By Robb M. Stewart


Conifex Timber is temporarily halting operations at its sawmill and plans to appeal a court ruling upholding a government decision preventing the lumber-products producer from diversifying its operations into the cryptocurrency sector.

The company, which in addition to harvesting timber and sawmilling logs also produces bioenergy at a power generation facility on Canada's west coast, said it is curtailing its sawmill and planer for two weeks beginning on Monday due to ongoing weather-related transportation challenges that have delayed spring log deliveries and resulted in lower than planned log inventories.

Conifex said it expects the reduced operating schedule will impact sawmill production capacity, though it continues to deliver spring decked logs from the southern portion of its Mackenzie timber supply area in British Columbia and has begun summer logging activities in the northern portion of the area.

In May, Conifex said it would halt production for four weeks at its sawmill in Mackenzie starting June 5 because of expected low water levels but expected to resume normal lumber production operations in July.

The company, which aims to develop computing data centers in northern British Columbia, it late 2022 put those plans on hold after the province's Lieutenant Governor in Council directed the British Columbia Utilities Commission to relieve power company BC Hydro of any obligation to supply electrical service for cryptocurrency projects for a period of 18 months. Conifex in April last year filed a petition with the British Columbia Supreme Court seeking a judicial review and an order quashing the order, but the court in February dismissed the petition.

The company said Thursday it will appeal the Supreme Court ruling.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

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