According to a breaking story by CBC news, Western Canada based Teck Resources has withdrawn its application to build it's $20.6B oilsands project in Northern Alberta.

A story by Global news story further confirms Teck's plans to withdraw.

CEO and president Don Lindsay wrote in a letter addressed to federal Environment Minister Jonathan Wilkinson, posted to the company's website Sunday evening saying "We are disappointed to have arrived at this point, and that "Teck put forward a socially and environmentally responsible project that was industry leading and had the potential to create significant economic benefits for Canadians."

"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," he stated.

The feds were slated to make their decision on whether or not to approve the 260,000BPD Frontier project by the end of this month - a project expected to create some 7,000 jobs.

Ironically, news that Teck has pulled its bid for the proposed mine comes the same day a deal had been reached between the government of Alberta and a First Nation that had raised environmental concerns about the oil sands mining project. The company had secured community benefit agreements with all 14 of the First Nations who reside near the proposed mine.

However, pressure has been building on the Trudeau government to cancel the project namely around concerns that it would inhibit the federal government’s ability to meet its 2030 & 2050 climate targets.

"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," Lindsay wrote. "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."

As a result of this decision Teck will write down the $1.13 billion carrying value of the Frontier Project.

img: Teck.com