Industry and Trades Summer/Fall 2021

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INDUSTRY AND TRADES SUMMER/FALL 2021

INDUSTRY IN OUR REGION


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Features

PG 4

BUSINESSBRIEFS

PG 4-5

B.C. strikes panel on old growth

PG 6

UNBC researcher leads study on resourse extraction

PG 10

Prince George defies building trend

PG 11

Developers look at Fort St. John for senior housing growth

PG 12

Forestry company eyes Terrace for expansion

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he new 78-bed hospital will replace the 52-bed Mills Memorial Hospital, which currently serves the town and surrounding areas. In addition to the acute care hospital, a 25-bed replacement for the 20bed Seven Sisters regional mental health facility will be constructed on the hospital grounds. The new hospital, being built on the north end of the current hospital grounds, is expected to open in 2025. The new hospital will be twice the size of the cur-

rent hospital, and will have twice the emergency room patient capacity. Once finished, the new hospital will have the latest diagnostic imaging equipment, two trauma bays, six stretcher bays, four operating rooms and expanded mental health services. The $622.6 million project is being funded by the provincial government, through Northern Health, and the North West Regional Hospital district which contributed $110.2 million.

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RESOURCE SECTOR FUELS EXPORTS

B.C.

export growth momentum continues, supported by gains in resource-sector oriented sales. Forestry exports were 72% higher this spring, compared with a year ago, while exports of metals and minerals and mining products rose more than 40%. Higher demand due to a growing global economy and rapid commodity price growth, particularly in the forestry

sector, has driven the upshift. Industrial product price indexes highlight the latter as lumber and wood product prices are up nearly 90% from a year ago, while metal products rose 30. Meanwhile, industrial machinery and equipment and electronics exports also gained traction after recent weakness, suggesting broader gains as the global economy expands.

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ecord high lumber prices and a recent $4 billion acquisition have left West Fraser Timber Co. so flush with cash, it is offering a $1 billion substantial issuer bid. The company will use a “modified Dutch auction” in which it will buy shares from shareholders at a premium to current market prices. According to West Fraser’s most recent financial statements (which now reports in U.S. dollars), the newly expanded company had

first quarter earnings of US$2.3 billion, compared with US$1.3 billion in the fourth quarter of 2020, and US$890 million in the first quarter of 2020. That has left it with cash and equivalents of US$.1.4 billion in the first quarter of this year, compared with US$461 million in Q4 2020 and US$66 million in Q1 2020. The auction will run from July 12 to August 17, “unless extended or withdrawn,” the company says in a news release.

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5


B.C. strikes independent panel on old growth

The B.C. government defines old-growth forests as areas containing trees that are at least 250 years old. Wilderness Committee photo

T

he B.C. government has announced a new independent Old Growth Technical Advisory Panel to help it address concerns about logging what remains of B.C.’s ancient trees.

Whether that actually stops some of the anti-logging protests that have been taking place on Vancouver Island remains to be seen. Despite the B.C. government announcing a two-

year moratorium in two areas of concern on Vancouver Island – the Walbran and Fairy Creek – logging protests have continued. Well over 200 people have been arrested to date for

breaching an injunction against blockades of logging roads. It appears part of the panel’s job will be to help determine what exactly constitutes old-growth eco-

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systems. “We are committed to a science-based approach to old-growth management, and our work with the advisory panel will help us break down barriers between the

We applaud the appointment of independent scientists to guide the implementation of the provincial oldgrowth report

different interpretations of data that are out there,” said Katrine Conroy, minister of Forests, Lands, Natural Resource Operations and Rural

