Baffinland Iron Mines Mary River Project

1. Baffinland Iron MinesMary River Project November Pre-Hearing Conference Igloolik & Pond Inlet

2. Outline • Our objectives • Who we are • Assessment Process • Key Issues • Commitments

3. Our Objectives….. Develop a project that is: • A benchmark for environmental protection in the far north and coastal regions • A safe work environment for all • Substantial long term economic benefits to Canada, particularly to the territory of Nunavut and especially for Inuit • Significant benefits to Canadian businesses and revenues to federal and territorial treasuries • Develop unique Infrastructure – railroad in the Arctic • Send a clear signal that Canada has absolute sovereignty over the north Development of the project will enhance Canada's reputation for practical and high standard environmental management of industrial development in the north

4. ArcelorMittal • ArcelorMittal is the largest steel company in the world, producing nearly 10% of the world’s steel, with operations in 60 countries, including Canada.

5. A Few of our People….. • Phil du Toit: AcelorMittal Executive Vice-President Mining Exploration and Projects • Tom Paddon : President and CEO Baffinland Iron Mines • Ron Hampton: VP and Project Director • Erik Madsen: VP Sustainability, Health and Safety and Environment • Michael Anderson: VP Operations • Greg Missal: VP Corporate Affairs

6. Mary River Project • An open pit mine with Projected mine life of 21 years • Operations will involve mining, ore crushing and screening, rail transport, port operations and marine shipping to global markets • No secondary processing is required; no tailings will be produced, due to the high grade ore • A rail system will be built for year round transfer • A port will be constructed to accommodate Cape sized vessels

7. The Environmental Assessment Process…….. A Critical Planning Tool • Numerous steps completed • November 16, 2009 NIRB issued Final Guidelines • January 21, 2011 BIM submitted the DEIS • February 15, 2011 NIRB indicated that the DEIS was conformant with the NIRB Guidelines • March 16, 2011 reviewers submitted requests for information and BIM has provided responses • On June 30, 2011 BIM submitted an addendum to the DEIS removing the Road-Haulage option • October 18 to 20 Technical review meetings • One part of the overall regulatory process We are now in the next phase working toward the development of a Final Environmental Impact Statement

8. Community Engagement and Consultations • Extensive community engagement by Baffinland over past several years • Community Meetings • Meetings with HTOs and Hamlet leaders • Community Liaison Officers • Development of Inuit Qaujimajatuqangit • Significant on-going effort at nurturing and promoting 2-way conversation and information sharing • One-on-one meetings and briefings • Information sessions • Working meetings with various groups; Workshops • Numerous phone calls and e-mails • Site Visits by community members, QIA leadership, federal and territorial agencies among others

9. Resolving Issues….. • Began with Information Requests • Worked with agencies to enhance understanding and resolve many issues • meetings and workshops over past months • Address technical review comments in writing and at technical meetings last month • Made many commitments to all agencies and resolved a large number of issues • Most recently, met with QIA and DFO November 2 to work on baseline gaps and monitoring opportunities

10. Commitments • At the technical meetings Baffinland made over 350 commitments that will be included in the Final Environmental Impact Statement • Commitments ranged from very specific requests to broader issues • Commitments were made in all parts of the EIS

11. Key Issues and Commitments • Baseline Data • Baseline data: sufficient for making effects predictions • Inuit Qaujimaningit (IQ) was used extensively for terrestrial, freshwater and marine mammal baseline studies • Scientific studies and monitoring complement Traditional Knowledge: millions of dollars for field work and analysis • Addressing uncertainty • Considered sensitivity to a range of assumptions • Developed realistic worst case scenarios • Ongoing monitoring and adaptive management

12. Commitments to Monitoring and Mitigation Launch processes for the collaborative design and implementation of monitoring programs and mitigation management plans • Immediate parallel two step approach: • Identify monitoring that can commence in early 2012 • Consult with communities beginning in November of this year • Develop a robust framework to guide ongoing monitoring programs that will be outlined in the Final Environmental Impact Statement • In line with the Framework: • Identify monitoring opportunities for sea-lift operations in open water 2012 • Collect and analyse data through the 4 year construction phase • Implement on-going monitoring program • Adjust monitoring to achieve the objectives, mitigate and adapt as needed • Regularly review the Monitoring and Mitigation Management Plans and adjust as required

13. Implementing adaptive management and continuous improvement Baffinland’s Environment Health and Safety Framework • Community Engagement in all phases • Precautionary Principle integrated into the fabric of this management approach Monitoring

14. EIS Organization, Alternatives • Better describe project alternatives and reasoning behind choices • Improve cross-referencing and document navigation • Provide a plain language summary • More details on marine security

15. Marine Environment, Wildlife, Shipping • Include assessment bearded seal and thick billed murres • Develop a model for ballast water dispersal • Include consideration of benthic species and fin fish for habitat compensation • Extend assessment into Davis Strait and Northern Labrador Sea • Re analyse sea ice using newly available ice information • Use new data for polar bears • Provide more detail on characteristics of shipping • More analysis of marine birds

16. Socio-Economic, Culture • Implement supportive human resources practices in all aspects of employment • Ensure archeological sites are properly handled • Engage other agencies to seek synergies

17. Air Quality, Noise and Vibration • Update the emission inventory • Mitigate noise disturbance near national Parks • Consider potential air quality effects due to ship emissions

18. Terrestrial – Land; Birds; Caribou • More detail on rail road design related to caribou crossing protection • More detail on proper disposal of food (attractant for wildlife) • Implement caribou protection measures with respect to calving grounds • Reassess islands and sea-ice as caribou habitat

19. Freshwater • Update surface water and sediment quality data with 2011 data and reassess • Update and provide more detail in the wastewater management plans • More detail on drainage from waste rock and ARD potential • Develop fish compensation plans

20. Cumulative Effects • Consider the noise from two passing ore carriers • Re evaluate cumulative effects on caribou • Consider a doubling of ballast water in cumulative effects assessment

21. Management Plans • All management plans will be updated with detail appropriate for this phase in the project planning • Focus on • Emergency Response Plans • Waste management plans

22. Commitment to Inuit Engagement • An Executive Committee to oversee the implementation of the IIBA • A Management Committee to monitor the Project on a continuous basis and provide ongoing Inuit input for environmental and social monitoring • Inform and involve Inuit communities in the project • Actively work with other agencies to address local and regional issues

23. Final Thoughts…… • For Nunavut, the timely development of the Mary River Project will generate : • Significant training, employment, and business opportunities for Inuit. • A comprehensive IIBA with QIA, currently being negotiated . IIBAs have become the key to empowering and developing aboriginal capacity in the north and are a key ingredient for future sustainable and healthy aboriginal communities. • Large scale regional economic development helping to promote social, political and economic growth for Nunavut.

24. Qujannamiik Thank You