iron ore

  • QIA releases public version of Mary River IIBA

    uploaded by: Cara Di Staulo

    channel: DID News

    Royalty rate still not disclosed, few agreement details not included in plain language version

    The Qikiqtani Inuit Association released the public version of the Mary River Project Inuit Impacts Benefit Agreement Dec. 6 — an agreement that sets out the working relationship between Nunavut Inuit and the Baffinland Iron Mines Corporation.

    “It is QIA’s wish to share theIIBA openly,” said QIA president Okalik Eegeesiak in a Dec. 6 release. “We believe this will provide an opportunity to strengthen our implementation efforts.”

    The agreement would likely direct millions of dollars into QIA’s coffers after the mine moves into commercial production. The deal also came with a signing bonus.

    But most of the financial arrangements contained in the IIBA remain confidential, including royalty rates and land lease payments, although QIA said “amounts received as a result of the project will be reported at each annual general meeting.”

    The full impact and benefits agreement provides few details that aren’t already included in the plain language guide that was first released this past September, when QIA officially signed the deal with Baffinland.

    The agreement lays out how royalities will be paid to QIA: quarterly, beginning with the first quarter after commercial production begins at the mine.

    The royalty payment is defined as “the net sales revenue for a period multiplied by the royalty percentage.”

    However, the royalty rate is no disclosed.

    Those payments can be re-negotiated after 30 years, or once 1 billion tonnes of iron ore have been mined.

    As part of the IIBA, an implementation budget will be created along with several funds, which include:

    • business capacity and start-up fund — $250,000 per year paid by BIMC until commercial production begins;

    • Ilagiiktunut Nunalinnullu Pivalliajutisait Kiinaujat Fund (a fund to offset negative social or cultural impacts created by the project and to help distribute benefits) — $750,000 per year paid by BIMC and QIA equally for the first six years;

    • education and training fund — $1 million for the first two years the IIBA is in effect, paid by BIMC;

    • scholarship fund — $25,000 each year paid by BIMC;

    • workplace orientation programs; and,

    • money to pay the costs associated with implementation of any rights, obligation or requirements of the IIBA.

    An executive committee will be established to oversee implementation of the IIBA, made up three senior representatives from the QIA and another three from Baffinland.

    That committee will meet four times a year, and will be tasked with coming up with the minimum Inuit employment goal at the mine; reviewing a list of training and education opportunities for Nunavummiut and looking at contract award issues.

    Both the executive committee and a separate management committee respond to the need for any dispute resolution.

    They’ll also hire two IIBA coordinators, along with Inuit monitors, an elder in residence, a QIA employment and training coordinator and environment monitors.

    Baffinland is in the process of building an iron mine at Mary River in northern Baffin Island that start by producing 3.5 million tonnes of iron ore a year.



    as of December 10, 2013:

    #1. Posted by Tommy on December 09, 2013

    Too bad only handful of people will actually benefit from this deal - not necessarily the beneficiaries - funny how NTI just increased the annual wages distributed to QIA, now signing bonuses and withheld info from those that serves - this is all wrong right from the get go

    #2. Posted by InukShook on December 09, 2013

    I know several beneficiaries and long time Nunavut residents who applied directly with Bafinland for jobs they are qualified for and been rejected or ignored. Meanwhile the 737 charter jet is flying up form St Catherines Ontario is full of non-Inuit workers. The Inuoit from Pond, Clude, Igloolik etc are only working in menial jobs. Just like Nanisivik and Cornwallis Island, majority of wqorkers will be from the south.

    #3. Posted by Richard on December 09, 2013

    Here is what I see is causing the problem with these so called agreements. Three representative from QIA and three from Baffin Island. Why is the company involved with the process that determines where or how the money is distributed and spent? It seems that all over the North, companies are coming up with hair brain ideals that serve very little good or meets very few priorities in our communities. These so called funds must be managed by the people it was meant for. No exceptions.

    #4. Posted by pissed off on December 09, 2013

    I agree with no 1 and 2 
    But don’t forget that the jet flying these people is   “”“” Owned by an Inuit Company”“”
    Or so they say!
    What a joke!!!

    #5. Posted by Olympic Trip Success on December 09, 2013

    How is this “openly” when facts are withheld?

    Did the lure of signing bonus get serious thinking put into the back pocket for the pressure of instant bonus “loss” to take over thinking?

    For 30 years royalties are locked in at, who knows what rate, because they cannot be re- negotiated. When it’s hush hush it doesn’t sound like one side got a good deal. Does that mean the royalties in 20 years, 2033 are still at 2013 rate? Or do the royalties increase over the years, covering inflation/cost of living?

