Teck is a huge mining company. Its key priorities are expanding the Quebrada Blanca copper mine in Chile, upgrading the supply chain for its steelmaking coal business, improving its innovation program and cutting costs. The Frontier project is not a key priority, it is merely one of many “future options”.
This is not surprising given that energy is Teck’s least profitable business unit. Gross profit by business unit in 2018 was: 62% coal, 22% copper, 18% zinc and minus 2% energy.
So when the Teck CEO says if Frontier is approved that’s no guarantee it’s moving ahead, he means it.
But that’s not how Mr Kenney will paint the picture. Even if the feds approve Teck, Mr Kenney will find a way to blame them if Teck decides to forgo Frontier in favour of more profitable ventures elsewhere.
Mr Kenney has painted himself into a corner. He’s convinced Albertans that our economy will be driven by nothing but energy for a long time to come and that energy investment is driven by government policy and not global markets. Therefore, when his energy-centric government policies fail to produce the desired result because multi-national players would rather invest elsewhere, Kenney needs someone (other than himself) to blame for Alberta’s faltering economy.
Trot out Trudeau (again). And just in case Albertans are starting to understand that an economy that puts all its eggs in one basket is not sustainable in the 21st century, Mr Kenney will amp up the emotion but accusing Trudeau of sticking it to Alberta just for the fun of it.
The longer Albertans continue to believe Mr Kenney’s rhetoric, the harder it will be for us to move ahead.
Why Is It Always Someone Else's Fault?
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