Nunavut government considers Baffinland stake amid debt crisis

The Government of Nunavut has not ruled out purchasing an equity stake in Baffinland Iron Mines, according to Minister of Community Services Craig Simailak. The company, which operates the Mary River iron ore mine, is currently up for sale following its inability to repay $2.6 billion in total debt.

Court records indicate that the sale process will be overseen by chief restructuring officer William E. Aziz of BlueTree Advisors. This follows an Ontario Superior Court ruling that granted Aziz sole responsibility for selecting a buyer, a decision favored by creditors including Export Development Canada, Oaktree Capital Management, and Hartree Partners.

Baffinland’s financial difficulties stem in part from an unsuccessful railway project between 2017 and 2022, which resulted in $1 billion in debt. While the government has previously declined to acquire stakes in other entities, such as Canadian North, Simailak stated that “anything could be on the table” regarding Baffinland.