OTTAWA - Environmentalists howled and industry rejoiced Thursday when the Harper government, in apparent defiance of the United Nations climate conference in South Africa, approved a major oilsands project set to begin production in northern Alberta in 2018.
Natural Resources Minister Joe Oliver gave industry even better news when he said the time it took Total E&P Canada to get its $7- to $9-billion Josyln North project approved – six years – should be cut to two years for future projects.
“It is crystal clear that we need to put an end to unreasonable delays – delays that can jeopardize the viability of projects like Joslyn and harm our reputation as an attractive place to do business,” Oliver told reporters.
The construction of the Joslyn North Mine will inject up to $9 billion in new capital investment across the country and generate $10 billion in revenues for the federal and Alberta governments over 40 years, according to Oliver.
The approval of Total E&P Canada’s project during the United Nations climate summit in Durban, where Canada has been slammed for foot-dragging on greenhouse gas emission reductions, “is like poking the international process in the eye,” said Gillian McEachern of the group Environmental Defence.
“This decision will mean another one and a half million tonnes of greenhouse gas pollution each year, the equivalent to putting over 270,000 cars on the road. This represents the wrong direction if Canada is serious about tackling global warming.”
Green party leader Elizabeth May, in a statement from Durban where she’s attending the COP 17 climate summit, said the announcement provides further evidence Harper doesn’t take climate talks seriously.
“Why did the federal cabinet wait 10 months from when the request for approval was forwarded to them to approve the Joslyn Mine during COP17?” she said.
“What kind of message does that send to all of the countries that are negotiating for our future here?”
Greenpeace Canada’s Mike Hudema said the approval shows the Harper government “is more concerned with oilsands company profits than the health and well-being of communities and the environment.”
Industry expressed gratitude the government is looking for ways to speed up project approvals.
“I’m pretty sure a lot can be done to streamline or optimize those long processes,” said Total E&P Canada President Jean-Michel Gires, noting the Joslyn approval process that began in early 2006 was “very long.”
Mining Association of Canada President Pierre Gratton issued a statement praising the government’s approval and its regulatory reform plans.
“We have a tremendous opportunity before us; with nearly $140 billion of potential investment in new and expanded mining projects from coast to coast to coast forecast over the next five to 10 years,” Gratton said.
“We need to think strategically to address key challenges like regulatory efficiency, skills shortages and infrastructure requirements.”
The mine property is located 65 kilometres northwest of Fort McMurray, and will involve a 221-square- kilometre area of land to be mined over a 20-year period.
Total E&P Canada, a subsidiary of the Paris-based energy giant Total SA, acquired the property in 2005 and is the lead operator. It is partnering with Suncor Energy, Occidental Petroleum and Inpex Canada.
A joint environmental assessment panel, which included representatives from the federal government and the Alberta Energy Resources Conservation Board, concluded in January the project is feasible.
But federal departments took nearly a year to go through the report and come up with environmental mitigation measures before the project received final approval.
The mine is scheduled to begin operations in 2017 and will produce up to 100,0000 barrels of bitumen a day, and yield a total of 874 million barrels, according to Total’s website.
Construction cost is estimated by the company at $7-$9 billion, with the construction workforce expected to peak at 4,100 workers.
Total direct, indirect and “induced” employment will total 42,000, according to the website.
The website said the project is “designed to be environmentally responsible.”