Worthington Mackenzie pulp mill may soon have a new Chinese owner

The United Petroleum Group of China, one of China's largest private oil companies, is close to purchasing the idled Worthington Mackenzie pulp mill for a rumoured $20 million.

Worthington Mackenzie purchased the pulp mill for $6.5 million in May 2008 when the mill's owner, Pope & Talbot, went into receivership. The mill did not restart and the province of British Columbia has been on the hook for the maintenance of the mill ever since.

As part of the proposed deal, the United Petroleum Group of China agrees to maintain the mill until the deal is finalized in December. This means the machinery would be kept warm to prevent damage from freezing.

The Chinese also say they want to secure a fibre supply for the mill as a condition to re-opening it. The Mackenzie wood fibre supply was sold to Canfor Corp. as part of the deal in which Mackenzie Worthington bought the pulp mill out of bankruptcy a year ago.

Forests Minister Pat Bell said Thursday that if the mill is sold, there will be a fibre supply.

A deal was expected by Friday, but the burgeoning costs of keeping the mill mothballed stalled talks.

Read more:

Chinese negotiating to buy Mackenzie pulp mill (Vancouver Sun

Mackenzie mill deal stalls over costs (Vancouver Sun)