Teck withdraws C$20.6 billion application for oil sands Frontier project
Canada’s Teck Resources Ltd. pulled back the request to build a C$20.6 billion ($15.7 billion) Frontier oil sands mine in Alberta, which had been heavily criticized by environmentalists and indigenous groups and is on the final stage of decision for approval.
Teck said that it would write down the project’s C$1.13 billion ($852.12 million) carrying value.
Teck Chief Executive Don Lindsay, in behalf of the company, sent a letter to Canada’s environment minister, wherein it stated that the company was “disappointed to have arrived at this point”.
The mine’s approval was supposedly to be decided on Tuesday, since becoming a test on Canada’s commitment to reducing greenhouse gas emissions and strengthen relations with Canada’s indigenous people.
The mine could have produced 260,000 barrels of crude oil each day at full capacity.
The Canadian miner warned of potential exit from oil sands and reminded of a potential C$1.13 billion loss to Trudeau’s government if rejection is pushed.
The decision was critical to Trudeau, who made a pledge to lead Canada in net zero greenhouse gas emissions in the 2019 elections.
Trudeau’s Liberals lost all their seats in Alberta, where the project was considered a stimulant to growth and employment.
Alberta Premier Jason Kenney said on a tweet that Teck’s withdrawal of application was a devastating news to Canada’s economy, to Alberta, and its indigenous people.
Recently, protesters blocked railway lines in Alberta, Ontario, and Quebec to show solidarity with British Columbia aboriginals in blocking the construction.