    Why isn’t QIA talking with the facts? Are we people like the polar bears, wildlife getting next to nothing, only covered for the first 2 or 5 years of the 30 years mine? Will ITK be barking for the bears in Nunavut and people or saying shhh it’s our backyard.?

    Giving the free Olympic trip seems to of been an outrageously successful strategy.

    #6. Posted by Tommy on December 09, 2013

    This deal no longer serves the Inuit Interests, only the few Interested Inuit.  Okalik likely has generous pay as Prez from QIA and now a Signing Bonus from BaffinLand?  Why is QIA so secretive? There is no competetion directly with this deal - all sole sourcing done by Baffinland to keep the costs from over inflation and pure profits from pure extracted iron.  The true cost of this pure Iron is sure profit all around - so why all the secrecy

    #7. Posted by Truth on December 10, 2013

    And the rich get richer, especially execs on these orgs! Where’s money to help me with food? Freight ? Hunting? Like usual these orgs that are supposed to protect OUR birthright just look out for themselves. I am sure the prez made her best frind the MP happy and the can both look forward to board positions with the corp and living down south permanently in the future

    #8. Posted by Pilipuusi on December 10, 2013

    Everything else aside, QIA is a private Corporation legally owned by the Inuit of the Qikiqtani region. It is not a publicly owned corportation. As a regular beneficiary in the community I feel isolated from the decision makers as much as any other beneficiary. But if you bring you NTI card and insist on seeing something only meant for beneficiaries, I bet you would get a lot more information than a non-beneficiary.

    The key word here is ‘beneficiary’. If you live here and are not a beneficiary - get over it.

    #9. Posted by Observer on December 10, 2013

    Uninformed quote from #5 “Or do the royalties increase over the years, covering inflation/cost of living?”

    If you read the article it says the royalty is a fixed percentage of Baffinland’s net sales revenue. Sales revenue, not profit. So this means it does not matter if Baffinland makes a profit. The more iron ore they sell the more royalty cash will flow into QIA. The value of the sales revenue will go up and down with the price of iron and it will go up and down with the rate of production at the mine. If Baffinland goes ahead with a future railway and port and 12 month shipping, the QIA royalties will quadruple and maybe more.

    If the royalty percentage rate were known it would be pretty easy to come up with a ballpark figure for total royalty revenues every year. Problem is, probably 95 per cent of Baffin beneficiaries are too uneducated to understand this kind of information anyway.

    This of course will make it easier for all the thieves inside the Inuit corporations to grab huge amounts of cash for themselves. Bring on the Baffin kleptocrats!

    #10. Posted by Laughing Out Loud on December 10, 2013

    Its funny reading the comments, they are all the same. The question is. Did the beneficiaries actually think they would benefit from the trip to the Olympics? Sounds to me that Harry, Okalik and Levi just got GOLD.
    If you don’t stand up for yourselves you will get taken advantage off by the Gold diggers.
    Don’t be so GD naive. That’s why you have the right to vote and denounce the wrongs against you.
    It is sad that there isn’t a Mandela amongst you.

    Congratulations to Baffinland let the bottom line grow..Big corporations know how to make money..


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    uploaded date: 10-12-2013

  • Nunavut’s Mary River sets off shipping boom at Valleyfield port

    uploaded by: Cara Di Staulo

    channel: DID News

    Sept. 10 shipment sets record for Arctic-bound vessels

    The Mary River iron project on north Baffin Island has yet to start pumping out iron ore in commercial quantities — but it has already ignited an explosion of commercial activity at the St. Lawrence Seaway port in Salaberry-de-Valleyfield, Que.

    On Sept. 10, the MV Claude Desgagnés, operated by Nunavut Sealink and Supply Inc., departed Valleyfield with 23,384 cubic metres of cargo bound for the Baffinland Iron Mines Corp. beach site at Milne Inlet, which is connected to Mary River by a tote road.

    For the Arctic-bound cargo vessels that depart Valleyfield every season, that shipment stands as an all-time record.

    “This is the highest volume of cargo loaded on an Arctic vessel to date in Valleyfield,” an Sept. 11 email from Valport Maritimes Services said.

    Valport is a stevedoring group that supports the shipment of cargo through the Port of Valleyfield, which is operated by Société du Port de Valleyfield.

    The company said that as of early September they had handled 100,000 cubic metres of cargo bound for Milne Inlet on four shiploads, using vessels operated by NSSI and Nunavut Eastern Arctic Shipping Ltd.

    “Two brilliant carriers — NEAS and Desgagnés TransArctik (a component of NSSI) — both pioneers of Canada’s Arctic community resupply program and specialized large-project carriers, also weigh in with proven scope and process to deliver cargos in the most challenging of conditions,” Valport said.

