Mackenzie, B.C.- Conifex is looking at  possibly building a  new sawmill in Mackenzie.

In a conference call to discuss its first quarter results, Conifex Timber Inc. President Ken Shields says the company has been looking at ways it can increase the productivity and profitability of its lumber operations in Mackenzie.  He says there are three ideas being explored “One alternative is to modernize and upgrade the site 2 mill that is in operation in Mackenzie.  We are also reviewing the options of restarting our idled site 1 sawmill at Mackenzie, or the option of building a new sawmill complex at the site one location.”

Shields says  a decision  will be based on the  “various  fibre supply and sawmill engineering studies we have underway.  Based on our preliminary report, we believe we have a unique  opportunity to build   a new state of the art sawmill at a cost that is materially lower than the prices recently paid for older sawmills.”

A decision is expected at the next Board meeting which is set for June 10th.  He says he expects there will be a full discussion on the options and that at the end of the day they “Will have a strategic direction for  what we’re going to do in Mackenzie.”  He adds, the “definitive  plan won’t be available until  the  3rd quarter results are released.”

Depending on the option selected, Shields says work to explore funding sources could start as early as July.

 Shields also offered his thoughts on the issue of  area based tenure  versus  volume based tenure.

Unlike his counterpart at Canfor, Don Kayne who  came out  against the  proposed change, (see previous story)  Shields says  Conifex supports  the move “We think volume based tenures were appropriate when all the sawlogs were green. Now that  we’ve had the mountain pine beetle infestation,  we think the  Province of BC needs to  look at the land base as a source of fibre, a lot of which is sawlogs, but a lot of which will be pulp quality material and bioenergy material in the future. And  I am not aware of any other precedence  where there’s been  a successful fibre management  approach taken to the industry.  To me it doesn’t work with volume based tenure, so we are   strongly  in favour of area based tenures and our views are very similar to the  all party legislative review that John Rustad  chaired a couple of years ago that came out in favour of area based tenures.  We think that there are powerful reasons for doing so, and we would support a move in that direction.”

In an update on the bioenergy energy generating project in Mackenzie will be on line in September and operating at full capacity in the 4th quarter of this year.

The fuel storage facility for that bioenergy plant is under construction now,  it is 150 feet wide, 300 feet long and as high as 85 feet.  “This is the  one major new structure required to bring the power plant on stream” says Shields “This fuel storage and blending facility  helps us achieve constant moisture content for the feedstock consumed by the plant, and thereby provides us  more  control on steaming rates and power production.”