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Posts tagged ‘Baffinland Iron Ore Mines Corporation (BIM)’

Inuit org launches legacy fund for $24 million in mine royalties

October 5th, 2016

by Greg Klein | October 5, 2016

A Nunavut Inuit organization has collected more than $24 million from a mine that’s been in operation for two years, the Nunatsiaq News reported. The Qikiqtani Inuit Association gets the money from Baffinland Iron Mines under an Inuit Impact and Benefit Agreement for the Mary River iron ore mine, which began operations in September 2014. The QIA represents over 14,000 people.

Inuit org launches legacy fund for $24 million in mine royalties

Photo: Qikiqtani Inuit Association

“All of the Mary River project IIBA royalties have been sitting in a separate QIA account accumulating interest,” the paper quoted organization president P.J. Akeeagok speaking at an AGM on October 4. “The current value of that account is $24.2 million, to March 31, 2016.”

On October 5 the organization announced a legacy fund to deliver programs as well as guard the money for future generations. “We will want to hear from Inuit in our region what they would like to see done in terms of programming or projects with the Inuit money,” Akeeagok stated.

Early last month the group launched arbitration proceedings against the northern Baffin Island miner, claiming the company owed advance royalties of $6.25 million plus interest. “QIA is aware that the Mary River project has experienced financial pressures, but QIA negotiated substantial financial participation payments in the IIBA as compensation for the impact to Inuit of BIMC mining activities on Inuit Owned Lands,” the organization stated. “As such it is imperative to QIA that the objectives and intent of all IIBA provisions be complied with to the greatest extent possible.”

The dispute goes to a three-person panel in Vancouver on October 25 and 26.

Baffinland is held 50/50 by Iron Ore Holdings and ArcelorMittal, with the latter acting as project operator. Unprocessed ore is trucked 100 kilometres north to Milne port, from where it’s shipped to European customers.

Peregrine welcomes Nunavut port proposal, but few other mineral projects would benefit

July 31st, 2015

by Greg Klein | July 31, 2015

With a Canadian federal election call anticipated any day now, cynics are calling the Conservative government spending announcements “Christmas in July.” But one potential miner welcomes the plan to build a deep water port in the Nunavut capital of Iqaluit. Following the July 30 announcement by Nunavut MP and Minister of the Environment Leona Aglukkaq, Peregrine Diamonds TSX:PGD noted the Baffin Island facility would “dramatically” improve efficiency and costs for its flagship Chidliak project, 120 kilometres north. The company has a preliminary economic assessment planned for next year.

Peregrine welcomes Nunavut’s new port, but few other mineral projects would benefit

Although a deep sea port at Iqaluit would serve Baffin Island, this map shows most of Nunavut’s advanced stage projects located on the mainland.
(Image: NWT and Nunavut Chamber of Mines)

While Baffin Island’s only operating mine already has its own port, most Nunavut projects are on the mainland. Baffinland Iron Mines trucks iron ore from its Mary River mine to Milne Inlet, 100 kilometres away. The Nunavut Impact Review Board is currently reviewing Baffinland’s application to expand shipping from three summer months to 10 months a year.

As is the case for most of the territory’s exploration and development projects, Nunavut’s other mine sits on the mainland. Agnico Eagle’s (TSX:AEM) largest gold producer, Meadowbank, links to the hamlet of Baker Lake via an all-weather, 110-kilometre road. The mine “depends on the annual, warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment,” the company states.

The feds offer to pay 75% of the Iqaluit port’s estimated $84.9-million price tag. The deal depends on the territorial government funding the rest, environmental approvals and, judging by her remarks, Aglukkaq’s re-election.

“What I can say is that if I’m re-elected, I’m going to make sure that the funding remains here,” the CBC quoted her. “And I’ve committed to it, I’ve announced it today, and that it is my commitment to delivering on this project.”

Feds sidestep Nunavut Planning Commission as Baffinland proposal goes to enviro review

July 14th, 2015

by Greg Klein | July 14, 2015

In a decision sure to stir controversy, Ottawa has exempted a Baffinland Iron Mines proposal from the Nunavut Planning Commission. Despite the NPC’s opposition, the plan moves on to the Nunavut Impact Review Board, which will conduct an environmental and socio-economic study prior to recommending a pass or fail.

Feds sidestep Nunavut Planning Commission as Baffinland proposal goes to environmental review

After radically scaling back plans for its Mary River mine,
Baffinland now wants to expand arctic shipping.

The company’s Phase II proposal would expand shipping its Baffin Island port to 10 months a year, requiring icebreaking facilities. The NPC opposed the plan out of concern for wildlife harvesting, traditional activities and community travel routes. In May Baffinland asked Ottawa’s Minister of Aboriginal Affairs and Northern Development for an exemption from the NPC decision. That was granted in a July 13 letter from Minister Bernard Valcourt.

He stressed that Baffinland must meet the requirements of the environmental impact assessment, otherwise “the project proposal will of course fail at that stage.”

Although Inuit groups argued against the proposal, Nunavut Premier Peter Taptuna “stressed the importance of 260 jobs, millions of dollars of wages and benefits as well as other future benefits that might flow from this project proposal,” Valcourt stated. “Premier Taptuna was concerned that any delay might put these benefits at risk. This concern is particularly acute if, as suggested by Baffinland, the economic viability of the existing Baffinland project depends on the Phase II project proposal. We must consider not only the risks of proceeding, but also the risks of not proceeding.”

