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Baffinland Nearly Misses Window To Ship Provisions To Arctic Circle


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I thought this was really crazy.. company invests critical moneys in dodgey debt instruments and cant afford to feed 200 workers in the arctic circle.

Sept. 25 (Bloomberg) -- On Baffin Island in the Arctic Circle, Baffinland Iron Mines Corp. almost missed its window to ship provisions to workers before winter arrives. The delay came not from the weather, but from a sudden freeze in the market for short-term debt 2,000 miles south in Toronto.

Baffinland ran short of funds to pay for food, fuel and drilling equipment after investing in commercial paper that borrowers couldn't repay. Without the money, the company had to arrange an emergency line of credit before shipping lanes froze over.

``We have 200 people to keep alive,'' Chief Executive Officer Gordon McCreary said in an interview in Toronto. ``Our lifeline to getting critical materials to the north'' was the C$43.8 million ($43.8 million) invested in commercial paper, he said.

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This does raise an interesting point about the 'just in time' society.

Everything in the whole system for all of us is now predicated on low amounts of food, energy and other supplies being stored to reduce costs in the expectation that a regular and swift supply will always get through.

This is a lovely microcosm of what happens when this system breaks down. :blink:

The crunch turns up in the most unexpected places...

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