Millar Western has announced the indefinite curtailment of its Quesnel River Pulp mill in Quesnel, British Columbia, a decision that will affect workers, contractors and their families and is expected to take a significant bite out of the city's finances. The company cited ongoing market challenges and significant tariffs on Chinese exports as the reasons for the move.
Mayor Coralee Oakes said the city is deeply disappointed by the announcement. The closure arrives at a time when many families are already under pressure from affordability challenges, and the mayor's office has framed the loss of the mill as a blow to a community that depends heavily on the forest sector. The city has sent pointed questions to the company about the decision and its implications for the community.
The shutdown is a reversal of the company's earlier position. In August, Millar Western described the shutdown as temporary. The letter announcing the indefinite curtailment is now under review by the city, and it is not yet clear whether another company might buy the mill and reopen it. Until that question is answered, the future of the site remains uncertain.
The financial consequences for the City of Quesnel are expected to be substantial, although no dollar figure has yet been estimated. City officials said it is too early to put a number on the loss. The municipality receives grant-in-lieu revenue from the mill, and the mill-related grant is estimated at between $100,000 and $150,000. That amount equals roughly a 1 per cent shift in the city's tax base, and the city expects the effects to ripple into other revenue sources as well.
Oakes has spoken with premier-elect Lorne Doerkson about the closure. The city is also in talks with Todd Doherty, the member of Parliament for the area, and meetings are planned for this week. Ministry transition teams are expected to be activated as the provincial government changes hands, giving the city a point of contact as the new administration takes shape. The city is asking for levels of support comparable to those offered to sectors in eastern Canada, and has pointed to aid provided to the auto, steel and aluminum industries as precedents for the kind of help it wants to see.
The closure also complicates provincial planning. British Columbia has set a harvest target of 45 million cubic metres, and the loss of the mill is expected to strain the province's ability to meet it. The mill's shutdown will also be discussed in relation to BC Hydro, as officials assess the wider effects on the province's energy system. For a community built around forestry, these province-level questions translate directly into jobs, tax revenue and the long-term viability of local services.
For now, the people most immediately affected are the workers, contractors and families who rely on the mill for their livelihoods. The mayor's office has made clear that the city will press both levels of government for support while it works out what the closure means for its budget and for the families who depend on the operation.