Police and safety officials told the Edmonton Journal that a pickup truck collided with a heavy hauler shortly before 9am, with the driver of the pickup truck killed from the resulting explosion.
CNRL said operations were suspended immediately in the mining area and it was working with authorities to conduct an investigation into the cause of the crash.
The victim's name and age have not been released. The oil sands operation is 120km north of Fort McMurray.
Canadian oil sands company Suncor Energy has recorded four workplace fatalities in 2014 with the most recent occurring in early June.
