Construction greenlit for $3B Baffin Island port, rail line

Key Takeaways:

• Baffinland has completed Inuit consultations and secured all major regulatory approvals, clearing the way to begin construction of the Steensby Component in 2026 once financing is finalized.
• The expansion will dramatically scale Mary River’s output from about 4.2 million to 22 million tonnes per year, enabled by a new deepwater port and rail line that cut costs and reduce environmental impacts.
• The project has strong support from Inuit organizations and all levels of government, with construction expected to generate significant Canadian and Inuit employment while strengthening northern infrastructure and critical minerals supply.

The Whole Story:

Baffinland Iron Mines Corporation has completed Inuit consultations and received all key regulatory authorizations required to begin construction of the Steensby Component at its Mary River Project on Baffin Island, Nunavut.

The milestone follows years of collaborative effort with Inuit communities, federal and territorial governments, and regulators. Baffinland’s shareholders have confirmed their intent to proceed with construction in 2026, subject to completing debt and equity financing and finalizing construction plans and contracts.

The $3-billion Steensby Component expansion will increase Mary River’s production capacity from approximately 4.2 million tonnes per annum to 22 million tonnes per annum within four years. The project includes construction of a new deepwater port at Steensby Inlet and a rail line to transport high-grade iron ore south, eliminating long-haul trucking to Milne Port and reducing production costs and environmental impacts.

“The completion of Inuit consultation, alongside a thorough environmental assessment and regulatory review, reflects years of collaboration with Inuit, governments, and regulators,” said Jowdat Waheed, acting chief executive officer of Baffinland. “With over a decade of experience in operating in the High Arctic, we are moving forward with the Steensby Component. Negotiations for the financing package are at a very advanced stage, and as soon as it is complete, construction will commence.”

Construction is expected to begin later in 2026, with substantial completion targeted in approximately three additional years. Major construction contracts are expected to be awarded primarily to Canadian companies, including Inuit-owned firms, creating employment and procurement opportunities across Nunavut and the rest of the country.

The Steensby Component has the support of the Qikiqtani Inuit Association and the Government of Nunavut. The Government of Canada has also expressed strong support for the project, citing its contribution to Canada’s northern economy, critical minerals supply, and Arctic infrastructure and sovereignty.

To date, Mary River has identified approximately one billion tonnes of high-grade direct shipping iron ore. The company also holds rights to several gold and base metal prospects across North Baffin Island.

Baffinland is jointly owned by The Energy and Minerals Group and ArcelorMittal.