ATCO invests $10M in West Kitikmeot Resources Corp

Key Takeaways:

• ATCO is making a staged investment of $10 million to acquire a 40% ownership stake in West Kitikmeot Resources Corp.
• The project involves building a deepwater port on the Northwest Passage along with a 230 kilometer all-season road and a 6000 foot airstrip in Nunavut.
• Expected to be completed by 2035, the infrastructure will provide the first overland connection between the Arctic Ocean and the North American highway system.

The Whole Story:

ATCO Ltd. has announced a staged investment of approximately $10 million for 40% ownership in West Kitikmeot Resources Corp. (WKR), the developer of the Grays Bay Road and Port Project (GBRP) in Nunavut. The multi-use infrastructure project includes a deepwater port on the Northwest Passage, a 230-kilometre all-season road and a 6,000-foot airstrip, with full completion expected by 2035.

The project has been referred to the Canadian Federal Government’s Major Projects Office and is backed by significant Inuit ownership through the Kitikmeot Inuit Association. Once constructed, the Port of Grays Bay will sit halfway between Nome, Alaska, and Nuuk, Greenland, positioning it as the first overland connection between Arctic Ocean deepwater and the North American highway system.

“Investing in essential housing, energy and defence infrastructure that enables economic growth and prosperity is central to ATCO’s long-term strategy,” Katie Patrick, Chief Financial and Investment Officer at ATCO, said in a news release. “This project broadens our port and logistics assets, connecting northern resources to global markets.”

ATCO, which holds a 40 per cent interest in Neltume Ports and has extensive experience in remote northern operations, said the project will have dual-use military and civilian capabilities and create opportunities for sustainable northern development.

“WKR is thrilled to welcome ATCO as a major investor in our company, joining our Kitikmeot Inuit shareholders,” Brendan Bell, CEO of West Kitikmeot Resources Corp., said in the release. “They bring deep experience in northern infrastructure, port operations, and defence.”

The Grays Bay Road and Port Project is planned in multiple phases. In conjunction with the proposed Arctic Economic and Security Corridor project, GBRP will ultimately connect southern Canada and Arctic deepwater with all-season road access. The project is expected to stimulate private investment in the Arctic and support long-term northern development with backing from private sector companies and public stakeholders.

ATCO is a global enterprise with approximately 20,000 employees and assets of $28 billion. The company operates across energy, housing, security and transportation sectors through multiple subsidiaries including ATCO Structures, ATCO Frontec, ATCO Energy Systems and ATCO EnPower.