Over 1,000 miners in Nunavut could be out of a job come September as a major mine that accounts for almost a quarter of the territory’s economy might be forced to shut down.
What happened: The Mary River mine on Baffin Island is waiting on a permit to increase the amount of iron ore it’s allowed to extract so it can continue operations until the end of the year, but the decision process for the expansion has seen some hiccups.
- In 2018, the mine got temporary approval to increase its production of iron ore from 4.2 million tonnes per year to 6 million tonnes (and hired accordingly).
- After that permit expired, the mine applied for a 12 million tonne limit, but environmental regulators rejected it—now the mine is stuck with its original cap of 4.2 million tonnes until the federal government renews their existing permit later this year.
Why it matters: Mining is the largest sector of Nunavut’s economy, making up 25% of gross domestic product (GDP) in 2018 and 99% of the value of the territory’s international exports—the Mary River mine alone makes up most of that output.
An early closure would result in a massive financial hit for the territory and miners losing their jobs, since options for local employment in the area are few and far between.