NEW YORK Canadian iron
ore development company Baffinland Iron Mines Corp. has scaled
back its investment plans for the Mary River project because of
lower steel prices and rising borrowing costs.
"In the current global financial
environment, the large development capital cost for the Mary
River project is difficult to finance," Erik Madson,
Baffinlands vice president of sustainable development,
said in a letter to the Nunavut Impact Review Board.
The Toronto-based company now
wants to build the mine under a phased approached that will
reduce up-front capital requirements.
The project initially called for
the construction of a new railway and port, as well as
year-round shipping. The new plan calls for iron ore to be
shipped from the existing Milne Inlet port to Rotterdam and
Amsterdam, both in the Netherlands, and other European ports
from July to October.
The company also cut its
estimate for initial iron ore production to 3.5 million tonnes
per year from 18 million tonnes annually.
Executives from Baffinland
briefed both the government of Nunavut and community legal
representatives Nunavut Tunngavik Inc., Iqaluit, Nunavut, on
Toronto-based Nunavut Iron Ore
Inc. and Luxembourg-based ArcelorMittal SA each have a
50-percent share in Baffinland Iron Mines.
The mine is expected to take
five years to build and has a reserve of 18 million tonnes per
year of high-grade lump and fines. Its located in the
Qikiqtani region of Nunavut territory in the Canadian
A version of this article
was first published by AMM sister publication Steel