U.S. Awards Up to $249 Million for Port MacKenzie Rail Extension

The U.S. government selected Alaska Railroad Corporation for up to $249,052,399 in funding for a Port MacKenzie rail extension that could serve Nova Minerals Corp.’s planned antimony processing hub.

The 32-mile line would connect the Alaska port to the railroad’s main line. Announced Oct. 19, the funding covers project development, final design, right-of-way acquisition and construction under the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements program.

The project is estimated to cost $311 million. Its $62 million nonfederal contribution includes in-kind support from the Matanuska-Susitna Borough and cash from the Alaska Industrial Development and Export Authority and Alaska Railroad Corporation. The extension is intended to shorten freight routes from Interior Alaska to the port, reducing shipping time and expense.

Nova plans a direct rail siding at its proposed Port MacKenzie facility for shipments of antimony and other critical-mineral ore and concentrate from Alaska’s interior. Alaska Railroad Corporation is the rail grant recipient; Nova’s proposed facility is a prospective user of the route.

A separate $43.4 million Defense Production Act award supports Nova’s pilot-scale antimony facility. The company targets first production from that facility in 2027.