Plans to construct the Canadian Arctic鈥檚 first railway are building steam in Nunavut.

Baffinland Iron Mines Corp. wants to build the proposed 160-kilometre railway from its Mary River open-pit, iron-ore mine, located in the Qikiqtani region on Baffin Island, to Steensby Inlet on the southeast coast.

If completed, the railway project, previously approved in a 2012 project certificate, includes approval to transport 18-million tonnes per year of iron ore from the mine to port facilities at Steensby, where it would be shipped through Foxe Basin and the Hudson Strait.

Peter Akman, head of stakeholder relations and communications at Baffinland, stated that the estimated overall cost of the Steensby project is still under review, as the project team 鈥渃ontinues their optimization efforts.鈥�

鈥淭he current estimate sits at approximately US$4 billion. We are currently working on securing the necessary funds for the Steensby railway project," Akman said. 鈥淥nce funding is in place, a detailed timeline will be shared, including the anticipated start date for construction and duration. 

鈥淐onstruction activity in the Arctic is highly dependent on timing of major sealifts and, at this stage, we estimate a 36-month construction period following financial close,鈥� he added.

Currently, a 140-km tote road between the Mary River mine north to Milne Port is used to transport crushed ore via 150-tonne haul trucks. At the port, the trucks are unloaded and the ore is stacked onto product stockpiles.

鈥淒uring the shipping season, which typically runs from August through October, the ore is loaded onto bulk carriers. Most of the shipments travel across the Atlantic Ocean and travel through European ports to be used by steel makers in continental Europe," said Akman. "A mix of customer and Baffinland chartered vessels are used to ship the product from the Milne Port to customers.鈥�

With the Steensby project on the table, the amount of ore shipped to Milne Port was to be reduced until the railway is complete, although in a sustaining operations proposal submitted to the Nunavut Impact Review Board, currently in the active monitoring stage, Baffinland has requested that the project certificate be amended to allow the continued transportation of up to six million tonnes of iron ore on the tote road annually to ensure a stable supply of iron ore to customers while remaining within the scope of the environmental assessment.

One route only

Once the railway is operational, the tote road will no longer be utilized for shipping, as the requested expansion of the mine鈥檚 output and resulting increase in shipping was rejected by the NIRB.

During that review by the NIRB, the Qikiqtani Inuit Association (QIA) was an intervenor in the process as landowner and designated Inuit organization representing the rights of Inuit in the Qikiqtani region, Karen Flaherty, QIA director of strategic communications, stated.

鈥淨IA was very vocal on concerns around the impact of a continuous corridor connecting two coasts of Baffin Island,鈥� Flaherty said of the original plan to have two transportation routes from the mine.

Akman confirmed the northern transportation route will not be utilized after the completion of the railway.

鈥淏affinland has committed to cease shipping ore north from Milne Port once the Steensby rail and port are operational and all remaining product stockpiled at the Milne Port has been shipped,鈥� he said.

鈥淭he tote road and the Milne Port will become a supply corridor in support of the Mary River and railway operations to the south.鈥�

The efficiency of transporting the ore by rail versus truck will lead to 鈥渁 structural improvement in Baffinland鈥檚 operating cost,鈥� he said.

鈥淚t is also environmentally advantageous as it eliminates the dust generation that occurs due to haul truck tire contact with the unpaved tote road surface, lowers greenhouse gas emissions and reduces disturbance to wildlife along the transportation corridor,鈥� he continued.

Akman said the Steensby railway is a 鈥済rowth project鈥� and will 鈥渉elp to increase Baffinland鈥檚 output to approximately 22 million tonnes per year with opportunity to increase with additional investment.鈥�

Recently announced layoffs of 10 per cent of the company's workforce will be reversed once the railway is complete, Akman added.

Extracting and preserving

The Mary River mining operation has not eluded controversy in its almost decade-long history. Balanced with the need for iron ore across the planet and the need for jobs for Nunavummiut is the environmental and cultural threat on the intrinsic land-based way of life for the people of Nunavut.

