Teck to temporarily delay project amid political unrest, just days before Liberal decision: source – National Post

Teck Resources has officially withdrawn its application to build the $20-billion Frontier oilsands mine, just days before Prime Minister Justin Trudeau was expected to issue a ruling on the contentious project.

“We are disappointed to have arrived at this point,” Don Lindsay, CEO of the company, said in a letter to Trudeau published late Sunday. “Teck put forward a socially and environmentally responsible project that was industry leading and had the potential to create significant economic benefits for Canadians.”

One person who spoke to the National Post said the decision by Vancouver-based Teck was largely due to ongoing political turmoil in Canada, as protestors have blockaded rail lines for more than two weeks in opposition to a separate pipeline project.

The Frontier mine has gone through nearly a decade of regulatory review, and a decision by the Liberal cabinet, which was expected by end of week, would have marked the final stage in the drawn-out approval process.

The company had secured community benefit agreements with all 14 of the First Nations who reside near the proposed mine. But pressure had been building on the Trudeau government to cancel the project, due to concerns that it would inhibit the federal government’s ability to meet its 2030 and 2050 climate targets.

Pausing the project offers immediate relief to the Trudeau government, which was deeply divided over the oilsands mine. The prime minister has long sought to balance interests in both the environmental community and industry, arguing that Canada can both grow its economy while also meeting stringent international climate targets.

Major projects including oilsands mines need to be approved by the federal government before they can proceed.

During the election campaign Trudeau pledged that Canada would reach net-zero emissions by 2050. Ottawa is separately set to fall short of its 2030 commitments to reduce greenhouse gas emissions.

The economics of the Frontier megamine had long been in question after oil prices collapsed in 2014, making many large and heavy oil projects less viable. Some observers openly questioned whether the mine would ever be built.

But the decision also comes at a time of nearly unprecedented divisiveness over natural resource projects in Canada, as some First Nations bands and environmental advocates clash with project proponents.

Protestors have been blockading critical rail lines in Canada for more than two weeks, snarling major arteries for goods and commuters, in response to the Costal GasLink natural gas pipeline currently being constructed in northern B.C.

The pipeline, which would feed into a massive liquefied natural gas (LNG) project on the West Coast, also secured the support of elected First Nations living along the route. But a handful of Wet’suwet’en hereditary chiefs have opposed the project.

Similar protests are expected to erupt over the construction of the Trans Mountain pipeline expansion, now owned by Ottawa, which would transport oil products from Alberta to the Vancouver port.

Teck’s decision on Sunday came just after Alberta signed updated agreements two First Nations on Frontier, the Athabasca Chipewyan First Nation and Mikisew Cree First Nation. The Chipewyan had recently come out against the Alberta government’s handling of the file, and called for increased funding on several environmental efforts tied to the project.