The Flavelle sawmill in Port Moody has had to shut down because of soaring insurance premiums in the wake of two fatal sawmill explosions in B.C.'s Interior.
Flavelle Sawmill Company's Mill and Timber Products Ltd. went from paying about $300,000 annually to just over $1 million, according to news reports, and that hike only compounds problems for a company already struggling with flagging markets.
Following fatal explosions at Babine Forest Products in Burns Lake and another in Prince George, WorkSafeBC has ordered all sawmills in the province to inspect their premises for dust build-up.
Heavy dust build-up has been widely speculated to be the cause of the explosions, mainly due to processing the tinder-dry pine beetle wood.
But Flavelle's David Gray told CTV News that isn't an issue at the Port Moody mill.
Gray said wood processed in PoMo is "soaking wet" because it comes out of the ocean, and there is no risk of the facility exploding.
Port Moody Mayor Mike Clay said the sawmill contributes about $1.4 million annually to the city's tax base and its shut-down "could have an effect on us."
But he noted the company's long-term plan is to develop its waterfront property, with everything from a hotel to a marina and artist studios being suggested.
"There's lots of discussion that's taken place around that site in the last 20 years but as long as it's operating as a mill, it's been a moot point," Clay said. "If they move ahead on development, there will be a huge impact on the tax base in Port Moody, so there are lots of variables."
