listen to members of the public.SA国际影视传媒�
Mending fences with QIA
Penney admitted that Baffinland and the QIA have had an SA国际影视传媒渦neasy relationshipSA国际影视传媒� over the years.
SA国际影视传媒淭he QIA were rightly frustrated that we werenSA国际影视传媒檛 making progress,SA国际影视传媒� said Penney.
He explained that Baffinland was essentially SA国际影视传媒渦nderwaterSA国际影视传媒� economically in 2015-16 due to extremely low iron ore prices and high operating costs, limiting what the company could afford to do.
SA国际影视传媒淲e were relying on shareholders to pay our bills. It was a tough time for the iron ore industry and it was a tough time for Baffinland,SA国际影视传媒� Penney said.
Iron ore prices stabilized over the next few years and have shot up over the past year. With the railway and greater production in place, Baffinland would be in line to become SA国际影视传媒渢he lowest cost producer in North America,SA国际影视传媒� Penney forecasted. He said that would give the company a buffer when iron ore prices drop again in the future.
SA国际影视传媒淭his is operational certainty for a long, long time by going to a railway operation,SA国际影视传媒� the CEO said, adding that approval of phase two underpins the recent pledges that Baffinland made to the QIA in the renegotiated IIBA.
A Nunavut Impact Review Board technical meeting regarding BaffinlandSA国际影视传媒檚 phase two proposal is scheduled for April 8-10 in Iqaluit. The meeting will address many aspects of the proposed iron mine expansion, including environmental impacts, accident response and shipping considerations.
The review boardSA国际影视传媒檚 recommendation on BaffinlandSA国际影视传媒檚 phase two expansion is expected in November.
