Baffinland faces millions in liens over stalled expansion – by Beth Brown (CBC News North – January 27, 2020)

Mary River contractors take legal precautions to get paid, mine calls claims for assets ‘ordinary’

Construction companies are taking steps to make sure they’ll get paid for work they did for Baffinland’s Mary River Mine. Last year, the mining company purchased work and machinery with the expectation that its application for a production increase would be approved by this year.

Some equipment it purchased includes a specially designed iron ore handling system made to unload rail cars, crush and screen iron ore, and load it onto ships. Part of that processing plant for the expansion was shipped to the mine site during the summer from Germany.

But the Mary River expansion is in a state of stalemate and, in November, Baffinland scaled back work and cut contracts related to the increase, shortly after necessary environmental hearings were adjourned unfinished.

Now, the company that designed the handling system, Thyssenkrupp Industrial Solutions (Canada) Inc., has filed a claim of lien against the mine for more than $50 million.

Under Nunavut’s Mechanics’ Lien Act, contractors can make a claim of lien when there is concern they won’t get paid. A lien guarantees payment of a loan or debt, and allows a creditor to seize assets if money is not paid.

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