    One of the biggest items was a 140-tonne crane that was offloaded at Milne Inlet for transport by road from Milne Inlet to the mine camp.

    And they said they’ve already delivered items like sections of camp buildings, and components for a tank farm that will hold aircraft fuel, diesel and heating fuel.

    “This equipment and cargo specific to mine operations have also made their way north,” Valport said.

    To handle the complex logistics of acquiring, marshaling and shipping cargo to the Mary River site and constructing a mine there, Baffinland has selected Hatch Ltd., a company that specializes in large resource and infrastructure projects.

    Staff from Hatch now work closely with Valport Maritimes Services to assemble huge cargo loads bound for Milne Inlet.

    To prepare for large mega-projects like Mary River, Valport has expanded its facilities, adding new warehousing, a fabrication and assembly centre, a packaging and crating centre, a cross-dock operation, and a cargo staging facility.

    They also say that improvements to nearby Autoroute 30, nearby rail lines operated by CN and CP, as well as a new rail hub that’s under construction, positions the entire region as “a true multi-dimensional, multi-service logistics dynamo.”

    Meanwhile, the Nunavut Impact Review Board is about to hold public meetings between Sept. 30 and Oct. 7 — in Igloolik, Hall Beach, Pond Inlet, Arctic Bay, Resolute Bay, Grise Fiord and Clyde River — on Baffinland’s “early revenue phase” proposal.

    Under that plan, Baffinland would complete development of a port at Milne Inlet by mid-2015 and by 2016 would ship 3.5 million tonnes of ore a year from that port during the summer and fall.

    The company estimates that 1,400 workers will be on site in 2014 and 2,000 by 2015.

    But by 2020, Baffinland proposes completing a railway to a port at Steensby Inlet, which would allow 20 million tonnes of ore to start flowing from Mary River virtually all year round.

    Baffinland’s revamped plan is still under consideration by the NIRB, which is working with the Nunavut Planning Commission to determine if the company’s current plans for Milne Inlet conform to the North Baffin Regional Land Use Plan.


    COMMENTS on Nunatsiaq Online

    #1. Posted by wondering on September 13, 2013

    take it while ya can, trust 2-3 years from now this mine will go the way of all other mines…closed for business.

    #2. Posted by mack on September 13, 2013

    Mayors,send as many people as you can to Morrisberg, they need this training, to secure employment at Mary River,

    #3. Posted by Observer on September 13, 2013

    “take it while ya can, trust 2-3 years from now this mine will go the way of all other mines…closed for business. “

    Yeah, just like Lupin (1982-2005, 23 years), Polaris (1981-2002, 21 years), Nanisivik (1976-2002, 26 years), Meadowbank (2010-,  3 years and going).

    Oh, I’m sorry. Were you thinking Jericho was “all other mines”?

    #4. Posted by wondering on September 13, 2013

    just like I said “all other mines”
    lupin, only 23 years
    nanisvik only 26 years
    polaris only 21 years
    yes Jericho only 2 years
    read what I said…
    all subject to high costs and falling prices.

    #5. Posted by #1 Northerner on September 13, 2013

    Then let’s take advantage of those few years, instead of naysaying all the way. People who will work there will learn skills, earn money for their families instead of depending on welfare and perhaps (hopefully in the future) learn to make up their own decisions in running a mine.)

    I did not want this mine to go ahead, but for what reason? No more animals around that area to hunt anyway. The mine is progressing anyway whether we like it or not, so time to go with the flow.

    #6. Posted by No shelter here on September 16, 2013


    #7. Posted by concerned person on September 16, 2013

    #5 #1 Notherner; couldn’t said it better! No more hunting grounds in most of that vast area. Also, get ready for new/invasive species that could potentially destroy a native species and/or put them into extinction. My biggest worry is that people will be mad once they can not hunt/eat their traditional foods (caribou, marine animals, polar bears etc.) when it becomes too late to take action.

    Wish more people were more educated as to what this mine will do to our environment (land, sea, air) and to the animals surrounding it.


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    uploaded date: 17-09-2013

  • 31m 20s


    uploaded by: mardawud

    channel: yindjibarndi

    Written by acclaimed Australian playwright David Milroy, this remarkable piece of theatre tells the story of two brothers set against each other over interests of family, country and native title.… Read more

    uploaded date: 23-04-2011

  • 31m 42s


    uploaded by: mardawud

    channel: yindjibarndi

    Written by acclaimed Australian playwright David Milroy, this remarkable piece of theatre tells the story of two brothers set against each other over interests of family, country and native title.

    Read more

    uploaded date: 23-04-2011