Teck withdraws Regulatory Application for Frontier Project
February 23 2020 - 9:21PM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) today
announced it is withdrawing the Frontier Project from the
regulatory review process.
Teck CEO and President Don Lindsay has written to
the federal Minister of Environment and Climate Change outlining
the reasons for the withdrawal. The letter is available
here and included below.
As a result of this decision Teck will write down
the $1.13 billion carrying value of the Frontier Project.
About TeckTeck is a diversified
resource company committed to responsible mining and mineral
development with major business units focused on copper,
steelmaking coal, zinc and energy. Headquartered in Vancouver,
Canada, its shares are listed on the Toronto Stock Exchange under
the symbols TECK.A and TECK.B and the New York Stock Exchange under
the symbol TECK. Learn more about Teck at www.teck.com or follow
@TeckResources.
Media Contact:Chris Stannell
Public Relations Manager604.699.4368chris.stannell@teck.com
Investor Contact:Fraser
PhillipsSenior Vice President, Investor Relations and Strategic
Analysis604.699.4621fraser.phillips@teck.com
Letter to Minister Wilkinson
Dear Minister:
I am writing to advise that after careful
consideration Teck has made the difficult decision to formally
withdraw our regulatory application for the Frontier oil sands
project from the federal environmental assessment process.
We are disappointed to have arrived at this point.
Teck put forward a socially and environmentally responsible project
that was industry leading and had the potential to create
significant economic benefits for Canadians. Frontier has
unprecedented support from Indigenous communities and was deemed to
be in the public interest by a joint federal-provincial review
panel following weeks of public hearings and a lengthy regulatory
process. Since the original application in 2011 we have, as others
in the industry have done, continued to optimize the project to
further confirm it is commercially viable.
Teck is extremely proud of the work done on this
project and the strong relationships that we have formed with local
governments, labour organizations, scientists, researchers and many
other stakeholders, as well as with affected Indigenous
communities. We believe that our agreements with Indigenous
communities on Frontier, and very recently the work undertaken by
the Alberta government with Indigenous communities in the region,
form an important foundation for the future, and we applaud them
for this milestone achievement.
However, global capital markets are changing
rapidly and investors and customers are increasingly looking for
jurisdictions to have a framework in place that reconciles resource
development and climate change, in order to produce the cleanest
possible products. 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. In that context, it is now evident
that there is no constructive path forward for the project.
Questions about the societal implications of energy development,
climate change and Indigenous rights are critically important ones
for Canada, its provinces and Indigenous governments to work
through.
I want to make clear that we are not merely shying
away from controversy. The nature of our business dictates that a
vocal minority will almost inevitably oppose specific developments.
We are prepared to face that sort of opposition. Frontier, however,
has surfaced a broader debate over climate change and Canada’s role
in addressing it. It is our hope that withdrawing from the process
will allow Canadians to shift to a larger and more positive
discussion about the path forward. Ultimately, that should take
place without a looming regulatory deadline.
Resource development has been at the heart of the
Canadian economy for generations. Resource sectors including the
Alberta oil sands create jobs; build roads, schools and hospitals;
and contribute to a better standard of living for all Canadians. At
the same time, there is an urgent need to reduce global carbon
emissions and support action on climate change.
As a proudly Canadian company for over 100 years,
we know these two priorities do not have to be in conflict. Our
nation is uniquely positioned with abundant natural resources
coupled with strong environmental regulations and a deeply
engrained culture of social responsibility. We can build on that
foundation and be a global provider of sustainable, climate-smart
resources to support the world’s transition to a low carbon future.
And yes, that can include low-carbon energy produced from the
Alberta oil sands from projects like Frontier, using best-in-class
technology, which would displace less environmentally and ethically
sound oil sources.
At Teck, we believe deeply in the need to address
climate change and believe that Canada has an important role to
play globally as a responsible supplier of natural resources. We
support strong actions to enable the transition to a low carbon
future. We are also strong supporters of Canada’s action on carbon
pricing and other climate policies such as legislated caps for oil
sands emissions.
The promise of Canada’s potential will not be
realized until governments can reach agreement around how climate
policy considerations will be addressed in the context of future
responsible energy sector development. Without clarity on this
critical question, the situation that has faced Frontier will be
faced by future projects and it will be very difficult to attract
future investment, either domestic or foreign.
Teck has not taken this decision lightly. It is our
hope that the decision to withdraw will help to create both the
space and impetus needed for this critical discussion to take place
for the benefit of all Canadians.
Sincerely,
Don Lindsay
President and Chief Executive Officer
Teck Resources Limited
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