Two companies in a bidding war for Baffinland Iron Mines Corp. and its massive iron ore property in Nunavut have extended their offer deadlines until later this month.

European steelmaker ArcelorMittal is competing with Nunavut Iron Ore Acquisition Inc. for control of Baffinland and its Mary River project, which contains more than 865 million tonnes of iron ore on northern Baffin Island.

Baffinland’s board of directors is supporting ArcelorMittal’s friendly bid, in which the company is offering $1.40 per share and seeks to acquire 100 per cent of Baffinland. It has extended its offer deadline until Jan. 21. Nunavut Iron, a subsidiary of the U.S. Energy and Minerals Group, has offered $1.45 per share cash for Baffinland in a hostile takeover bid. Its offer is open to acceptance until Jan. 25.

One of Baffinland’s northern shareholders, Nunavut businessman Kenn Harper, has said he wished he had purchased shares when they were less than 20 cents each.

Still, Harper said he will gain some money if either takeover bid succeeds, but he warned that not everyone will benefit. Harper said he is concerned that whoever buys Baffinland may mothball the Mary River project, instead of developing it right away and creating jobs for Nunavummiut.

But John Hadjigeorgiou, Claudette MacKay-Lassonde Chair in Mineral Engineering and Director of the Lassonde Mineral Engineering Program at the University of Toronto, said he does not believe the mining project will be shelved.

“There is a need, and one of the bids has been really set up in order to develop the operation, so I think they will go ahead,” Professor Hadjigeorgiou said.

The world’s three biggest iron ore suppliers decided last year to price their contracts on a quarterly basis rather than an annual one, making steel producers more vulnerable to sudden price changes.