QIA and NTI Respond to Baffinland Iron Mines Entering Creditor Protection

Press Release

Iqaluit (May 26, 2026) — The Qikiqtani Inuit Association (QIA) and Nunavut Tunngavik Incorporated (NTI) are aware that Baffinland Iron Mines Corporation (Baffinland), which owns and operates the Mary River Mine Project on Inuit Owned Lands in the Qikiqtani Region on mineral leases managed by the Government of Canada, filed for and received creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on May 15, 2026. Yesterday, the Ontario Superior Court of Justice held a hearing and extended the initial creditor protection period to June 3, 2026, to allow Baffinland and its creditors more time to stabilize operations and advance a financing process.

The CCAA is a court-supervised financial restructuring process. This means that for now creditors cannot pull the loans or take legal action on the debts that Baffinland owes them. During the creditor protection period, Baffinland will restructure its finances and debts. There is a possibility that this includes new mine owners to make the Mary River Project’s long-term finances and operations viable.

While QIA and NTI did not participate in and had no control over Baffinland’s decision to file creditor protection, based on information currently available, QIA and NTI understand that mine operations are expected to continue during the restructuring process, including ongoing employment and continued application of existing agreements with QIA and Inuit Firms and benefit structures. Financial security is in place for any mine reclamation if there is a mine closure (which is not immediately anticipated). That is the direct result of the strong agreements negotiated by Inuit including the Inuit Impact and Benefit Agreement (IIBA) and the Commercial Lease on Inuit Owned Lands, and the result of the many changes and updates to the conditions under the Project Certificate that Inuit secured over many years.

The CCAA restructuring is a serious concern for Inuit in the region, for the approximately 300 Inuit men and women employed at the Mary River Mine, for Inuit businesses and contractors working on the Project, and for the communities of Mittimatalik, Igloolik, Clyde River, Sanirajak, and Arctic Bay whose members have built careers at the Mine and rely on the economic activity it supports. The mine can only operate, under this ownership or any new ownership, if Nunavut Agreement obligations remain in place and are respected (including the IIBA and the Commercial Lease).  These agreements protect Inuit rights, including rights to royalty payments, Inuit employment and contracting commitments, environmental protections, and ongoing consultation.

The Mary River Mine sits on Inuit Owned Land. It extracts minerals owned by Inuit. It is obligated by the Nunavut Agreement to have an IIBA. That does not change, regardless of how Baffinland’s restructuring proceeds, including any changes in ownership. QIA and NTI will insist that the Nunavut Agreement’s guarantees of Inuit rights and interests are honoured in full.

While this moment is challenging and stressful to many Inuit, QIA and NTI believe it may also present an opportunity for all interested parties to work together to strengthen the long-term viability of this important project. QIA and NTI expect that Inuit will be a critical part of this Project for generations to come. Inuit support and participation is an essential asset to any viable outcome

for the Mary River Project’s restructuring. QIA and NTI will work with any owners to implement the Inuit agreements for the Project and to continue to improve the Mary River Project.

QIA and NTI will continue to monitor Baffinland’s financial and restructuring plans and participate fully in the court-supervised CCAA process. QIA and NTI will keep Inuit workers, businesses, and communities informed as significant developments occur.

Quick Facts

• Baffinland, Nunavut Iron Ore Inc., and affiliated entities filed for and received creditor protection under the Companies’ Creditors Arrangement Act (CCAA) on May 15, 2026.
•  In its Court filings, Baffinland stated that its current financial difficulties result from several factors, including high debt levels, significant capital expenditures associated with the unsuccessful Phase 2 railway expansion proposal, constrained shipping volumes under existing regulatory approvals, and high operating costs.
• On May 25, 2026, the Ontario Superior Court of Justice extended the stay of proceedings to June 3, 2026, to allow Baffinland to advance a process for securing interim financing (known as debtor-in-possession or “DIP” financing).
• QIA and NTI have retained independent legal counsel specialized in CCAA proceedings and are participating in the process to ensure protection of Inuit interests.
• Baffinland is one of the largest private employers in Nunavut and currently employs approximately 300 Inuit workers. Baffinland has confirmed to the Court, and to QIA directly, that Mine operations are continuing and that no layoffs are currently planned.
• The Mary River Mine is located on Inuit Owned Lands and under mineral leases managed by the Government of Canada (also known as “grandfathered” leases). QIA holds a Commercial Lease and an Inuit Impact and Benefit Agreement (IIBA) with Baffinland that govern the Mine’s operations and protect Inuit rights for the life of the Project.
• Inuit businesses and contractors operating under the IIBA’s procurement and contracting framework are also parties in these proceedings and their interests may be negatively affected. QIA is actively monitoring the protection of Inuit businesses’ interests.

For Inuit workers and their families who have questions or need support:

Inuit employees and their families who have questions about the situation at the Mine or who need support are encouraged to contact QIA directly. QIA’s Community Liaison Officers are available in Pond Inlet, Igloolik, Clyde River, Hall Beach, and Arctic Bay. The Mine’s Community Counsellors Program, funded under the IIBA, also continues to be available to workers and their families in these communities.

For media inquiries, please contact:

Karen Flaherty
Director, Strategic Communications
Qikiqtani Inuit Association
(P) 867-975-8398 or toll-free 1.800.667.2742
kflaherty@qia.ca

Annie Thomlinson
Director, Communications
Nunavut Tunngavik Incorporated
media@tunngavik.com

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