Vancouver-based West Fraser Timber Co. (TSX:WFT) has announced an agreement to sell its deep sea wharf in Kitimat to Rio Tinto Alcan.
According to West Fraser, the wharf formed part of the company’s Eurocan linerboard and kraft paper mill, which closed in January 2010.
Rio Tinto said that it is planning to use the wharf to accommodate new aluminum production in a project to modernize its Kitimat smelter. The project would increase the smelter’s current production by more than 48% to approximately 420,000 tonnes a year.
“Rio Tinto remains committed to its operations in B.C. and looks forward to broader import and export growth in this key region,” said Paul Henning, the company’s vice-president, B.C. operations and strategic projects, Western Canada.
The sale is subject to obtaining government approvals for the transfer of permits and licences and is expected to be completed later in 2011.
“We are pleased this agreement will help the wharf continue to be a major economic generator for Kitimat and the northwest region,” said Hank Ketcham, West Fraser’s chairman, president and CEO.