Nunavut’s Grays Bay Road and Port project is set to receive a small funding boost, having been chosen as a key recipient of Ottawa’s $1.5B First and Last Mile critical minerals fund.

Federal energy minister Tim Hodgson announced $50 million in funding for the project while in Iqaluit this week. 

West Kitikmeot Resources Corporation, an Inuit-private sector partnership, intends on allocating the federal funds toward planning and preconstruction work. 

The project involves building an Arctic deepwater port and a 230 km all-season road that could eventually connect to the “Arctic Economic and Security Corridor,” another proposed 400 km all-season road through the Slave Geological Province in the Northwest Territories. 

It is receiving critical minerals funding because developing that infrastructure could help unlock future mining developments in the area, including for zinc and copper.

Prime Minister Mark Carney referred both of these projects to the Major Projects Office in March. The government agency is tasked with helping find funding for the project.

The estimated cost of the Grays Bay Road and Port alone is estimated to be over a billion dollars. 

West Kitikmeot Resources Corp. recently submitted an impact statement to the Nunavut Impact Review Board which suggested the project would boost Nunavut’s GDP by 20 per cent over the next two decades.

But the territory’s regulatory body said that the proposal needed more details on how concerns about wildlife will be addressed and how information will be communicated to the public.

A process map released by the Nunavut Impact Review Board earlier this month suggests community information sessions could be held later this fall, with a pre-hearing conference report coming down in early 2027.

West Kitikmeot Resources Corp estimates that the construction of the project could take approximately five years. 

The port would receive vessels from June to October, and the road would be open to commercial and public vehicles. There is also potential for dual use – civilian and military – of the infrastructure, should it align with defence goals in the region. 

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In addition to the road and port, the project will require the construction of bridges and culverts, development of quarries, installation of fuel storage tanks, an airstrip, rest stations, a landfill, landfarm, accommodations, power supply and sewage treatment. 

Construction could require up to 400 workers, with fewer staff needed during operations. Employees would fly in and out to work at the port. 

Calgary-based logistics and energy firm ATCO recently acquired a 40 per cent stake in West Kitikmeot Resources Corp for $10 million.

The project previously received $3 million from the Canada Infrastructure Bank.