Development of the Mary River Mine – Building Capacity Whitehorse, September 2014
Located at Mary River, North Baffin Island, 1000 km north west of Iqaluit, 160 km south of Pond Inlet The property is comprised of more than nine known high grade iron ore deposits at Mary River 2 Confidential
Mary River Project • One of the best undeveloped iron ore projects in the world • Phased development strategy critical to prudent, reduced-risk development • High grade ore ensures low operating cost • Formative event for high arctic development – will establish Canadian presence and sovereignty in Arctic shipping lanes 3
Baffinland’s shareholders are committed to the successful development of the Mary River Iron Ore Project ArcelorMittal (50%) Nunavut Iron Ore LP (50%) • World’s largest producer of steel • NIO and its affiliates are a group of products, soon to be Canada’s largest international investors that collectively producer of iron ore through the hold a 50% interest in Baffinland under expansion of its Quebec Cartier mining the management of The Energy & operations and the fourth largest iron Minerals Group (EMG) ore producer in the world • EMG is a private investment firm with a • Substantial presence in Canada and family of funds with over US$5 billion employs 10,600 in its Dofasco Steel and under its management that invest in Quebec Cartier Mines operations the energy and minerals sectors • Timely development of the Mary River Project is central to its growth strategy to feed the European and Asian market demand for iron ore • Responsible for design, construction, operations and marketing 4
We are committed to conducting business in accordance with principles of sustainable corporate responsibility Corporate Responsibility Policy Our responsibilities Health and Safety • Operate safely, with fiscal responsibility Environment • Protect the environment • Create authentic relationships Investing in our Communities Transparent Governance We expect everyone to demonstrate a personal commitment to this policy 5
Activities at Site • Site activity construction commenced in May 2013 • Aug 2014 - 520 people at Mary River site and Milne Port site • 130 Inuit (5 North Baffin communities & Iqaluit) • 2013 Sealift: 9 cargo ships + 2 fuel vessels (Aug to Oct) • 2014 Sealift; 7 cargo + 2 International special loads + 2 fuel • Fuel storage capacity at Milne 46 Million litres - diesel • Extensive ongoing environmental monitoring and data collection • Construction to continue through 2014 and into 2015, but mining production starts in Q3 of this year! • First ore shipment to occur in the 2015 open water season 6
Mary River Aerial View with Deposit 1 in background 2012 7
Baffinland team at the final hearings, Iqaluit 8
Final hearings for Mary River Project – Extensive Public Participation 9
Signing of the IIBA and Commercial Production Lease September 2013 10
Loading steel and equipment on sealift 2013 Sealift 12
Milne Port 2013 Sealift 13
777 – Haul truck 2013 Sealift 14
Milne Inlet July 2014 15
Initial Dock Construction with Silt Fence August 2014 16
737 service at Mary River – Kitchener Waterloo via Iqaluit 17
500,000L Diesel Tank Arriving at the Mine Site 18
Emergency Response Building – Mine Site 19
New bridges along Tote Road Winter 2013/14 20
Mary River Camp late 2013 21
8000 foot ice-strip constructed winter 2013/14 Use during land strip upgraded 22
Mary River Camp near the base of Deposit #1, March 2014 23
Building Capacity – Changing Lives • Major resource projects have the ability to create choices for many individuals, families, and communities. (e.g. Voisey’s Bay, Diavik, , Ekati) • Impact Benefit Agreements are now an industry norm but continue to evolve and improve. • Provides a framework for reconciling the rights and interests of both parties • Benefits can vary depending on the nature of project (training, jobs, contracts, etc.) • Provide opportunities that would not be available otherwise. • Provide public understanding of the joint commitment of both partners. • Provides confidence for work to commence and opportunities to begin to be developed. 24
Three pillars to build on • Training – Identify needs and existing skill levels-local workforce • Are people ready for the opportunities and their implications? (Work Ready Training) • IIBA identifies training priorities and funding • Identify other funding – Gov. programs, Aboriginal Orgs, etc. • Employment – Priority to local recruitment • Work with individuals to identify skills and interests • On the job training to promote roles within company • Construction roles can transfer to long-term roles during operations • Contracting – Priority to Aboriginal business • Creating opportunity for businesses and JVs to be created • Existing businesses can take advantage of opportunities • Revenue streams can be used to pursue initiatives unrelated to the Project • All contracts require Aboriginal content plans 25
Work Ready Training Unique in – house developed program 26
Work Ready Program – Building the Local Workforce • 13 programs in 5 North Baffin Communities – approx. 300 graduates. • Program’s focus: • Challenges of rotational work • Personal finances, banking, budgeting • Family stresses and how to manage them • Course had partners attend to ensure an understanding of challenges • One observer noted that young participants learned not only that they have to do a good job on site, but they have to take care of other things in their lives, such as paying the bills. Budgeting activities have led some couples to re-assess how they have been spending their money. • One participant who attended the program said “I now have better communications with my husband .” • One Baffinland Community Liaison Officer noted that people in his community are proud of what they’ve accomplished. He said “Before the program, people went around with their heads down. Once they took the program, they were smiling more and held their heads up .” 27
Worker at Mary River 28
Site Services Worker – Mary River 30
Collecting environmental data at the Mary River Project 31
Site Supervisor at Mary River 32
Shipboard Monitors Local Inuit monitors trained to observe marine mammals 33
Bruce Head Monitoring Program Local knowledge and science working together 34
Community Wellness Monthly Public Awareness Campaign In local newspaper 38
Community Involvement Northern Affairs Manager Baffinland Community Liaison Officers 40
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