Canfor Reaches Agreement on Sale of Fort Nelson Forest Tenure

SEATTLE (Scrap Monster): Vancouver, B.C.-based Canfor Corporation announced that it has reached agreement with Peak Renewables with regards to the sale of its forest tenure in the Fort Nelson region of British Columbia. Canfor has agreed to sell its Crown tenure for a sum of $30 million.

The transactions are subject to customary closing conditions, including approval from the B.C. Minister of Forests. The closing is expected to take place in the first quarter next year. It must be noted that Peak Renewables had purchased the assets of Canfor’s Fort Nelson mill during the third quarter this year.

Commenting on the development, Don Kayne, President and CEO, Canfor stated that the company is pleased to have reached an agreement to sell its Fort Nelson tenure to Peak Renewables- a company that is committed to developing a long term to rejuvenate the forest industry in the region.

The northern B.C. community is likely to welcome the deal, if the tenure sales results in building of new pellet plant in Fort Nelson. However, environmentalists are likely to raise opposition if Peak Renewables’ plan is only to harvest trees for producing pellets. Incidentally, the demand for wood pellets has been on the rise in Europe, especially in Germany.

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