The mayor of Igloolik, Nunavut, announced he will step down from his position due to a potential conflict of interest.

Nicolas Arnatsiaq was elected mayor in December. He's also an employee of Baffinland Iron Mines, which is proposing to build a massive iron ore mine at Mary River, and Igloolik will be one of the affected communities if the mine gets approved.

Arnatsiaq said he will formally resign next month.

Nicolas Arnatsiaq was already a Baffinland employee when he was elected mayor of the hamlet of Igloolik in December. (CBC)

"I would have to declare conflict rather than participating actively as a mayor. That, to me, is not representing the community fully," he said.

Arnatsiaq was already Baffinland's community liaison in Igloolik when he was elected mayor last year. He said he has been careful about this conflict and has removed himself from discussions and hamlet meetings about the Mary River project.

At the recent final hearings in to Baffinland's Mary River project, Arnatsiaq did not speak for the hamlet.

He said council will likely appoint an acting mayor until elections are held later this year.