Optimism on Future of Hampton Affiliates Mill in Burns Lake
Friday, March 23, 2012 @ 10:17 AM
Burns Lake, B.C.- There is some optimism about the future of the Hampton Affiliates Babine Forest Products sawmill in Burns Lake.
Since the tragic explosion and fire at the Hampton Affiliates Babine Forest Products sawmill in January, about 180 of the 250 people (most working for Babine) displaced by that tragedy have found work.
In an update this morning, Minister of Jobs Tourism and Innovation, Pat Bell says there are a further 39 workers on Workers Compensation with 4 on short term disability and 7 on long term disability.
As for the rebuilding of the Hampton Affiliates sawmill the timber supply question should be answered soon. “The Lakes District itself doesn’t have enough timber supply to support the rebuilding of the Hampton Affiliates mill” says Bell, “We continue to be encouraged, but one thing that should be highlighted is the Lakes district itself does not hold sufficient fibre in the mid term to provide the necessary timber for Hampton, so we have started looking outside of strictly the Lakes district and other districts in the timber supply areas that ultimately would have to be part of the solution if Hampton were to rebuild.” Bell says Hampton would need about 1 million cubic meters annually, and that supply may come in the way of a mix of tenure and market purchasing.
Bell says there has been an effort to ensure Pinnacle Pellet has enough supply to continue its operations ( it formerly relied on residue from the destroyed sawmill) and a license for about 22 thousand cubic meters has been issued. Bell says that should assure a supply for Pinnacle Pellet through spring break up. He says there is work underway to secure a supply through the possible rebuild time frame for the sawmill.
Other positive moves include the recent announcement for highways and roads infrastructure upgrades in the area. The $14.3 million dollars worth of work is expected to utilize local labour and equipment. There will be some funding on the way for the Burns Lake Tourism Centre as well.
A team from the Economic Development Association of BC will be in Burns Lake next week. Although details have not yet been released, the team is planning to hold a town hall meeting Monday night. The team will be reviewing all the economic options for the area. The team has a strong record for building strong strategic plans for communities throughout the province.
Comments
Never be enough timber supply in B.C. if you keep shipping it to China and else where.
Has Hampton actually stated that they would rebuild the mill if there was a timber supply. If so I havent seen it anywhere.
I suspect they are still working out the details of the Insurance Claim.
There is no money to be made in shipping to China, and the US at this time is paying $260.00 a thousand fbm. Pretty hard to make a dollar at those prices.
So…if there isn’t enough timber to support rebuilding, then how were they going to get enough to be able to keep running if there hadn’t been a fire?
Was it just a matter of time before they would have shut down because of lack of fibre anyway?
A conspiracy theorist would see this as the government gearing the community up to be a Gateway supporter… the road side clearing contracts and newly unemployed….
IMO they should build the worlds largest charcoal production facility for beetle kill wood, and work closely with Pinnacle in creating a market for cooking charcoal in island nations of the Pacific through carbon trading subsidies. Use the resources they do have.
If they rebuild they’ll have to make the mill more productive than it was before. They will have a much larger capital cost base that will have to be recovered through the sale of their product.
This need not mean that it will produce ‘more’ in overall volume, but it will have to produce more volume per man/hour.
So if it were going to employ the same number of workers as before it will have to cut more than it did before, and that means more trees have to be available to be cut. If the fibre base is declining, then they either have to be able to reach out and draw wood from outside their area of operations now, or they build a smaller mill more in tune with the long term prospects of their local wood supply.
The forest industry in BC has not generally been in favour of smaller mills. The cost structure is usually not favourable. So if a new higher volume mill is built, it will most likely be at the expense of other existing mills in that area and outside it. Which won’t be able to compete for the same fibre.
As usual, this will mean LESS jobs overall, not more. One day, when we wake up to this FACT, which is going to repeat itself over and over again, we may look past the ‘job’ to what is really of far greater importance to all those affected ~ the continuance of ‘income’.
We produce to consume, and if, through the constant advancement of technology, any man’s continued ‘production’ can’t be of any benefit to himself or his fellow man, then how can his continued ‘consumption’ be of any detriment to himself and his fellow man?
We engage in the greatest folly of all time when we continue to insist there be a ‘job’ to produce an ‘income’ in a world that’s working at an ever faster pace to put everyone out of those jobs.
It would be really interesting to know how much fibre Hampton had left. They are looking for a 20 year supply guarantee. If they get the fibre needed- you can bet your boots they will re build. Probably employing 10-15 people per shift. It’s not a question of getting people jobs for Hampton.
A shiny new mill…a 20 year supply of fibre. Sounds like a win- win for Hampton.
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