Expect more B.C. sawmill closures in 2023

By Nelson Bennett
Business in Vancouver
January 16, 2023
Category: Business & Politics
Region: Canada, Canada West

Resource companies in Western Canada had a good year in 2022, which means provincial and federal governments had a good year, thanks to royalties and taxes. But a series of federal and provincial government policies that are deliberately squelching growth in certain sectors, such as metallurgical coal and lumber – B.C.’s two most valuable exports – will mean lost opportunities for Canadian companies, analysts say. …Lumber prices dropped to US$360 per thousand board feet in December. The break-even price for most sawmills in B.C. is US$450 to US$500, said Russ Taylor. …“There are going to be a few more [permanent] curtailments because of all this endless government policy. Primarily it’s the old-growth deferrals, all the caribou habitat protection that they have to still implement, they have all these tenure transfers … and then they’re introducing core landscape planning. Now there’s a commitment to preserve 30 per cent of B.C. forests by 2030.”

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