Teck's $20B Frontier oilsands project heads to joint review hearing

If it's true that the era of mega oilsandsprojects is coming to an end,one proposed project stands as an outlier.

On the heels of the grand opening this month of Suncor's$17-billion Fort Hills facility, another proposed mega-mine promisesto employ thousands,invest billions and challenge prevailing views that the big mine is dead.

TeckResources Ltd.'s Frontiermine project undergoes its first day of public hearings in Fort McMurray on Tuesday before a joint review panel established by the Canadian Environmental Assessment Agency and the Alberta Energy Regulator.

The hearing is expected to last five weeks.

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The mine promises to employ7,000 workers during construction and 2,500 workers for its day-to-day operations.

Located 110kilometres north of FortMcMurray, it will cost about $20.6 billion to build, Tecksays, and pay out $66 billion in taxes and royalties to Canadian governments over the 41-year life of the mine.

Although only sections of the mine's colossal footprint would be used at any given time, and reclamation would begin immediately, a pristine area half the size of Edmonton would be disturbed by the time its operations close in 2066.

The 292-square-kilometre project area overlaps with traditional Indigenous territory and a reserve for the threatened Ronald Lake bison herd.

'Not dependent on any particular pipeline'

The drop in oil prices and the lack of pipeline access have puta chill on prospective oilsandsactivity.Suncor, one of the owners of Fort Hills and the mine's main operator, has saidit won't pursuenew miningprojects until Canada resolves its pipeline gridlock.

Suncor CEO Steve Williams on a new generation for the Alberta oilsands

6 years ago

Duration 1:54

'It's unlikely there will be projects of this type of scale again,' said Williams about the company's new $17 billion Fort Hills oilsands mine.

Despitethe gloomy outlook and a federal court ruling halting the construction of the Trans Mountain pipeline expansion,TeckResourcessaid Fridayit will proceed with the development of the mine if it gets approval from thejoint review panel.

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"Frontier is not dependent on any particular pipeline," said Doug Brown, the company's director of public affairs. "But at a high level, we are supportive of having increased market access for Canadian energy products."

Teck wouldn't say at what priceit would need to sell a barrel of oil to be profitable. Pending regulatory approval and the company's final blessing,construction would start in 2019.

OilsandsanalystKevinBirnsaid he's optimisticTeckResourcesintends to follow through with its plans.

"The fact that they've continuedthrough the regulatory process, and the regulatory processes are not cheap, I think it's an optimistic or positive way to view it," saidBirn, director of energy for IHSMarkit.

The company'sdiverseportfolioandTeck'swideexperiencewith miningsuggest the company can weatheruncertain markets, Birnsaid.

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And by the time the mine achieves first oil in 2026, Canada should have a new pipeline to take its bitumen to tidewater, Birnpredicted.

"These projects don't turn on overnight," he said. "A lot of the current sentiment in the market around Western Canada oil production and the oilsandsis linked to pipelines.

"This project can hopscotch a lot of that noise because the timing that it would actually be on would hopefully be well after."

'A turning point' for Indigenous groups

Teck is also navigating the challenges of Indigenous consultation and consent.

The company boasts it has secured12participation agreements with the region's Cree, Dene and Mtiscommunities a record for oilsandsprojects of itssize.

In September, Teck inked its latest deal with the Athabasca Chipewyan First Nation.

In a news release, the First Nation, which considers itself to be"the most directly impacted" by the agreement,said the agreement"marks a turning point."

Teckand the band have agreedto protect endangeredmigratory birds,wood bison andwoodland caribou, and restrictwater withdrawals from the Athabasca River during dry periods.

The agreement also makes provisions for scientific monitoring and offers employment opportunities.

"It is never easy to make these agreements," the band's chiefnegotiator, Pat Marcel, said in the release.

"But we're confident that we struck a balance of protecting our lands and treaty rights, while also securing a prosperous future for our children and grandchildren."

First Nation: The government needs to do its job

ButtheMikisewCreeFirst Nation, whose traditional lands intersect with the project area, has not signed an agreement withTeck.

Discussions between the band and the mining company are continuing, said Melody Lepine, director of the Mikisew Cree's government and industry relations office.

Lepine said the company has made strides to satisfy the First Nation'sconcerns, butsaid the federal and provincial governments havefailed to ensuretheir wildlife and cultural heritage will beprotected.

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The Mikisew Creewantto see a buffer zone created between the mine and the neighbouring Wood Buffalo National Park, a world heritage site that UNESCO has said is in danger.

"That shouldn't be the job of industry," Lepine said. "Really it is the role of government to ensure those policies are there and adhered to by industry."

Lepine and others said they hope, if approved, the project will contain a number of recommendations on how the government will act to address their outstanding concerns.

Connect with David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitter,LinkedInor email him atdavid.thurton@cbc.ca