Development. The announcement was met with some approval by environmental groups. “We applaud the appointment of independent scientists to guide the implementation of the provincial old-growth report that outlined the need for a paradigm shift in forestry and the immediate protection of at-risk old growth,” Eddie Petryshen, conservation specialist with Wildsight said in a press release. While the Sierra Club said the panel “could be a turning point,” it said immediate deferrals are needed on all logging in old-growth stands in B.C. “This advisory panel combined with leadership from the B.C. government will allow the province to implement a precautionary approach,” said Jens Wieting, forest and climate campaigner for the the BC chapter of the Sierra Club

said. “This requires deferring logging in all at-risk forests in the short-term to buy time to work with Indigenous decision makers on long-term designations that respect Indigenous rights and title.” Resource Works warns that halting all logging in areas with old-growth forests would result in the shuttering of sawmills and more job losses in the forest sector. “A ban on harvesting of B.C. coastal old growth would result in the immediate closure of at least four sawmills, one pulp mill and the entire shake and shingle industry,” Resource Works says in a recently published citizen’s guide to old growth. In a recent report on forestry in B.C., Resource Works said there are 13.2 million hectares of old-growth forests in B.C., of which 4.4 million hectares (33%) are in

formal protected areas. The Fairy Creek watershed on Vancouver Island – which has been the target of much of the anti-logging protests that have resulted in numerous arrests -- is largely protected, the report notes. “The fact is, forest management in BC is not in crisis; far from it. Rather, there is a ‘crisis’ of misinformation,” the Forestry in BC report says. Last year, the B.C. government released its Old Growth Strategic Review. To date, there have been deferrals on harvesting in 11 areas, including the two most recent moratoriums in the Walbran and Fairy Creek watersheds. One of the panel’s duties, according to its terms of reference, is to provide maps, analysis, and detailed status of old-growth ecosystems in B.C. - Business In Vancouver

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UNBC researcher leads study on community consultation and resource extraction

Global and International Studies Professor Dr. Nathan Andrews received a Social Sciences and Humanities Research Council Insight Grant

The study will compare practices in four countries around the world

W

hether or not resource extraction companies achieve meaningful engagement with communities is a familiar topic in northern B.C., but a new research project will

examine these dialogues on a global scale. University of Northern British Columbia (UNBC) Global and International Studies Associate Professor Dr. Nathan Andrews

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will be embarking on a research project to study how community engagement around resource development is taking place. Andrews will examine how these engagement processes are playing from the perspective of the grassroots stakeholders in both the global south and high north. “We perceive public participation as crucial to the effective and equitable management of social and economic benefits from resource extraction,” Andrews said, in a UNBC release. “Yet, in practice, extractive industries often fail to achieve meaningful engagement in the eyes of community members, despite extensive participation that appears to meet national and international standards.” Andrews received a Social Sciences and Humanities Research Council (SSHRC) Insight Grant worth $291,579 for his project Meaningful Stakeholder Engagement in ResourceRich Communities: Comparative Cases from the Global South and High North. He will look at case studies in four countries: Ghana and Chile, representing the global south, as well as Canada and Norway, representing the high north. “These are resource-rich countries that are leaders in the global extractive industry,” Andrews said. “In each country, we will select two field sites – one with a company with a good reputation for consultation and another with a company with a weaker reputation for consultation.”

Andrews will be working with research co-investigators Dr. Mark Stoddart from Memorial University of Newfoundland and Labrador and Dr. Paul Haslam from the University of Ottawa. Their goal is to reach general conclusions about the relative importance of legal frameworks for consultation compared with corporate practices for building meaningful engagement with stakeholders. “By looking at different sites in all four countries, it will allow us to assess whether more or less meaningful consultation does indeed map according to a North-South divide,” Andrews explained. Andrews said UNBC is well suited to lead this research because of its location in northern B.C., where many of these conversations about meaningful engagement are taking place. He also credits UNBC’s participation in the University of the Arctic, an international network of universities, colleges and other research institutions committed to addressing challenges related to Arctic people and communities. “Being part of such a network provides cross-thematic learnings with other UArctic research projects and extends our avenues for knowledge mobilization,” Andrews said. The SSHRC grant will be distributed over five years to support Andrews’ research as well as four graduate students, including two Master of Arts students at UNBC.

INDUSTRY & TRADES | SUMMER/FALL 2021


Prince George defies T building trend Prince George is bucking a national trend that saw residential building permits across Canada fall nearly 7% in April from a month earlier, led by a 23.7% plunge in B.C.

