Jeff McIntosh/The Canadian Press An aerial view of Fort Chipewyan, near the planned site of Teck Resources' Frontier oilsands mine, seen on Dec. 15, 2010.

CALGARY — A federal-provincial panel says a proposed northeastern Alberta oilsands mine would be in the public interest, even though it would likely significantly harm the environment and Indigenous people. Vancouver-based Teck Resources Ltd. aims to build the $20.6-billion Frontier mine near Wood Buffalo National Park in two phases. Its total capacity would be 260,000 barrels of oil a day. More than 290 square kilometres of land would be disturbed. Teck has said it aims to start producing oil in 2026, with the mine lasting for more than four decades. Watch: Oilsands worker discusses impact of automation in Alberta. Story continues below.

“While the panel has concluded that the project is in the public interest, project and cumulative effects to key environmental parameters and on the asserted rights, use of lands and resources for traditional purposes, and culture of Indigenous communities have weighed heavily in the panel’s assessment,” said the report released Thursday. It said the project would likely result in significant adverse effects to wetlands, old-growth forests and biodiversity, as well as to Indigenous people in the area. “The proposed mitigation measures have not been proven to be effective or to fully mitigate project effects on the environment or on Indigenous rights, use of lands and resources, and culture.”