It’s full steam ahead
by fall, says Veniez

ALL SKEENA Cellulose operations -
from the pulp mill in Prince Rupert to the
sawmills here, in Carnaby and Smithers —
should be running by fall, predicts the
head of the revived forest company.

Daniel Veniez, president of NWBC
Timbez and Pulp, says work is proceeding
on multiple fronts to prepare for startup
since the sale went through April 30.

He said logging might begin as part of
a log export program as early as this
month.

Some sawmills and the pulp mil} could
start by late summer,

Veniez noted the Kitwanga Lumber
subsidiary is already operating.

“We're not at the stage yet where we
can say ‘We’te going to start up Oct. 1’,”
he said. “We want the business to be run-
ning and fully operational on all cylinders
certainly by the fall. And we're pretty
confident we’ll get there.”

Veniez said a team of engineers will
be at the pulp mill this week and senior
managers are visiling the sawmills and
logging contractors.

“We need ta build roads over the
course of the summer,” he added,

Veniez said his top priority right now
is to meet unionized pulp workers in
Prince Rupert and hammer out a new la-

bour agree-
ment with
them.

“I'm fully
expecling
them lo ap-
prove il,” he
said.

He said a
new deal is
essential be-
fore he can
raise more
money in in-
vestment
markets for
capital work

. at the pul
Dan Veniez mill, we
“Wei can't

go to the markets without those labour
agreements in place,” Veniez said.

Veniez won't disclose how much he
has raised so far to operate the company.
He had pledged to raise $150 million, and
in February said he had $75 million.

“We're nal_a public company,” he
said. “I don’t have to tell anyone how
much money we've got in the bank.”

Also in Veniez’s plans are a contest to
rename the company.

Gov't claws back SCI wood

THE PROVINCE has withdrawn five per
cent of the timber held in the six Skeena
Cellulose timber licences as part of the
arrangement lo transfer control to NWBC
Timber and Pulp,

That adds up to just over 100,000
cubic metres a year of the total two mil-
Mon cubic metres per year held by SCI.

The timber taken back reverts back to
the crown for allocation. In the past the
wood has generally been put into the pro-
vince’s small business logging program.
However, the government often did not
exercise the five per cent option.

Documents indicate the transfer of the
licences is “neutral” on the issue of whe-
ther aboriginal title exists to the land sup-
porting the licences,

NWBC and Skeena Cellulose alsa had
to agree the licences may be affected by
future land-use decisions, treaty negotia-

tions and aboriginal interests.

Forests minister Mike de Jong has also
directed the company to provide a copy
of its business plan within 60 days to
each aboriginal group in areas where SCI
operates.

City council had earlier asked de Jong
to take back five per cent of Skeena Cel-
lulose’s timber and give it to Terrace as a
community forest.

City councillor Val George said a
community forest derived from the wood
would at least give the city same influ-
ence over a chunk of the timber in the re-
gion.

“The timber would siill go to the
mills,” George said, “It’s just that we
would control it instead of some other li-

censee. We've got practically no influ-

ence right now in where the wood goes
and how it’s used.”

He doubted the community forest
would be a major revenue generator for
the city. “The timber values around here
are not good compared to the rest of the
province,” George said.

But he said it might be a way to chan-
nel same timber to small value-added
aperators who say they have difficulty
getting wood.

The city a few years ago considered
setting up a community forest, but deci-
ded not to apply.

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