Baffinland Iron Mines Corporation (“Baffinland” or “the Company”) is a privately held Canadian mining company jointly owned by the Energy and Minerals Group (majority shareholder) and ArcelorMittal.

The Company owns and operates the Mary River Mine, which produces some of the highest grade of direct shipping iron ore in the world. Mary River is located on Baffin Island, approximately 160 kilometres southwest of the nearest community of Pond Inlet, in the Qikiqtani region of Nunavut, Canada.

Our head office is located in Oakville, Ontario, and our northern headquarters are in Iqaluit, Nunavut. We are also heavily invested in five North Baffin communities: Arctic Bay, Clyde River, Igloolik, Pond Inlet and Sanirajak.

Unique to Baffinland’s operations is that the high-grade ore can be shipped directly to markets following crushing and screening – no concentrating or chemical processing is needed, and therefore no tailings are produced. Iron ore, in the form of lump and fines, is then shipped to international markets during a short shipping season (~August to October, depending on ice conditions). For further information, visit www.baffinland.com.

Baffinland’s Mission, Vision, and Values were developed with the Government of Nunavut’s eight Inuit Societal Values in mind and form the basis of the leadership competencies used as part of Baffinland’s performance management system. They include:

Mission: “To become the lowest-cost producer of high-grade iron ore in the world.”

Vision: “To safely and efficiently identify and develop resources within Baffin Island, unlocking their wealth-generating potential.”

Values:

Health and Safety – Safety as a Value: When safety is a personal value, people naturally choose to make the safe choice on and off the job.  Employers who have safety as a value make their workplace safe because they want to, not because of government regulation. Employees work safely because they want to, not because it is a company rule. In this environment, companies go above and beyond regulations to protect their people.

Integrity – Do What is Right, Not What is Easy: Integrity is often defined as doing the right thing even when no one else is around. It is the ability to act with honesty, be consistent and ethical in whatever it is we are doing. It’s about being accountable, transparent and building trust through communications.

Engage and Develop our People: All employees are seen and treated as valued partners, and good work is recognized and rewarded. Baffinland invests in our employees’ success and growth by providing tools, training and support needed to unleash their potential. Baffinland endeavours to become the employer of choice for Inuit in Nunavut.

Respect for All: We respect and abide by Inuit Societal Values in the workplace and as a manner of doing business. We strive to provide a healthy and safe workplace, free from physical or psychological bullying, harassment and violence. Violations of respect are investigated, and if substantiated, are dealt with expeditiously. Multiculturalism is viewed as a strength and promoted. Consideration for people is first and foremost in all interactions.

Environmental Stewardship: We respect the air, land, water and wildlife as we thoughtfully put the Earth’s resources to good use. Always remember that we are guests on this land and treat it respectfully. We strive to develop it responsibly and be good stewards of the land in concert with Inuit.

Pursue Performance Excellence: We are relentless in challenging ourselves and others to achieve high performance and create lasting socio-economic impacts in all that we do. We focus on improving every day and delivering on commitments. Innovation is seen as a key mechanism to achieve this outcome. Rigor in planning and thoughtful execution are key strengths. Teamwork is necessary for desired outcomes.

TSM PERFORMANCE ASSESSMENT

Baffinland’s overall approach to responsible operations and its core values align well with the overarching expectations of Towards Sustainable Mining. Working closely with the North Baffin communities and other stakeholders, Baffinland is committed to operating the Mary River Mine in an environmentally and socially responsible manner.

Baffinland’s focus is on avoiding and minimizing the environmental effects of its operations. Expansive environmental/socio-economic monitoring programs, management plans, policies and procedures are deployed to safeguard the environment, based on a combination of scientific and traditional Inuit knowledge, also known as Inuit Qaujimmajatuqangit (IQ).

Baffinland commenced operations in 2015, making 2023 the ninth year that the Company has mined and shipped iron ore through the Milne Port. Six million tonnes per annum transportation limits were permitted along the Northern Transportation corridor between 2018-2022. In 2023, Baffinland obtained approval from the Nunavut Impact Review Board for an amendment to Project Certificate No. 005, to allow for the continued transportation of 6 Mtpa iron ore via the Tote Road and marine shipping along the Northern Shipping Route for an additional two years. The extension, also known as the Sustaining Operations Proposal, will expire in December 2024. As part of the approval, Baffinland is able to ship up to a maximum of 6.9 Mtpa in each 2023 and 2024 to compensate for seasonal variations in shipping volumes due to ice conditions along the route. In 2023, Baffinland shipped approximately 6.1 Mt of ore, using fewer vessels than previous years.

Baffinland is committed to achieving sustainability-related operational excellence, based on our company Mission, Vision and Values. We are also driven by the rigorous environmental and socio-economic expectations for operating a mine in Nunavut. We strive to meet full compliance with all of our commitments, including: the terms and conditions of the Nunavut Impact Review Board Project Certificate No. 005, Nunavut Water Board-issued water license(s), and the Commercial Lease between Baffinland and the Qikiqtani Inuit Association (QIA), in addition to meeting the requirements defined in the Mary River Inuit Impact and Benefit Agreement between Baffinland and the QIA, along with meeting all other federal and territorial regulations.

Accordingly, Baffinland has consistently performed well on most of the protocols applicable to its operations (excludes Tailings Management Protocol reporting since no tailings are produced at the Mary River Mine), with most indicator scores ranging between “A” and “AAA”, including for the new Climate Change protocol. There are challenges to operating in a remote, harsh arctic environment where there is no opportunity to connect to an existing power grid. The mine thus relies on diesel for power generation and for operation of mobile equipment. Since the last external verification in 2019, Baffinland has implemented a robust fuel reduction initiative as part of its continuous improvement plan, in line with the company’s GHG reduction goals. This initiative has seen a 1.2 million litre reduction in diesel fuel usage in 2023.

Additionally, Baffinland is proud to be the first mine in Canada to offer mental health services 24/7 to employees at site. Baffinland has taken an industry-leading step to support employee mental health and the commitment is making a real difference, in an environment where rotational work can be challenging. 

TSM EXTERNAL VERIFICATION

Baffinland’s second external verification of 2023 TSM self-assessment results was completed in November and December. The process included document review, site-based interviews, Community of Interest interviews, and reporting. The verifier confirmed that the many sustainability programs developed by the Company were established to meet the strict regulatory regime of operating a mine in Nunavut, which in so doing, supports the strong TSM performance in “Indigenous and Community Relationships”, “Biodiversity Conservation Management” and “Water Stewardship” protocols. The verification results generally align with Baffinland’s self-assessment, but show a few differences, primarily due to changes in protocol requirements.

Overall, Baffinland views the external verification process as quite useful and the variations identified help to inform areas of growth and performance improvement that the Company will seek to achieve.