New arctic region railway, port will help Canadian iron-ore mine ramp up production
2/9/2026
By Jeff Stagl, Managing Editor
Far to the north in Canada’s sparsely populated Nunavut territory, Baffinland Iron Mines Corp. is prepping to start a Mary River mine project that involves the construction of a new railway.
The company plans to expand iron-ore production at the mine on northern Baffin Island, which is located in the Canadian Arctic Archipelago. In operation since 2015, it’s one of the world’s northern-most mines.
Since there is a global-wide transition from the consumption of fossil fuels to green energy solutions, high-grade iron ore is needed to support essential components in many of today’s clean energy technologies, Baffinland officials say. The company developed the Mary River project to supply Nunavut’s high-grade iron ore to world markets.
The long-term success of the project requires a railway, which would lower costs and increase the amount of iron ore that can be transported from the mine, Baffinland officials say. So, the company plans to create the Steensby Railway to transport iron ore via a southern Steensby route by rail instead of using trucks, which has been the mine’s transportation mode of choice for the past 10-plus years.
The railway will enable Baffinland to move a larger output of iron ore from the mine to a new deepwater port at Steensby Inlet, eliminating long-haul trucking to Milne Port. The transition away from trucking will increase operating efficiencies and reduce operating costs for the project, while also eliminating the dust and air emissions generated by trucks, Baffinland officials say.
The Steensby Railway will operate about 93 miles of dedicated mainline track between the mine and Steensby port. Its network will feature three mainline passing loops, arrival and departure tracks at mine and port, two tunnels, 42 bridges, 258 culverts, ore and freight loading/unloading facilities, a yard, and maintenance and ancillary facilities.
The rail line is expected to support an average of 6.5 loaded train trips per day, with trains operating at a maximum speed up to 37 mph, said Peter Akman, Baffinland’s head of stakeholder relations and communications, in an email.
“At this time, the company still is evaluating options for operating the rail line and has not made a final decision on whether the company will run it directly or work with a third-party rail operator,” he said. “Environmental protection and local engagement are key elements of the project.”
Baffinland is incorporating strict mitigation measures into the design of the railway and port to minimize impacts on wildlife, marine life and the broader Arctic ecosystem, Akman said. In addition, the company continues to consult closely with the Inuit indigenous peoples of the Arctic and Subarctic regions to ensure that the project respects traditional land use, cultural values and community priorities, he said.
Baffinland recently completed Inuit consultations that support the issuance of all key regulatory authorizations required to begin construction of the railway. The authorization reflects years of collaborative efforts with the Inuit, federal and territorial governments and regulators regarding the project, company officials say.
Construction is anticipated to proceed later in 2026, subject to completing debt and equity financing and finalizing construction plans and contracts with contractors. Major construction contracts are expected to be awarded primarily to Canadian companies, including many owned by the Inuit.
To date, Baffinland has identified about 1 billion tons of the world’s highest-grade “direct ship” iron ore at the Mary River mine that could support more energy efficient steelmaking. The railway will enable annual mine production to increase from about 4.2 million tons to 22 million tons in about four years, Baffinland estimates.
