Baffinland Iron Mines, the company responsible for the Mary River iron ore mine south of Pond Inlet, is unable to pay its debts, the company announced on May 15.
The mine’s operations will continue as normal for now and the Steensby component expansion project is expected to continue, the company said.
A sale of the company is being considered, however.
The company cannot pay back its loans and is seeking protection from its lenders through the Ontario Superior Court of Justice.
Baffinland expects no disruptions to its operations at the Mary River mine or Milne port and intends to continue advancing the Steensby railway and port project.
“The upcoming 2026 shipping season will commence as planned with all customer deliveries of iron ore expected to occur in the normal course. Agreements the company has with the Qikiqtani Inuit Association will continue to be honoured,” stated Peter Akman, Baffinland’s head of stakeholder relations and communications.
An initial order from the Ontario Superior Court of Justice has given the company 10 days to seek a longer extension to pay back its debts.
Support from the federal government and the Government of Nunavut remains ongoing, Akman said.
Nunavut News asked Akman a number of questions about the future of the mine’s employees and what led to the company seeking creditor protection.
Baffinland did not respond to questions about whether layoffs or hiring freezes would occur in the future.
The company also would not say if a 50 per cent U.S. tariff on Canadian steel contributed to it seeking creditor protection.
No answer was given on how the company will now pay for the Steensby component expansion.
Last year, there was an average of 320 Inuit workers and Inuit contractor employees at the mine.
Inuit staff working directly for Baffinland have been paid a cumulative total of $214.9 million since the mine’s inception in 2014.
Nunavut Premier John Main said he was assured by Baffinland that it would continue operating and honour its commitments to the Qikiqtani Inuit Association.
“Our top priority is protecting the livelihood and well-being of the hundreds of Nunavummiut employed at Baffinland, which is a major employer in the territory and contributor to the economy,” Main said.
The GN stated that it wants to see the mine continue its operations well into the future.
Baffinland is jointly owned by ArcelorMittal and The Energy and Minerals Group.