Canada Eyes Arctic Projects to Ramp Up North's Resource Potential

By Paul Vieira

OTTAWA--Canada on Wednesday ramped up economic-development efforts in the Arctic, by indicating it is keen to back a proposed 500-mile highway through the north, and an export terminal designed to ship critical minerals abroad.

The projects mark the latest step by Prime Minister Mark Carney's Liberal government to accelerate infrastructure projects aimed at capitalizing on its natural resources, and the construction of new trade corridors to sell its goods to non-U.S. markets. The Carney-led government has also made economic development in the Arctic a priority, given its strategic importance and the potential military threat posed by Russian and Chinese naval forces.

Canadian officials said the two Arctic projects are under consideration as national priorities. Such a listing, officials said, would streamline and consolidate the regulatory process, and provide assurances to investors that outstanding questions would focus on how the project is built, as opposed to whether construction can proceed.

"The future of Canada's north depends on modern, reliable infrastructure that connects communities, strengthens our economy, and builds resilient supply chains," said Steven MacKinnon, the country's Transport Minister.

The projects under consideration, he added, could "make a significant difference to remote and Indigenous communities, improving quality of life and affordability while connecting Canadian goods to domestic and global markets."

Officials cautioned, however, that priority listing would be contingent on both projects completing impact assessments and regulatory processes that address the concerns of indigenous communities.

The first project is a roughly 500-mile all-season gravel road in the Northwest Territories, connecting its capital Yellowknife with Inuvik, Canada's largest town north of the Arctic Circle. Canadian officials say this corridor would improve the north's supply-chain network and support resource exploration.

The second project also involves the building of an all-season road, about 140 miles, in Nunavut that would provide access to a proposed deepwater port and aerodrome on the Arctic Ocean. Officials said the project would enable exploration of critical minerals in the region, and support the local indigenous economy. The proponents say that if built, this would provide the first land link between the Northwest Passage and the North American highway system.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

June 24, 2026 10:41 ET (14:41 GMT)