The vast territory and its surrounding waterways are home to wildlife, including caribou; marine mammals such as whales, including beluga and narwhal; vegetation, and clean water 鈥� everything the Nunavummiut need for sustenance and preserving their culture and way of life.

In the Phase 2 proposal project summary, it was noted that archeological sites are also found along the project area.

Greenland, as well, had expressed concern about the effect huge shipping vessels would have on the delicate ecosystem and marine life.

An article published by the World Wildlife Fund (WWF) in July 2024 outlined the detrimental effect that emissions and acoustic noise from the proposed railway and subsequent increased shipping will have on the land, sea and mammals.

In 2022, the WWF 鈥渁pplauded鈥� the Government of Canada鈥檚 decision to deny Baffinland鈥檚 request to expand the mine to double its production.

The QIA vows to continue watching closely as the project proceeds.

鈥淨IA understands that with a project of this magnitude, and the novel idea of a railway in the Canadian Arctic, there will be environmental impacts from such an undertaking,鈥� Flaherty said.

鈥淭hrough our Inuit Impact Benefit Agreement for the Mary River Project, Baffinland is held to a high standard to mitigate and manage impacts and risks, and to compensate Inuit for those impacts which cannot be mitigated.

鈥淭here is also a willingness from Baffinland to work with QIA to review and update mitigation, management, and monitoring plans associated with Steensby and the southern transportation corridor that may not be adequately captured by the current plans,鈥� Flaherty said.

Safeguards implemented

Akman said to safeguard the environment, Baffinland employs a balance of scientific and Inuit knowledge, known as Inuit Qaujimajatuqangit (IQ).

鈥淭hrough extensive consultation, environmental engineering and environmental monitoring, potential impacts from our activities are either avoided or minimized.

鈥淲e conduct a number of programs related to archaeology, water management, wildlife and marine environment. These programs are designed to monitor and ensure the protection of the environment,鈥� Akman said.

Baffinland educates and empowers employees at the mine and port sites to be respectful towards the environment and to implement environmental best practices, he added.

鈥淲e鈥檝e conducted extensive archaeological surveys and research as part of the Mary River Project. All work is approved and reviewed by the Inuit Heritage Trust and Government of Nunavut and numerous discoveries have proved to be valuable additions to the historic knowledge base of the North Baffin Region.鈥�

Akman said water monitoring and regulatory compliance is a critical component of Baffinland鈥檚 environmental efforts.

鈥淲orking alongside government officials and local communities, our monitoring efforts focus on minimum effects to water bodies and adherence to all federal and territorial requirements,鈥� he said.

Baffinland also conducts research on numerous species of wildlife, he said.

鈥淲e monitor their environment to ensure that these species are not adversely impacted by our operations. Our results are shared and reviewed by both marine and terrestrial environment working groups to ensure that all stakeholders have the opportunity to comment on the work we conduct,鈥� Akman said.

Guardian oversight

The QIA appears ready to ensure Baffinland mitigates the environmental and cultural risks this railway project will encounter.

鈥淚n accordance with our mission, QIA strives to safeguard the land, waters and resources that sustain our communities, and we take impacts to Inuit culture and way of life very seriously,鈥� Flaherty said.

鈥淲hile Baffinland has required mitigation and management measures in place, we always push the company to increase mitigation measures to minimize impact on Inuit culture and the environment, and to respond to community concerns.

鈥淭hrough our newly-launched Inuit Stewardship Program, QIA and Inuit will be conducting Baffinland-funded, yet Inuit-led and 'owned' independent studies and monitoring programs to better understand project impacts on Inuit and the lands used for traditional and cultural activities,鈥� she said.

Akman said the Mary River mine will be operational for decades.

鈥淏affinland鈥檚 mineral lands holdings are vast and there is tremendous resource potential so it is difficult to estimate the mine life but it will be more than 30 years.

鈥淭he ores from Mary River will be used by steelmakers, both in blast furnaces and direct reduction modules. The high-grade ores from Baffinland are considered premium feedstock to direct reduction and electric arc furnace route to steelmaking, making them a critical ingredient in the push for green steel.鈥