From Baffinland to Deception Bay, Canada looks north for its mining future: Commentary

By Christopher Wright April 23, 2025
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As I pointed out in my recent article on Arctic exploration, mining activity in Canada’s Arctic is valued at around $5 billion at today’s prices. This time I’m going to profile what there is, compared with what there could be.

Deception Bay

There are two mines that ship nickel and copper concentrates out of Deception Bay in Nunavik. Both mines have ancillary metal values that enhance the economics of their operation.

Raglan

The Raglan nickel mine has been in operation since 1998, and is now owned by Glencore, which posted 2022 production and shipping information on its website as follows:

Nickel               24,232 tonnes
Copper              5,488 tonnes
Cobalt                   498 tonnes

Credit: Glencore Canada

What wasn’t mentioned by Glencore is that the concentrate shipments containing these metals are sent from Deception Bay to Quebec City, mainly in a dedicated PC4 ice breaking bulk/oil carrier – Arvik 1– which is owned and operated by the Montreal shipping company Fednav. The Arvik 1 brings petroleum products into the mine on each of its voyages, as well as most of the mine re-supply needs. In 2022, it made eight calls.

Glencore has ensured the future of its operations in Nunavik with the development of the new Anuri mine, which will guarantee ongoing production for at least another 20 years.

Canadian Royalties’ Nunavik Nickel Mine

The mine was approved in 2008, but the recession that year enabled Jilin Jien Nickel Industry Co. to buy the operation in 2009 (although it took time to negotiate a deal with Canadian Royalties’ junior partner). The mine eventually shipped its first concentrate in 2014. Despite its name, the operation is as much about copper as it is about nickel, because the ore contains roughly equal amounts of the two metals plus some platinum and palladium.

    Like Raglan, Canadian Royalties has an agreement with Fednav for a specialized PC4 ice breaking bulk/oil carrier similar in capacity to the Arvik 1: The Nunavik. In 2022, the ship did seven calls for concentrate, which is shipped offshore for processing.

    In addition to calls by the Arvik 1 and Nunavik in Deception Bay during 2022, other foreign and Canadian flag ships called for re-supply and concentrates.

    Umiak 1, sister ship to Arvik 1 and Nunavik. This PC4 icebreaker serves Vales’s Labrador nickel/copper/cobalt mine at Voisey’s Bay. Photograph courtesy of Tim Keane

    Baffinland Iron Ore Mine

    The extraordinarily high iron content ore deposit (65-70% iron) was originally found by Murray Watts in 1962, but Baffinland wasn’t able to bring the Mary River Mine into production until 2014. The first ore shipments followed a year later. Their port at Milne Inlet is connected with the mine via a 100 km tote road.

    In 2022, the mine trucked about 5.7 million tonnes of ore to Milne Inlet, but because of a late break up in Eclipse Sound, coupled with an early freeze up, the company was only able to load about 4.7 million tonnes on 62 vessels. In 2024, Baffinland shipped 6.05 million tonnes in 70 ships during a 92-day season. Shipping and port operations are managed by Fednav.

    The expansion in Baffinland is currently focused on an original project: A railway to Steensby Inlet on Foxe Basin that would enable the mine to ship 18 million tonnes per annum. The company hopes to have the new port operational by 2030, at which point Milne Inlet would be closed.

    Agnico Eagle Mines Ltd (AEM)

    AEM started building the Meadowbank mine, 110 km outside Baker Lake, in 2007, and poured its first gold in 2010. In 2022, 374,00o ounces of gold were produced. Mining operations have been extended by the discovery of the Whale Tail/Amaruq deposit, and the company recently announced that ongoing exploration in the area could extend operations for many more years. AEM will make a decision in 2026.

    The company also operates the Meliadine mine 25 km from Rankin Inlet, and performed the first gold pour there in 2019. In 2022, this mine produced 372,874 ounces of gold. The mine is expected to operate through 2032, but as with Meadowbank, ongoing exploration may find deposits that enable operations to continue beyond current end-of-life targets. Both mines produce gold at under $1,000 per ounce, against current gold prices of more than $3,000.

    Diamond Mines in the Northwest Territories

    Canada used to host seven diamond mines, of which five were in subarctic regions. But a combination of market forces and resource depletion has reduced the number to three operating mines. One of these, Rio Tinto owned Diavik, may not last beyond 2026. Ekati, opened in 1998, is now owned by Burgundy Diamond Mines of Australia. Gahcho-Kue, which opened in 2016, is expected to operate through 2030. It is 51% owned by DeBeers, which also operates the mine.

    In 2022, Canada’s diamond mines produced 16.2 million carats, down from a peak of 23.2 million carats in both 2017 and 2018. The reported value in 2022 was $1.88 billion.

    Christopher Wright is the former president of The Mariport Group Ltd, a marine and port consulting company that he formed in 1989. After retiring in 2013, Wright joined WorleyParsons Canada (now Advisian) as a marine logistics specialist.

    He has written two books: “Arctic Cargo; A History of Marine Transportation in Canada’s North” (2016) and “Of Penguins and Polar Bears, a History of Coldwater Cruising” (2020).