Baffinland gets $110M loan, court-approved extension

Frédéric Tomesco | June 13, 2026 | 10:30 am Markets Canada Iron Ore

Iron ore is loaded onto a ship at Baffinland’s Mary River iron ore mine in Nunavut. Credit: Baffinland Iron Mines.

Canada’s Baffinland Iron Mines has been given a financial lifeline and additional time to stabilize operations while the struggling private company restructures under creditor protection.

The Ontario Superior Court of Justice gave Baffinland immediate access to $110 million of funding for the period ending June 30, according to a company statement issued Friday. The court also granted the company an extension to the stay of proceedings until Aug. 28, which allows Baffinland to keep operating while seeking approval for interim financing.

A hearing will be held June 30 when the court decides whether the company can keep an existing $400 million debtor-in-possession financing from Export Development Canada or whether it must replace it with another financing package.

Creditor protection

The financing agreement is intended to ensure that mining, shipping and port activities continue without interruption, said Baffinland. The company operates the Mary River iron ore mine on northern Baffin Island in Nunavut, one of Canada’s largest iron ore operations and among just a few producing mines in the Arctic territory.

Baffinland ups Mary River iron ore output to 6 million tonnes per year

Oakville, Ontario-based Baffinland filed for creditor protection May 15, saying it was unable to meet its financial obligations. News reports said the company disclosed more than $1 billion in debt linked partly to a failed railway expansion proposal.

At the time, Baffinland said the move would allow it to evaluate “strategic alternatives” including a recapitalization or a potential sale.

Baffinland had a cash balance of $21.2 million as of May 30, according to a report by the court appointed monitor dated June 4. A cash flow forecast included in the report shows the company is forecast to burn about $217 million of cash in the period ending Aug. 28.

Extension option

Export Development Canada’s debtor-in-possession financing will mature in 12 months. Baffinland will have the option to extend the maturity by six months under certain conditions.

Last week, Baffinland secured court approval for a supplier charge of up to $100 million. The measure was designed to reassure vendors and contractors by allowing the company to provide credit support for goods and services essential to day-to-day operations.

Baffinland is jointly owned by funds managed by The Energy & Minerals Group and an ArcelorMittal (NYSE: MT) unit.