‹ Minerals

Lower prices? - Increase production!

November 20, 2014

Normally, falling commodity prices lead companies to close operations. However, in the case of Baffinland’s Mary River iron ore mine the company has applied to boost production. Go big or go home.

Baffinland filed an application Oct. 29 with the Nunavut Impact Review Board that asks for big changes to the terms and conditions listed in their project certificate. Those changes include:

Baffinland stockpiled its first load of iron ore at Milne Inlet this past September and expects to export its first batch to market in mid-2015.

Baffinland is owned on a 50-50 basis by Luxembourg-based steel giant ArcelorMittal and by WW Mines Inc., a private investment firm formerly known as Nunavut Iron Ore Acquisition Inc.



Plunging iron ore prices have put most greenfield iron ore projects, like the promising Roche Bay project in Nunavut, on hold. Baffinland has chosen to try to get bigger to maintain profitability.

Interestingly, London Mining Plc, the company behind the huge Isua iron mine project in Greenland, filed for bankruptcy protection around the middle of last month, after the company’s Marampa mine in Sierra Leone closed because of low prices and the Ebola crisis.