Adams Lake sawmill at Chase, B.C., 1919. (Kamloops Museum)

B.C. forest companies get first test for new logging licence rules

Canfor, Interfor seek to transfer timber rights as Vavenby sawmill closes

B.C.’s forest companies are seeing their first test of the NDP government’s requirement to approve timber licence transfers, with a $60 million purchase of logging rights made available by the latest sawmill closure.

Canfor’s decision to close its Vavenby sawmill this week includes a deal to sell two licences in the Adams Lake area to Interfor, which owns the mill at Adams Lake. Interfor has applied to the B.C. forests ministry for the approval, required under legislation passed in May.

Interfor CEO Duncan Davies noted that the company spent $140 million modernizing Adams Lake in 2009, making it one of the most efficient in B.C. The companies are working with the province to maintain logging contractors and truckers in the region, as Vavenby’s closure affects 172 direct employees.

“This transaction materially enhances Adams Lake’s log supply and sets the stage for its future success in much the same way the investments made 10 years ago set the stage for its success over the last decade,” Davies said.

RELATED: Canfor announces closure of Vavenby sawmill

RELATED: West Fraser cuts production at five B.C. mills

When the legislation was debated, B.C. Forests Minister Doug Donaldson warned the industry that its purpose was to reduce the concentration of Crown forest licences in B.C., and Indigenous community involvement in licence transfers will be mandatory.

Donaldson said the previous B.C. Liberal government’s changes in 2003 “artificially constructed an asset for companies, that being forest tenure, that they can and have traded.” He cited the timber supply transfer between Canfor and West Fraser in 2013 that saw mills close at Houston and Quesnel, as the artificially high timber cut to salvage beetle-killed pine began to wind down.

Premier John Horgan has said the big players in B.C. are working with the new rules, but “the ones that wanted to get out of town with a big bag of money weren’t happy about it.”

Kelowna-Mission MLA Steve Thomson, the previous forests minister, said the NDP government is interfering in business decisions and increased reporting, based on a so-far undefined public interest.

“The processing facility operators are really going to be busy in a forest of forms and reports,” Thomson told the legislature.

West Fraser has announced one-week shutdowns this month at its mills in Quesnel, Williams Lake, Smithers and Fraser Lake, reducing capacity by 30 million board feet. It also cited high log cost and low prices, which have been aggravated by continued import duties imposed by the U.S.

Interfor’s Adams Lake lumber mill is at Chase, north of Salmon Arm. Canfor’s Vavenby operation is further north, near Clearwater and east of the Cariboo region, which has seen its own mill closures and tenure swaps.

Interfor announced in late May it is extending its reduced operating days at three B.C. Interior mills, at Castlegar, Grand Forks and Adams Lake. The curtailment is expected to reduce production by 20 million board feet during June, from mills with a total annual capacity of 750 million board feet.

The reduction was implemented in May, as Interfor joined other B.C. producers in adjusting for low lumber prices and high log costs. Canfor cited the same factors in its announcement to workers that Vavenby is closing this week.

On the B.C. coast, Surrey-based Teal Jones Group announced May 31 that its second-growth logging at Honeymoon Bay on Vancouver Island is shut down due to “excessive stumpage rates” charged by the B.C. government.

That will soon mean lost mill time and employment at Teal Jones’ mills in Surrey, where a shortage of logs has already resulted in the loss of four weeks of run time so far in 2019.

Teal Jones said in a statement it expects that when the Horgan government’s coastal revitalization plan reduces log exports, stumpage rates will be adjusted to reflect domestic milling.

“However, the changes to the stumpage system to reflect this reality will not come into place until 2020,” Teal Jones said. “In the interim, the mounting losses are requiring the company to curtail the second-growth harvesting operations.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Quesnel powerlifters compete against world’s best

Shalynn McCauley claimed gold at Orlando meet while Anthony Faggiani set records for his age group

Quesnel Prospectors Car Club hosting 24th Steak-Out this weekend

There will be a Rod Run Saturday at noon and a Show and Shine Sunday at 10 a.m.

Cow Moose Sign founder wants LEH for antlerless moose hunt in B.C. stopped

“Shooting a cow moose — it’s just not the right thing to do, especially in this region”

World’s number one trackchaser coming to Quesnel

Randy Lewis looks to add the Goldpan Speedway to his list of over 2500 race tracks visited

Oregon couple’s stolen truck located at Deep Creek, boat still missing

Jim and Kathy Jantz are thankful for the help they have received so far in Williams Lake

B.C. sockeye returns drop as official calls 2019 ‘extremely challenging’

Federal government says officials are seeing the same thing off Alaska and Washington state

Expanded support to help B.C. youth from care attend university still falling short

Inadequate support, limited awareness and eligibility restrictions some of the existing challenges

Ethnic media aim to help maintain boost in voting by new Canadians

Statistics Canada says new Canadians made up about one-fifth of the voting population in 2016

Cross-examination begins for B.C. dad accused of killing young daughters

Andrew Berry is charged in the deaths of six-year-old Chloe and four-year-old Aubrey in 2017

Dog attacked by river otters, Penticton owner says

Marie Fletcher says her dog was pulled underwater by four river otters in the Penticton Channel

BC SPCA overwhelmed with cats, kittens needing homes

Large number of cruelty investigations, plus normal ‘kitten season’ to blame

B.C. Hydro applies for rare cut in electricity rates next year

Province wrote off $1.1 billion debt to help reverse rate increase

Speculation tax forces sale of Greater Victoria’s iconic ‘Tulip House’

Bob and Jan Fleming selling their retirement home famous for its thousands of tulips

Most Read