Why Teck Resources decided to shelve its controversial oilsands project

On Monday morning, hours after Teck Resources Ltd. announced it would withdraw its application to build the largest oilsands mine in Albertan history, the company’s chief executive Don Lindsay blamed politics, not economics, for the project’s demise.

Prime Minister Justin Trudeau’s cabinet was expected to make a decision on whether to issue a permit for the project within the next month, and Alberta Premiere Jason Kenney had said it would have a “devastating effect” if the project were rejected, and likely further exacerbate feelings of Western alienation in his province. But in the end, Teck voluntarily removed itself from the permitting process, citing the need for clearer policies around climate change.Blackrock Inc.

He wrote that there is disagreement among provincial governments and the federal government over such policies — Alberta has sued the federal government to challenge its carbon pricing laws — and said the lack of clarity could deter investment in Canada. If the oil price was higher and other companies were chomping at the bit for new projects, maybe this makes sense.

Orest Wowkodaw, an analyst at Scotia Capital Inc, wrote Monday that he had ascribed “a very low probability” to the chance of the Frontier mine being built, and thus gave it “zero value” in his financial modelling. Given that political controversies around new energy production appear to have reached a peak, there was little upside for Teck to continue seeking a regulatory permit at this time and risk a possible rejection, he said.

It is fairly obvious as to why Teck decided to shelve its oilsands project. Better to shelve it now, rather than have it cancelled totally by the Trudeau Looters.

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Teck Resources pulling application for Frontier oil sands mineThe Teck mine had already passed a lengthy regulatory review and Ottawa was expected to decide this week whether to approve the project The board made a decision citing public safety concerns? Trudeau's support for the illegal blockaders is why the Teck mine was cancelled. God is punishing Canada with a horrible leader like Justin Trudeau. Here we go. All the nut jobs are going to be redlining tonight. cdnpoli
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Teck Resources withdraws application for major Alberta oilsands projectCTV always the last to break 🚨. JustinTrudeau would you mind doing somthing this week maybe? Not only are you ruining the country now but also for my children's future country. Try drama teaching again and then work your way back up!!!!! kinsellawarren says that PMO directed Teck to withdraw as Liberal Caucus was in revolt. This makes this another example of Trudeau incompetence. RuleOfLaw
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A timeline of the Frontier mine that Teck Resources shelved amid national anti-pipeline protestsThe project began more than a decade ago, in March 2008 and had just received clearance from two First Nations bands The First Nations are shooting themselves in the foot. Indigenous people could be thriving in Canada. And alllll cash transfers to FN... stop The withdrawal letter from Teck CEO Don Lindsay does not mention pipeline protests.
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Teck Resources pulls Frontier oilsands mine project, blaming divisive debate over climate changeFor Alberta, which has struggled with the downturn in oil prices since 2014, Frontier would have been a boon Poke in the eye for Trudeau. Too much political unrest with a very weak P.M. You guys pick and choose what to put in your headline. Is that the principal reason it was dropped or the fact that the market doesn't dictate the investment? Divisive debate. Translation : Inept leadership
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