MONTREAL, Feb 24, 2020 (BSS/AFP) – Canada’s Teck Resources said Sunday it
had withdrawn its application to develop a giant oil sands mine in western
Alberta, a controversial project which the federal government had been set to
vote on this week.
The Frontier project would have cost about Can$20 billion ($15 billion) and
had been expected to produce 260,000 barrels of oil per day.
But its impact on the environment had been denounced by environmentalists
and the region’s indigenous population: mine production would have generated
4.1 million tonnes of carbon dioxide a year, according to a study by the
Impact Assessment Agency of Canada.
The Vancouver-based natural resources company said in a press release it
had sent a letter to the environment minister explaining its decision.
“We are disappointed to have arrived at this point,” said Teck CEO Don
Lindsay in his letter to the government.
“Teck put forward a socially and environmentally responsible project that
was industry leading and had the potential to create significant benefits for
Canadians,” he wrote, adding his company sought to balance economic
development with environmental respect.
Lindsay said investors and consumers increasingly want a framework in place
that reconciles resources development and climate change.
“This 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,” Lindsay said.
“In that context, it is now evident that there is no constructive path
forward for the project.”
Environment Minister Jonathan Wilkinson and Natural Resources Minister
Seamus O’Regan said they appreciated that Teck had made a “difficult
decision.”
“A strong economy and clean environment must go hand in hand. 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,” they said in a joint statement.
“We agree with Teck and leading industry groups that all orders of
government need a real plan for climate action now and to reach a net zero
economy by 2050.”
Leaders of oil-producing Alberta province had considered the Frontier
project essential for the region’s growth and employment.
A decision would however have been particularly delicate for Prime Minister
Justin Trudeau, who when he was reelected in 2019 had pledged to make Canada
carbon-neutral by 2050.
Canada is currently gripped by indigenous protests that have blocked rail
lines for more than two weeks to oppose a natural gas pipeline being built
across indigenous lands in British Columbia.