B.C. grants timber licence in exchange for mill in Fort St. James
Credit to Author: The Canadian Press| Date: Mon, 28 Oct 2019 19:22:57 +0000
The B.C. government has approved the transfer of a forest licence to Fort St. James Forests Products on the condition that the company build a new mill in the town that recently declared a financial crisis.
Forests Minister Doug Donaldson says he approved the transfer of the forest licence and associated road permits from Conifex Timber Inc. after determining it was in the public interest. Donaldson says in a statement that the firm’s parent company has committed to building a new mill in Fort St. James that will be in operation within 36 months of the closing of the Conifex transaction.
Conifex shut down its sawmill in May and then sold the mill and timber rights to Hampton a month later in a deal worth $39 million, plus the log inventory.
In July, Fort St. James Mayor Bev Playfair declared a local state of financial crisis because the mill was the town’s major employer and its closure would devastate the community.
This is the first such approval under legislative changes to the Forest Act this spring that ensures companies engage with First Nations, workers and local governments before a tenure transfer would be considered by government.