We must consider not only the risks of proceeding, but also the risks of not proceeding.—Bernard Valcourt, Minister of
Aboriginal Affairs and
Northern Development

The operation is owned 50/50 by Iron Ore Holdings and project operator ArcelorMittal. Baffinland drastically downsized its Mary River plans in January 2013, just weeks after getting environmental approval for what would have been a $4-billion project. The company began mining in September the following year, trucking its first load of iron ore 100 kilometres to a port under construction at Milne Inlet. The original plan called for shipping to Europe year-round, the revised plan for three summer months and now Phase II proposes 10 months.

Following the NIRB review, the board will recommend Valcourt approve or reject Baffinland’s proposal.

Last week AREVA Resources Canada and its joint venture partners asked Valcourt to disregard the NIRB’s negative review of the proposed Kiggavik uranium mine near Baker Lake.

Week in review

January 11th, 2013

A mining and exploration retrospect for January 5 to 11, 2013

by Greg Klein

Next Page 1 | 2

A rescue plan for the juniors

What started as a routine update from MacDonald Mines Exploration TSXV:BMK quickly became a cri de coeur about the state of the juniors. But the company’s Wednesday news release blamed more than economic uncertainty. President/CEO Kirk McKinnon took on high-frequency traders, banks that discourage exploration investment and politicians who seem not to know or care.

He went on to make some recommendations: Ban high-frequency trading, disallow TSX trading credits for placing bids, ease the way for bank customers to allocate a small portion of their portfolio to junior explorers, require bank analysts to rate individual juniors, increase flow-through tax credits and stop short-selling stocks valued under $1.

Pointing to “dire predictions that over half of the junior mining companies will disappear within the next few years,” McKinnon warned that Canada could face higher unemployment while driving out expertise that’s “recognized as the world’s best” in a sector that stimulates the wider economy.

According to Friday’s Financial Post, “McKinnon’s comments have generated excitement, including many e-mails applauding his statements but wondering why they hadn’t been made in the past. One market participant, not a shareholder of MacDonald Mines, noted: ‘This guy is bang on about the HFT, flowthroughs [given that the low-hanging fruit has been harvested], banks’ non-participation, bid credits and no liquidity or capital in the junior markets.’”

In December Kaiser Research Online editor John Kaiser said algorithmic short-sellers could drive juniors from the TSXV to the Australian Securities Exchange.

Arctic iron mega-project suddenly slashed

Baffinland Mary River camp in Nunavut

Days before Nunavut regulators approved the original $4-billion
Mary River proposal, Baffinland directors decided on a
significantly more modest revision.

The announcement came as a “bolt from the blue,” the Nunatsiaq News reported on Thursday. Just weeks after receiving environmental approval for the largest mining project in the Canadian Arctic, Baffinland Iron Mines asked Nunavut regulators for permission to downsize and delay aspects of its Mary River iron ore project.

Under the revised proposal, Baffinland would put off building a 150-kilometre railway and deep-sea port, cut shipping from year-round to a three-month season and slash production from 18 million to 3.5 million tonnes a year.

The company blamed financing difficulties. “This same effect is being felt by many major projects around the world,” Baffinland stated. “Additionally, the risks associated with large capital developments are magnified during tight financial markets.”

Baffinland decided on the revision just before Christmas, the News reported. The Nunavut Impact Review Board approved the original proposal just after Christmas.

Baffinland said it’s still committed to the entire $4-billion plan. But the company didn’t set a date for full implementation.

Baffinland is owned 50/50 by ArcelorMittal and Iron Ore Holdings. Last October the Financial Times reported that ArcelorMittal was considering the sale of 30% of its Canadian operations.

Meanwhile “volatile iron ore prices in 2013 should prompt Chinese firms to continue investing in Canadian development projects,” stated a Canadian Press story in Wednesday’s Victoria Times Colonist. The news agency said Chinese bought into five Canadian iron projects last year, including the 15% acquisition of ArcelorMittal Mines Canada by China Steel and South Korea’s POSCO for $1.1 billion. Desjardins Capital Markets analyst Jackie Przybylowski told CP she thinks investments will continue on “an opportunistic basis.”

Click here for a Globe and Mail infographic showing Baffinland’s original proposal.

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Baffinland Iron Board recommends acceptance of $590M Takeover Bid

January 17th, 2011

The Board of Directors for Baffinland Iron Mines Corporation BIM:CA has recommended that the company’s securityholders accept the joint offer to acquire Baffinland Iron for $590 million made by Nunavut Iron Ore Acquisition Inc and ArcelorMittal. The joint offer is to aquire all outstanding common shares of Baffinland Iron for $1.50 per common share and 2007 common share purchase warrants for $0.10. The joint offer represents a 36% premium on ArcelorMittal’s original offer of $1.10 for all common shares and an 80% premium on the original Nunavut offer of $0.80 per share.

Baffinland Iron is a publicly-traded junior mining company that is focused on its wholly-owned Mary River iron ore deposits located on Baffin Island, Nunavut Territory, Canada.

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Contact:
Phoenix Advisory Partners
416.385.6020
or 800.503.9445

by Ted Niles