Canfor Corporation is selling more assets to Peak Renewables, which is in the wood pellet production business.
Canfor today announced it will sell its Mackenzie sawmill operation to Peak Renewables, and has signed a letter of intent to sell the associated forest tenure to the McLeod Lake Indian Band and Tsay Keh Dene Nation. It says the combined price of the sale is $70 million.
The news release does not state what Peak Renewables plans for the site and tenure. Peak Renewables does own a sawmill and OSB plant, but is also developing a wood pellet business. It's not clear if the plans are to restart sawmilling in Mackenzie or build a pellet plant.
Today's announcement comes on the heels of last year's approval of the sale and transfer of Canfor tenure in Fort Nelson to Peak Renewables, which had also previously bought a shuttered sawmill for the purpose of building a new wood pellet plant there.
The demand for wood pellets, burned instead of coal to produce power, mainly in Europe and Asia, has been growing, and so has the number of wood pellet plants in B.C.
Johnny Pierre, chief of the Tsay Keh Dene Nation, said acquiring forestry tenture will give his people more involvement in forestry.
“First Nations in B.C. have been relegated to marginal roles in the forest sector for far too long," he said in a news release. "The letter of intent signed with Canfor has the potential to dramatically change this imbalance within the Mackenzie Timber Supply Area.”
"This purchase represents an important opportunity for us to continue our work towards economic stability and prosperity for our members, communities and business partners, all while ensuring careful and responsible stewardship of our sacred environment in accordance with our Tse’khene laws, customs and traditional knowledge," said McLeod Lake Chief Harley Chingee.
The sale and transfer of tenure to McLeod Lake Indian Band and Tsay Keh Dene Nation must be approved by the provincial minister of Forests.
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