West Fraser’s Alberta mill charged with environmental and safety violations

HINTON (Scrap Monster): The provincial government has charged West Fraser’s Hinton, Alberta mill for failing to comply with environmental laws. The lumber giant has been charged by the provincial authorities for instances of leakage and unloading of chemical substances, which took place at the facility around two years back.

The Alberta government has charged the pulp mill owner with multiple offences under the Environmental Protection Act. It faces a total of six count charge under the Environmental Protection and Enhancement Act for release of chemical substance to the air in September 2014. The facility has been charged for not immediately reporting the leakage to Alberta government. The company is also charged with one count, under the Dangerous Goods Transportation and Handling Act, for non-observance of safety rules while unloading the chemical substance from truck.

Meantime, James Gorman, vice president of external and government relations at West Fraser stated that the company has always tried to promote environmental and safety regulations at is facilities. He admitted that the company had failed to inform authorities of the delivery of the material at a wrong location. However, upon noticing this, the employees at the facility acted quickly to prevent release of the substance into the air. Later, the company had notified the appropriate government agencies about the incident. Gorman also noted that the company has conducted thorough review and significant improvements in material handling techniques, following the incident.

The issue is currently before the court and West Fraser is scheduled to make its first court appearance in the case October 19^th.

Earlier in April this year, the company had announced opening of its new state-of-the-art plant at its pulp mill in Central Alberta. It had spent $30 million on what is considered as Canada’s first commercial-scale lignin recovery plant. The plant had started production in March and was supported by grant from Alberta Innovates Bio Solutions (Al Bio) and funding from the federal government through Natural Resources Canada and Sustainable Development Technology Canada. The plant uses a proprietary process named LignoForce System developed with the help of FPInnovations and NORAM Engineering.

In 2Q 2016, West Fraser had reported earnings of $98 million on sales of $1,111 million. During the quarter, lumber operations had generated operating earnings of $78 million and Adjusted EBITDA of $113 million. The panel segment had generated operating earnings in the quarter of $18 million and Adjusted EBITDA of $21 million. Pulp & paper operations had generated an operating loss of $5 million and Adjusted EBITDA of $4 million.

During the first quarter of the current year, the company had reported earnings of $42 million on sales of $1,077 million. The operating earnings and Adjusted EBITDA during the quarter had stood at $63 million and $100 million respectively. The panel segment had generated operating earnings in the quarter of $12 million and Adjusted EBITDA of $15 million. Pulp & paper operations had generated operating earnings of $5 million and Adjusted EBITDA of $14 million.

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.