Construction Approved for Steensby Railway Project in Baffin Island
Canada is advancing its Arctic infrastructure development with the recent approval of the Steensby Railway project on Baffin Island. This initiative is crucial for enhancing production at the Mary River iron ore mine, one of the northernmost mines globally and recognized for having the highest-grade direct ship iron ore. The approval comes as Baffinland, the mine’s operator, completed consultations with the local Inuit community, who expressed their support for the necessary regulatory licenses to initiate the project.
Jowdat Waheed, acting CEO of Baffinland, emphasized the company’s extensive experience in the High Arctic and confirmed that negotiations for the financing package are progressing well. “As soon as it is complete, construction will commence,” he stated, indicating a strong commitment to moving forward with the Steensby component.
Background and Community Engagement
The Steensby project was initially approved by the Nunavut Impact Review Board in 2012 but was put on hold as Baffinland opted to expand its existing transport route to Milne Inlet, which was deemed less costly at the time. However, in 2022, the federal government rejected these expansion plans due to significant protests from Inuit groups concerned about potential impacts on marine mammal habitats, particularly the narwhal, a vital food source for the community.
In light of this opposition, Baffinland shifted its focus to the Steensby project, which proposes a southern transport route for iron ore. This new plan involves constructing a 149-kilometer railway that will connect the Mary River mine to a new deep-water port at Steensby Inlet. By eliminating the long-haul trucking to Milne port, Baffinland aims to reduce both production costs and environmental impacts.
The federal government has expressed its support for the Steensby project, aligning with its vision to develop Canada’s northern economy and enhance the supply of critical minerals. The construction is anticipated to begin in late 2026 and is expected to take three years, with an estimated cost of around $3 billion.
Projected Impact on Iron Ore Production
Once the Steensby Railway is completed, it is projected that production at the Mary River mine will increase significantly, from approximately 4.2 million tonnes per annum to an impressive 22 million tonnes per annum within four years. This substantial boost in production capacity underscores the importance of the Steensby project not only for Baffinland but also for the broader Canadian economy as it seeks to capitalize on the rich mineral resources of the Arctic region.
The successful implementation of the Steensby Railway project represents a pivotal step in the development of Arctic infrastructure, promising to enhance economic opportunities while addressing community concerns. As the project progresses, it will be closely monitored by stakeholders to ensure that it aligns with both environmental standards and the needs of the local Inuit population.
