Baffinland Iron Mines Corporation has announced the completion of Inuit consultations supporting the issuance of all key regulatory authorizations required to begin construction of the Steensby Component of the giant Mary River project.
In a project estimated to cost about $3 billion, the mining enterprise plans to build a 149-kilometer railway, connecting the Mary River mine to a new deepwater port at Steensby inlet. The federal government has supported a project which aligns with major objectives to develop Canada’s Arctic region and the supply of critical minerals.
Construction is expected to begin later in 2026, subject to final financing and construction arrangements, with substantial completion targeted in approximately three additional years. Major construction contracts are expected to be awarded primarily to Canadian companies, including many Inuit-owned companies, creating employment and procurement opportunities across Nunavut and the rest of the country.
Once completed, the Steensby Component will enable production at Mary River to increase from approximately 4.2 million tonnes per annum to 22 million tonnes per annum in approximately four years.
Baffinland’s high-grade iron ore will be transported by rail, south to a new deepwater port at Steensby Inlet, eliminating long haul trucking to Milne Port, significantly lowering production costs and environmental impacts, and optimally expanding the shipping season to deliver product to markets worldwide competitively.
“This is a defining moment for the Mary River Project,” said Jowdat Waheed, Acting Chief Executive Officer of Baffinland. “The completion of Inuit consultation, alongside a thorough environmental assessment and regulatory review, reflects years of collaboration with Inuit, governments, and regulators. 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.”
Baffinland’s shareholders have confirmed their intent to proceed with construction in 2026, subject to completing the debt and equity financing and finalizing construction plans and contracts with contractors.
“The receipt of all relevant authorizations to advance the Steensby expansion marks a seminal moment for all parties involved and is evidence of the collaborative efforts on behalf of all involved including the Government of Nunavut and the Qikiqtani Inuit Association working in conjunction with Baffinland to achieve this milestone and deliver the proper balance between protecting the land and creating opportunity. In this regard, we are most appreciative and truly grateful for their diligent work, time and commitment to arrive at this exciting outcome.” said John Raymond, Chairman & Managing Partner of EMG.
To date, Mary River has identified approximately one billion tonnes of the world’s highest-grade direct ship (run-of-mine) iron ore. This high-quality product supports more energy efficient steelmaking and contributes to lower greenhouse gas emissions in the global steel sector. Given Baffinland’s large land position and additional deposits identified to date, the Mary River project is expected to generate tremendous benefits and employment opportunities for many generations to come. In addition, to its iron ore interests, Baffinland also has rights to several, gold and base metal prospects across North Baffin Island.
(Photo images from Baffinland Iron Ore Mines)