William Koblensky Varela, Local Journalism Initiative Reporter, Nunavut News

Most Canadians could be forgiven for assuming a mine in Nunavut pays corporate income taxes.

After all, Baffinland Iron Mines is the third-largest employer in the territory, behind the Government of Nunavut and Agnico Eagle Mines. 

But Nunavut News could not find any evidence of Baffinland paying a single dollar of corporate income taxes to the GN or the federal government between 2021 and 2025 using a public disclosures database for the resources sector. 

When asked directly if Baffinland pays corporate income taxes to the GN or the federal government, Peter Akman, head of communications for the company, was succinct. 

“We do not,” he said.

There are two reasons why a for-profit company would not pay corporate income taxes: either the company didn’t turn a profit or it received more tax credits from governments than it owed in taxes. 

Baffinland does not publicly disclose its net profits as a privately-held company.

The iron ore mining firm has incurred $1 billion in debt after its Phase 2 Milne Inlet expansion project was rejected in 2022, and Baffinland was granted creditor protection in May.

From 2021 to 2025, Baffinland was not in a taxable position and is fully compliant with its tax responsibilities, according to Akman.

“Whether corporate income tax is payable in a particular period depends on the company’s taxable position and the application of the relevant tax rules,” Akman said. 

He would not reveal how money much Baffinland has received in tax credits from the federal government and the GN over the five-year period.

How much Baffinland receives in tax credits is also not being disclosed by the Canada Revenue Agency or the GN’s Department of Finance. 

“The confidentiality provisions of the Income Tax Act prevent the Canada Revenue Agency from commenting on specific taxpayer situations. As such, we cannot provide the requested data,” stated Sylvie Branch, a media relations employee for the federal government’s tax agency. 

Even though the GN gives tax credits and has its own corporate income tax, Nunavut leaves the administration of those taxes up to the Canada Revenue Agency, according to Hala Duale, communications specialist for the Department of Finance.

The GN can’t comment on Baffinland’s tax credits because Nunavut doesn’t administer the taxes, Duale said.

Nunavut News submitted an Access to Information and Privacy request to the Canada Revenue Agency inquiring how much money in tax credits the iron mining company received between 2021 and 2025. 

But the Canada Revenue Agency said that request would likely be denied to protect Baffinland’s privacy as a taxpayer. 

In response, Nunavut News has adjusted its information request to ask how much money in tax credits a mining company can receive in Canada during a single year, if there are specialized credits for mining companies in the territories, or if credits exist for extraction of critical minerals. 

Baffinland is not exempt from paying corporate income taxes and does not have any special agreement with the federal or territorial governments on corporate income taxes, Akman clarified. 

Every resource development company in Canada is required to disclose its annual payments in reports under the Extractive Sector Transparency Measures Act, which are managed by Natural Resources Canada.

Natural Resources Canada does not have a record of Baffinland paying corporate income taxes to the federal government or the GN.

In Baffinland’s disclosures, the GN isn’t mentioned once.

“Natural Resources Canada officials have reviewed financial reporting under Extractive Sector Transparency Measures Act for Baffinland Iron Mines Corporation, including its subsidiary. For fiscal years 2021 to 2025, the company did not report any payments (including corporate income taxes on income derived from activities related to the commercial development of oil, gas, or minerals) to the Government of Nunavut,” said Monica Rai, a communications advisor for Natural Resources Canada.

A document from 2020 shows Baffinland estimated it would pay the GN $321 million in corporate income taxes over the lifespan of the Mary River mine, from its opening in 2014 to its planned closure in 2038. 

That works out to $13.4 million per year. 

Akman said Baffinland made that estimation based on Phase 2 of Milne Inlet being approved. 

“The figures contained in the 2020 fiscal benefits document were projections based on predictions at that time, including the proposed Phase 2 expansion of the Mary River Project. The document itself notes that the estimates were based on future scenarios associated with Phase 2. That expansion was ultimately not approved,” Akman said.

Canada’s federal corporate income tax rate is 15 per cent, depending on the size of a business, while Nunavut has an additional 12 per cent tax rate for large companies and three per cent for small ones. 

When asked about the lack of corporate income tax payments, Baffinland initially provided how much the company submitted in payroll tax. 

Payroll tax is a portion of employees’ pay that goes to the government. 

But corporate income tax is a percentage of how much a company makes in net profit. 

The company paid $52 million in payroll taxes to the GN between 2021 and 2025.

Even though Baffinland does not pay corporate income tax to the federal or territorial governments, the company paid the federal government $4.5 million in fees in 2025, after four years of handing over between $140,000 and $420,000 in fees annually. 

Baffinland’s Steensby port and rail project was approved in early 2026 after federal and territorial review processes.

Headquartered in Oakville, Ont., Baffinland is jointly owned by The Energy and Minerals Group and ArcelorMittal.

The Energy and Minerals Group is a Houston, Texas-based investment firm while ArcelorMittal is a publicly traded company whose controlling stake is owned by UK-based Lakshmi Mittal.

Agnico Eagle and B2Gold, the other two mining companies in Nunavut, have both paid corporate income taxes between 2021 and 2025. 

Learn more about our News Monitoring here.

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