Fort St. James should expect a brand new sawmill within the next three years as agreed upon with the B.C. government last week.
On Friday (Oct. 25), Forests Minister and Skeena MLA Doug Donaldson approved the license transfer from Conifex’s operations in the District to Hampton Lumber after both companies entered a $39 million purchase agreement on June 24 this year.
The agreement also included the market value of any finished lumber and log inventory at the official closing of the sawmill.
Donaldson believes the purchase and subsequent transfer is in the best interest of local and provincial residents.
“I’m happy with the seriousness with which Hampton approached this process and its willingness to work with First Nations, local governments and the workers in the region,” he said in a release this morning (Oct. 28).
“This is the first approval of a tenure transfer under the recent legislative amendments. As such, I’m confident this approval will help the people of B.C. and support a vibrant and diverse forest sector.”
A transfer condition includes a new mill to be built in Fort St. James within 36 months of the transaction, but meetings still need to take place between Hampton Lumber and the local United Steelworkers and local logging contractors.
“I approved this tenure transfer under changes to the Forest Act this government passed in the spring legislative session in Bill 22,” adds Donaldson.
“Before the Bill 22 changes, government had little say when companies wanted to trade or sell tenure. Now, those companies must be fully engaged with First Nations, workers and local governments before any tenure transfer would be considered. This is one sizeable step in making sure that the people who live near the forests are first in line to benefit from that resource.”
Back in June, Conifex Chair and CEO Ken Shields said in a separate release his company knew for some time the B.C. lumber industry rationalization was ‘inevitable.’
"The decision we have taken to sell the mill was extremely difficult; however, we are encouraged by Hampton’s plans for the site. We believe this transaction supports the province’s objectives for industry rationalization that is mindful of the impacts on people, communities and First Nations. We sincerely thank our employees, contractors and other stakeholders for their hard work and contribution to the site over the past decade."
Conifex says money from the transaction will be mainly used to retire debt and to provide additional liquidity to help better and optimize performance and value at its other locations.
- with files from Jess Fedigan, PrinceGeorgeMatters
