Question Period Note: Baffinland - Mary River Project - Phase 2

What is the position of Fisheries and Oceans Canada with respect to the decision made on Phase 2 of the Mary River mining project?

• Protecting aquatic ecosystems is a priority, which is why we ensure projects are thoroughly assessed. The Nunavut Impact Review Board (NIRB) concluded that the project has the potential to result in significant adverse ecosystemic effects.
• After careful consideration, the NIRB’s recommendation that the project should not proceed has been accepted. This decision was made after analyzing the Board’s report and following extensive consultation with Inuit.
• The NIRB completed a thorough assessment of the Mary River Phase 2 Proposal. My department participated by providing expert advice to the Board, to assist it in completing its assessment.

• The Mary River Project is an approved iron ore mine operated by Baffinland Iron Mines (BIM) Corporation (the proponent). The mine is located on Baffin Island approximately 100 km south of Pond Inlet, Nunavut. The mine has undergone several assessments under the Nunavut Planning and Project Assessment Act by the Nunavut Impact Review Board (NIRB) as development plans at the site have evolved. The latest assessment that has come forward for decision relates to the proposed Phase 2 expansion, which would increase current mine production to 12 million tonnes (Mt)/annum and result in associated increases in shipping activity and mine infrastructure.
• On November 16, 2022, the Minister of Northern Affairs, in the role of Federal Minister, communicated the decision to the NIRB on behalf of the Responsible Ministers, that they accepted the NIRB’s recommendation that the Phase 2 not be allowed to proceed at this time.
• Responsible Ministers made their decision based on due diligence and a comprehensive decision framework that included whether the duty to consult was met. The Responsible Ministers are the Ministers of: Transport; Fisheries, Oceans, and the Canadian Coast Guard; Environment and Climate Change; Natural Resources; and Northern Affairs.
• Before reaching the decision, the Qikiqtani Inuit Association (QIA) and the Nunavut Tunngavik Incorporated (NTI) expressed to the Minister of Northern Affairs that there remained a consensus of the Designated Inuit Organizations and Hunters and Trappers Organizations that the significant adverse effects of Phase 2 could not be addressed under proposed mitigation, adaptive management, monitoring programs and/or with new or revised terms and conditions of the current project certificate.
• In the context of the duty to consult and accommodate, the only accommodation that the QIA has communicated it would currently consider appropriate is the rejection of the Phase 2 proposal. This position was also supported by the NTI.
• In the context of the Phase 2 proposal, the mine is predominantly located on Inuit Owned Lands as defined in the Nunavut Land Claims Agreement, for which the QIA has been identified as the Designated Inuit Organization to manage those lands on behalf of the Inuit in the region.
• The Minister of Northern Affairs had a legislative timeline to communicate the Government of Canada’s decision to the Board. A decision was required by November 16, 2022.
• On May 13, 2022, after due consideration of the extensive Public Hearing Record for the project, including all written and oral submissions received by the NIRB, the NIRB recommended to the Responsible Ministers that the project should not be allowed to proceed at this time.
• The NIRB concluded that the project has the potential to result in significant adverse ecosystemic effects on marine mammals and fish, caribou and other terrestrial wildlife, along with vegetation and freshwater, and these effects could lead to associated adverse socio-economic effects on Inuit harvesting, culture, land use and food security in Nunavut.
• The NIRB also found that the project poses the potential for transboundary effects on marine mammals and fish and the marine environment outside the Nunavut Settlement Area.
• Lastly, the NIRB found that these potential significant adverse effects cannot be adequately prevented, mitigated, or adaptively managed under proposed mitigation, adaptive management and monitoring programs and/or the revisions to Terms and Conditions of the Project Certificate.
• As such, the NIRB recommended to the Responsible Ministers that the Phase 2 Development Proposal should not be allowed to proceed at this time, and did not propose any revisions to the project’s current Terms and Conditions.
• The Department of Fisheries and Oceans’ (DFO) primary concern with respect to the Phase 2 proposal involved potential impacts to the Baffin Bay narwhal population and the introduction of aquatic invasive species from project-related shipping activities. Narwhal are an important Inuit fishery and integral to Inuit culture.
• On April 3, 2022, BIM provided its draft 2021 Marine Mammal Aerial Survey report to members of the Marine Environment Working Group. The report showed that narwhal abundance in Eclipse Sound during the 2021 open water season (when BIM was operating at a rate of 6 Mtpa) were statistically lower than previous abundance estimates, validating a trend that had been observed in the project area over recent years.
• In 2016 DFO estimated the population of narwhal within Eclipse Sound to be 12,039, and in 2021 BIM reported the population estimates to be 2,595. This is a significant decline of the narwhal population. Any adaptive management plans and action must take into consideration that the population is at a critical level within Eclipse Sound.

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