Vancouver-based Teck Resources has withdrawn its application to build a massive oilsands project in northern Alberta.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.
The announcement 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.
Alberta Premier Jason Kenney said on Friday that if Teck was vetoed by the federal government, it would sent a devastating message to prospective investors.
On Friday, Teck released disappointing fourth quarter results, saying global economic uncertainty negatively impacted commodity prices.