Apartments under construction last month in Prince George. - Prince George Citizen photo

he City of Prince George issued building permits for four new apartment/townhouse developments in May, with an estimated combined value of $45.5 million, according to a report that went to city council June 15. As of the end of May, the city had issued a total of 210 building permits worth a combined $108.6 million – more than triple the $34.6 million in permits issued in the first five months of 2020 and nearly double the $56.5 million issued from January to the end of May in 2019. “We’re already at $108 million. This has all the hallmarks of being another record-breaking year in Prince George,” Coun. Garth Frizzell said. As of May 31, the city has issued permits for 14 new multifamily developments, worth nearly $60 million combined. It has also issued permits for 46 new single-family houses , seven new duplexes, six new mobile homes, three new commercial buildings, two new industrial buildings and a new institutional building, in addi-

tion to more than 100 renovations and additions to homes and commercial buildings. “Our population is growing, that is very clear through this,” Coun. Kyle Sampson said. The construction activity happening throughout the city is creating jobs and boosting revenues for local contractors, Mayor Lyn Hall said. “This is a big deal for us,” Hall said. “It shows confidence for us in both the public and private sectors.” Up to the end of May, the Regional District of Fraser-Fort George has issued a total of 68 building permits worth a combined $9.6 million. Included in those numbers are permits for 13 new single-family homes, worth a combined $5 million, according to a June 15 report to the district board of directors. Over the same period in 2020, the district had issued 96 permits worth $18.1 million. From January to the end of May 2019, the district had issued 87 permits worth a combined $6.5 million.

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Developers look to grow support for Fort St. John seniors housing project

A rendering of the proposed Harlequin at Prairie Rose Park seniors housing project proposed in Fort St. John. VRS Communities

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plan for a new seniors housing complex in Fort St. John has failed to secure provincial funding from BC Housing, but developers say they’re still moving forward with the project. VRS Communities and Peace Holdings gave the Peace River Regional District board an update on their project last week, noting they were not successful in their application to the Community Housing Fund. According to BC Housing, the fund is to provide close to $1.9 billion over 10 years to develop 14,350 units of affordable rental housing for independent families and seniors. VRS Executive Director Ken Fraser said the funding that was being sought would have substantially driven down the cost of the project, estimated at $30 million. “We’ll probably take one more crack at it a year from now but that will be

something that we can’t count on, and we need to move forward on the basis that we may or may not get that,” Fraser said. Proposed is a four-storey building adjacent to the hospital off 86 Street called Harlequin at Prairie Rose Park, which would include 116 apartments. The building would also include a clubhouse, dining hall, commercial kitchen, meeting spaces, and grand courtyard, as well as housekeeping, meal prep, and recreational programming for residents. The two companies are continuing to pursue other funding streams from government, as well as regular bank financing, Fraser noted, and have received a relaxation of developer cost charges from the city which they said will help contribute to the affordability of the project. “Really excited about the community and the area. The amount of support we’re getting is phenomINDUSTRY & TRADES | SUMMER/FALL 2021


The community is designed to be open and inclusive...

enal,” said Fraser. “We’re now just piecing it all together trying to get as much support as we can.” “We are also working with Treaty 8 on this building and have had very productive talks with them, about having some of their members participating in this building and its care structure,” Fraser noted. “They are quite excited about it and so are we.” There are about 200 people on seniors housing and assisted living wait lists at any given time in Fort

St. John, and many leave the city because of their lack of options. The city’s senior population 65 years and older is predicted to jump by 171% by 2036. VRS, a Vancouver-based non-profit, was founded in 1972, and operates 40 buildings in B.C., including the Lower Mainland, Vancouver Island, and the Interior. Harlequin is being planned for seniors 55 and older and persons with disabilities who are capable of living independently. Future phases of development would include a range of housing from bungalows to assisted living to palliative care, as well as commercial amenities and a multi-use medical complex that is also being planned in partnership with Treaty 8 First Nations. Electoral Director Karen

