An agreement has been reached detailing benefits that will flow to Inuit from the proposed Mary River iron ore mine.

Officials of the Toronto-based Baffinland Iron Mines Corporation and Qikiqtani Inuit Association, as well as federal and territorial politicans, officially signed the impact and benefits agreement at a ceremony in Iqaluit on Friday.

The Mary River Project is located 160 kilometres southwest of Pond Inlet, on northern Baffin Island. Baffinland Iron Mines says the mine will create thousands of jobs over its estimated 21-year lifespan. If it becomes a mine, it would be the biggest industrial project in Nunavut's history.

The IBA sets out what Inuit can expect in terms of royalties, jobs, and other benefits from the project.

But QIA officials, who represent Inuit of the Baffin region, would not reveal details of the agreement.

The Baffinland Iron Mines Corporation plans to truck ore from the mine site to Milne Inlet on the northeast coast of Baffin Island, then ship it south for processing during the summer months.