Prince George, B.C. – Conifex is considering putting a second sawmill on line in Mackenzie, a move which could double its current lumber output there.

During a morning conference call to discuss the company’s fourth quarter financial results, Conifex CEO Ken Shields says the company is awaiting the results of a review of harvest levels in the Mackenzie Timber Supply Area which is being conducted by the Ministry of Forests, Lands and Natural Resource Operations.  Canfor and Conifex are the two largest tenure holders in the TSA, which has an annual allowable cut of  3.05 million cubic metres.

Shields says “one key issue being addressed is how best to deal with the dead pine inventory that would likely not be harvested given the harvest levels currently in effect.  The ministry states that an opportunity exists to increase the harvest level by 2.1 million cubic metres for ten years.”  He notes the dead pine has not surpassed its usable shelf life, and says the ministry will identify how the available timber volume is assigned to existing forest licencees.

Shields says “over the next two months it is likely that our operating Site 2 sawmill at Mackenzie will be fully optimized” in terms of running at maximum production levels.  “Over the past few months we’ve been exploring  how we can further increase the productivity and profitability of the Site 2 mill.  However, we have also been reviewing options available to us to re-start our idle Site 1 sawmill at Mackenzie.  One option being explored is to use the idle site to host a new sawmill complex.  Any decision we make in this regard requires us to fully comprehend how a rebuilt sawmill complex will compliment the power generation plant we operate adjacent to Site 1.  We also need to consider vicinities potentially available to us from the continued operation of the Site 2 sawmill.”

Shields says “during the second quarter of 2014 we expecte Executive Vice-president Pat Bell, Corporate Development Head Tony Madia and Manufacturing chief Ken Petteplace to put together a comprehensive recommendation for our board to consider regarding the best approach available to us to double our Mackenzie lumber production.”

The ministry review of the Mackenzie TSA began last October and has been extended by another three months so Shields says it will be May or June before the company moves toward making a decision on the second mill.