Industry News News
Conifex to curtail sawmill amid log shortage and court appeal

Conifex Timber has announced that it is curtailing its sawmill and planer for a period of two weeks
starting June 17, estimating a decrease in capacity of approximately 8,500 Mfbm due to a log shortage.

In a statement, the company said this challenge persists despite efforts to deliver spring decked logs from the southern Mackenzie Timber Supply Area (TSA) and commence summer logging in the northern TSA.

Weather conditions have further disrupted log deliveries, making it difficult to maintain a steady supply. As a result, Conifex has scaled back operations at its sawmill and planer. The company anticipates resuming full operations on July 2, provided log deliveries stabilize and weather conditions improve.

In addition to the log shortage, Conifex is currently involved in a court appeal related to its logging rights in the TSA. The outcome of this appeal could have significant implications for the company’s future operations and log supply stability.

In April 2023, Conifex filed a petition in the B.C. Supreme Court (BCSC) seeking judicial review of the OIC and an order quashing and setting aside the OIC as unauthorized or otherwise invalid. The BCSC dismissed the petition in February 2024. Although the judgment concluded that the LGIC could not impose a permanent ban on supplying power, imposing a temporary ban on cryptocurrency miners was determined to be valid.

“Conifex has not been provided any credible justification for allowing BC Hydro to deny service to our
two HPC sites,” said Ken Shields, chairman and CEO of Conifex.

The production cut is expected to impact the local economy, affecting not only Conifex employees but also suppliers and other businesses dependent on the mill’s operations. Conifex is actively working to manage the impact and exploring solutions to address the log supply issues.

Despite these challenges, Conifex remains committed to its logging activities in the Mackenzie TSA and is focusing on maximizing summer logging efforts in the northern region to replenish its log inventory. The company continues to monitor the situation closely and is prepared to adapt its strategies to ensure long-term operational sustainability.