Nunavut Impact Review Board recommends temporary production increase for Baffinland

Nunavut's review board is giving its OK to a proposal from Baffinland Iron Mines to temporarily increase production again this year at its Mary River mine.

It's a recommendationthat could, according to the company, help keep the mine viableand keepmore than 1,100 jobs off the chopping block this fall.

The Nunavut Impact Review Board (NIRB) completed a streamlinedassessment of Baffinland's proposal this month,under pressurefrom the company and the federal government to movequickly. Baffinland argued that without a prompt decision, itwould be forced to halt operations this fall and lay off 1,156 employees.

Under its current operating licence, Baffinland is allowed to mine up to 4.2 million tonnes of ore from Mary River each year. The last few years, however, the company has been granted temporary permission to mine up to 6 million tonnes per year. It asked for the same again this year.

The NIRB is recommending that the company be allowed another temporary production increase, and which could save those hundreds of jobs.

"The Board has concluded that if recommended revisions to the existing Project Certificate ... and Baffinland's commitments to additional mitigation and monitoring measures are implemented, the potential for significant negative environmental and socio-economic effects associated with the proposal can be effectively managed," the board stated in a news releaseThursday.

The final decision, however, will be made by Northern Affairs Minister Dan Vandal.There is no word on when that decision will comebut Vandal had earlier urged NIRB to issue its recommendation by mid-August, saying time was crucial.

Meantime, Vandal is also still considering another request from Baffinland, to significantly expand the mine's operations and output in the years to come. The NIRB earlier recommended against that plan.

Baffinland's request to increase production this year drew mixed response from local communities, organizations and company employees.

Termination notices to be delayed

In a statement, Baffinland spokesperson Peter Akman said the company ispleased about the NIRB's decision and that the company urges Vandal to approve the production increase for the rest of the year.

"The NIRB recommendation clearly recognizes the importance of Baffinland to the Nunavut economy and that allowing the company to continue producing will preserve hundreds of high paying jobs," Akman said.

"Baffinland is committed to responsible operation and believes we can continue to operate in a manner that protects the environment while creating economic prosperity for the territory."

Akmanalso said that"out of care and concern for the livelihoods of our employees and their families," the company willdelay the issuance of termination noticesuntil Oct. 20 the day afterVandal's office has indicated it will be able to respond to the NIRB recommendation.