B8 Terrace Review — Wednesday, January 9, 1991

PUBLIC INFORMATION _

‘MEETING

ORENDA FOREST PRODUCTS LTD
PROPOSED GROUNDWOOD PULP & PAPER MILL

- A public meeting will be held at the High School in Stewart on

Thursday, January 10, 1991, at 8:00 PM, to outline Orenda’s
- proposal to develop a 500-tonne per day paper mill akout 50
kilometres south of Meziadin Junction. Orenda’s proposed
project is subject to review under the Major Project Review
Process (MPRP)

Representatives of the Company will provide interested par- |

ties with general information on the Project. A representative
of the Major Project Steering Committee will also be on hand
. to explain the MPRP, and how the public can participate in
the review process. ;

A Prospectus document, which describes the Project and its
potential impacts, has been released for public review. The
Prospectus Is available for review at the Prince Rupert, Ter-
race and Stewart public libraries, the Kitwanga Esso Station
and the Smithers Office of the Ministry of Environment (3726
Alfred Avenue). Members of the public wishing to submit writ-
ten comments on Orenda’s Prospectus are asked to do so by
February 8, 1991.

Please forward your written comments to:

Mr. David Parsons Mr. Frank Foster, Vice President
MPRP Coordinator Orenda Forest Products Ltd.
B.C. Environment 265 - 25th Street

Environmental Assessment Branch West Vancouver, British Columbia

3rd Floor, 777 Broughton Street
Victorla, British Columbia

V8V 1X5

Teal: 387-9677 Fax: 356-7183

V7V 4H9
Tel: 926-4445 Fax: 926-7963

- Where To Fine "

Railway faces hard choice

in coal mine bail-out plan

Every carload on the massive
trains filled with Northeast coal
that pass through Terrace daily is
losing money for the owners of
Quintette, the mine in northeastern
B.C. where the coal is dug up. For
the past year Quintette has been
feetering on the brink of financial
ruin, and last month the company
proposed the latest in a series of

_ plans to save itself.

Part of that plan calls for the
CNR and BC Rail to write $2.4
million in debt owed them by
Quintette and to reduce freight
rates from $24.52 a tonne to
$17.40. If the railways take it, it
would cost them about $45 million
a year in reduced revenue. Quin-
tette is also asking for a revision
of the current transportation con-
tract with the railways, which
charges the company for 6.5 mil-
lion tons of coal regardless of the
actual amount shipped —- Quintette
wants to be charged for what it
actually ships. | a

CN public affairs officer Marian
Robson said from Vancouver Fri-

day that the railway is currently.

considering the plan but isn’t pre-

pared yet to respond. "They’ve

developed a complex proposal to
all their creditors. I don’t know
how long the response will take,"
she said. Robson also noted that
the response will have to be deve-
loped jointly with the BCR.

The northeast coal accounts for a
large proportion of the CN’s
freight volume on the north line
from Prince George to Prince
Rupert. When asked what the
effect on the line would be if the
mine shut down permanently,
Robson replied, "We're very con-
cemed."

. Another part of the rescue plan

involves Ridley Terminals, the
Prince Rupert coal port through
which the mine’s production is
shipped to Japan. Ridley is being

‘asked to forgive Quintette’s $1.7
- million debt to the company and

Terrace
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Terrace, B.C.

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cut its handling rate nearly in half.

The northeast coal project began
as a B.C. government initiative
under Premier Bill Bennett in
1981. Opening the mine, building
the community of Tumbler Ridge
and preparing the rail lines cost
over $1 billion. The project's
viability depended on long-term
delivery contracts to Japanese steel
mills.

The mine’s serious financial
troubles began last year when it
lost an arbitration against the
Japanese and had to drop its oal
prices by $28 a tonne to bring
them more in line with the world
price for metallurgical coal, which
had declined substantially since the
contract began. An appeal against
the arbitration decision was struck
down by the Supreme Court of
Canada Dec. 13.

Despite the cut, Quintette’s
prices are still about $20 a tonne
above world prices.

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