Twenty eight days of decisions

February may become one of those pivotal months of historical lore for Podunk. The next twenty eight days will see decisions made, that will impact two projects which could turn the entire economy of the Northwest around with two strokes of a pen. As reported yesterday, the First Nations of the North coast have put off further court action regarding the container port until February 24th, as they await word from the new federal government of Stephen Harper as to their concerns over the project.

As one deadline nears, so does another, making this February one of the most interesting twenty eight days in Prince Rupert in a very long time.

Also to come this month ahead is a decision on the fate of the Watson Island pulp mill, the process of the China Paper Group’s potential purchase of the mill began in the year of the Rooster and as we enter the year of the Dog, decision day is apparently on the horizon. The pulp mill story had faded from the headlines as the Chinese took their paperwork back to China and the container port project became the talking point for Podunk. But once again the mill rises to the top of the news cycle for another shot at fame.

For a bit of background on the situation at the mill, here is the Podunkicized version of the Daily News story from Monday!

ONE YEAR ON AND PULP MILL PLANS ARE STILL ALIVE

Daily News
Monday, January 30, 2006
Story appeared on Page 1

The China Paper Group hit its one year anniversary this weekend for involvement in the potential purchase of the Watson Island pulp mill, but the company still has a month to decide whether it will complete the sale arrangement.

It was during Chinese New Year last year that officials from the company first visited the North Coast to explore the pulp mill operations and while some locals had speculated an announcement could be forthcoming at the same time this year, a decision has yet to be made.

Currently, the China Paper Group is in the first phase of the process – it has taken its decision overseas for discussions with the Chinese government. The most current timeline gives the company until the end of February to make its decision.

The company is currently footing the bill for the facility, paying the ongoing costs of the extension including utility and security costs.

The China Paper Group, through a B. C. subsidiary Sun Wave Forest Products, put in an offer on the Watson Island land in May 2005 after purchasing the mill equipment from Maynard’s Auction.

While the purchase price for the lands in Rupert, new Hazelton and Carnaby as well as the Carnaby Forest Licence is no more than $5 million, a decision to operate the pulp mill will represent close to a $100 million investment on the part of the China Paper Group.

The pulp mill, which had more than $450 million poured into it from the province during its operating years, was set to be sold in a fire sale last year when local politicians were able to start a dialogue with the company about operating the facility.

In 2005, the China Paper Group signed a tax deal with the city of Prince Rupert as well as a labour agreement with the union representing pulp mill workers – the Pulp, Paper and Woodworkers of Canada Local 4.

The mill formerly employed 300 to 400 people but was shut down following its sale by the province to Northwest B. C. Pulp and Timber in 2002. However, the company was never able to find adequate financing for the start up of the forestry operation.