Teck Resources says it faces $1.1-billion hit on Frontier oil sands project without federal approval - The Globe and Mail | Canada News Media
Connect with us

Business

Teck Resources says it faces $1.1-billion hit on Frontier oil sands project without federal approval – The Globe and Mail

Published

5 years ago

 on


Visitors pass a logo of Teck Resources Ltd mining company during the Prospectors and Developers Association of Canada annual convention, in Toronto, in a March 4, 2019, file photo.

Chris Helgren/Reuters

Teck Resources Ltd. says it would be forced to take a write down of $1.1-billion on the Frontier oil sands project if the federal government doesn’t approve it.

The Liberals are expected to make a decision by the end of the month on whether Vancouver-based Teck is allowed to proceed with Frontier.

Over the past few months, Frontier has become a political flashpoint in Canada. Its proponents, such as Alberta Premier Jason Kenney, argue that approving the project would boost the ailing provincial economy, but its detractors point out that Frontier would significantly set back Canada’s attempts to reduce its carbon footprint and meet international emissions benchmarks.

Story continues below advertisement

An early stage study predicted that the project could produce 260,000 barrels of oil a day, which would make it one of the biggest operations in the oil sands.

But Teck hasn’t proven whether the project which it previously said would cost more than $20-billion to construct, would be commercially viable.

Last month, the miner’s chief executive, Don Lindsay, told investors at a conference that for the project to go ahead, it would need higher oil prices, sufficient pipeline capacity and a partner, to help shoulder the burden.

If the project does get the go-ahead from the federal government, Teck says it will work on trying to prove the project can be viable.

On Friday, the company said in a statement alongside its fourth quarter earnings, that thanks to ongoing technological and operational improvements it believes Frontier will be “technically feasible and commercially viable.”

The uncertainty over the Frontier project comes as Teck struggles with its other oil sands property, which is already in production. Teck took a $910-million write down on Fort Hills, which it co-owns alongside Suncor Energy Inc., in the quarter, due to lower expectations for crude oil prices.

Teck’s fourth quarter results were weaker than expected.

Story continues below advertisement

It reported adjusted earnings per share of $0.22 compared to the $0.40 that the street was looking for.

The company also sounded a bleak tone for the year, as it navigates weakness across its core metallurgical coal business.

“Ongoing global economic uncertainty negatively impacted commodity prices in the fourth quarter and that has continued into 2020, exacerbated by the effect on markets from the coronavirus and the impact of severe weather conditions in British Columbia, followed by blockades on rail lines,” Mr. Lindsay said in a statement.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Let’s block ads! (Why?)



Source link

Related Topics:
Continue Reading

Business

Carry On Canadian Business. Carry On!

Published

1 day ago

 on

October 22, 2024

By

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

Continue Reading

Business

Imperial to cut prices in NWT community after low river prevented resupply by barges

Published

1 day ago

 on

October 22, 2024

By

 

NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

Published

1 day ago

 on

October 22, 2024

By

 

TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version