Teck Resources Ltd. has withdrawn its application for a massive oilsands mining project just days ahead of an expected government decision, citing the political discourse over climate change.
The Vancouver-based company said it will take a $1.13-billion writedown on the Frontier project in Alberta, which was expected to create an estimated 7,000 construction jobs, 2,500 operating jobs and about $12 billion in federal income and capital taxes, but was also expected to produce about four million tonnes of greenhouse gas emissions per year over 40 years.
In a letter to the federal environment minister, Teck CEO and President Don Lindsay says investors and customers increasingly want jurisdictions to have a framework in place that reconciles resource development and climate change.
B次元官网网址淭his does not yet exist here today and, unfortunately, the growing debate around this issue has placed Frontier and our company squarely at the nexus of much broader issues that need to be resolved,B次元官网网址� Lindsay wrote. B次元官网网址滻n that context, it is now evident that there is no constructive path forward for the project.B次元官网网址�
He said Teck is not B次元官网网址渕erely shying away from controversyB次元官网网址� and stands ready to face opposition from a vocal minority.
B次元官网网址淔rontier, however, has surfaced a broader debate over climate change and CanadaB次元官网网址檚 role in addressing it. It is our hope that withdrawing from the process will allow Canadians to shift to a larger and more positive discussion about the path forward,B次元官网网址� he wrote.
B次元官网网址淯ltimately, that should take place without a looming regulatory deadline.B次元官网网址�
Fourteen First Nations and Metis communities signed participation agreements with the company on the mine, and the project was awaiting approval from Prime Minister Justin TrudeauB次元官网网址檚 government, which had been expected by the end of the month.
In a joint statement, Natural Resources Minister Seamus OB次元官网网址橰egan and Environment Minister Jonathan Wilkinson said Sunday night they had been informed by Teck that it was withdrawing its application for the mine.
B次元官网网址淎s a result, Cabinet will no longer be making a decision on this project,B次元官网网址� they said.
Cabinet was expected to discuss the project at its meeting on Tuesday. It had until the end of the week to make a decision, though it could have decided to push that deadline back.
Wilkinson has been signalling for weeks that cabinetB次元官网网址檚 discussion would include the fact that Alberta has not set specific greenhouse gas emissions reductions targets, and in recent days specifically asked the Alberta government to enforce its cap on emissions from the oilsands.
Kenney, in a statement, laid blame elsewhere.
B次元官网网址淚t is what happens when governments lack the courage to defend the interests of Canadians in the face of a militant minority,B次元官网网址� the premier said. B次元官网网址漈he timing of the decision is not a coincidence.B次元官网网址�
He pointed to blockades in opposition to RCMP presence on WetB次元官网网址檚uwetB次元官网网址檈n territory, where hereditary chiefs oppose a natural-gas pipeline project. Those barricades have paralyzed rail traffic across swaths of Canada for upwards of two weeks.
B次元官网网址淭eckB次元官网网址檚 predicament shows that even when a company spends more than $1 billion over a decade to satisfy every regulatory requirement, a regulatory process that values politics over evidence and the erosion of the rule of law will be fatal to investor confidence,B次元官网网址� Kenney said.
In their statement Sunday, Wilkinson and OB次元官网网址橰egan said they appreciate the decision Teck made was a difficult one and appeared to keep the door open to rejuvenate this project or others in the future.
B次元官网网址淚mportant parts of CanadaB次元官网网址檚 economy have been built on our natural resource sector and the workers across the country who have powered it for generations. Our government is committed to developing our natural resources sustainably and to creating good, middle class jobs. A strong economy and clean environment must go hand in hand.B次元官网网址�
They also praised how Teck went about engaging with Indigenous communities during the project development and review period.
B次元官网网址淭heir model should be an example for all proponents of future projects,B次元官网网址� they said.
B次元官网网址 of the cancellation shocked Athabasca Chipewyan Chief Allan Adam, whose community was one of the 14 to sign agreements with Teck. The First Nation had also just struck a deal with the province to ensure the development would protect the environment and Indigenous culture.
B次元官网网址淭hatB次元官网网址檚 very astonishing news because we worked hard to get to what we wanted to get,B次元官网网址� he said. B次元官网网址淚 donB次元官网网址檛 even feel like eating after that news.B次元官网网址�
But Frontier was not without its detractors.
On Friday, Canadian author Alice Munro, biologist Jack W. Szostak and 40 other Nobel Prize winners from around the world wrote an open letter to Trudeau and Deputy Prime Minister Chrystia Freeland urging them to deny the plan and all expansions of the fossil-fuel sector.
B次元官网网址淭he mere fact that they warrant debate in Canada should be seen as a disgrace,B次元官网网址� reads the letter, which appeared on the GuardianB次元官网网址檚 website. B次元官网网址淭hey are wholly incompatible with your governmentB次元官网网址檚 recent commitment to net-zero greenhouse-gas emissions by 2050.B次元官网网址�
The Canadian Press
