A Boeing 737 passenger jet has crashed in the Canadian Arctic killing 12 people and injuring 3 others on board.

First Air Charter flight 6560 was travelling from Yellowknife to Resolute in Canada's northern Arctic region when it crashed less than 2 kilometres from the Resolute Bay community.

Witnesses reported seeing the plane spear into a small hill near the runway. One resident told reporters that she passed the charred wreckage as she was returning from a camping trip. "It's in three seperate pieces. The wings are still attached. The front and back are separated," she said. "And they are picking up pieces of bodies."

The three survivors are being treated in hospital. One of the adults is reported to be in a critical condition.

The Transportation Safety Board of Canada is investigating the incident.