By Paul Vieira
OTTAWA--The Canadian government announced Monday approval of
Baffinland Iron Mines Corp.'s Mary River project, an iron-ore mine
in northern Canada that is estimated to generate at least 18
million tons of the metal a year once up and running.
The decision from the Canadian minister of Aboriginal Affairs
and Northern Development emerges a few months after the
environmental regulator in the Canadian territory of Nunavut, where
the Mary River site is located, said the project could go ahead so
long as Baffinland addresses 184 terms and conditions related to
potential environmental hazards and adverse socioeconomic
effects.
Gregory Missal, Baffinland's vice president of corporate
affairs, said the Toronto company--70% owned by ArcelorMittal (MT)
and 30% by Iron Ore Holdings (IOH.AU)--was "very pleased" with the
Canadian government's ruling, about four years after it first
sought permission to develop Mary River. However, Mr. Missal said
the company now has to enter a new stage of obtaining permits from
Nunavut and Canadian government officials.
He said Baffinland will have a clearer picture as to when work
can begin on Mary River in roughly six months.
The Baffinland proposal the Canadian government approved
involves conventional open-pit mining of iron ore at a rate of 18
million tons a year over a projected 21-year lifespan, and the
construction of a road, a railway, a deep-water port and mine site
infrastructure. According to Baffinland, Mary River is one of the
largest and richest undeveloped iron-ore projects in the world.
Write to Paul Vieira at paul.vieira@dowjones.com
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