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October 27, 2017 11:23 pm

Conifex and Dunkley Make a Deal on Timber

Wednesday, April 13, 2016 @ 5:59 AM

Prince George, B.C.- Conifex has announced it has  entered into a deal with Dunkley Lumber  that will see the two companies  “conduct coordinated joint timber  harvesting operations” on some of Conifex’s  harvest area in  the Mackenzie Timber Supply Area.

In a release issued late yesterday, Conifex  says  Dunkley  has paid $20 million  dollars for half of the shares of a Conifex subsidiary  that holds a forest licence for  harvesting  300,000 cubic metres of timber  a year.

According to the release  Conifex believes  the coordinated harvesting operations will  “enhance fibre optimization between the two companies, improve supply chain efficiencies, and contribute to more stable harvest levels in the Mackenzie Timber Supply Area.”

Conifex also states  the arrangement  can provide “additional volumes of affordable feedstock to its power generation unit at Mackenzie through increased utilization of lower quality wood and harvest residuals.”

Conifex  says  it  intends to use the net proceeds  from the  deal to “repay indebtedness, augment working capital and fund high-return capital projects at its BC harvesting and manufacturing operations.”


Back in August 2015 Canfor loaned Conifex Inc, a wholly-owned subsidiary of Conifex Timber $30 Million . Now we have this investment by Dunkley for $20 Million.

Anyone know what’s going on in MacKenzie.

Fact is… Conifex has a lot more timber in its license that it can cut and process (this may have been the interest for the Canfor loan)last year. Wouldn’t be surprised if some of the surplus wood has been going to Canfor as part of the loan deal . Conifex has done well (license wise) in the past with having a government Minister representing them (before making any conclusions, we should read nothing into the fact that Pat Bell is now a Director of Conifex). Good for them.

They have an old second mill that maybe they can get up and running with help from the $20 million Dunkley deal.

In any case, with the surplus timber now going to be harvested, this means more jobs in the industry, which of course we need.

    Most, if not all you have posted is NOT TRUE

    Pat Bell resigned a long time ago from Conifex.

Money for Conifex; secure timber supply for Dunkley; a win for both.
It also gives us a window into the value of an evergreen timber supply.

Their new (old) mill in El Dorado will eat that $20 mill. and a lot more before its up and running. Novak’s will take them out eventually.

yay more clearcuts as far as the eye can see. Disgusting

    Trees grow back. We have to pay the bills somehow.

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