City of Prince Rupert

City of Prince Rupert

August 30, 2013 13:54 ET

News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 30, 2013) - The City of Prince Rupert has settled out of court with Sun Wave Forest Products Ltd. all the litigation pending and any future claims on the City of Prince Rupert.

This settlement involves the dismissal of three separate claims and subsequent appeals made against the City of Prince Rupert by Sun Wave Forest Products Ltd. This litigation has taken many years and hundreds of thousands of dollars to adjudicate. The legal and other expenses have been paid by Watson Island Development Corporation (WatCo) to support the City as part of their agreement for sale for Watson Island.

Although the settlement is confidential the City of Prince Rupert will not pay Sun Wave Forest Products Ltd. any City money and will work to decommission the mill over the next 24 to 30 months. The City now has clear title to the old pulp mill site and can work toward completing a sales agreement with WatCo. (a consortium of local First Nations and Colonial Coal International Corp.). WatCo intends to repurpose the mill as a private multi modal port using the land and docking facilities to service the coming industrial activity in the Prince Rupert region. An overall environmental remediation plan will be sought from the Province of British Columbia and the site will be remediated as the mill site is decommissioned.

"This is excellent news," said Prince Rupert Mayor Jack Mussallem, "The private sector can now move on with repurposing Watson Island resulting in numerous jobs, while the mill is decommissioned. Congratulations are in order for our new City Manager, Robert Long, who has taken on this complicated file and found a workable solution that is good for Prince Rupert."

City Manager, Robert Long commented, "I would like to thank Mayor and Council for their patience and the trust they have placed with the staff to end this long legal dispute."

The City will, in conjunction with other parties, make arrangements to decommission the pulp mill and sell the equipment and scrap metal on site. As part of the sales agreement with WatCo it is anticipated, given the constant inquiries, that the private sector is keen to obtain a contract to decommission the pulp mill.

Contact Information

  • Media Inquires:
    City of Prince Rupert
    Jack Mussallem

    Colonial Coal
    Parry Braun