Canada Okays ArcelorMittal Subsidiary’s Nunavut Iron Ore Mine

Reuters reported that Canada’s Minister of Aboriginal Affairs and Northern Development has approved the construction of an iron ore mine in Nunavut. The open-pit Mary River project still needs a project certificate and water license and is years away from production, but could produce up to 18 million tonnes of iron ore per year over 21 years.

As quoted in the market news:

Baffinland Iron Mines Corp, the ArcelorMittal subsidiary developing the mine, also needs to finalize an impact benefit agreement with the local population.

Once all the pieces are in place, Baffinland will turn to its shareholders to make the call on whether construction will go forward. Arcelor holds a 70 percent stake in the company, with Iron Ore Holdings LP owning the remaining 30 percent.

Considered one of the richest undeveloped iron ore deposits in the world, permitting the Mary River project has already taken nearly five years. It is expected to cost some $4 billion to build, including related infrastructure.

Click here to read the full Reuters report.