OTTAWA — The Liberal government is shutting down the Nanisivik naval station on northern Baffin Island as a cost-cutting measure, and plans eventually to transfer the property to another party.

The Department of National Defence says it already has started to transition the problem-plagued Nanisivik Naval Facility out of operations.

The Arctic base, which was built at a former mining site by the government of Prime Minister Stephen Harper, was envisioned as a deepsea port and a show of Arctic sovereignty.

Prime Minister Mark Carney’s government insists it’s no longer needed due to its very short seasonal access window, repeated construction issues and costly jetty repairs.

National Defence also says in a news release that the long range of the Harry DeWolf-class Arctic offshore patrol vessels means the base is no longer needed for refuelling.

National Defence says it spent upwards of $110 million on the facility so far, and would have had to shell out another $200 million to make it fully operational.

This report by The Canadian Press was first published May 21, 2026.

Kyle Duggan, The Canadian Press