A wood chip facility predominantly owned by the ʼNa̱mǥis Nation in northern Vancouver Island has announced its permanent closure due to the recent shutdown of a mill in Crofton, B.C. Atli Resources CEO Jonathan Lok stated that the closure of Atli Chip LP will not only impact the nine direct employees but also have ripple effects on the wider Beaver Cove community near Port McNeill.
Lok expressed his sadness over the closure, emphasizing the professionalism and dedication of the facility’s workforce. In addition to the direct employees, a contractor responsible for supplying wood fiber to the facility and approximately 10 to 15 associated positions will also be affected. Various tertiary suppliers like mechanics and electricians will face repercussions as well.
The company disclosed the closure on January 20, with operations expected to cease by the end of February. Atli Resources, majority-owned by the ʼNa̱mǥis Business Development Corporation, has Domtar as one of its other partners. All materials processed at the facility were shipped to the Crofton pulp mill, which Domtar had announced would permanently shutter by April.
Anna Kindy, MLA for North Island, described the closure as a significant setback for the region, already grappling with job losses in the resource industry. North Island-Powell River MP Aaron Gunn criticized the NDP’s policies, attributing the closure to systemic issues affecting the forest sector.
Lok acknowledged the industry’s current challenges, citing a complex interplay of factors contributing to the downturn. Forests Minister Ravi Parmar expressed disappointment over the closure, highlighting the broader hurdles faced by B.C.’s forestry sector, such as escalating U.S. duties on softwood lumber imports and a scarcity of viable timber resources in the province.
Despite the adversity, Parmar commended Atli Resources LP for its commitment to the forest sector’s future, emphasizing the importance of partnerships and long-term vision for a more resilient coastal forestry sector. The ministry has reached out to the employer and the Town of Port McNeill to provide support during this transition.
