Demonstrators rallied against Teck’s Frontier mine in Alberta outside the office of Environment Minister Jonathan Wilkinson in North Vancouver on Jan. 20, 2020. (Indigenous Climate Action)

Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

Don Lindsay speaks at mining conference, a day after announcing suspension of oilsands project

Tensions over Indigenous rights, climate change and resource development that have escalated recently with the rail blockades helped push Teck Resources Ltd. to shelve its massive oilsands project, company CEO Don Lindsay said Monday.

“Literally over the past few days, it has become increasingly clear that there is no constructive path forward,” he said, speaking at a mining conference in Florida about the company’s decision to suspend its Frontier project in Alberta.

“The project has landed squarely at the nexus of a much broader national discussion on energy development, Indigenous reconciliation, and of course climate change, so we are stepping back to let Canada have this important discussion without a looming regulatory deadline for just one project.”

The Vancouver-based company said it will take a $1.13-billion writedown on the Frontier project, which was expected to create an estimated 7,000 construction jobs, 2,500 operating jobs and about $12 billion in federal income and capital taxes, but was also expected to produce about four million tonnes of greenhouse gas emissions per year over 40 years.

Teck’s decision comes only days before the federal government was expected to make a decision on the $20-billion project, though the future of Frontier was still uncertain enough that analysts did not factor it into their valuation of the company.

Lindsay said Teck has no timeline for any potential resubmission for the project and that it will focus on its priority projects.

Opposition Leader Andrew Sheer put the blame for the suspension squarely on Prime Minister Justin Trudeau and his inaction on the rail blockades.

“There’s a direct link to Justin Trudeau’s weak leadership on these illegal blockades and Teck’s decision. Make no mistake, Justin Trudeau killed Teck Frontier.”

Alberta Premier Jason Kenney said the decision shows what happens when governments lack the courage to defend the interests of Canadians, pointing to the blockades in opposition to RCMP presence on Wet’suwet’en territory, where hereditary chiefs oppose the Coastal GasLink natural-gas pipeline project.

“Teck’s predicament shows that even when a company spends more than $1 billion over a decade to satisfy every regulatory requirement, a regulatory process that values politics over evidence and the erosion of the rule of law will be fatal to investor confidence,” he said.

READ MORE: Nobel Prize winners urge Trudeau to deny Teck Frontier oilsands project

Industry Minister Navdeep Bains said the decision underscores the importance of all levels of government to work together on ambitious climate targets, including net zero emissions by 2050.

“Canadians don’t want finger pointing, they want us to work together, they want us to collaborate, they want us to have a concrete plan to address climate change, and I think we have a responsibility because it’s important of course for the well being of Canadians, it’s also important for businesses and investors as well.”

Fourteen First Nations and Metis communities had signed participation agreements with the company on the mine, some of which expressed shock at the decision.

The group Indigenous Climate Action, however, said the decision is a win for Indigenous rights, sovereignty and the climate.

News of the withdrawal helped send the company’s shares down about four-and-a-half per cent in afternoon trading on the Toronto Stock Exchange amid wider losses in the market, but the impact was tempered because of the overall uncertainty that had been surrounding the project.

The Canadian Press

Like us on Facebook and follow us on Twitter

Oilsands

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Langley hospice mission continues amid COVID-19 crisis

Technology is being used to reach out to people in need of help with grieving

Churches offer food hampers for low income families at Thursday pickup event

Efforts support Langley School District Foundation’s Food for Thought programs

Painful Truth: Missing that crowded feeling

We’re in this together, but we’re also alone

VIDEO: Langley homeowner surprised by outcome of assessment appeal

After a property next door was assessed lower, she won a reduction, but so did the other owner

‘We don’t need this right now’: B.C. man breaks up road rage incident

Two men were throwing punches on Tillicum Road in Saanich on Vancouver Island

COVID-19: ‘The Ballad of Bonnie Henry’ recorded and released

LISTEN: Quick turnaround for song penned by B.C. Order of Canada musician Phil Dwyer

UFV student nurses offering respite to frontline nurses, care aides

Website helping to match volunteers with those who need help with daily errands

B.C. adding $300 to monthly income and disability assistance payments

‘Crisis supplement’ for COVID-19 for April, May and June

‘A matter of human decency’: Truckers’ union calls on gas stations, rest stops to fully re-open

Teamsters Canada wants feds, provinces to put pressure on facilities to re-open for transport workers

Migrant worker advocates blame feds, employers for COVID-19 outbreak at B.C. garden store

Migrant farm worker group calls on government for adequate health and safety requirements

Fraser Valley care home has two confirmed cases of COVID-19

Two residents at Mission’s Chartwell Cedarbrooke Retirement Residence have been diagnosed

‘There can be no ambiguity’: Travellers brought home to B.C. must self-isolate

Health Minister Adrian Dix said the mandatory isolation must be abided by

Most Read