Teck Resources Limited has withdrawn its application for a massive oilsands mining project in northern Alberta.

In a letter to federal Environment Minister Jonathan Wilkinson, Teck's C-E-O and President Don Lindsay said the company was disappointed to arrive at the decision.

“Teck put forward a socially and environmentally responsible project that was industry-leading and had the potential to create significant economic benefits for Canadians,” wrote Lindsay.

“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.”

Teck said investors and customers increasingly want jurisdictions to have a framework in place that reconciles resource development and climate change.

“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,” said Lindsay. “In that context, it is now evident that there is no constructive path forward for the project.”

The company said it will take a $1.13-billion writedown on the project. The Teck Frontier oilsands mine was expected to create 7,000 construction jobs, 2,500 operating jobs, and brought in more than $70 billion in government revenue.

Alberta Premier Jason Kenney called the announcement a grave disappointment to Albertans, and believes the decision likely had a lot to do with the protests, blockades and rallies against the Coastal Gas Link LNG project in northern B.C.

“Teck’s decision is disappointing, but in light of the events of the last few weeks it is not surprising. It is what happens when governments lack the courage to defend the interests of Canadians in the face of a militant minority,” he said.

“Weeks of federal indecision on the regulatory approval process and inaction in the face of illegal blockades have created more uncertainty for investors looking at Canada. Teck’s predicament shows that even when a company spends more than $1 billion over a decade to satisfy every regulatory requirement, a regulatory process that values politics over evidence and the erosion of the rule of law will be fatal to investor confidence.”

Several First Nations groups, 14 of them, had signed on to the project, with two signing just 48 hours before the announcement.

“The Mikisew Cree First Nation and the Athabasca Chipewyan First Nation both signed historic agreements with the Government of Alberta, which would have made them partners in the prosperity of the Frontier project, bringing hundreds of jobs and tens of millions of dollars to their remote communities,” Kenney said.

The Premier said the decision and reasoning behind it highlight issues around national unity. He said it also underscores the UCP government’s plans to fight for greater control and autonomy over Alberta’s natural resources.

“The Government of Alberta agreed to every request and condition raised by the federal government for approving the Frontier project, including protecting bison and caribou habitat, regulation of oilsands emissions, and securing full Indigenous support,” said the Premier. T

“The Government of Alberta repeatedly asked what more we could do to smooth the approval process. We did our part, but the federal government's inability to convey a clear or unified position let us, and Teck, down.”

Teck said its decision to drop the project did not come lightly and believes addressing climate change and responsible resource development can go hand in hand. But, the company also had a warning about the need for consensus and consistency when it comes to climate policy.

“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,” said Lindsay in his letter to the federal minister. “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.”