Goodings (Area B) asked where the Harlequin development falls under the PRRD’s housing strategy mandated by the province. Ron Brar of Peace Holdings responded that the building could be presented as a shovel-ready project. “We’ve always envisioned an aging in place or intergenerational community on the site,” said Brar. “This is exactly the type of project they want communities and regional districts to provide,” he said. “This is a proponent coming forward, a non-profit fully capable of this type of project, coming forward and alleviating a need in the community that we as private developers, or even the city or the regional district, we could not take on ourselves.” “This is part of a solution for the provincial housing

strategy. When you guys are putting that together, you can say there is a project in the pipeline that’s requesting assistance to make it more feasible.” Brad Tone, director of development for VRS, says the project is contingent on community partnerships. Construction documents are being drafted to get shovels in the ground as soon as possible, and the hope is to build road access and install utility services this year. “The community is designed to be open and inclusive where, in general, open pathways replace fences. It’s a bit of a new concept, but it’s something that we feel is important to the community,” said Tone.

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San Group owners Suki, left, and Kamal Sanghera with technical manager Richard Zeller at their facility in Port Alberni in Feb. 2021. Binny Paul, Local Journalism Initiative Reporter/Terrace Standard

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angley-based forestry company San Group looks at expanding its northwest presence, just weeks after announcing a $100 million investment in Port Alberni. In a visit to Terrace June 9, San Group president Suki Sanghera said it wants to build a sawmill to process wood it already acquires here and ships out for processing and has plans to acquire more. Sanghera and John Langstroth, the company’s vice president of sales operations, met with City of Terrace officials, keying

on the prospect of securing a spot at the Skeena Industrial Development Park just south of the Northwest Regional Airport. Their visit came a week after San announced it is spending $100 million in Port Alberni to expand its operations there. Of that amount, $60 million will bolster the company’s ability to ship lumber by container ships from Port Alberni’s deep sea port. Northwest B.C.’s geographic location with ports in Prince Rupert and Kitimat was a natural choice for the company’s INDUSTRY & TRADES | SUMMER/FALL 2021


This area (Terrace) fits well with us since we can connect our operations in Port Alberni with barges

expansion plans, said Sanghera who co-owns the company with his brother and CEO of San Group, Kamal Sanghera. “This area (Terrace) fits well with us since we can connect our operations in Port Alberni with barges,” he said. City of Terrace economic development manager Deklan Corstanje said discussions are still in their initial stages, but it is “a really promising looking development.” “They’ve made some really significant investments in the future and they’re a great fit for the region with their whole approach to value added forestry products since they use the whole tree… So obviously, waste will be minimum and benefits for the community and hopefully the environment is at a maximum,” added Corstanje. If the company proceeds with its plan, Sanghera said it would need 40 to 50 acres for a mill producing 50 to 60 million board feet of lumber a year that would cost approximately $60 million to build. “We’re still in the planning step but to facilitate that SUMMER/FALL 2021 | INDUSTRY & TRADES

much production it would require 60-70 people,” said Sanghera about the prospects of creating local jobs. He said the intent is to use every bit of fibre that comes from the forest to ensure a zero wastage policy – similar to its operations elsewhere. In the past four years since they began operating in Port Alberni, San Group invested more than $100 million to establish three new facilities in the city and currently employs over 400 people. In Terrace, San Group is aiming for a joint venture with one of the First Nations and will be meeting with Kitselas and Kitsumkalum – both have forestry operations. They will also meet with Kitwanga First Nation – an hour east of Terrace along Hwy 16 – with whom the company has been doing business for a while. San Group purchases dimensional lumber, mostly cedar and occasionally logs, from Kitwanga Forest Products and reprocesses it. “So we’re familiar with the fibre in the region and the people and we’re looking at possibilities to enhance what we’re doing here in the northwest on a small scale to a larger one,” said Sanghera. San has been operating on Vancouver Island since 2016 and markets itself as the province’s largest manufacturer of valueadded market-ready wood products which are exported to more than 27 countries. The company says it keeps jobs on Canadian soil which is not often the case when fibre is directly exported to other countries.

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