Reuters reported that Canada hoping to spur economic development of its far north has approved the construction of a massive iron ore mine in the Arctic territory of Nunavut that could help top steelmaker ArcelorMittal reduce its dependence on outside suppliers.

The open pit Mary River project on remote Baffin Island was approved on November 3rd by the minister of Aboriginal Affairs and Northern Development, based on the recommendation of the Nunavut Impact Review Board.

Mr John Duncan minister of Canada said that "It's a game changer for Nunavut and particularly for Baffin Island."

Mr Duncan said that "The project will bring infrastructure and much economic activity and many jobs to the area and of course, revenues to government and to the Inuit organization," referring to the Inuit aboriginals in the region.

Mary River which could to produce at least 18 million tonnes of iron ore a year over a 21 year mine life is still years away from production, if it ever gets off the ground. The project needs its project certificate and a water license before work can proceed.

Baffinland Iron Mines Corp, the ArcelorMittal subsidiary developing the mine also needs to finalize an impact benefit agreement with the local population.

Mr Gregory Missal spokesman of Baffinland said that "This is very much a transitional point for us from the environmental assessment phase to the regulatory permitting phase. It is a long process but we're getting there."

Once all the pieces are in place, Baffinland will turn to its shareholders to make the call on whether construction will go forward. Arcelor holds a 70% stake in the company, with Iron Ore Holdings LP owning the remaining 30%.

Considered one of the richest undeveloped iron ore deposits in the world, permitting the Mary River project has already taken nearly 5 years. It is expected to cost some USD 4 billion to build including related infrastructure.

ArcelorMittal, which gained control of the rich project after a contentious bidding war in 2011, had been building up its iron ore division in an effort to reduce its dependence on top miners such as Vale SA, Rio Tinto and BHP Billiton.