Vancouver-based Teck Resources has withdrawn its application to build a massive oilsands project in northern Alberta.
The federal government was slated to make a decision on whether or not to approve the $20.6-billion, 260,000-barrel-per-day Frontier project next week.
Sources close to the project confirmed to CBC News the application was withdrawn.
“We are disappointed to have arrived at this point,” CEO and president Don Lindsay wrote in a letter addressed to federal Environment Minister Jonathan Wilkinson, posted to the company’s website Sunday evening. “Teck put forward a socially and environmentally responsible project that was industry leading and had the potential to create significant economic benefits for Canadians.”
Lindsay wrote that customers want policies that reconcile resource development and climate change — something that Canada has yet to achieve.
“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. In that context, it is now evident that there is no constructive path forward for the project,” he wrote.
Company isn’t shying from controversy, CEO says
But, he said he wanted to make it clear the company isn’t shying away from controversy.
“The nature of our business dictates that a vocal minority will almost inevitably oppose specific developments. We are prepared to face that sort of opposition,” he wrote. “Frontier, however, has surfaced a broader debate over climate change and Canada’s 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.”
Following Teck’s announcement, Wilkinson and Natural Resources Minister Seamus O’Regan confirmed in a joint statement that cabinet will no longer be making a decision on the project.
“As Teck has rightly pointed out, and as many in the industry know, global investors and consumers are increasingly looking for the cleanest products available and sustainable resource development,” the statement read.
The ministers wrote that Teck had done leading work on Frontier, including efforts to engage with local Indigenous communities.
“Their model should be an example for all proponents of future projects,” the statement read.
The news came just hours after the Alberta government announced it had struck deals with two First Nations over the proposed project, which would have been located 110 kilometres north of Fort McMurray.
The province said the agreements with the Mikisew Cree and Athabasca Chipewyan First Nations address bison and caribou habitats and protect Wood Buffalo National Park.
In July 2019, a joint federal-provincial review panel recommended the mine be approved, saying the economic benefits outweighed what it described as significant adverse environmental impacts.
Teck’s website states the project would have created 7,000 construction jobs, require up to 2,500 workers to operate, and bring in more than $70 billion in government revenue.
But the project was expected to produce about four million tonnes of greenhouse gas emissions per year over its 40 year lifespan, and disturb 292 square kilometres of pristine wetlands and boreal forest — although that whole area wouldn’t be mined at once.
“The promise of Canada’s potential will not be realized until governments can reach agreement around how climate policy considerations will be addressed in the context of future responsible energy sector development,” Lindsay wrote. “Without clarity on this critical question, the situation that has faced Frontier will be faced by future projects and it will be very difficult to attract future investment, either domestic or foreign.”
Alberta Premier Jason Kenney, pictured in this file photo, pinned the blame for the project’s cancellation on Ottawa. (Mike Symington/CBC)
Premier blames Ottawa’s response to blockades
Alberta Premier Jason Kenney described Teck’s announcement as a grave disappointment for Albertans, but said it didn’t come as a surprise.
“It is what happens when governments lack the courage to defend the interests of Canadians in the face of a militant minority,” Kenney said in an emailed statement, pointing to what he described as weeks of federal indecision on blockades in solidarity with those opposed to the Coastal GasLink pipeline.
“The timing of the decision is not a coincidence. This was an economically viable project, as the company confirmed this week, for which the company was advocating earlier this week, so something clearly changed very recently.”
The premier wrote that the province agreed to federal requests and conditions for approving the project.
“The factors that led to the today’s decision further weaken national unity.… We did our part, but the federal government’s inability to convey a clear or unified position let us, and Teck, down,” Kenney said.
Keith Stewart, senior energy analyst with Greenpeace Canada, said he was surprised by Teck’s decision to withdraw the project but believes it is the right one.
“This project never made economic sense; it didn’t make climate sense; it wasn’t really going to happen,” Stewart said in an interview.
“So I’m glad that we can now actually focus on real projects that will create good jobs in Alberta, across the country, fighting climate change.“
Stewart said the decision is evidence that investors are increasingly not only concerned about climate change but putting their money where their mouth is.
“This was a project that might have made sense 10 years ago. It certainly doesn’t today,” he said.
On Friday, Teck released disappointing fourth quarter results, saying global economic uncertainty negatively impacted commodity prices.
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.
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.
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.
