Teck Won’t Build 52-mile Effluent Pipeline

Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) announced yesterday that based on a study filed by its subsidiary with the US District Court of Alaska, it will not exercise its option to build a 52-mile pipeline that “would direct effluent from Red Dog Creek to the Chukchi Sea.”

As quoted in the press release:

Teck Alaska conducted engineering, geotechnical, environmental and other studies to look at various pipeline options at a cost of $1.7 million. That work determined that an underground pipeline is not a technically feasible option because it would be vulnerable to breakage due to ground movement caused by seasonal ground freezing and thawing. Engineering and environmental studies determined that an above-ground pipeline is also not a viable option. While potentially technically feasible, there were no demonstrable environmental benefits, rather it was determined that there would be increased environmental risks and impacts associated with pipeline construction and operation, energy use and emissions, and potential effects on caribou migration. Further, the estimated US$261 million capital cost of an above-ground pipeline would be prohibitive. As stipulated in the Consent Decree, Teck will pay a civil penalty of $8 million in connection with the decision not to construct the pipeline.

Click here to read the full Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) press release.