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Mackenzie Ready to Turn The Corner?

By 250 News

Thursday, March 25, 2010 03:58 AM

Prince George, B.C.-With the recent news that Conifex is hoping to buy out the Abitibi assets in Mackenzie and talk of a new buyer in the wings for the Pope and Talbot pulp mill, things may start improving for Mackenzie.
The region has two advantages in today’s B.C. forest operations; it has a good fiber basket that has not been impacted by the mountain pine beetle, and, according to Minister of Forests and Range Pat Bell, it has a highly under-inventoried timber supply. “It’s an area that has always had way more wood than was necessary to fire up the mills, so we’ve never really looked at it closely and said what is this timber supply area capable of producing?” He says the area can likely sustain a much higher annual allowable cut than the current limit “That is why you are seeing the keen interest on the part of companies interested in reopening mills in the area but also of course, you’ve been hearing about the Conifex potential take over of the Abitibi operation and I think that will be very good news as well.”
As for the rumoured pending sale of the former Pope and Talbot pulp mill, the Minister says there is still work to be done “We’re holding our cards pretty close to be honest.  I am probably more optimistic today than I have been for some time.” Bell says over the past couple of months he was putting the chances of that mill ever opening again at an even 50-50, but says things are looking up “ I am on the higher side of the 50-50 version now, I think there is a very good chance. I know that the employees have been meeting with a potential operating group. A lot of the issues have been dealt with, but you know, until you see that mill actually generating pulp, I don’t think anyone is going to believe its going to happen. We are going to continue to work hard and I think we might get some news one way or the other over the next couple of weeks.”

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Comments

The statement "has not been impacted by the mountain pine beetle" could not be less accurate. The entire area HAS been hit. Its not as old and dry as the Quesnel or Houston region, but the bug is here and the trees are dead or dying.
The people of Mackenzie are due for a break and god knows,they have earned it in spades!
I am also quite sure by now they know the difference between solid progress and self-serving political spin by an unpopular government.
All the best to Mackenzie and the future prospects. Unfortunately I won't be back and it had been a tough 2 years going to college but well worth it!
Sorry Born , I hate to agree with any politician, but Mackenzie's TSA has a 15-20% hit on the trees, the other areas have a 40-60% hit, quite a difference, lots a wood for along time. It's nice to see a company come through and buy up Abitibi's assets and give the town half a change again, it's been along 2 years of hell for alot of good people. Hopefully Pat Bell and the rest of those useless politicians can get the other mills up and running.
Sorry Born , I hate to agree with any politician, but Mackenzie's TSA has a 15-20% hit on the trees, the other areas have a 40-60% hit, quite a difference, lots a wood for along time. It's nice to see a company come through and buy up Abitibi's assets and give the town half a change again, it's been along 2 years of hell for alot of good people. Hopefully Pat Bell and the rest of those useless politicians can get the other mills up and running.
Has the pine beetle epidemic passed through MacKenzie, or is it alive and well in the area.??? You dont hear much these days about the beetles except that they were heading for Alberta.

The pine beetle is up around Germensen Landing now. I dont endorse many politicans especially gordon campbel however Pat Bell has done alot for our local forest industry. ie) He actually knows whats going on out in the land base locally which is a great asset for us.
You can argue this if you want but would you rather have some desk jockey politican in victora knowing whats best for the north?
By the way pine is only around 40% of the species composition in the fort and mackenzie districts which puts them in a really good position for the future.
Pat Bells policies contributed to closing Mackenzie and Fort St James with his BC Rail deal and his tree transfer policies. To date that and some trips to China are his contribution... by my math that is a net negative to date.

Good to see him being a bit more humble for once though.
BC rail had nothing to do with the "Closing of mackenzie and fort st james."
Canfor and Pope and talbot did that on their own.
As far as tree transfer polices are concerned its no real difference.. canfor has been exporting logs out of those districts by rail to feed PG Saw and Rustad for most of the 90's and early 2000's.
I worked at 3 different mills in fort st james and the reason the mills were shutting down is because there was no market for lumber.. You cant hold a gun to someones head and force them to buy lumber from your mill..
Im not defendnig pat bell here but you have to give credit where it is due..
Its the shitty business pracitces of these large publicly traded forest companies that kill these communites. They essentialy get too big with too many operations and then they cave in when the market flutuates. Its not economical for these companies to change thier practices. Pope and Talbot is a fine example of this as well canfor almost and possibly still is looking at the same fate. The menality that you have to get 1 million board feet per shift at all costs and grades is what killed these guys.

If you look at mills like Apollo (fort st james) Carrier, Dunkley,Lakeland,L&M. They ran through this whole downturn at at sustainable level that essentialy kept the north alive. These guys have limited liabites so they can adujst well when markets take a turn and focus on more niche markets and quality products.