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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Homalco First Nation said that it will intervene in the judicial review sought by aquaculture companies with regards to federal decision to phase out 19 Discovery Island fish farms by 2022. In this picture from Sept. 24, a demonstrator wears representations of sea lice outside the Fisheries and Oceans Canada offices in downtown Vancouver.(Quinn Bender photo)
Aquaculture companies’ judicial review challenges reconciliation and Aboriginal Rights: First Nations

Homalco First Nation chief reacts to Mowi and Cermaq intervention in Discovery Island decision

Oyster River Fire Rescue members were called out to a suspicious fire in Black Creek. Two vehicles parked at a private residence were destroyed by fire. Photo courtesy Oyster River Fire Rescue
Suspicious fire destroys two vehicles at Black Creek residence

Oyster River Fire Rescue personnel were dispatched to a fire at a… Continue reading

CSWM will be closing the landfill in Campbell River and opening the organics composting facility in 2022. In the meantime, the City of Campbell River was hoping for a break on yard waste drop-off for residents. Black Press file photo
Comox Strathcona waste board upholds yard waste drop-off fee

Campbell River had hoped for waiver until new organics facility opens

An Atlantic salmon is seen during a Department of Fisheries and Oceans fish health audit at a fish farm near Campbell River, B.C. in 2018. Mowi Canada has applied to the Federal Court of Canada for a judicial review of the decision by Fisheries Minister Bernadette Jordan to phase out salmon farming in the Discovery Islands by June, 2022. (Canadian Press/Jonathan Hayward photo)
Major B.C. salmon farms seek court intervention in Discovery Islands ban

Fisheries minister is phasing out operations in the area by June 2022

An Atlantic salmon is seen during a Department of Fisheries and Oceans fish health audit at the Okisollo fish farm near Campbell River, B.C. on Oct. 31, 2018. Several Vancouver Island mayors and members of British Columbia’s salmon farming industry say a federal decision to phase out fish farming has left them feeling “disposable and discarded.” In a letter to Fisheries Minister Bernadette Jordan, they say they weren’t consulted before she announced a plan to phase out open-net pen fish farming in the Discovery Islands over the next 18 months. THE CANADIAN PRESS /Jonathan Hayward
Strathcona Regional District pens letter to Trudeau about fish farm closure

Minister Jordan, MLA Babchuk and MP Blaney also included in letter

Maj.-Gen. Dany Fortin, vice-president of logistics and operations at the Public Health Agency of Canada, speaks at a news conference on the COVID-19 pandemic in Ottawa, on Friday, Jan. 15, 2021. THE CANADIAN PRESS/Justin Tang
B.C. records 500 new COVID-19 cases Wednesday, 14 deaths

Outbreak at Surrey Pretrial jail, two more in health care

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

A suspect has been arrested in connection with fires at Drinkwater Elementary (pictured) and École Mount Prevost. (Kevin Rothbauer/Citizen)
Arson suspect arrested after fires at Cowichan Valley schools

Drinkwater Elementary and Mount Prevost schools hit within a week

A woman writes a message on a memorial mural wall by street artist James “Smokey Devil” Hardy during a memorial to remember victims of illicit drug overdose deaths on International Overdose Awareness Day, in the Downtown Eastside of Vancouver, on Monday, August 31, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. paramedics respond to record-breaking number of overdose calls in 2020

On the front lines, COVID-19 has not only led to more calls, but increased the complexity

Nanaimo RCMP are seeking the public’s help after a man allegedly assaulted a clerk at James General Store on Victoria Road on Jan. 18. (Submitted photo)
Suspect screams at customer then assaults store clerk in Nanaimo

RCMP asking for information about Jan. 18 incident at James General Store

Chartwell Malaspina Care Residence in Nanaimo. (News Bulletin file photo)
Two Nanaimo care-home residents have died during COVID-19 outbreak

Death reported Monday was the second related to Chartwell Malaspina outbreak, says Island Health

Rod Bitten of Union Bay won $500,000 in the Lotto Max draw on Jan. 15. Photo supplied
Vancouver Island electrician gets shocking surprise with $500K Extra win

Rod Bitten has been hard at work with home renovations, which is… Continue reading

Eighteen-year-old Aidan Webber died in a marine accident in 2019. He was a Canadian Junior BMX champion from Nanaimo. (Submitted)
Inadequate safety training a factor in teen BMX star’s workplace death in 2019

Aidan Webber was crushed by a barge at a fish farm near Port Hardy

Members of the BC RCMP Explosive Disposal Unit (EDU) is on route to Drummond Park opposite of Fulford Habour on Saltspring Island after the discovery of a suspicious cylindrical-shaped device. (Google/Screencap)
Bomb disposal unit en route to Salt Spring Island after suspicious device found in park

Police say a resident discovered the device Wednesday morning in Drummond Park opposite BC Ferries terminal

Most Read