Canadian miner Teck Resources has withdrawn an application to develop its C$20.6 billion ($15.7 billion) Frontier oil strands mine in Alberta, days before the federal government was to determine whether to clear a project questioned by green groups and indigenous groups.
Teck stated Sunday it could write down the C$1.13 billion ($852.12 million) carrying value of the venture.
The corporation issued a letter by Teck CEO Don Lindsay to Canada’s environment minister, stating Teck was “disappointed to have arrived at this stage”.
The destiny of the mine, which was first recommended in 2011, was anticipated to be determined next week in what had become a trial of Canada’s promise to cut back greenhouse gas emissions and restore ties with the nation’s indigenous people.
At full capacity, the mine would have pumped 260,000 barrels of crude oil a day, making it one of the largest in Alberta’s carbon-intensive oil strands.
On Friday, the Canadian miner buoyed a potential departure from the oil sands and notified of the possible C$1.13 billion blow should PM Justin Trudeau’s government dismiss the Frontier bitumen mine.
The decision was a complex one for Trudeau, who made a 2019 election promise to put Canada on the trail to reach net-zero greenhouse gas emissions by 2050.
But grief with the government’s energy and pipeline policy cost Trudeau’s Liberals all their seats in Alberta, where the venture was considered necessary for employment and growth.
In recent weeks, protesters have blocked railway lines in Ontario, Quebec and Alberta in unanimity with a British Columbia aboriginal band seeking to cease the development of a gas pipeline over its land.