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Canada invests in Arctic infrastructure to bring critical minerals to market and strengthen Northern communities

Wednesday, May 20, 2026 8:30 AM PDT

IQALUIT, NU, May 20, 2026 /CNW/ - The Government of Canada is making strategic investments to advance Canada's critical minerals potential, reinforce Arctic sovereignty and create long–term economic prosperity for northern and Indigenous communities.

Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced more than $55 million in federal funding for two projects that will strengthen Arctic infrastructure, support export diversification and help build resilient Canadian minerals supply chains.

Through the First and Last Mile Fund, planning and preconstruction work for the West Kitikmeot Resources Corporation's Grays Bay Road and Port project has been conditionally approved for up to $50 million. This funding will advance the proposed deepwater Arctic port at Grays Bay and a 230–kilometre all–season road, following the project's referral to the Major Projects Office by Prime Minister Carney this March. The road would link the proposed deepwater Arctic port at Grays Bay and unlock future project development in zinc and copper.

Minister Hodgson also announced a $5-million investment in Glacies Technologies Inc. This investment will support a low–emissions alternative to diesel for mine heating and ventilation, which could reduce emissions and cut costs at Northern mines. The project will pilot at B2Gold, a gold mine in the western Kitikmeot Region of Nunavut.

These investments build on the Government of Canada's broader efforts, outlined in the 2026 Spring Economic Update, to advance nation-building infrastructure, strengthen critical minerals supply chains and invest in our Arctic security and sovereignty. As global demand for commodities rises and Arctic trade routes gain importance, our strategy and investments will ensure Canada remains a trusted, responsible mining superpower while delivering lasting benefits for communities from coast to coast to coast.

Other languages (Inuinnaqtun and Inuktitut) will be published once available.

Quotes

"After referring Grays Bay Road and Port to the Major Projects Office, we are now delivering on strategic investments to unlock its nation-building potential. This project will strengthen Canada's Arctic sovereignty, unlock critical minerals, improve access and affordability for the region and create lasting prosperity for Northerners and Indigenous communities. That is what building Canada Strong looks like."

The Honourable Tim Hodgson Minister of Energy and Natural Resources

The Government of Canada and the Major Projects Office are accelerating projects and investments that drive economic growth, strengthen Arctic sovereignty and meet the critical minerals demands of tomorrow. By investing in Arctic infrastructure, we are strengthening critical minerals supply chains, creating economic opportunities and reinforcing Canada's Arctic security and sovereignty for generations to come — ensuring Canada leads as a sustainable and trusted global mining powerhouse while delivering lasting benefits for Canadians."

The Honourable Dominic LeBlanc President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy

"Investments like the Grays Bay Road and Port project are about building long-term opportunity in Nunavut. By improving access to our region and supporting more sustainable mining, we are creating jobs, strengthening communities and ensuring that development in the North is done in partnership with Inuit and delivers real benefits for Nunavummiut."

Lori IdloutMember of Parliament for Nunavut

"Support from the First and Last Mile Fund ensures that the Grays Bay Road and Port Project will continue to move forward. This contribution from Natural Resources Canada will not only support critical minerals development in the West Kitikmeot Region but also create jobs and business opportunities in our communities and make land and marine transportation safer and more reliable. It reinforces Inuit and Canadian sovereignty over the Northwest Passage."

David Omilgoitok Co-chair, West Kitikmeot Resources Corp.

"We are grateful for the support of the Government of Canada to move forward with our pilot project at B2Gold Nunavut's Goose Mine. Decarbonization at mine sites in Canada's Arctic is a priority for responsible operators, like B2Gold Nunavut, and for the Government of Canada, and we are excited to be at the leading edge of decarbonization projects in Nunavut."

Maxim BergeronPresident and CEO, Glacies Technologies Inc.

Quick Facts

West Kitikmeot Resources Corporation's Grays Bay Road and Port project, developed with Inuit partners in the Kitikmeot region, was referred to the Major Projects Office (MPO) in March 2026. The MPO is working with proponents to identify funding solutions and streamline regulatory processes to accelerate timelines while respecting Nunavut's unique treaty–based impact assessment framework and local regulatory environment. Pre–construction activities will incorporate Inuit Qaujimajatuqangit, early engagement and capacity–building to advance Indigenous leadership, local employment and long–term benefits for northern communities.
The Canadian Critical Minerals Strategy aims to advance the development of critical minerals and related value chains to drive the transition to a low-carbon economy and support advanced technology and manufacturing.
Building on the success of the Critical Minerals Infrastructure Fund (CMIF), the First and Last Mile Fund (FLMF) is supported by $1.5 billion in federal funding, as announced in Budget 2025. The FLMF will get infrastructure built to support new mines and economic growth in mining regions, prioritizing projects that move Canada's resources to customers at home and abroad efficiently and responsibly. Recognizing that most critical minerals deposits and enabling infrastructure projects in Canada are located in Indigenous territories, the FLMF will make specific funding available to enable Indigenous leadership, engagement and participation throughout the mining value chain.
Natural Resources Canada is funding Glacies Technologies Inc. through the Energy Innovation Program's Mining Decarbonization Demonstration Call for Proposals. The Energy Innovation Program supports the advancement of clean energy technologies that help Canada maintain a competitive, reliable and affordable energy system while transitioning to a low-carbon economy. Through the Mining Decarbonization Demonstration Call for Proposals, the program invests in technologies that reduce emissions and improve energy efficiency across Canada's mining sector.
The mining sector offers well-paid, high-quality jobs for Canadians across the country, including many in northern and remote locations. In 2024, the minerals and metals sector directly employed 438,000 individuals and indirectly employed an additional 286,000, for a total of 724,000 individuals. In the 2021 census, Indigenous people accounted for 11 percent of the mining industry's labour force, among the highest representation by industry.

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