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Conifex Not Ready To Decide on Mackenzie Mill Plan

Monday, June 16, 2014 @ 3:58 AM

Prince George, B.C. – Conifex Timber Inc is not ready to make a decision on its Mackenzie sawmill.

The company has been looking at options to increase the productivity and profitability of the mills. The options under review are:

  • modernize and upgrade the site 2 mill that is in operation in Mackenzie
  • restarting the idled site 1 sawmill at Mackenzie, or
  • building a new sawmill complex at the site one location

The decision   all depends on the fibre supply, and Conifex V.P. Pat Bell says the fibre supply question has not yet been answered.

“The Chief Forester still hasn’t made  the determination on whether to lift the AAC (Annual Allowable Cut) in Mackenzie or not” says Bell, “We need to have a clear understanding of that prior to making any commitments on moving forward on  a new mill.”

Bell says the company is taking steps to be prepared to make a decision once that fibre supply issue is clear “We think the opportunity is very real in Mackenzie.  We continue to spend significant capital determining what that option might look like.”

That capital expenditure includes  the hiring of an engineering firm that  is doing some preliminary work to  see which option is the best for Conifex’s Mackenzie operations “We are doing a lot  of work around  engineering,  financing  and the human resources element of the project,  this mill could conceivably add anywhere from 140 to 200  people to Mackenzie and we’re already finding it challenging to  get staff in our existing Mackenzie operation.  There are a number of elements and we’re working on those elements right now” says Bell.

He is hopeful the Chief Forester will make  a decision   before the end of the summer.  Conifex is expected to announce its mill plans  when the 3rd quarter results  are released in the fall.

Comments

Will be good to have economic stability in the McKenzie area. Hope for the best.

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